Company Overview

Oxbridge Re Holdings Limited is a reinsurance company that provides reinsurance solutions to property and casualty insurance companies. The company focuses on underwriting reinsurance contracts that provide protection to insurance companies against damage caused by natural disasters like hurricanes and floods.

Oxbridge Re has two main sources of revenue:

• Premiums earned from reinsurance contracts
• Returns on investments

In 2023, Oxbridge Re launched a new business line focused on tokenizing reinsurance contracts using blockchain technology. This allows the company to sell tokenized securities representing fractional ownership interests in reinsurance contracts.

Financial Highlights

Financial Metric	Q1 2024	Q1 2023	Change
Revenue	-$125,000	$546,000	-123%
Net Income	-$905,000	$142,000	-737%
Earnings Per Share	-$0.15	$0.02	-850%

Oxbridge Re reported a net loss of $905,000 in Q1 2024 compared to net income of $142,000 in Q1 2023. The loss was primarily driven by negative returns on investments during the quarter.

Premiums earned increased significantly to $549,000 in Q1 2024 from $0 in Q1 2023 due to new reinsurance contracts in force. However, this growth was offset by declines in investment income and unrealized losses on investments.

No catastrophic losses occurred during the quarter. The loss ratio remained 0% in both periods.

Analysis of Results

The decline in profitability this quarter can be attributed to two main factors:

1. Negative investment returns during a volatile market environment
2. Increased operating expenses related to the growth of the tokenization business

While the core reinsurance business remains profitable, short-term investment losses and costs associated with new business development led to an overall loss for the quarter.

If financial markets stabilize, investment returns may rebound. And over time, the new tokenization business is expected to generate attractive growth and margins.

Financial Condition

Oxbridge Re maintains a strong financial position:

• Cash and investments totaled $6.4 million
• No outstanding debt
• Access to capital from equity offerings if needed

The company has significant financial flexibility to support both its reinsurance operations and new strategic growth initiatives.

Outlook

For its reinsurance business, Oxbridge Re remains well-positioned to take advantage of hardening insurance markets and increasing demand for coverage against natural catastrophes.

The company’s tokenization platform also provides a promising avenue for growth in the emerging digital asset market. By leveraging blockchain technology to fractionalize reinsurance contracts, Oxbridge Re aims to expand sources of investable assets.

If the company can combine profitable underwriting with its tokenization innovation, Oxbridge Re may be able to deliver improved growth and consistent profitability over the long term.

Careful monitoring of market exposures and operating expenses will be necessary to manage through periods of investment volatility. But the underlying fundamentals and growth prospects remain strong.