Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oxbridge Re Holdings Ltd (OXBR, Financial) reported an increase in net premium earned for the quarter ended March 21, 2025, rising to $595,000 from $549,000 in the previous year.
- The company successfully diversified its business by establishing Surance Plus Inc, focusing on tokenized real-world assets (RWAs) using blockchain technology.
- Oxbridge Re Holdings Ltd (OXBR) achieved a significant return of over 49% on its initial offering of tokenized reinsurance securities, surpassing the initial projection of 42%.
- The company reported an increase in cash and cash equivalents by $3.7 million, primarily due to premium deposits and a registered direct offering.
- Oxbridge Re Holdings Ltd (OXBR) is exploring strategic partnerships and has signed a memorandum of understanding with Plume to expand distribution channels for its tokenized reinsurance offerings.
Negative Points
- The company reported a net loss of $439,000 for the quarter, although this was an improvement from the previous year's net loss of $495,000.
- Total expenses increased to $570,000 from $548,000, primarily due to stock-based compensation costs.
- The company is still in the early stages of marketing its tokenized securities, facing challenges in gaining adoption in the RWA space.
- Oxbridge Re Holdings Ltd (OXBR) operates in a high-risk market, with potential impacts from catastrophic events like hurricanes affecting its high-yield tokenized securities.
- The company is undergoing a strategic review process, which may include significant changes such as sales, spin-outs, or mergers, indicating potential instability or uncertainty in its current business model.
Q & A Highlights
Q: How is the marketing going for the tokenized securities, and what portion of the $30 trillion market do you expect to capture? Is there any correlation to the catastrophic bond market?
A: Marketing efforts are progressing well, focusing on both traditional finance and the RWA space. Even capturing a small portion of the $30 trillion market would be significant for Oxbridge and Surance Plus. There is a correlation to the catastrophic bond market, but we are uniquely positioned in the RWA space.
Q: What should we expect in terms of information on tokenization marketing in the next 3 to 6 months?
A: We are making good progress with our token launches, offering both balanced yield and high yield tokens. The balanced yield token targets a 20% return, appealing to a broader audience seeking stable returns. We expect to provide more updates as we advance.
Q: Can you discuss the current state of the reinsurance market, including premiums and underwriting?
A: Premiums are stable, and underwriting conditions are favorable, especially in Florida due to regulatory changes. While risks remain, particularly with high-yield tokens, the market is generally healthy, and we are well-positioned to capitalize on opportunities.
Q: Could you elaborate on the partnership with Plume and its potential as a distribution channel?
A: The MOU with Plume offers a robust distribution channel due to their advanced ecosystem. We are also engaging with other significant players in the blockchain space, which enhances our position and potential for growth in tokenized securities.
Q: How does the company plan to navigate the transition from traditional finance to the RWA space?
A: We are carefully balancing our traditional finance operations with our expansion into the RWA space, ensuring compliance with SEC regulations. This strategic pivot involves leveraging blockchain technology to offer innovative investment opportunities while maintaining operational integrity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
