Reinsurance has long been a market for institutional players, with entry requiring tens of millions of dollars, specialist networks, and established counterparty relationships.
A deal announced recently by SurancePlus, a subsidiary of Cayman Islands-based Oxbridge Re Holdings and HCI Group is testing whether blockchain can open that market to a wider pool of capital.
The two companies agreed to launch three tokenized reinsurance securities on the Solana blockchain through the Alphaledger platform. The securities, labeled HCI Re 2026 Series A, B, and C, carry synthetic exposure to excess-of-loss reinsurance contracts in HCI’s subsidiary Fortex Reinsurance SPC’s 2026–2027 program.
The return targets are striking. Series A, B, and C aim for annualized returns of approximately 243%, 133%, and 19% respectively, assuming no underwriting losses. The high end signals a commensurately high level of risk.
Attachment points within the reinsurance towers have not been disclosed.
The return targets sit well above traditional benchmarks. Cat bonds returned 11.40% for 2025 based on the Swiss Re Global Cat Bond Performance Index. This context matters, but so does the downside: SurancePlus’s 2024 EpsilonCat Re program suffered a full limit loss of $2.3 million after Hurricane Milton.
High target returns in this asset class carry downside exposure. Minimum investment starts at approximately $5,000. The offering is open to US accredited investors under Rule 506(c) and to non-US investors under Regulation S.
HCI Group secured $4.06 billion in aggregate excess-of-loss reinsurance limit for the 2026–2027 treaty year. Fortex Re was a new addition to the program. If fully subscribed, SurancePlus expects to add approximately $12 million in restricted assets to its balance sheet.
The global reinsurance sector is valued at over $784 billion and projected to reach $2 trillion over the next decade.
Major asset managers have taken note. BlackRock’s tokenized money market fund now exceeds $2.5 billion in assets under management. Apollo and Franklin Templeton have launched similar vehicles. Blockchain-based financial infrastructure is no longer a fringe experiment.
The shift is now reaching reinsurance directly. In April 2026, Schroders Capital and Hannover Re closed the first live collateralized reinsurance transaction on a tokenized platform.
Alternative reinsurance capital hit a record $136 billion in 2025, growing 18% over the prior year, according to Aon’s Reinsurance Solutions.
The London Stock Exchange Group launched a blockchain-powered digital markets platform for issuance, trading, and settlement.
Reinsurance asset manager MembersCap has used it to raise capital for a private fund. Distributed-ledger infrastructure is gaining traction in private risk vehicles well outside the crypto world.
“We believe blockchain technology is fundamentally changing how real-world assets are owned, distributed, and accessed,” said Jay Madhu, chairman and CEO of Oxbridge Re and SurancePlus. “Tokenized securities bring together the innovation of blockchain with the protections and structure of traditional financial markets.
“Reinsurance is one of the largest and most established real-world asset markets in the world, and our relationship with HCI Group and Fortex Re represents an important step in bringing reinsurance risk on-chain.”
Whether the model scales will depend on regulatory clarity, investor appetite for catastrophe risk, and the depth of capital that on-chain infrastructure can deliver. The reinsurance market has been built on rated paper and long-standing counterparty relationships, and on-chain challengers will need to earn their place in that structure.
