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OXBRIDGE RE HOLDINGS Ltd (OXBR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered improved topline and materially lower loss per share year-over-year: total revenue was $0.42M vs -$1.91M in Q4 2023; diluted loss per share was $0.05 vs $0.46 YoY .
  • Underwriting remained clean with a 0% loss ratio and a materially better combined ratio at 83.5% vs 102.3% a year ago; expense ratio fell to 83.5% from 102.3% .
  • Strategic momentum continued: SurancePlus launched 2025–2026 tokenized offerings with a new balanced-yield target of 20% (lowered from 22%) and maintained the high-yield target at 42%; partnership with Plume expands distribution; capital strengthened via a $3M reverse direct offering post year-end .
  • Key stock-relevant narrative: accelerating RWA/tokenization commercialization, third‑party capital lowers Oxbridge’s risk profile while adding fee streams, and consistent 0% loss ratio amid an active hurricane season .

What Went Well and What Went Wrong

What Went Well

  • 0% loss ratio and improved underwriting economics; combined ratio at 83.5% in Q4, down from 102.3% YoY, driven by higher premiums and lower G&A .
  • Strategic expansion in tokenization: SurancePlus broadened offerings to include a balanced-yield (20%) and maintained high-yield (42%); Plume partnership enhances distribution reach .
  • Management emphasized de-risking via third‑party investor capital while sustaining fee income: “lowering our risk profile, but yet making money on the monies that come in” .

What Went Wrong

  • Persistent GAAP net loss: Q4 net loss of $0.46M; full‑year net loss of $2.7M, largely due to unrealized losses from Jet.AI and equity securities mark‑to‑market .
  • Revenue composition remains sensitive to investment fair‑value marks (other investments, equity securities), creating earnings volatility despite clean underwriting .
  • Limited Wall Street consensus coverage, constraining benchmark comparisons and potentially reducing investor visibility; consensus EPS/revenue unavailable from S&P Global data*.

Financial Results

Quarterly Financials (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD)$44,000 $205,000 $422,000
Net Premiums Earned ($USD)$564,000 $595,000 $595,000
Diluted EPS ($USD)$(0.14) $(0.09) $(0.05)
Loss Ratio (%)0.0% 0.0% 0.0%
Acquisition Cost Ratio (%)11.0% 11.1% 11.1%
Expense Ratio (%)111.3% 83.7% 83.5%
Combined Ratio (%)111.3% 83.7% 83.5%

YoY Comparison (Q4 2024 vs Q4 2023)

MetricQ4 2023Q4 2024
Total Revenue ($USD)$(1,905,000) $422,000
Net Premiums Earned ($USD)$523,000 $595,000
Diluted EPS ($USD)$(0.46) $(0.05)
Expense Ratio (%)102.3% 83.5%
Combined Ratio (%)102.3% 83.5%

Revenue Components (oldest → newest)

Component ($USD)Q2 2024Q3 2024Q4 2024
Net Premiums Earned$564,000 $595,000 $595,000
Net Investment & Other Income$65,000 $62,000 $60,000
SurancePlus Management Fee Income$312,000 $0 $0
Unrealized Loss on Other Investments$(825,000) $(1,937,000) $(208,000)
Change in Fair Value of Equity Securities$(72,000) $(28,000) $(72,000)
Total Revenue$44,000 $205,000 $422,000

KPIs & Balance-Sheet Indicators (oldest → newest)

KPI ($USD)Q2 2024Q3 2024Q4 2024
Cash & Cash Equivalents$3,594,000 $1,409,000 $2,135,000
Restricted Cash & Cash Equivalents$391,000 $3,412,000 $3,758,000
Premiums Receivable$2,118,000 $1,365,000 $1,059,000
Equity Securities (FV)$213,000 $185,000 $113,000
Other Investments$965,000 $541,000 $48,000
Notes Payable to Tokenholders$1,239,000 $1,485,000 $1,732,000
Weighted-Average Shares6,010,561 6,121,020 6,121,020

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Balanced‑Yield Tokenized Security Target Return2025–2026~22% target 20% target Lowered
High‑Yield Tokenized Security Target Return2025–2026~42% target 42% target Maintained
Corporate Treasury Reserve AssetsQ1 2025N/ABoard approved Bitcoin & Ethereum (and potentially others) as treasury reserve assets New Policy
Pre‑funding Investor Dividend on Incoming CapitalPre‑June 1, 2025N/A3.5% annualized until go‑live into reinsurance contracts New Offering Term

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
RWA/Web3 StrategyQ2: SurancePlus established, DeltaCat Re success, democratizing access ; Q3: Continued RWA focus, strategic review initiated Emphasis on scaling with balanced/high‑yield tokens and broader investor access Expanding scope
Partnerships & DistributionQ2: Zoniqx partnership (> $4B on‑chain) ; Q3: active conference schedule New Plume partnership (> $4.5B assets, 18M addresses) to expand distribution Strengthening network
Underwriting PerformanceQ2: 0% loss ratio; improved combined ratio vs prior year ; Q3: 0% loss; combined ratio down to 83.7% 0% loss ratio; combined ratio 83.5% Sustained discipline
Risk Profile & Capital ModelQ2/Q3: Increasing third‑party capital via tokens Management reiterates lower risk profile from third‑party funds, fee-driven economics Lower risk, more fees
Florida Macro & PricingNot highlightedCommentary on Florida P&C reinsurance cost (~$0.45 per $1 premium) and democratization bringing more capital Monitoring market softening
Liquidity/CollateralQ2: Cash + restricted cash ~$3.99M ; Q3: ~$4.82M Q4: ~$5.89M; collateral deposits for 2025 treaty year Improving liquidity
Strategic AlternativesQ3: Special committee formed Process continues while scaling RWA platform Ongoing review
Treasury Crypto PolicyNot mentionedBTC/ETH approved as treasury reserve assets New initiative

Management Commentary

  • “SurancePlus… became the first public company to issue a security token in reinsurance—bridging the gap between the SEC, blockchain, and tokenization… enabling participation with as little as $5,000” .
  • “We will be expanding our product suite… a balanced‑yield tokenized security targeting a 20% annual return, and… a high‑yield… targeting a 42% annual return” .
  • On risk profile: “We… take in third‑party monies, lowering our risk profile, but yet making money on the monies that come in” .
  • On liquidity/collateral: cash and restricted cash increased due to new collateral deposits for treaty year ending May 31, 2025 .

Q&A Highlights

  • Underwriting risk management: Oxbridge follows layers alongside leading reinsurers, turns away inadequately priced contracts; 2023 Category 3 hurricane was a nonevent—“underwriting matters” .
  • Token offering timing and pre‑funding: investments go live June 1 into reinsurance; 3.5% annualized dividend offered on funds received before go‑live .
  • Business model de‑risking: third‑party investor capital does not flow through Oxbridge’s P&L for losses; Oxbridge earns fees, reducing company risk exposure .
  • Florida market: potential softening could be positive for buyers; democratization invites more capital, potentially easing reinsurance rates over time .
  • Marketing reception: strong engagement across crypto and family office conferences; strategy targets both channels .

Estimates Context

  • Wall Street consensus coverage for EPS and revenue was unavailable for Q4 2024 and FY 2024; no EPS or revenue consensus data to compare against actuals*.
  • A target price consensus mean of $5.00* is indicated but coverage appears limited; investors should treat this cautiously in the absence of robust estimate counts.

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Underwriting quality is the near‑term anchor: 0% loss ratio and low‑80s combined ratio reflect clean performance amid active weather—a critical differentiator for near‑term sentiment .
  • Earnings volatility largely stems from fair‑value marks (Jet.AI, equity securities) rather than underwriting; expect less volatility after the Jet.AI exit and continued fee growth .
  • Tokenization strategy is scaling: broader product set (20% balanced and 42% high‑yield) plus Plume distribution can drive fee income and reduce balance‑sheet risk exposure .
  • Liquidity improved with higher collateral and post‑year‑end $3M raise, supporting treaty commitments and platform expansion .
  • Near‑term trading catalyst: investor updates on 2025–2026 token raises, additional partnerships, and confirmation of clean loss experience through the remainder of the treaty year .
  • Medium‑term thesis: Oxbridge’s evolution to an RWA/Web3 fee‑centric model with third‑party capital can deliver more stable economics, better capital efficiency, and asymmetric upside if tokenization adoption accelerates .
  • Risk monitoring: Florida Cat exposure and fair‑value marks remain key variables; watch combined ratio, cash collateral movements, and any updates to treasury crypto policy execution .