Oxbridge Re Holdings Ltd. Q1 FY2026 earnings call

• Core Strategy

  • Oxbridge is a disciplined property catastrophe reinsurance provider focused on data-driven, selective underwriting to deliver attractive risk-adjusted returns and long-term growth in book value per share.
  • The firm prioritizes low-frequency, high-severity risks with sufficient data for rigorous risk-return evaluation, emphasizing disciplined risk selection, appropriate pricing, thoughtful contract structuring, and full collateralization for transparency and stakeholder alignment.

• Tokenized Reinsurance Progress

  • Current 2025-2026 tokenized reinsurance offerings are on track heading into the May 31, 2026 conclusion of the contract season. The balanced yield token is currently at 25% return, outperforming its original 20% target, while the high yield token remains on track to hit its 42% target.
  • Oxbridge is continuing to advance its Insurance Plus platform and real-world asset initiatives, expanding access to tokenized reinsurance opportunities through strategic ecosystem partnerships with Solana, Alpha Ledger, and Layer Zero. These partnerships support interoperability across more than 160 blockchain networks, positioning the firm to capture growth in real-world asset adoption.

• New Strategic Initiatives

  • Oxbridge is evaluating opportunities to expand its tokenization model beyond reinsurance into additional high-quality cash-generating asset categories, including tokenized data center revenue streams and AI-aligned infrastructure projects.

• Operational Health

  • As of March 31, 2026, the firm holds $8.19 million in cash and restricted cash to support ongoing strategic initiatives and long-term growth.

Oxbridge operates two core business segments: core property catastrophe reinsurance, and tokenized reinsurance/real-world asset initiatives. For Q1 2026 (ended March 31, 2026):

• Total revenue was $623,000, up from $69,000 in the prior year quarter. Net premiums earned decreased to $595,000 from $255,000 in Q1 2025, due to lower weighted average contract rates. Net investment and other income was $68,000, down slightly from $79,000 in Q1 2025.
• Total expenses increased to $583,000 from $570,000 in Q1 2025, driven by higher professional, investor relations, and subsidiary marketing costs. Core reinsurance underwriting metrics: loss ratio held steady at 0% QoQ; acquisition cost ratio increased marginally to 11% from 10.9%; expense ratio increased to 105.8% from 95.8%; combined ratio increased to 105.8% from 95.8%.
• Net income for Q1 2026 was $22,000 ($0 basic/diluted EPS), compared to a net loss of $19,000 (-$0.02 basic/diluted EPS) in Q1 2025. The improvement came from lower income allocation to token holders (as Oxbridge is a major contributor to the 2025-2026 treaty) and smaller unrealized investment losses.
• The balance sheet had $8.19 million in cash and cash equivalents as of March 31, 2026, up $1.21 million from December 31, 2025, driven by premium deposits and $1 million in short-term loan proceeds. Tokenized reinsurance contributes to overall net income, with the balance yield token currently outperforming its 20% target return at 25%, and the high yield token on track to hit its 42% target.

• For the upcoming 2026-27 underwriting cycle, Oxbridge plans to launch new T20 and T42 tokenized reinsurance offerings targeting annual returns of 20% and 42% respectively, matching the return targets of the current cycle's successful offerings.
• The firm notes that recent Colorado State University forecasts indicate a lower-risk hurricane environment for the coming season compared to recent years, due to anticipated El Nino conditions.
• No formal numerical financial guidance for full-year 2026 was provided, and management maintained current strategic growth outlooks without upward or downward revision to core targets.

• Forward-looking statements (including projections for token returns, new initiative growth, and market conditions) are not guarantees of future results, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from projections.
• Material adverse changes in business, financial condition, or earnings volatility could lead to significant fluctuations in the market price and trading volume of Oxbridge's securities.
• Expanding tokenization into new asset classes (such as AI data center infrastructure) has high barriers to entry, requiring complex back-end, software, and regulatory compliance work that creates operational execution risk.
• Core reinsurance performance is exposed to natural catastrophe risk, though near-term forecasts for hurricane activity are more favorable than recent years.

Q: Can you share more details on your new initiative to tokenize AI-aligned data center revenue streams, given widespread industry expectations of a large future tokenized computing power market? / A: Oxbridge already has deep, proven experience tokenizing reinsurance contracts, a large and complex existing market. The emerging AI data center tokenization market is potentially much larger than the global reinsurance market, and the firm believes the timing is right to pursue this new opportunity. Oxbridge has structured its existing tokenization work to comply with SEC regulations, which gives it a competitive advantage, and the firm plans to capitalize on this opening. It is still too early to share full specific details on the initiative.

Q: Can you confirm that Oxbridge is evaluating tokenizing assets beyond reinsurance? How challenging is the tokenization process for new assets, especially from a regulatory and operational perspective? / A: Yes, Oxbridge is potentially interested in expanding tokenization beyond insurance, but cannot share detailed comments as opportunities are still being evaluated. The firm’s proven success tokenizing a complex, opaque asset like reinsurance gives it confidence that it can succeed with other asset classes. Tokenizing new assets is extremely challenging, with very high barriers to entry that block most competitors, which makes this a valuable opportunity for Oxbridge to leverage its existing capabilities.