Oxbridge Re reported its financial results for Q3 2024, ending Sept. 30.
The company, which serves property and casualty insurers in the Gulf Coast region, reported a net loss of $540,000, or $(0.09) per share, for the quarter, compared to a $7.3 million loss, or $(1.24) per share, in Q3 2023.
The smaller loss was primarily attributed to reduced unrealized losses on other investments compared to the previous year. For the first nine months of 2024, the net loss was $2.27 million, or $(0.37) per share, down from $7.2 million, or $(1.23) per share, during the same period in 2023. This improvement was driven by higher revenues from a decrease in unrealized investment losses.
Net premiums earned for Q3 2024 reached $595,000, up from $549,000 in Q3 2023. For the nine-month period, net premiums were $1.71 million, compared to $732,000 in the prior year. This increase resulted from reinsurance contracts in force throughout 2024.
The company also noted that no losses were incurred in either the three or nine months ending Sept. 30, in both 2024 and 2023.
Total expenses for Q3 2024 decreased to $498,000 from $688,000 in the prior year’s period. Over the first nine months of 2024, expenses totaled $1.67 million, down from $1.8 million in 2023, reflecting lower costs associated with Oxbridge’s SurancePlus platform.
As of Sept. 30, 2024, the company reported $4.8 million in cash and cash equivalents, including restricted cash, an increase from $3.7 million at year-end 2023.
Jay Madhu (pictured), chairman and CEO, noted the progress of SurancePlus, Oxbridge Re’s Web3/RWA subsidiary, which issues tokenized securities backed by reinsurance contracts on the Avalanche blockchain.
“SurancePlus seamlessly integrates SEC regulatory standards with blockchain technology, ensuring full transparency and compliance,” Madhu said. “By opening access to an asset class historically limited to a select few due to high financial barriers to entry, SurancePlus is breaking new ground.
He added that using Reg D and Reg S frameworks, investors can now access this asset class with AML, KYC, and document signing completed efficiently.
Madhu further outlined plans to issue two tokenized security tranches: a high-yield token aiming for a 42% return and a balanced-yield token with a 22% target.
“Additionally, our strategic partnership with Zoniqx, which has facilitated over $4 billion of assets on-chain, positions SurancePlus for continued growth as we enter our second year of issuing tokenized securities,” he said. “With a solid business model and no debt, we are confident that SurancePlus will drive meaningful growth for our shareholders and further expand our influence in the RWA space in the coming years.”
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