Oxbridge Re and its subsidiary SurancePlus reported second-quarter and first-half 2025 results, with higher net premiums earned but wider losses compared to the same periods last year.
Net premiums earned for the quarter ended June 30 rose to $582,000 from $564,000 a year earlier. For the six months ended June 30, net premiums earned increased to $1.18 million from $1.11 million. The company attributed the increases to higher rates on contracts in force during the period.
The net loss for the quarter widened to $1.87 million, from $821,000 in the same quarter last year. For the first half, the net loss was $2.01 million, compared with $1.73 million in the prior-year period.
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Oxbridge said the higher losses were primarily due to adverse development and loss recognition from Hurricane Milton on one reinsurance contract, in addition to other expense increases.
Total expenses for the quarter were $3.61 million, up from $628,000 a year earlier. For the six months, total expenses rose to $4.18 million from $1.18 million. The company cited hurricane-related losses, higher personnel and human resources costs, professional marketing and investor relations expenses, tokenization costs at its Web3 subsidiary, and legal and registration-related expenditures as key drivers.
In the first quarter, Oxbridge Re reported net premiums earned of $595,000, an increase from $549,000 in the same period last year, while narrowing its quarterly net loss to $139,000 from $905,000 in Q1 2024. The company attributed the improvement in quarterly results to stronger premium rates and lower catastrophe impacts in that period, compared to the prior year.
“The quarter marked a pivotal moment for Oxbridge and SurancePlus. We have not only expanded our footprint in the rapidly growing tokenized reinsurance market but also forged strategic partnerships that position us for accelerated growth,” CEO Jay Madhu (pictured above) said.
As of June 30, restricted cash and cash equivalents totaled $6.7 million, up 12.9% from $5.9 million at year-end 2024. The company said the increase reflected premium deposits, proceeds of $2.7 million from a registered direct offering net of expenses, and payments for underwriting losses and general expenses.
Earlier this year, the company expanded its tokenized reinsurance investment offerings through SurancePlus with two structured options – EtaCat Re, targeting a 20% annual return, and ZetaCat Re, targeting a 42% annual return.
Both were priced at $10 per token and designed to broaden access to reinsurance-linked assets for a wider range of investors, lowering the entry threshold for participation in this asset class.
The company also advanced its blockchain infrastructure by partnering with the Midnight Foundation to deploy tokenized securities on the Midnight blockchain. This network uses zero-knowledge proof technology to balance regulatory compliance with transaction privacy.
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