Oxbridge Re (NASDAQ:OXBR) executives highlighted progress in bringing “reinsurance on chain” through its SurancePlus platform while also discussing the financial impact of loss development tied to Hurricane Milton during the company’s fiscal 2025 earnings call.
Management emphasizes tokenized reinsurance strategy
Chairman, President, and CEO Jay Madhu said the company is focused on operating as a “disciplined reinsurance business,” writing fully collateralized policies covering property catastrophe risk. Madhu said Oxbridge competes through “selective data-driven underwriting” aimed at “attractive risk-adjusted returns and long-term growth in book value per share.”
Quarterly results: revenue up, expenses rose on Hurricane Milton loss development
Chief Financial Officer Wrendon Timothy said net premiums earned for the three months ended Dec. 31, 2025 declined to $555,000 from $595,000 in the prior-year quarter, attributing the decrease to a lower weighted average rate on reinsurance contracts in force.
Timothy reported net investment income for the quarter was $63,000, and noted there was a decrease in the fair value of equity securities during the period. Total revenue for the quarter increased to $576,000 from $422,000 in the comparable prior-year period.
Expenses increased sharply. Timothy said total expenses for the quarter rose to $1.04 million from $497,000 a year earlier, primarily due to underwriting losses recorded “as a result of adverse loss development on one of our contracts affected by Hurricane Milton in 2024,” as well as higher general and administrative expenses.
Despite the higher expenses, Timothy said net income for the quarter was $120,000, or $0.02 per basic and diluted share, compared with a net loss of $460,000, or $0.05 per share, in the year-ago quarter. He attributed the improvement primarily to the “allocation of underwriting losses to token holders,” along with a smaller negative change in the fair value of equity securities and unrealized losses on investments, and higher investment and other income compared with the prior period.
Full-year results: higher revenue, but underwriting metrics worsened
For the year ended Dec. 31, 2025, Timothy said net premiums earned were approximately $2.3 million, similar to the prior year. Net investment income and other income increased to $314,000 from $248,000 in the comparable prior-year period.
Total revenue for fiscal 2025 rose to $2.58 million, compared with $546,000 for fiscal 2024, which Timothy said reflected net premiums and changes in the fair value of equity securities and other investments.
Total expenses for the year increased to $6.04 million from $2.17 million. Timothy again pointed to losses tied to Hurricane Milton loss development, and also cited higher professional costs related to investor relations and tokenization costs tied to the SurancePlus subsidiary, as well as increased human resources, personnel, and legal expenditures.
Oxbridge reported a net loss of $2.08 million, or $0.20 per basic and diluted share, for fiscal 2025, compared with a net loss of $2.73 million, or $0.45 per share, in fiscal 2024. Timothy said the change was driven by “higher overall revenues” including a “significant decrease in unrealized loss on all investments,” partially offset by higher expenses and underwriting losses borne by token holders.
Timothy also reviewed underwriting ratios, emphasizing the effect of Hurricane Milton-related losses and higher operating costs:
- Loss ratio: Increased to 80.9% for the three months ended Dec. 31, 2025; increased to 119.9% for the fiscal year, which Timothy said was due to losses recognized on contracts affected by Hurricane Milton.
- Acquisition cost ratio: Remained consistent at 11% for both the quarter and year compared with prior periods.
- Expense ratio: Rose to 106.7% for the quarter from 83.5% a year earlier; increased to 144.2% for the year from 94.3%, driven by higher professional, marketing, subsidiary, staffing, and legal costs.
- Combined ratio: Increased to 187.6% for the quarter from 83.5% and to 264% for the year from 94.3%, reflecting higher general and administrative expenses and Hurricane Milton-related losses recorded during fiscal 2025.
Balance sheet: investment portfolio sold; cash increased
On the balance sheet, Timothy said the company’s investment portfolio declined to $0 at Dec. 31, 2025 from $115,000 at the prior year-end, primarily due to the sale of its two equity securities during fiscal 2025.
Unrestricted cash and cash equivalents increased by $1.08 million to approximately $7 million, from $5.89 million as of Dec. 31, 2024. Timothy said the increase was driven primarily by new collateral deposits for the treaty year ending May 31, 2026, “more than offsetting” funds released from the underlying trust for loss payments during 2025 related to Hurricane Milton.
Token performance, blockchain distribution, and exploration of data center revenue tokenization
In prepared remarks, Madhu said the company was “encouraged” by performance of its tokenized reinsurance contracts. He stated that the Balanced-Yield Token was tracking “25% ahead of its 20% target,” while the High-Yield Token was tracking its “42% target.”
Madhu also pointed to platform expansion efforts, including entry into the Solana ecosystem and expanded distribution “across more than 160 blockchain networks enabled by LayerZero through the AlphaLedger platform,” which he said broadens access to the offering and positions SurancePlus within a major ecosystem for real-world asset adoption.
Looking ahead to the 2026/2027 contract cycle, Madhu said the company is targeting returns of 20% and 42% for its T20 and T42 offerings. He cited industry commentary, including reports from Artemis, suggesting El Niño conditions “may support a favorable risk environment.”
During the Q&A, Kent Engelke of Capitol Securities Management asked management to expand on comments about tokenizing artificial intelligence infrastructure and data center revenue streams. Madhu said that as the company moves through the reinsurance cycle (June 1 to May 31), it evaluates new initiatives, and is considering “entering into strategic relationships with partners, developers, customers, operators” related to data center revenue streams. He described the initiative as potentially significant for both Oxbridge’s shareholder valuation and for SurancePlus, while emphasizing it is still in an evaluation stage.
Engelke also asked about the company’s cash position. Madhu said Oxbridge had “about $6.9 million in cash and restricted cash,” which he said puts the company in a strong position to continue reinsurance tokenization efforts and evaluate other opportunities.
About Oxbridge Re (NASDAQ:OXBR)
Oxbridge Re Holdings Limited (NASDAQ: OXBR) is a reinsurance holding company that provides capital solutions and risk-sharing arrangements to insurance carriers. Its core business centers on offering treaty reinsurance and structured transactions designed to help insurers manage underwriting exposures and optimize their capital efficiency. By leveraging tailored financing structures, Oxbridge Re enables clients to transfer segments of their in-force life and health insurance portfolios, freeing up capital for growth or other strategic initiatives.
The company’s products and services include quota share reinsurance, coinsurance, and loss portfolio transfers, each crafted to address specific balance sheet and earnings targets of cedents.
