Oxbridge Re Holdings (OXBR, Financial), along with its subsidiary SurancePlus, is expanding its operations in the tokenization of real-world assets. Specializing initially in tokenized reinsurance securities, the company offers reinsurance options to property and casualty insurers in the Gulf Coast area of the United States. Recently, Oxbridge Re has formed a strategic alliance with the Midnight Foundation, which is focused on fostering ecosystem growth for the Midnight network. This network, a privacy-oriented blockchain, is developed by Shielded Technologies, a branch of Input Output Global, known for creating Cardano.
Through this collaboration, SurancePlus aims to leverage the Midnight blockchain for tokenized reinsurance securities, enhancing its offerings to institutional investors. This positions SurancePlus as a leader in high-yield, confidential real-world asset tokenization. The integration of Midnight as a blockchain partner allows SurancePlus to deliver privacy-centered solutions to regulated institutions and qualified investors, marking a significant step in the evolution of its services.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Oxbridge Re Holdings Ltd (OXBR, Financial) is $5.00 with a high estimate of $5.00 and a low estimate of $5.00. The average target implies an upside of 222.58% from the current price of $1.55. More detailed estimate data can be found on the Oxbridge Re Holdings Ltd (OXBR) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Oxbridge Re Holdings Ltd's (OXBR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
OXBR Key Business Developments
Release Date: May 12, 2025
- Net Premium Earned: Increased to $595,000 from $549,000 year-over-year.
- Investment and Other Income: Increased to $79,000 from $62,000 in the prior year.
- Total Revenue: $692,000 for the quarter, compared to negative $125,000 in the prior year.
- Total Expenses: Increased to $570,000 from $548,000 year-over-year.
- Net Loss: $439,000 or $0.02 per share, compared to a net loss of $95,000 or $0.15 per share in the prior year.
- Loss Ratio: Remained consistent at 0% year-over-year.
- Acquisition Cost Ratio: Consistent at 10.9% year-over-year.
- Expense Ratio: Decreased to 95.8% from 99.8% year-over-year.
- Combined Ratio: Decreased to 95.8% from 99.8% year-over-year.
- Investment Portfolio: Increased to $116,000 from $113,000 at the prior year-end.
- Cash and Cash Equivalents: Increased by $3.7 million to $9.6 million from $5.9 million as of December 31, 2024.
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.
