Oxbridge Re Q4 2025 Earnings Results & Report

Oxbridge Re EPS Results

• Actual EPS: $0.0160
• Consensus EPS: -$0.02
• Beat/Miss: Beat by +$0.0360
• One Year Ago EPS: N/A
• EPS Beat Rate: 1 of last 5 quarters

Oxbridge Re Revenue Results

• Actual Revenue: $0.58 million
• Expected Revenue: $0.70 million
• Beat/Miss: Missed by -$124.00 thousand
• YoY Revenue Growth: N/A

Oxbridge Re (NASDAQ:OXBR) (NASDAQ: OXBR) is a Bermuda-based specialty reinsurance holding company. Through its subsidiaries, the company provides collateralized reinsurance to property and casualty insurers, with an emphasis on coverage for catastrophe-related risks such as hurricanes and other natural disasters.

Oxbridge Re’s reinsurance business is designed to support insurers that need additional capacity for property catastrophe exposures. Its underwriting activities generally involve property catastrophe excess-of-loss reinsurance, in which the reinsurer assumes losses above specified thresholds in exchange for premiums and collateral arrangements.

The company was established in 2013 and has operated from Bermuda, a major global center for reinsurance. Oxbridge Re has also pursued technology-focused initiatives related to the distribution and financing of reinsurance risk, including its SurancePlus platform, which is intended to use blockchain-based structures to provide access to tokenized reinsurance-linked investments.

Oxbridge Re Holdings is led by Jay Madhu, who serves as chief executive officer and chairman. The company’s business is primarily focused on the global property catastrophe reinsurance market, with exposure to the regions and risks covered through the insurance contracts it underwrites.

Oxbridge Re Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: SurancePlus tokenization and distribution progress — including entry into the Solana ecosystem and LayerZero/AlphaLedger connectivity across 160+ networks — meaningfully broadens investor access to on‑chain reinsurance and should support future growth.
• Negative Sentiment: Management recorded significant underwriting losses tied to Hurricane Milton, driving the combined ratio to a very high 264% for FY2025 and materially increasing expense and loss ratios versus the prior year.
• Positive Sentiment: Revenue improved to $2.58M for FY2025 (from $546k prior year) and the company narrowed its annual net loss to $2.08M (versus $2.73M), while the most recent quarter produced $120k net income, reflecting higher investment/other income and allocation of underwriting losses to token holders.
• Positive Sentiment: Strong liquidity position with approximately $6.9M in cash and restricted cash as of Dec 31, 2025, which management says supports tokenization initiatives and potential expansion into additional real‑world assets such as tokenized data center revenue.

Presentation

[Operator]

Good afternoon. Welcome to Oxbridge's Fiscal 2025 earnings call. My name is Shamali, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. Joining us for today's presentation is Oxbridge's Chairman, President, and Chief Executive Officer, Jay Madhu, and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open up the call for your questions. I would like to remind everyone that this call will be available via telephone replay until April 13, 2026. Details for the telephone replay are included in the press release issued today. Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plans, projects, and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed today, March 2026, with the Securities and Exchange Commission.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and volatility of our earnings, which in turn could cause significant market price and trade volume fluctuations for our securities. Any forward-looking statements made on this conference call speak only as of the date of this conference call. Except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions, or circumstances change. Now I'd like to turn the call over to our Chairman, President, and Chief Executive Officer, Jay Madhu. Jay.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Thank you, Rendon, and welcome everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on chain and broadening investor access. At our core, we are a disciplined reinsurance business, writing fully collateralized policies covering property catastrophe risk. We compete through selective data-driven underwriting with a focus on generating attractive risk-adjusted returns and long-term growth in book value per share. Our strategy centers on low frequency, high severity risk, where significant data exists to rigorously evaluate the risk-return profile. We emphasize disciplined risk selection, appropriate pricing, and thoughtful structuring, supported by a full collateralization to ensure transparency and alignment.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Building on this foundation, SurancePlus continues to expand our ability to bring reinsurance on chain in a compliant and scalable manner, broadening access to an asset class that has historically been limited to institutional partnerships. We believe this combination of underwriting discipline and evolving platform capabilities positions Oxbridge well as we continue to execute our strategy and pursue opportunities within the growing real-world asset market. We now turn things over to Wrendon to take us through our financial results. Wrendon.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31st of the following year. Net premiums earned for the three months ended December 31, 2025, decreased to $555,000 from $595,000 for the quarter ended December 31, 2024. The decrease is due to lower weighted average rate on reinsurance contracts in force during the quarter ended December 31, 2025, when compared with the prior period. Net premiums earned for the years ended December 31, 2025, and 2024 was approximately $2.3 million. Our net investment income and other income for the three months ended December 31, 2025, increased to $63,000 from $60,000 from prior year. There was a decrease in the fair value of equity securities during this period.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Along with net premiums, total revenue amounted to $576,000 for the three months ended December 31, 2025, compared to $422,000 in the prior year comparable period. Our net investment and other income for the fiscal year ended December 31, 2025, increased to $314,000 from $240,000 from the prior year. Along with net premiums, change in fair value of equity securities and other investments resulted in total revenues of $2.58 million for the fiscal year ended December 31, 2025, compared to $546,000 for the prior year comparable period. For the three months ended December 31, 2025, total expenses, including policy acquisition costs and general and admin expenses, increased to $1.04 million from $497,000 for the quarter ended December 31, 2024.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

The increase is primarily due to the recording of underwriting losses incurred during the quarter as a result of adverse loss development on one of our contracts affected by Hurricane Milton in 2024, as well as increased general and admin expenses when compared with the prior. Gentlemen, are you still there?

[Operator]

Please stand by. We're having some technical difficulties. Gentlemen, you may proceed.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Thanks. Apologies for those technical difficulties. I'll start back from the financial analysis. Net premiums earned for the three months ending December 31, 2025 decreased to $555,000 from $595,000 for the quarter ending December 31, 2024. The decrease is due to the lower weighted average rate on reinsurance contracts in force during the quarter ending December 31, 2025 when compared to the prior year period. Net premiums earned for the years ending December 31, 2025 and 2024 was approximately $2.3 million. Our net investment income for the three months ending December 31, 2025 increased to $63,000 from $68,000 for the prior comparable period. There was a decrease in the fair value of equity securities during this period.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Along with net premiums, our total revenue amounted to $576,000 for the three months ending December 31, 2025, compared to $422,000 in the prior year comparable period. Our net investment income and other income for the fiscal year ending December 31, 2025 increased to $314,000 from $248,000 from prior year comparable period. Along with net premiums, change in fair value of equity securities and other investments resulted in total revenues of $2.58 million for the fiscal year ending December 31, 2025, compared to $546,000 in the prior year comparable period.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Regarding total expenses for the three months ending December 31, 2025, total expenses including policy acquisition costs, general admin expenses, and underwriting costs increased to $1.04 million from $497,000 for the quarter ending December 31, 2024. The increase is primarily due to the recording of underwriting losses incurred on Hurricane Milton, which occurred in 2024 as a result of adverse loss development, as well as increased general and admin expenses when compared with the prior period. For the year ending December 31, 2025, total expenses, which includes policy acquisition costs, loss and loss adjustment expenses, and general admin expenses, increased to $6.04 million from $2.17 million for the year ending December 31, 2024.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Again, the increase is due primarily to the recording of losses on reinsurance contracts affected by Hurricane Milton in 2024. Increased professional costs related to investor relations and the SurancePlus subsidiary tokenization costs, SurancePlus-related costs, increased human resources, and personnel and legal expenditures. Net income for the quarter ending December 31, 2025 was $120,000 or $0.02 per basic and diluted income per share, compared to a net loss of $460,000 or $0.05 basic and diluted loss per share for the quarter ending December 31, 2024. The decrease in net loss is primarily due to the allocation of underwriting losses to token holders, coupled with a decrease in negative change in fair value of equity securities and unrealized loss on all the investments.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

An increase in investment income and other income during the quarter ending December 31, 2025 when compared with the prior period. Net loss for the year ended December 31, 2025 was $2.08 million or $0.20 basic and diluted loss per share, compared to a net loss of $2.73 million or $0.45 basic and diluted loss per share for the year ended December 31, 2024. The change is primarily due to higher overall revenues driven by significant decrease in unrealized loss on all investments, partially offset by higher expenses and higher underwriting losses borne by token holders during the year ended December 31, 2025 when compared with the prior period. We have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

For our reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. The loss ratio is the ratio of loss and loss adjustment expenses to the premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio increased to 80.9% for the three-month period ended December 2025 when compared with the prior comparative period. The loss ratio increased 119.9% for the fiscal year ended December 31, 2025 when compared with the prior comparative period. These increases were due to losses recognized on reinsurance contracts affected by Hurricane Milton, which was a loss event occurring in 2024. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs to the premiums earned.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

The acquisition cost ratio remained consistent at 11% for the quarter and year ended December 31, 2025, when compared with the prior comparative periods. Our expense ratio, which measures operating performance, compares policy acquisition costs and general and admin expenses with net premiums earned. For the three months ended December 31, 2025, the expense ratio increased to 106.7% from 83.5% for the three-month period ended December 31, 2024. For the year ended December 31, 2025, the expense ratio increased to 144.2% from 94.3% for the year ending December 31, 2024.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

The increases are primarily due to increased professional costs related to investor relations and marketing, our SurancePlus subsidiary costs, Oxbridge Re NS-related costs, increased human resources and personnel and legal costs during the quarter and year ending December 31, 2025 when compared with the prior comparable periods. Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and expense ratio. For the three-month period ended December 31, 2025, the combined ratio increased to 187.6% from 83.5% for the three-month period ended December 31, 2024. For the year ended December 31, 2025, the combined ratio increased to 264% from 94.3% for the year ending December 31, 2024.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

Again, the increase is due to higher general admin expenses and losses incurred due to Hurricane Milton that have been recorded during the quarter and the year ending December 31, 2025 when compared with prior comparable periods. Now turning to the balance sheet. Our investment portfolio decreased to $0 at December 31, 2025 from $115,000 the prior year-end, primarily due to sale of our two equity securities during the year ended December 31, 2025. Cash and cash equivalents, unrestricted cash and cash equivalents increased by $1.08 million to approximately $7 million from $5.89 million as of December 31, 2024.

[Wrendon Timothy, CFO and Corporate Secretary at Oxbridge Re]

The increase is due primarily to new collateral deposits for the current treaty year ended May 31, 2026, more than offsetting funds being released from the underlying trust for loss payments during 2025 relating to Hurricane Milton. I'll now turn the call back over to Jay to wrap up before we take your questions. Jay?

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Thank you, Rendon. We are encouraged by the performance of our 2025 and 2026 tokenized reinsurance contracts. The Balanced-Yield Token is tracking 25% ahead of its 20% target, and the High-Yield Token is tracking its 42% target. These results reflect our disciplined underwriting approach and demonstrate the ability of our platform to deliver attractive uncorrelated returns within the global reinsurance market. We have also made meaningful progress expanding our platform through strategic relationships, including our entry into the Solana ecosystem and expanded distribution across more than 160 blockchain networks enabled by LayerZero through the AlphaLedger platform. These developments significantly broaden access to our offering and position SurancePlus within one of the leading blockchain ecosystems for real-world asset adoption.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

As we look ahead to the 2026/2027 contract cycle, we are targeting returns of 20% and 42% for our T20 and T42 offerings. Industry commentary, including reports from Artemis, indicate that El Niño conditions may support a favorable risk environment, and we are optimistic about the opportunities these present. In parallel, we are exploring opportunities to extend our model into additional high-quality, cash-generating assets such as the tokenization of data center revenue streams, particularly as it relates to the growth of artificial intelligence, AI. We also believe our current market valuation does not fully reflect the strength of our balance sheet, including our cash and restricted cash positions, nor the opportunities we are actively evaluating to significantly drive shareholder value. Overall, we remain focused on our disciplined execution, expanding distribution and scaling our platform as we continue to build long-term shareholder value.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

With that, we are ready to open the call for questions.

[Operator]

Thank you, sir. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the Star keys. One moment please while we poll for questions. Our first question comes from the line of Peter Roy with Bloomberg. Please proceed with your question. Peter, are you on the line? It appears that Peter, there's no one on the line of Peter. Again, as a reminder, if anyone has any questions, you may press Star one to join the queue. Our next question comes from the line of Kent Engelke with Capitol Securities. Please proceed with your question.

[Kent Engelke, Chief Economic Strategist at Capitol Securities Management]

Hey, Jay. In the press release, you mentioned this two different times, and you also said it in your comments as well. Can you expand a little bit more about when you're talking about the tokenization of artificial intelligence infrastructure? Can you expand on that at all? That sounds really, really intriguing. On top of that, sounds like you got a bunch of stuff going on. And some of this stuff looks like it's just about to hit. First off, can you expand on the tokenization of data center revenue?

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Yes, absolutely. Thanks again for that question. The data center revenue, let me take it back a little further, right? SurancePlus, the reinsurance tokenization, that's moving along. Reinsurance cycles, as you guys are well aware, are June 1 to May 31 of the following year. Once we get through this next month, a month and a half, two months, we look for new and additional things to go forward to, right? The data center revenue streams, what we're considering doing is evaluating entering into strategic relationships with partners, developers, customers, operators. The interesting thing over here is not only would that be significant for our shareholder valuation for Oxbridge, but also significant value proposition for SurancePlus.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

While we are working on the other endeavors that we've already talked about, we're evaluating some extremely interesting endeavors that would be, that could be very interesting.

[Kent Engelke, Chief Economic Strategist at Capitol Securities Management]

Look forward to following that as you go along. Also, it appears as though you have plenty of cash to, you know, go forward and the like. Am I reading that correctly in regards to your cash balances and your restricted cash?

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Yes. Yeah. We have about $6.9 million in cash and restricted cash. That puts us in great position not only to do things with the reinsurance tokenization, but also to evaluate other opportunities. Great position, great opportunities ahead.

[Kent Engelke, Chief Economic Strategist at Capitol Securities Management]

Hey, I look forward to following you. Been following you for a long time, and looks like there's just a bunch of things that is about to come to fruition, and look forward to seeing it.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Thank you.

[Operator]

Thank you. Again, as a reminder, if you have any questions, pressing Star one on your telephone keypad will join you into the queue. At this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Madhu for his closing remarks.

[Jay Madhu, Chairman, President, and CEO at Oxbridge Re]

Thank you for joining us on today's call. Before we conclude, I would like to extend my gratitude to our employees, business partners, and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team, whose extensive expertise has been instrumental in navigating and advancing our business. We anticipate providing you with further updates to our progress during the next call. Should you have any additional questions, please do not hesitate to reach out to us anytime. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator.

[Operator]

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the investors section of the company's website. Thank you for joining us today for our presentation. You may now disconnect.

Participants

Executives

• Jay Madhu, Chairman, President, and CEO
• Wrendon Timothy, CFO and Corporate Secretary

Analysts

• Kent Engelke, Chief Economic Strategist at Capitol Securities Management