OXRE(OXBR) - 2025 Q1 - Quarterly Results

Business and Strategic Highlights Oxbridge Re is expanding its tokenized reinsurance business via SurancePlus, launching new offerings and strategic partnerships to democratize market access - The company is focused on expanding its tokenized Real-World Assets (RWAs) business in the form of tokenized reinsurance securities through its subsidiary, SurancePlus[1] - Signed a Memorandum of Understanding (MOU) with Plume, a blockchain platform managing over $4.5 billion in assets, to significantly enhance distribution channels[2] - SurancePlus launched 2025–2026 tokenized reinsurance offerings targeting 20% and 42% annual returns[3] - The company is actively promoting SurancePlus and building industry relationships by participating in major global tokenization and blockchain events like Consensus 2024 and Token2049[4] Financial Performance Oxbridge Re significantly reduced its Q1 2025 net loss to $139,000, driven by improved investment values and increased net premiums earned Q1 2025 vs. Q1 2024 Key Financial Metrics (in thousands) | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Premiums Earned | $595 | $549 | +8.4% | | Net Loss | ($139) | ($905) | +84.6% Improvement | | Loss per Share (Basic & Diluted) | ($0.02) | ($0.15) | +86.7% Improvement | - The decrease in net loss was primarily driven by a positive change in the fair value of equity securities and gains from the sale of investments in Jet.AI during the quarter[6] - Total expenses rose slightly to $570,000 from $548,000 year-over-year, mainly due to higher stock-based compensation costs[7] - Restricted cash and cash equivalents increased by 62.85% to $9.6 million as of March 31, 2025, from $5.9 million at December 31, 2024, driven by premium deposits and $2.7 million in net proceeds from a registered direct offering[8] Financial Ratios Q1 2025 underwriting performance ratios showed stability and improvement, with the Expense and Combined Ratios decreasing to 95.8% from 99.8% Q1 2025 vs. Q1 2024 Performance Ratios | Ratio | Q1 2025 | Q1 2024 | Note | | :--- | :--- | :--- | :--- | | Loss Ratio | 0.0% | 0.0% | Remained consistent | | Acquisition Cost Ratio | 10.9% | 10.9% | Remained consistent | | Expense Ratio | 95.8% | 99.8% | Decreased due to higher net premiums earned | | Combined Ratio | 95.8% | 99.8% | Decreased due to higher net premiums earned | Financial Statements The consolidated financial statements for Q1 2025 reflect significant asset growth, primarily in cash, and a substantial improvement in net loss compared to the prior year Consolidated Balance Sheets As of March 31, 2025, total assets grew to $10.3 million, driven by cash, while liabilities decreased, significantly increasing shareholders' equity to $7.2 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,963 | $2,135 | | Restricted cash and cash equivalents | $4,634 | $3,758 | | Total Assets | $10,263 | $7,465 | | Total Liabilities | $1,069 | $1,623 | | Total Shareholders' Equity | $7,215 | $4,110 | Consolidated Statements of Operations Q1 2025 saw total revenue of $692,000, a turnaround from a $125,000 loss in Q1 2024, narrowing net loss to $139,000 or ($0.02) per share Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net premiums earned | $595 | $549 | | Total revenue | $692 | ($125) | | Total expenses | $570 | $548 | | Net loss attributable to ordinary shareholders | ($139) | ($905) | | Loss per share (Basic and Diluted) | ($0.02) | ($0.15) | Supplementary Information This section provides details on the Q1 2025 investor conference call, a corporate overview of Oxbridge Re's traditional and tokenized reinsurance business, and forward-looking statements - Management hosted a conference call on May 12, 2025, to discuss the Q1 2025 financial results[13] - The company's business model includes offering property and casualty reinsurance to insurers in the U.S. Gulf Coast region through its licensed reinsurers[16] - The Web3-focused subsidiary, SurancePlus Inc., has developed an 'on-chain' reinsurance RWA, digitizing interests in reinsurance contracts to make them available as an alternative investment[17]