OXRE(OXBR) - 2025 Q2 - Quarterly Results

Company Highlights and Q2 2025 Results The company highlights strategic expansion in tokenized reinsurance, new partnerships, and active industry engagement in Q2 2025 CEO's Remarks The CEO emphasized the quarter's pivotal role in expanding tokenized reinsurance and forming strategic partnerships, setting industry standards - The company views the current period as crucial for accelerating its strategy, strengthening leadership, and capturing growth opportunities in the tokenized reinsurance market[2] Strategic Developments Oxbridge partnered with Midnight Foundation and SurancePlus launched new tokenized reinsurance offerings with attractive target returns - The company formed a strategic partnership with the Midnight Foundation, which supports the privacy-focused Midnight Network blockchain, to expand SurancePlus's reach and distribution[3] SurancePlus 2025-2026 Tokenized Reinsurance Offerings | Product Type | Target Annual Return | | :--- | :--- | | Balanced-Yield | 20% | | High-Yield | 42% | Industry Engagement The company actively participated in and sponsored major global Blockchain and RWA events to showcase SurancePlus and foster partnerships - Oxbridge participated in major industry events such as ETHDenver 2025, Token2049 in Dubai, and Money20/20 Europe to promote its SurancePlus platform and explore collaborations[5] Financial Performance Analysis Q2 2025 saw increased net premiums but a wider net loss due to Hurricane Milton, significantly impacting key financial ratios Q2 2025 Financial Results Net premiums earned slightly increased, but a significant net loss of $1.87 million was reported due to Hurricane Milton, despite increased restricted cash Q2 & H1 2025 Financial Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Premiums Earned | $582 | $564 | $1,180 | $1,110 | | Net Loss | $(1,870) | $(821) | $(2,010) | $(1,730) | | Basic & Diluted Loss per Share | $(0.25) | $(0.14) | $(0.28) | $(0.29) | | Total Expenses | $3,610 | $628 | $4,180 | $1,180 | - The increase in net loss was primarily driven by adverse development and loss recognition from Hurricane Milton on a reinsurance contract[7] - As of June 30, 2025, restricted cash and cash equivalents increased by 12.90% to $6.7 million from year-end 2024, mainly due to a $2.7 million registered direct offering, offset by payment of underwriting losses and expenses[9] Key Financial Ratios Underwriting performance deteriorated significantly in Q2 2025, with the loss ratio surging to 394% and combined ratio to 621% due to Hurricane Milton Performance Ratios Comparison | Ratio | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Loss Ratio | 394.0% | 0.0% | 194.8% | 0.0% | | Acquisition Cost Ratio | 11.0% | 11.0% | 11.0% | 11.0% | | Expense Ratio | 227.0% | 111.3% | 160.7% | 105.7% | | Combined Ratio | 621.0% | 111.3% | 355.5% | 105.7% | - The significant increase in the loss ratio was due to a $2.29 million full limit loss on a reinsurance contract affected by Hurricane Milton, with a net impact on the company's equity of $1.18 million after accounting for losses borne by external tokenholders[10] Financial Statements Total assets and liabilities increased as of June 30, 2025, with a significant net loss attributable to ordinary shareholders in Q2 2025 Consolidated Balance Sheets Total assets increased to $9.17 million, driven by cash and premiums receivable, while total liabilities and shareholders' equity also rose Selected Balance Sheet Data (in thousands of U.S. Dollars) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $9,172 | $7,465 | | Cash and cash equivalents | $3,870 | $2,135 | | Restricted cash and cash equivalents | $2,783 | $3,758 | | Total Liabilities | $2,685 | $1,623 | | Total Shareholders' Equity | $5,281 | $4,110 | Consolidated Statements of Operations Q2 2025 unaudited statements show a $2.29 million loss and loss adjustment expense, leading to a $1.87 million net loss for ordinary shareholders Selected Statement of Operations Data (in thousands of U.S. Dollars) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net premiums earned | $582 | $564 | | Total revenue | $664 | $44 | | Losses and loss adjustment expenses | $2,293 | $0 | | Total expenses | $3,614 | $628 | | Net loss attributable to ordinary shareholders | $(1,873) | $(821) | Additional Information This section provides details on the upcoming conference call, company overview, and a standard forward-looking statements disclaimer Conference Call Management will host a conference call on August 14, 2025, to discuss Q2 2025 financial results - A conference call to discuss Q2 2025 financial results is scheduled for August 14, 2025, at 4:30 p.m. Eastern time, hosted by CEO Jay Madhu and CFO Wrendon Timothy[14][15] About Oxbridge Re Holdings Limited Oxbridge Re offers traditional and tokenized reinsurance solutions through SurancePlus, making RWAs accessible to investors - The company offers both traditional property and casualty reinsurance and innovative tokenized reinsurance securities (RWAs) through its subsidiaries, including SurancePlus[16][17][18] Forward-Looking Statements The press release includes a standard disclaimer regarding forward-looking statements, directing readers to SEC filings for risk factors - The press release includes a disclaimer that forward-looking statements are not guarantees of future results and are subject to risks detailed in the company's SEC filings[19]