Oxbridge Re (OXBR) Q2 2024 earnings summary

Executive summary

• Significant steps taken to diversify operations, focusing on fully collateralized reinsurance, selective underwriting, and tokenized reinsurance securities through SurancePlus, leveraging blockchain technology.

• SurancePlus completed successful tokenized offerings, including EpsilonCat Re, raising up to $2.88 million, and formed a strategic partnership with Zoniqx to enhance Web3 capabilities.

• Strategic review underway, considering alternatives for the company and SurancePlus, such as sales, spin-outs, or continued independent operation.

• Net loss for Q2 2024 was $821,000 ($0.14/share), compared to $85,000 loss in Q2 2023; six-month net loss was $1.73 million versus net profit of $57,000 last year, mainly due to investment losses.

Financial highlights

• Net premiums earned for Q2 2024 were $564,000, up from $183,000 in Q2 2023; for the first six months, $1.1 million versus $183,000 year-over-year.

• Total revenue for Q2 2024 was $44,000, down from $691,000 in Q2 2023; six-month revenue was -$81,000 compared to $1.24 million last year.

• Net investment and other income for Q2 2024 was $65,000, with a $825,000 to $1.5 million unrealized loss on investments, mainly Jet.AI.

• General and administrative expenses decreased to $566,000 in Q2 2024 from $677,000 in Q2 2023.

• Cash and equivalents at June 30, 2024 were $3.98 million, up from $3.7 million at year-end 2023.

Outlook and guidance

• Optimism for long-term growth in core reinsurance and expansion in the RWA Web3 sector, with rebranding to capitalize on the projected $10–16 trillion tokenized asset market by 2030.

• Management expects operational liquidity needs to be met by cash, investment income, and underwriting activities, with no plans to issue debt.

• Strategic partnerships and new offerings are expected to drive future growth and shareholder value.