Oxbridge Re swung to a profit in the first quarter of 2026, posting results that underscore the Cayman Islands-based firm's pivot toward tokenized reinsurance through its SurancePlus subsidiary.
The company reported net income of $22,000, or $0 basic and diluted income per share, for the three months ended March 31, 2026. That marked a turnaround from a net loss of $139,000, or ($0.02) per share, in the same period a year earlier.
Net premiums earned slipped to $555,000 from $595,000, which Oxbridge Re attributed to a lower weighted average rate on reinsurance contracts in force during the quarter. Total expenses climbed to $583,000 from $570,000, driven by higher professional costs linked to investor relations and marketing for its web3 subsidiary.
Restricted cash and cash equivalents stood at $8.19 million as of March 31, up $1.21 million from $6.98 million at year-end 2025. The increase reflected premium deposits during the quarter and $1 million in proceeds from a loan payable.
The loss ratio held at 0% for the period. The acquisition cost ratio inched up to 11.0% from 10.9%, while both the expense ratio and combined ratio rose to 105% from 95.8%.
The quarter's results also captured early signals from the SurancePlus platform. The Balanced Yield Token (EtaCat Re), which had initially targeted a 20% annual return, is now expected to deliver 25%, while the High Yield Token (ZetaCat Re) remains on track to hit its 42% target.
The current vintages follow earlier issuances under the SurancePlus banner. DeltaCat Re, launched in 2023, raised $2.4 million and produced a 49% return, while EpsilonCat Re raised $2.88 million in 2024 before absorbing a full limit loss of $2.3 million from Hurricane Milton, bringing total capital raised across the three programs to roughly $9 million.
Oxbridge Re said the platform continued to advance blockchain infrastructure and interoperability through relationships involving Solana, Alphaledger, and LayerZero, extending connectivity across more than 160 blockchain networks.
The company said that it is also exploring tokenized reinsurance participation for third-party carriers and counterparties.
For the 2026–2027 cycle, Oxbridge Re plans T20 and T42 offerings targeting 20% and 42% annual returns. Management cited forecasts from Colorado State University suggesting the 2026 Atlantic hurricane season may trend below historical averages, supported by anticipated El Niño conditions.
Chairman and chief executive Jay Madhu (pictured above) said the company was pleased with the performance of this year's tokenized reinsurance contracts.
"As we approach the conclusion of the season, our existing offerings remain unaffected and on track to pay out 25% and 42%, respectively," he said.
Madhu added that the firm is exploring extensions of the SurancePlus model into other cash-generating asset categories, including tokenized data center revenue streams aligned with artificial intelligence infrastructure growth.
"We believe the combination of platform growth, strong contract performance, and expanding market opportunities positions the Company well as we enter the upcoming underwriting cycle," he said.
