OXBR

Tokenized Reinsurance (Assurance Plus) Progress

• The 2025-2026 treaty year ADACAT RE and ZADACAT RE offerings exceeded their original annual return targets, delivering 29.3% and 43.4% annualized returns respectively, against initial targets of 20% and 42%.
• For the 2026-2027 treaty year, the firm successfully closed five tokenized reinsurance offerings on the Solana blockchain, raising $7.1 million in aggregate gross proceeds. This included two proprietary offerings (T20 and T42, with 26% and 32% targeted annual returns assuming no underwriting losses) and three third-party offerings in partnership with HCI Group.
• The addition of third-party offerings marks a key strategic expansion, demonstrating that Assurance Plus can structure and tokenize reinsurance opportunities originated by external parties, beyond Oxbridge's own operations. Cumulatively, Assurance Plus has issued ~1.27 million tokenized securities, raised over $16 million in cumulative gross proceeds, and backs over $31 million of deployed capital in tokenized reinsurance contracts.

New AI Infrastructure Segment (AI Gridworks)

• Oxbridge launched AI Gridworks, a new subsidiary focused on developing, owning, and operating AI data centers and related power infrastructure, expanding the firm's real-world asset (RWA) strategy beyond financial reinsurance assets to physical infrastructure.
• An experienced leadership team with deep specialized expertise has already been assembled: the team has originated ~3 gigawatts of powered land opportunities, and includes leadership with seven years of data center development experience at Meta, working on 2.5 gigawatts of deployed capacity across five data center campuses.
• The strategy initially targets projects between 10 and 100 megawatts (with a primary focus around 50 megawatts) and maintains flexibility to pursue larger opportunities if attractive. The initial development focus is on sites in the southeast United States.
• AI Gridworks will leverage Assurance Plus's RWA structuring and tokenization capabilities to offer investor access to fractional interests in completed AI infrastructure assets and their associated revenue streams, creating a complementary, vertically integrated strategy with built-in optionality across the entire data center value chain.

Overall Financial Performance

• Q2 2026 net income was $176,000 ($0.02 basic undiluted income per share), a improvement from a $1.87 million net loss ($0.25 loss per share) in Q2 2025. This improvement was driven by zero underwriting losses recorded in the quarter (versus a full-limit loss on one contract in Q2 2025), plus Assurance Plus management fee income and reduced general and administrative costs.
• For H1 2026, net income was $198,000 ($0.02 per share), compared to a $2.01 million net loss ($0.28 per share) in H1 2025, driven by the same factors of zero underwriting losses and reduced operating expenses.
• The loss ratio for reinsurance operations fell to 0% in both Q2 2026 and H1 2026, from 394% and 194.8% respectively in the prior year periods. The combined underwriting ratio fell to 175.8% in Q2 2026 from 621% in Q2 2025, and to 133.1% in H1 2026 from 355% in H1 2025.
• As of June 30, 2026, restricted cash and cash equivalents totaled $19.82 million, up $12.85 million from the end of 2025.

Management did not provide explicit quantified financial guidance for full-year 2026 or future periods. The firm's core qualitative forward-looking guidance focuses on:

• Disciplined execution across both the Assurance Plus tokenized reinsurance platform and the newly launched AI Gridworks data infrastructure business
• Continued expansion of third-party RWA tokenization opportunities on the Assurance Plus platform, building on the successful initial set of three third-party reinsurance offerings
• Steady advancement of the AI Gridworks development pipeline, with the firm prioritizing flexible, size-appropriate 10-100 megawatt projects in the southeast US to avoid direct competition with large industry incumbents
• Leveraging the complementarity of the two business platforms to create multiple pathways for long-term shareholder value creation through RWA development and tokenization

Oxbridge operates two core business segments: Tokenized Reinsurance (Assurance Plus) and New AI Infrastructure (AI Gridworks). For the second quarter ended June 30, 2026:

• Tokenized Reinsurance segment: Net premiums earned decreased to $368,000 from $582,000 in Q2 2025. This segment generated all management fee income that contributed to overall positive net income, and accounted for 100% of the firm's current operating revenue, as AI Gridworks has not yet generated revenue. Total company revenue for Q2 2026 was $940,000, up from $64,000 in Q2 2025. For the six months ended June 30, 2026:
• Tokenized Reinsurance segment: Net premiums earned decreased to $924,000 from $1.1 million in the prior year period. Total company revenue for the first half of 2026 was $1.5 million, up from $1.3 million in H1 2025. AI Gridworks is still in the pre-revenue development phase as of Q2 2026, with no operating income to report.

• All forward-looking statements are explicitly subject to material risks and uncertainties that could cause actual results to differ materially from management expectations, as detailed in the Risk Factors section of Oxbridge's most recent Form 10-K filed with the SEC.
• The occurrence of any identified material risk could have a significant adverse impact on the firm's business, financial condition, and earnings volatility, which may cause large fluctuations in the market price and trading volume of Oxbridge's securities.
• AI Gridworks is a new, unproven business line, and faces execution risk as the firm advances its first development pipeline of data center projects, as well as competition for attractive sites and tenant demand.
• Tokenized reinsurance and RWA tokenization remain an emerging asset class, and face regulatory, market adoption, and pricing risks, in addition to standard underwriting risk for reinsurance contracts.

Q: Can you outline your strategic approach to the new AI data center business, including target size, location, tenant types, and financing plans? / A: Oxbridge is targeting 10 to 100 megawatt facilities, rather than the large gigawatt-scale projects built by major industry incumbents, to avoid direct competition with dominant market players. The firm is initially focusing on sites in the southeast U.S., and maintains flexibility on tenant type based on site characteristics and developing demand as projects progress. Management highlighted that optionality across the development process is a core part of the strategy.

Q: Can you expand on the vertical integration and optionality in your AI data center strategy, and how does this work with the existing Assurance Plus business? / A: The strategy creates optionality at every stage of the value chain: after securing land and securing required entitlements and power access, the firm can either sell the pre-developed site for a profit or move forward to build out the data center. Once built, Oxbridge can operate as a landlord leasing data hall space to tenants that bring their own GPUs, or operate the facility itself with its own hardware. This flexible approach avoids overcommitting capital at any stage. The business also benefits from deep in-house expertise across real estate development, power infrastructure, and data center construction.

Q: How does Assurance Plus complement the AI Gridworks business, particularly for financing? / A: In addition to traditional financing avenues that are readily available for data center projects from banks, Assurance Plus enables smaller investors to take fractional tokenized ownership stakes in completed infrastructure assets, with fast onboarding via automated KYC/AML checks. Management notes that this local retail ownership may also help reduce NIMBY opposition to new developments by giving local community members a direct financial stake in the project. This creates multiple complementary financing levers for both development and exit, aligning the two business lines under the firm's broader RWA strategy.