Business Context and Reporting Period
Company: Oxbridge Re Holdings Ltd (OXBR)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Overview: Oxbridge Re is a Cayman Islands specialty property and casualty reinsurer focusing on fully collateralized reinsurance contracts, primarily for the Gulf Coast region of the United States (emphasis on Florida). The company operates through reinsurance subsidiaries (Oxbridge Reinsurance Limited and Oxbridge Re NS) and a Web3-focused subsidiary, SurancePlus Inc., which issues tokenized reinsurance securities (e.g., DeltaCat, EpsilonCat, ZetaCat, EtaCat) representing fractional interests in reinsurance contracts.
Key Financial Metrics
| Metric | 2025 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Net Premiums Earned | $2,287 | $2,303 |
| Total Revenue | $2,577 | $546 |
| Total Expenses | $6,040 | $2,171 |
| Net Loss Attributable to Ordinary Shareholders | $(2,079) | $(2,726) |
| Loss Per Share (Basic & Diluted) | $(0.28) | $(0.45) |
| Cash and Restricted Cash | $6,976 | $5,893 |
| Combined Ratio | 264.1% | 94.3% |
| Loss Ratio | 119.9% | 0.0% |
Material Changes vs. Prior Period
- Catastrophic Losses: The 2025 results were significantly impacted by Hurricane Milton. The company recognized a full limit loss of $2.3 million on one contract and a partial loss of $442,000 on a second contract, totaling $2.742 million in losses and loss adjustment expenses. In contrast, there were no losses incurred in 2024.
- Revenue Composition: Total revenue increased to $2.577 million in 2025 from $546,000 in 2024. This increase was driven by a significant reduction in unrealized losses on other investments (which were $2.145 million in 2024) and realized gains, partially offset by the underwriting losses.
- Expense Growth: General and administrative expenses rose to $3.046 million in 2025 from $1.917 million in 2024. This increase is attributed to higher professional costs for investor relations, Web3 subsidiary tokenization costs, S-3 registration costs, and increased personnel/legal expenditures.
- Underwriting Performance: The combined ratio deteriorated from 94.3% in 2024 to 264.1% in 2025 due to the Hurricane Milton losses and increased operating expenses.
Guidance, Outlook, and Risks
- Tokenization Strategy: The company continues to expand its tokenization business through SurancePlus. In February 2026, it launched new high-yield (T42:2027) and balanced-yield (T20:2027) tokenized reinsurance securities on the Solana blockchain. The company intends to use this platform to tokenize other real-world assets (RWAs).
- Liquidity and Debt: In February 2026, the company entered into a $1.0 million promissory note with a 16% annual interest rate, maturing in August 2026. Proceeds are for working capital. The company expects to repay this note in June 2026 using collateral cash released from trust accounts following the end of the 2025/26 treaty period.
- Capital Raising: The company utilized an At-The-Market (ATM) facility in 2025, selling 287,915 shares for net proceeds of $873,515. It also completed a registered direct offering in February 2025 raising approximately $2.7 million.
- Risks:
- Catastrophe Exposure: High vulnerability to hurricanes and windstorms in Florida; results are inherently volatile.
- Tokenization Risks: The Web3 business is in early development with limited operating history; risks include technology failures, lack of trading markets, and regulatory uncertainty.
- Regulatory: Subject to Cayman Islands Monetary Authority (CIMA) capital requirements; failure to meet these could restrict operations.
- Dividends: The company does not intend to resume paying cash dividends in the foreseeable future.
Investor Verification Checklist
- Hurricane Milton Impact: Verify the final settlement amounts for the two reinsurance contracts affected by Hurricane Milton and confirm the portion of losses borne by external tokenholders versus the company.
- Tokenholder Liabilities: Review the "Mezzanine Equity" section to understand the $518,000 due to tokenholders and how the $1.2 million decrease from 2024 reflects the allocation of losses.
- Debt Service: Confirm the company's ability to repay the $1.0 million promissory note due in August 2026, specifically relying on the projected release of collateral funds in June 2026.
- Expense Run Rate: Assess whether the $3.0 million in general and administrative expenses is sustainable given the current revenue base and the early-stage nature of the tokenization business.
- Capital Requirements: Verify that subsidiaries Oxbridge Reinsurance Limited and Oxbridge Re NS continue to meet the $500 minimum net worth requirement mandated by CIMA.