Oxbridge Re Holdings Limited (Nasdaq: OXBR) Q2 2025 Earnings Call | 08/15/2025

Oxbridge Re Holdings Limited held its Q2 2025 earnings call, hosted by Chairman, President, and CEO Jay Madhu, and CFO Rendon Timothy, with operator Denae facilitating. The company discussed its performance in reinsurance and its expansion into tokenized real-world assets (RWAs) via its subsidiary, SurancePlus, Inc. Key highlights include:

1. Core Reinsurance Business:

   • Oxbridge specializes in fully collateralized reinsurance policies for low-frequency, high-severity property loss risks, competing effectively with larger carriers.

   • The company aims for long-term growth in book value per share through selective underwriting to achieve attractive risk-adjusted returns.

2. Expansion into RWA and Web3:

   • Since 2022, SurancePlus has focused on tokenized reinsurance securities, leveraging blockchain for transparency and SEC compliance, broadening access to alternative investments.

   • Strategic partnerships with Plume (a leading RWA platform) and Midnight Foundation (linked to Cardano) enhance distribution and position Oxbridge as a leader in blockchain-enabled RWA innovation.

   • The company targets a $760 billion reinsurance market with tokenized offerings, including a balanced yield product (20% annual return) and a high-yield product (42% annual return), assuming no losses.

   • Oxbridge actively participates in global blockchain and RWA events (e.g., iConnect Miami, ETH Denver, Token 2049 Dubai) to strengthen industry leadership and forge partnerships.

3. Financial Performance:

   • Net premiums earned increased to $582,000 in Q2 2025 from $564,000 in Q2 2024, and to $1.18 million for H1 2025 from $1.1 million in H1 2024, driven by higher contract rates.

   • Net investment and other income rose to $93,000 in Q2 2025 (from $56,000 in Q2 2024) and $173,000 for H1 2025 (from $126,000 in H1 2024).

   • Total revenues were $664,000 in Q2 2025 (vs. $44,000 in Q2 2024) and $1.36 million for H1 2025 (vs. negative $81,000 in H1 2024).

   • Total expenses rose to $3.61 million in Q2 2025 (from $628,000 in Q2 2024) and $4.18 million for H1 2025 (from $1.18 million in H1 2024), primarily due to a $2.3 million loss from Hurricane Milton, increased HR, professional, marketing, SurancePlus, and legal costs.

   • Net loss was $1.87 million ($0.25 per share) in Q2 2025 (vs. $821,000 or $0.14 per share in Q2 2024) and $2.01 million ($0.28 per share) for H1 2025 (vs. $1.73 million or $0.29 per share in H1 2024), driven by Hurricane Milton losses.

   • Loss ratio surged to 394% (Q2) and 194.8% (H1) due to Hurricane Milton, though external token holders absorbed ~$1.1 million of the loss.

   • Expense ratio increased to 227% (Q2) and 160.7% (H1) from 111.3% and 105.7% in 2024, reflecting higher operational costs.

   • Combined ratio rose to 621% (Q2) and 355.5% (H1) from 111.3% and 105.7% in 2024.

   • Cash and equivalents grew 12.9% to $6.7 million from $5.9 million, boosted by a $2.7 million registered direct offering and premium deposits, offset by Hurricane Milton losses.

4. Strategic Initiatives:

   • An extraordinary general meeting is planned to approve measures to accelerate growth and leadership in the RWA space, ensuring compliance and transparency.

   • The company emphasizes its first-mover advantage as a NASDAQ-listed issuer of tokenized reinsurance securities, positioning it to capture significant market opportunities.

5. Outlook:

   • Oxbridge remains optimistic about its reinsurance business and RWA expansion, aiming to drive sustainable growth and shareholder value.

   • The company is preparing for 2025 and 2026 tokenized reinsurance offerings and leveraging partnerships to enhance its market position.