OXBR

Oxbridge Re Holdings Ltd. - 10-Q Summary (Period Ended June 30, 2026)

Business Context and Reporting Period

This is a Quarterly Report (Form 10-Q) for Oxbridge Re Holdings Ltd., a Cayman Islands-based specialty property and casualty reinsurer and Web3-focused tokenization platform. The reporting period covers the three and six months ended June 30, 2026. The company operates through its reinsurance subsidiaries (Oxbridge Reinsurance Limited and Oxbridge Re NS) and its Web3 subsidiary, SurancePlus Inc., which issues tokenized reinsurance securities.

Key Financial Metrics

Material Changes vs. Prior Period

• Profitability Turnaround: The company reported a net income of $198,000 for the six months ended June 30, 2026, compared to a net loss of $2.01 million in the prior year period. This reversal is primarily driven by the absence of underwriting losses in the current period versus a $2.3 million full-limit loss recognized in the prior year.
• Revenue Composition: SurancePlus management fee income surged to $501,000 from $1,000 in the prior year, driven by the successful completion of the HCI 2026 Series token offering. Conversely, Net Premiums Earned decreased to $924,000 from $1.18 million due to lower capital deployment and weighted average rates on reinsurance contracts.
• Liquidity Expansion: Total cash and restricted cash increased significantly to $19.82 million from $6.98 million at year-end 2025. This increase is attributed to proceeds from new tokenized securities (HCI 2026 Series) and collateral deposits, offset by operating cash outflows.
• Expense Reduction: General and administrative expenses decreased to $1.13 million from $1.76 million, attributed to reduced professional fees and overall compensation.

Guidance, Outlook, and Risks

• Tokenization Strategy: The company continues to expand its Web3 business through SurancePlus. On June 30, 2026, it completed a private placement of HCI 2026 Series A, B, and C tokens, raising $6.3 million in gross proceeds. These tokens represent fractionalized interests in reinsurance contracts.
• Capital Deployment: Management noted that profitability is influenced by the timing and magnitude of follow-on offerings to deploy capital into new reinsurance treaties. The company is exploring diversification into AI data center revenue streams.
• Seasonality and Catastrophe Risk: Results are subject to seasonal variations, with hurricane season running from June to November. The company faces exposure to natural catastrophes, though it attempts to limit exposure to acceptable levels. No losses were incurred in the current period.
• Regulatory Constraints: Subsidiaries are subject to Cayman Islands regulatory capital requirements (minimum net worth of $500), which restricts dividend payments if net worth falls below this threshold. Both subsidiaries currently exceed this requirement.

Investor Verification Checklist

• Token Redemption Terms: Verify the specific loss triggers and redemption values for the newly issued HCI 2026 Series tokens (Series A: $36, Series B: $49, Series C: $35.20) and their classification as mezzanine equity.
• Collateral Adequacy: Confirm that the $12.02 million held in trust for the HCI 2026 program fully collateralizes the synthetic exposure as stated in the filing.
• ATM Facility Usage: Monitor the utilization of the new At-the-Market (ATM) sales agreement with Chardan Capital Markets, noting the recent sale of 300,000 shares for $342,000 net proceeds.
• Loss Reserve Development: Given the high-severity nature of the business, monitor future quarters for any adverse loss development on the 2026-2027 treaty year, as no losses were recorded in the current period.
• Related Party Transactions: Review the terms of the collateral deposit agreement with HCI Group and the related party nature of the HCI contract.