Oxbridge Re Holdings Ltd. Q1 FY2025 earnings call

• Jay Madhu emphasized the company's efforts to fortify and diversify its business, including the 2022 launch of SurancePlus to tokenize reinsurance securities. - In Q2 2023, SurancePlus completed the initial offering of DeltaCat Re on the Avalanche Blockchain, with investors achieving returns over 49%. - The company participated in key blockchain events like Consensus 2024, TOKEN2049 in Singapore and Dubai. - A strategic review process was initiated to explore strategic alternatives for the company and SurancePlus Holdings Limited. - Bitcoin, Ethereum, and other cryptocurrencies were included in the corporate treasury reserve strategy. - An MOU was signed with Plume to expand distribution channels for tokenized reinsurance offerings. - There are 2025-2026 tokenized reinsurance offerings, including a balance yield token targeting 20% annual return and a high-yield token targeting 42% annual return.

For the quarter ended March 31st, 2025, Oxbridge Re's net premium earned increased to $595,000 from $549,000 in the prior year's first quarter. Investment income and other income rose to $79,000 from $62,000, and there was a $35,000 realized gain on the sale of investment in Jet.AI, leading to total revenues of $692,000 compared to a prior loss of $125,000. Total expenses increased to $578,000 from $548,000. The net loss decreased to $439,000 from $905,000. For the reinsurance business, the loss ratio remained at 0% for both periods, the acquisition cost ratio was consistent at 10.9%, the expense ratio decreased from 99.8% to 95.8%, and the combined ratio decreased from 99.8% to 95.8% due to higher net premium earned. SurancePlus, a new subsidiary established in 2022, focuses on RWA Web3 technology, tokenizing reinsurance securities to democratize access to alternative investments.

• Oxbridge Re highlighted its 2025 and 2026 tokenized reinsurance offerings with different return targets. - Industry reports forecast the tokenized asset market could reach $30 trillion by 2034, and the company is positioned to capitalize on this growth.

• The reinsurance business is exposed to risks from natural disasters such as hurricanes, which could impact the high-yield tokenized securities. - There are market volatility risks associated with the tokenized asset space. - Regulatory uncertainties could also pose challenges to the company's operations.

Q: How is the marketing going on for the tokenized securities and potential market capture?

A: Jay Madhu said marketing is progressing well, with the company focusing on both traditional finance and RWA/Web3 spaces. He mentioned that even a small portion of the projected $30 trillion tokenized asset market would be a game-changer for Oxbridge and SurancePlus.

Q: What to look for in the next 3-6 months regarding tokenizations?

A: Jay Madhu indicated that attention should be on the upcoming token launches, including the balance yield and high-yield tokens. The balance yield token is aimed at providing more sustainable returns.

Q: Thoughts on the reinsurance market premiums and underwriting?

A: Jay Madhu stated that premiums are varied, and underwriting in Florida is playing out favorably. The high-yield tokenized security involves risk/reward, while the balance yield token would likely be less affected by certain events.

Q: Details on the partnership with Plume?

A: The MOU with Plume is a good distribution channel as Plume has a highly evolved ecosystem. The company is also working with larger players in the blockchain space within regulatory frameworks.