Oxbridge Re (NASDAQ:OXBR) reported a modest profit for the first quarter of 2026 as lower allocations of underwriting income to token holders and a reduced unrealized loss on other investments helped offset a decline in revenue.
The Cayman Islands-based reinsurance company said net income for the quarter ended March 31, 2026, was $22,000, or $0.00 per basic and diluted share. That compared with a net loss of $139,000, or $0.02 per basic and diluted share, in the prior-year quarter.
Revenue Declines on Lower Reinsurance Rates
Net premiums earned for the quarter fell to $555,000 from $595,000 a year earlier. Timothy attributed the decline to a lower weighted average rate on reinsurance contracts in force during the quarter compared with the prior-year period.
Net investment income and other income also declined, falling to $68,000 from $79,000. Total revenue was $623,000, down from $692,000 in the same quarter last year.
Expenses, including policy acquisition costs and general and administrative expenses, rose to $583,000 from $570,000. Timothy said the increase was primarily tied to professional costs, investor relations and marketing for the company’s Web3 subsidiary.
Chairman, President and Chief Executive Officer Jay Madhu said the company remains focused on disciplined reinsurance underwriting, writing fully collateralized policies that cover property catastrophe risk. He said Oxbridge Re competes through “selective data-driven underwriting” and focuses on low-frequency, high-severity risks where sufficient data exists to evaluate return profiles.
Combined Ratio Rises While Loss Ratio Remains at Zero
Timothy said Oxbridge Re’s loss ratio remained at 0% for the quarter, consistent with the year-earlier period. The acquisition cost ratio increased slightly to 11% from 10.9%.
The company’s combined ratio rose to 105.0% from 95.8% in the prior-year period. Timothy said the increase was primarily related to higher professional costs, investor relations expenses and Web3 subsidiary marketing and operations.
Oxbridge Re’s unrestricted cash and cash equivalents increased to $8.19 million as of March 31, 2026, from $6.98 million at Dec. 31, 2025. Timothy said the increase reflected premium deposits made during the quarter and $1 million in proceeds from a secured short-term loan.
Tokenized Reinsurance Offerings Remain in Focus
Management highlighted the performance of the company’s tokenized reinsurance offerings through SurancePlus as the current contract season approaches its May 31, 2026, conclusion. Timothy reminded investors that the company’s typical contract period runs from June 1 to May 31 of the following year.
Madhu said existing tokenized reinsurance offerings remain unaffected, with the Balanced-Yield token “currently tracking 25% ahead of its original 20% targeted return,” while the High-Yield token remains on track toward its 42% targeted return.
Madhu said those results reflect Oxbridge Re’s underwriting discipline and demonstrate the potential for tokenized reinsurance structures to provide “differentiated, uncorrelated returns” within what he described as the approximately $750 billion global reinsurance market.
The company is preparing its T20 and T42 offerings for the 2026-2027 underwriting cycle, targeting annual returns of 20% and 42%, respectively. Madhu also referenced recent forecasts from Colorado State University indicating the potential for a more constructive hurricane environment relative to recent years, supported in part by anticipated El Niño conditions.
Company Explores Additional Tokenized Asset Opportunities
Beyond reinsurance, Oxbridge Re said it is continuing to advance broader real-world asset initiatives. Madhu cited strategic relationships involving Solana, Alphaledger and LayerZero, saying they support expanded interoperability and ecosystem access across more than 160 blockchain networks.
Madhu also said the company is making progress on opportunities to broaden the SurancePlus model into additional cash-generating asset categories, including potential initiatives tied to tokenized data center revenue streams and infrastructure associated with the growth of artificial intelligence.
During the question-and-answer session, Kent Engelke of Capitol Securities asked for more detail on tokenized data center revenue streams and AI infrastructure. Madhu said the AI data center market “could probably dwarf” the reinsurance opportunity, though he said it was too early to discuss specifics.
“Since we’ve been tokenizing reinsurance, we’ve made great strides over there,” Madhu said. “And we could potentially tokenize other opportunities as well.”
In response to a question from Duane Roberts of Charis Industries, Madhu confirmed that Oxbridge Re is potentially evaluating tokenizing assets beyond reinsurance. He declined to provide details, saying the opportunities are still under review.
Asked about the difficulty of the process, Madhu said it is “extremely hard,” adding that the high barrier to entry could create an opportunity for Oxbridge Re.
Madhu closed the call by saying the company remains focused on disciplined execution, expanding ecosystem relationships and scaling its business through real-world asset initiatives while seeking to build long-term shareholder value.
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.
