Oxbridge Re (OXBR) Q4 2024 earnings summary

Executive summary

• Expanded into the RWA Web3 sector with SurancePlus, offering tokenized reinsurance securities and democratizing access to reinsurance investments, including new offerings targeting 20% and 42% annual returns.

• Maintained focus on fully collateralized reinsurance contracts and selective, profitable underwriting.

• Strategic review underway, considering options such as sale, spin-out, or continued independent operation.

• Board approved holding Bitcoin and Ethereum as part of treasury reserve, reflecting commitment to blockchain innovation.

• Strategic partnership with Plume, a blockchain platform with $4.5B in assets, aims to broaden distribution and scale tokenized reinsurance products.

Financial highlights

• Net premiums earned for FY2024 rose to $2.3M from $1.26M year-over-year; Q4 premiums were $595K vs. $523K prior year.

• FY2024 total revenue was $546K, a turnaround from negative $7M in FY2023; Q4 revenue was $422K vs. negative $1.9M last year.

• FY2024 net loss was $2.7M ($0.45/share), improved from $9.9M ($1.69/share) loss in FY2023; Q4 net loss was $460K ($0.05/share) vs. $2.67M ($0.46/share) prior year.

• Total expenses decreased to $497K in Q4 2024 (from $535K) and $2.1M for FY2024 (from $2.3M), reflecting cost efficiencies.

• Unrealized loss of $2.1M on Jet.AI investment, which was sold post-year-end, expected to reduce future earnings volatility.

Outlook and guidance

• Optimistic about long-term growth in both core reinsurance and RWA/Web3 sectors.

• Launching two new tokenized reinsurance products in 2025-2026: a balanced-yield (20% target) and high-yield (42% target) security.

• Forecasts anticipate RWA tokenization market could reach $30T by 2030-2034, supporting growth ambitions.

• Management focuses on disciplined, compliant platform scaling to capitalize on market growth.