Oxbridge Re Touts SurancePlus Tokenized Reinsurance, Plans Solana Expansion at RedChip Conference

Oxbridge Re (NASDAQ:OXBR) Chairman and CEO Jay Madhu used a presentation at the RedChip FinTech and Digital Asset Treasury Virtual Investor Conference to outline the company’s reinsurance business and its efforts to “democratize” access to reinsurance-linked returns through its tokenized platform, SurancePlus.

Overview of Oxbridge Re’s business

Madhu described Oxbridge as a Cayman Islands-based reinsurance underwriter focused primarily on homeowners insurance and reinsurance. He characterized traditional reinsurance as insurance companies laying off risk to large institutions such as Lloyd’s of London and Berkshire Hathaway, and positioned Oxbridge as a smaller participant in that market.

He said Oxbridge has spent the last several years changing how reinsurance participation is distributed by moving parts of its offering onto blockchain rails. Instead of relying solely on company capital, the company seeks to bring in outside capital and deploy it alongside Oxbridge’s own capital into reinsurance contracts.

SurancePlus and tokenized access to reinsurance

Madhu said SurancePlus, a subsidiary also based in the Cayman Islands, takes in outside capital and issues a tokenized security. He said the tokenized security “as we go forward” will be on the Solana blockchain. Investors can access the platform online, complete AML and KYC checks (which he said can be done in close to three minutes), and invest in smaller increments—Madhu cited minimums as low as $5,000—rather than needing the $10 million to $20 million he said has historically been required to participate in reinsurance opportunities.

In response to a question about how the pieces fit together, Madhu said Oxbridge’s reinsurance operation underwrites the risk, while SurancePlus is the conduit that makes that risk available to a broader group of investors in smaller amounts, subject to compliance requirements.

Florida hurricane risk, underwriting focus, and contract structure

Madhu said the company’s underwriting is centered primarily on Florida and, to a lesser degree, the Southeast. He argued that while broader geographic dispersion can be a risk management approach, he referenced a prior period in which multiple global catastrophes occurred in the same year and said the company shifted to “stick to your knitting” by focusing on Florida, where he said the team has decades of experience.

He also discussed hurricane risk in the context of Category 3 storms and above, emphasizing that damage—at least in terms relevant to reinsurance losses—depends on storm strength, landfall, and whether the storm strikes populated areas. He showed a slide covering Florida hurricane history since 1952 and said severe storms do not occur every year.

Madhu said Oxbridge writes excess-of-loss reinsurance and stressed that the company is not writing parametric risk or derivatives. He also said contracts are written without leverage and on a “one-to-one” basis. On collateralization, he said the company is fully collateralized—meaning cash is posted to cover exposure, held in trust accounts at large U.S. institutions. He cited Truist as the current institution used for the collateral account and said the structure reduces counterparty risk compared with arrangements based solely on ratings.

When asked what a high-quality book looks like, Madhu said it would ideally be a book that never pays out, though he noted such a book does not exist. He emphasized underwriting discipline and making sure cedants have dispersed exposure within Florida rather than heavy concentrations in one area, and said underwriting review includes numerous data points, including building characteristics such as roof construction.

Returns discussed and near-term priorities

Madhu said the company issued two tokens in its first year of the tokenized offering: one targeted a 42% return and another targeted a 20% return. He said both performed well, adding that the 20% token was “tracking about a 25% return” and the 42% token was “tracking a little north of 42%.” He also referenced 2023, stating that while a Category 3 or above hurricane hit Florida, the company did not have many policies in the affected area. He said a token targeting 42% that year paid out a 49% return.

Looking ahead, Madhu described priorities over the next 12 months as “SurancePlus 3.0,” including continuing to write reinsurance while rolling the tokenized opportunity into the Solana ecosystem. He said the company has tied up with Alpha Ledger and noted that Solana has an investment in Alpha Ledger. Madhu said the move to Solana is driven by the potential reach of the Solana dApp ecosystem and the idea that participants in that ecosystem could allocate into the reinsurance real-world asset (RWA) offering and select between the 20% and 42% tracks.

On potential drivers of book value growth, Madhu pointed to growing SurancePlus. He also said SurancePlus has two years of PCAOB-audited financials as a standalone company and suggested that, as the business grows, the company may consider spinning SurancePlus out as its own publicly traded entity to decouple it from Oxbridge’s “legacy business.”

Madhu did not provide specifics on near-term announcements, saying he could not go into detail before they are released, but he reiterated that the company has positioned itself to pursue different opportunities as a publicly traded holding company and described the current period as a “pivotal time” for Oxbridge.

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.