Oxbridge Re (NASDAQ:OXBR) reported second-quarter net income of $176,000, or $0.02 per basic and diluted share, compared with a net loss of $1.87 million, or $0.25 per share, a year earlier, as the company recorded no underwriting losses during the period and benefited from SurancePlus management fees, lower professional fees and reduced compensation costs.
For the first six months of 2026, net income was $198,000, or $0.02 per basic and diluted share, compared with a net loss of $2.01 million, or $0.28 per share, in the same period of 2025.
Revenue and Underwriting Results
Timothy attributed the declines to lower weighted-average rates on reinsurance contracts in force and less capital deployed into reinsurance contracts compared with the prior-year periods. Net investment income and other income also declined, falling to $71,000 in the quarter from $93,000 a year earlier and to $139,000 in the first half from $173,000.
Despite lower premium and investment income, total revenue rose to $940,000 in the second quarter from $664,000 a year earlier. First-half revenue increased to $1.5 million from $1.3 million, reflecting net premiums, investment income and SurancePlus management fee income.
Total expenses declined sharply to $647,000 in the quarter from $3.6 million a year earlier. Six-month expenses fell to $1.2 million from $4.2 million. Timothy said the reductions primarily reflected the absence of underwriting losses, as well as lower professional fees and compensation expenses.
- The quarterly loss ratio was 0%, compared with 394% in the second quarter of 2025.
- The six-month loss ratio was 0%, compared with 194.8% a year earlier.
- The quarterly combined ratio declined to 175.8% from 621%.
- The six-month combined ratio declined to 133.1% from 355%.
The company said a full-limit loss on one reinsurance contract had affected the comparable 2025 periods. Acquisition cost ratios increased modestly as premiums earned declined, while expense ratios improved due to lower professional fees and compensation.
Restricted cash and cash equivalents increased by $12.85 million from Dec. 31 to $19.82 million as of June 30. Timothy said the change reflected investments in new tokenized securities, collateral released from 2025-2026 reinsurance treaty contracts and premium deposits during the first half.
SurancePlus Expands With Third-Party Offerings
Chairman, President and Chief Executive Officer Jay Madhu said Oxbridge continued to expand its SurancePlus tokenized reinsurance platform. For the 2025-2026 treaty year, the company’s EtaCat Re and ZetaCat Re offerings delivered annualized returns of 29.3% and 43.4%, respectively, exceeding their original targets of 20% and 42%.
For the 2026-2027 treaty year, Oxbridge closed five tokenized reinsurance offerings on the Solana blockchain, generating $7.1 million in aggregate gross proceeds. The offerings included the company’s T20 and T42-2027 products, which have current targeted annual returns of 26% and 32%, respectively, assuming no underwriting losses.
The remaining three offerings were third-party opportunities associated with HCI Group and Fortex Re. HCI Re 2026 Series A has a targeted annual return of 242%, Series B has a target of 122%, and Series C has a target of 17%, in each case assuming no underwriting losses.
Madhu said the third-party offerings marked an expansion of the platform beyond reinsurance originating from Oxbridge’s own operations. Across four consecutive treaty years, SurancePlus has issued approximately 1.27 million tokenized securities, raised more than $16 million in cumulative gross proceeds and backed more than $31 million in deployed capital in tokenized reinsurance contracts, according to the company.
AI GridWorks Targets Data Center Development
Oxbridge also launched AI GridWorks, a subsidiary focused on developing, owning and operating AI data centers and related infrastructure. Madhu said the business is initially targeting projects ranging from 10 megawatts to 100 megawatts, with an initial focus on approximately 50-megawatt projects.
During the question-and-answer session, Madhu said the company is targeting the southeastern U.S. and does not intend to pursue gigawatt-scale centers at this stage. He said tenant demand would depend on project location and the type of data center being developed.
Madhu described a strategy designed to preserve flexibility across the data-center development process. The company could create value by securing land, obtaining entitlements and power-related approvals, then either selling an asset, constructing the data center or leasing data-center halls to tenants. He said the company could also consider operating infrastructure with its own graphics processing units.
Oxbridge intends to use SurancePlus’ real-world asset structuring and tokenization capabilities as AI GridWorks develops infrastructure assets. Madhu said tokenization could provide a way for investors to access interests in data center assets and related revenue streams, alongside more traditional financing sources such as banks.
“Our focus continues to remain on disciplined execution and creating long-term shareholder value,” Madhu said.
About Oxbridge Re (NASDAQ:OXBR)
Oxbridge Re Holdings Limited (NASDAQ: OXBR) is a reinsurance holding company that provides capital solutions and risk-sharing arrangements to insurance carriers. Its core business centers on offering treaty reinsurance and structured transactions designed to help insurers manage underwriting exposures and optimize their capital efficiency. By leveraging tailored financing structures, Oxbridge Re enables clients to transfer segments of their in-force life and health insurance portfolios, freeing up capital for growth or other strategic initiatives.
The company’s products and services include quota share reinsurance, coinsurance, and loss portfolio transfers, each crafted to address specific balance sheet and earnings targets of cedents.
