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OXBRIDGE RE HOLDINGS Ltd (OXBR)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered improved underwriting efficiency and narrower losses: total revenue was $0.692M (vs. -$0.125M in Q1 2024 and $0.422M in Q4 2024) and diluted EPS was -$0.02 (vs. -$0.15 YoY and -$0.05 QoQ) .
  • The quarter was a modest beat vs. Wall Street: revenue exceeded the $0.654M consensus and EPS came in slightly better than the -$0.02 mean estimate; note only one estimate covered the stock (bolded below) (*. Values retrieved from S&P Global).
  • Underwriting ratios improved: expense ratio fell to 95.8% (from 99.8% YoY), combined ratio to 95.8% (from 99.8% YoY), with a 0% loss ratio, reflecting stable catastrophe outcomes .
  • Strategic catalysts: a distribution MOU with Plume (4.5B+ in assets), dual tokenized reinsurance offerings targeting 20% and 42% returns, and treasury diversification to Bitcoin/Ethereum; cash and restricted cash rose to $9.6M (+$3.7M QoQ) supported by premium deposits and a $2.7M net capital raise .

What Went Well and What Went Wrong

  • What Went Well

    • Discipline in underwriting: “The loss ratio remained consistent at 0%” for Q1, underpinning a 95.8% combined ratio improvement YoY .
    • Strategic distribution: Plume MOU broadens tokenized offering reach—“supporting $4.5 billion in assets and more than 18 million unique wallet addresses” .
    • Product expansion and messaging: management emphasized balanced-yield (20%) and high-yield (42%) tokenized reinsurance products to widen investor appeal . Quote: “We are well-positioned to drive sustainable growth…with innovative products and expanding strategic relationships” .

  • What Went Wrong

    • Continued GAAP net loss (though improved): net loss was $0.139M, driven by G&A and tokenholder allocations (income attributable to tokenholders -$0.247M) .
    • Elevated expense intensity: expense ratio was 95.8%, reflecting G&A and stock-based comp linked to grant-date share price .
    • Very limited Street coverage: only a single analyst estimate, limiting external validation of trajectory (*. Values retrieved from S&P Global).

Financial Results

MetricQ1 2024Q4 2024Q1 2025 ActualQ1 2025 Consensus
Total Revenue ($USD)-$125,000 $422,000 $692,000 $654,000*
Diluted EPS ($USD)-$0.15 -$0.05 -$0.02 -$0.02*

Note: Consensus values marked with * were retrieved from S&P Global.

Underwriting RatiosQ1 2024Q4 2024Q1 2025
Loss Ratio (%)0.0% 0.0% 0.0%
Acquisition Cost Ratio (%)10.9% 11.1% 10.9%
Expense Ratio (%)99.8% 83.5% 95.8%
Combined Ratio (%)99.8% 83.5% 95.8%

Revenue breakdown and components

Revenue Component ($USD)Q1 2024Q4 2024Q1 2025
Net Premiums Earned$549,000 $595,000 $595,000
Net Investment & Other Income$62,000 $60,000 $79,000
Interest/Gain on Loan Receivable$41,000 $47,000 $0
Unrealized Gain/Loss on Other Investments-$688,000 -$208,000 -$20,000
Realized Gain on Other Investments$0 $0 $35,000
Change in Fair Value of Equity Securities-$90,000 -$72,000 $3,000
Total Revenue-$125,000 $422,000 $692,000

Balance sheet and cash KPIs

KPI ($USD)Dec 31, 2024Mar 31, 2025
Cash + Restricted Cash$5,893,000 $9,597,000
Unearned Premium Reserve$991,000 $397,000
Total Shareholders’ Equity$4,110,000 $7,215,000
Additional Paid-in Capital$34,105,000 $37,335,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot providedNot providedMaintained (no formal guidance)
EPSFY/QuarterNot providedNot providedMaintained (no formal guidance)
Margins (Combined Ratio)FY/QuarterNot providedNot providedMaintained (no formal guidance)
OpExFY/QuarterNot providedNot providedMaintained (no formal guidance)
Tax RateFY/QuarterNot providedNot providedMaintained (no formal guidance)
Tokenized Offerings2025/26High-yield ~42%Balanced-yield ~20% and High-yield ~42%Expanded product suite
DividendsN/ANone announcedNone announcedMaintained (policy described; no dividend)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
RWA/Web3 strategy and tokenizationEmphasized democratizing reinsurance via SurancePlus; DeltaCat Re paid 49% in prior year; two tranches planned (22%/42%) Reiterated dual products targeting 20% and 42%; pioneer positioning in $30T tokenization by 2034 Consistent expansion; broader investor targeting
Strategic partnerships/distributionHighlighted Zoniqx and broader conference presence MOU with Plume (4.5B AUM/18M addresses) to enhance distribution Strengthening distribution channels
Treasury strategy (crypto)Not discussed in Q3 2024; introduced in Q4 commentary as under consideration Board approved adding Bitcoin/Ethereum as treasury reserve assets New strategic diversification
Florida underwriting environmentImprovements noted; focus on adequate pricing and selective layers “So far, not affected”; AOB/OIR changes supportive; contracts finalizing Stable; continued discipline
Capital raisingATM program activity; reverse direct offering post FY2024 ~$2.7M net RD offering in Feb; cash + restricted cash up $3.7M QoQ Strengthened liquidity
Risk allocation to tokenholders/sidecarTokenholder allocations reduce company risk while earning fees Continued tokenholder income attribution and mezzanine equity presentation Consistent risk-sharing approach

Management Commentary

  • “As the first Nasdaq-listed company to issue a tokenized security in reinsurance…we are proud of our progress and remain focused on expanding SurancePlus” .
  • “Cash and cash equivalents and restricted cash…increased by $3.7 million…primarily due to premium deposits…as well as the completion of a registered direct offering that generated $2.7 million net of expenses” .
  • “Two distinct options: a balanced yield tokenized security targeting a 20% annual return…and a high-yield tokenized security targeting 42% annual returns” .
  • “We are well positioned to capitalize on this growth…leveraging our expertise and first-mover advantage” .

Q&A Highlights

  • Tokenized securities marketing and TAM capture: Management sees strong conference-driven adoption; even a minuscule share of the potential $30T market would be “a game changer” .
  • Next 3–6 months information flow: Emphasis on launching the 20% balanced-yield token alongside the 42% high-yield token; progress “so far, so good” .
  • Florida reinsurance market: AOB/OIR changes supportive; “so far, we have not been affected” though risk remains for high-yield layers; balanced token reduces risk .
  • Plume MOU mechanics: Viewed as a “very good distribution channel” with broader ecosystem ties (Midnight, BitGo) and strict SEC compliance .

Estimates Context

  • Q1 2025 actual vs. Street: revenue $0.692M vs. $0.654M consensus; EPS -$0.02 vs. -$0.02 consensus, a slight beat on both (only one estimate covering).
  • Target price consensus: $5 (one estimate) with limited recommendation data (*. Values retrieved from S&P Global).
MetricQ1 2025 ActualQ1 2025 Consensus
Total Revenue ($USD)$692,000 $654,000*
Diluted EPS ($USD)-$0.02 -$0.02*

Note: Consensus values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Underwriting discipline intact: 0% loss ratio and sub-100% combined ratio provide a stable foundation while the company scales tokenized products .
  • Liquidity improved: cash + restricted cash rose to $9.6M, aided by premium deposits and a ~$2.7M net offering—enhancing capacity for the June 1 treaty season .
  • Distribution catalyst: Plume MOU offers access to a large on-chain user base; expect progress on token launches and marketing over the next 3–6 months .
  • Product barbell broadens appeal: balanced (20%) and high-yield (42%) tokens can attract both risk-averse and return-seeking investors, potentially expanding SurancePlus’ addressable market .
  • Risk sharing via tokenholders continues to recalibrate company risk profile while enabling fee-based income, reducing direct loss exposure .
  • Near-term trading lens: modest beats, treasury crypto adoption, and distribution agreements are narrative positives; limited analyst coverage may amplify volatility around disclosures (*. Values retrieved from S&P Global) .
  • Medium-term thesis: execution on token distribution partnerships and maintaining underwriting quality in Florida should drive revenue consistency and incremental margin gains as scale improves .