Oxbridge Re (OXBR) Q3 2024 earnings summary

Executive summary

• Expanded into RWA/Web3 with SurancePlus, focusing on tokenized reinsurance securities and blockchain for transparency and compliance.

• Core business remains fully collateralized reinsurance, targeting low-frequency, high-severity risks for selective, profitable growth.

• Strategic review underway, considering sale, spin-out, merger, or continued independent operation for both the company and SurancePlus.

• SurancePlus completed a $2.9 million private placement for EpsilonCat Re tokens, targeting a 42% return, following the successful DeltaCat Re token which paid out 49.11%.

• Net loss for Q3 2024 was $540,000, improved from $7.3 million loss in Q3 2023, mainly due to reduced negative changes in fair value of investments.

Financial highlights

• Net premiums earned for Q3 2024 were $595,000, up from $549,000 in Q3 2023; nine-month premiums rose to $1.7 million from $732,000 year-over-year.

• SurancePlus management fee income was $312,000 for Q3 2024 and $612,000 for the nine months.

• Total revenues for Q3 2024 were $205,000, compared to -$6.38 million in Q3 2023; nine-month revenues were $124,000 versus -$5.1 million last year.

• Unrealized loss of $1.93 million on Jet.AI investment and $188,000 negative change in fair value for equity securities in Q3 2024.

• General and administrative expenses decreased to $432,000 in Q3 2024 from $628,000 in Q3 2023.

Outlook and guidance

• Optimism for long-term growth in both core reinsurance and RWA/Web3 business.

• Plans to issue two tranches of tokenized securities: high-yield (42% target return) and balance yield (22% target return).

• SurancePlus will continue to develop and issue additional series of tokenized reinsurance securities and expand Web3-focused business offerings.

• The company expects to fund operations from operating cash flows and potential future equity offerings, with no current plans to issue debt.

• Anticipates substantial growth in the tokenized asset market, with industry forecasts up to $16 trillion by 2030.