Oxbridge Re Holdings Limited

Good afternoon. Welcome to Oxbridge's first quarter 2026 earnings call. My name is Dine and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. Joining us on today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu. and Chief Financial Officer and Corporate Secretary, Randon Timothy. Following their remarks, we will open up the call for your questions. I would like to remind everyone that this call will be available via telephone replay until May 21, 2026. Details for the telephone replay are included in the press release issued today. Now, I would like to turn the call over to Randon Timothy. Chief Financial Officer of Oxbridge, who will provide the necessary quotients regarding the forward-looking statements that will be made by management during this call. Please go ahead, sir.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge Reef's future financial performance. These forward-looking statements are made pursuant to the Private Securities Investigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects, and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled risk factors. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and the volatility of our earnings, which in turn can cause significant market price and trading volume fluctuations for our securities. Any forward-looking statements made on this conference call speak only as of the date of this conference call, and except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call, or in any company presentation, even if the company's expectations or any related events, conditions, or circumstances change. Now, I'd like to turn the call over to the chairman, president, and chief executive officer, Jay Meadows.

Jay? Thank you, Brendan, and welcome, everyone. Thank you for joining us today. Let me start by saying we're proud of the strong performance of business and progress we're making executing on a long-term strategy. At our core, we are a disciplined reinsurance collectivized policies covering property catastrophe risk. We compete through selective data-driven underwriting with a focus on generating attractive risk-adjusted returns and long-term growth in book value per share. Our strategy centers on low-frequency, high-severity risks where sufficient data exists to rigorously evaluate the risk-return profile. We emphasize disciplined risk selection. appropriate pricing, and thoughtful structuring, supported by fully collateralization to ensure transparency and alignment. At the same time, we continue Advance Insurance Plus and our broader real-world asset initiatives, expanding access, tokenized reinsurance opportunities through strategic ecosystem relationships involving Solana, Alpha Ledger, and Layer Zero. As we approach May 31st, 2026, conclusion of the current contract season, our existing tokenized reinsurance offerings remain unaffected, with the balanced yield token currently cracking 25% ahead of its original 20% targeted return, while the high yield token remains on track towards its 42% targeted return. We believe this combination of underwriting discipline, platform development, positions, Oxfords, well, as we continue executing on opportunities within the growing real-world asset market. I will now turn the call over to Randon to take us through our financial results.

Randon? Thank you, Gene. I would like to remind you that our typical contract period is from June 1 to mid-February of the following year. Net premiums earned for the three-month ending March 31, 2026 decreased from $255,000 to $595,000 for the quarter ending March 31, 2025. Decreases due to a lower weighted average rate on your insurance contract during the quarter ended March 31, 2026, when compared with the prior period. Our net investment income and other income for the three months ended March 31, 2026, increased to 68,000 from 79,000 from prior comparable period. Along with net premium, there was also revenue amounting to 623,000 for the three months ended March 31, 2026, compared to 69,000. in the prior year comparable period. For the three months ending March 2021-2026, total expenses included policy acquisition costs and general admin expenses increased to $583,000 from $570,000 for the quarter ending March 2021-2025. The increase is primarily due to professional costs, investor relations, and our work through subsidiary marketing. Net income for the quarter ending March 2021-2026 22,000 of zero basic and diluted income per share compared to a net loss of 1 to 9,000 or 2 cents basic and diluted loss per share for the prior year quarter. The decrease in net loss is primarily due to a decreased allocation of underwritten income to token holders as the company itself is a major contributor in the 2025-2026 treaty contract in place. Couples with a decrease in unrealized loss on all the investments during the quarter ended March 31, 2026 when compared with the prior period. As we have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations. For our insurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio, and combined ratio. The loss ratio is the ratio of lost sales and lost adjusted expenses, including the premiums earned, and it measures the underwriting profitability of our insurance business. The loss ratio remained consistent at 0% for the three-month end of March 2021-2026 when compared with the prior year comparison period. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums. The acquisition cost ratio increased marginally to 11% for the quarter end of March 2021-2026, up from 10.9% for the prior year quarter. Our expense ratio, which measures operating performance, compares policy acquisition costs and general admin expenses with net premiums earned. For the three-month period ending March 31, 2016, expense ratio increased to 105,000 to 95.8,000 for the three months ending March 31, 2025. The increase is primarily due to increased professional costs, investor relations, and our work through marketing and operations. Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and expense ratio. For the three-month end in March 2021-2026, the combined ratio increased to 105,000 from 95.8% for the three-month end in March 2021-2025. The increase, again, is primarily due to increased professional costs related to investor relations and our Work 3 subsidiary marketing and operations. Now turning to the balance sheet, cash and cash equivalents, and the cash and cash equivalents increased by 1.21 million to 8.19 million, up from 6.98 million as of December 3, 2025. The increase to the net result of premium deposits made in the two-month period ending March 31, 2026, as well as the 1 million proceeds from the short-term loan that was secured. I'll now turn the call back over to Jay to wrap up before we take the questions to Jay.

Thank you, Brendan. We are encouraged by the strong performance of our 2025-26 tokenized reinsurance contracts. As we approach the conclusion of the current contract season, our existing offerings remain unaffected, with the balance yield token currently tracking 25% ahead of its original 20% targeted return, while the high yield token remains untracked with its 42% targeted return. These results reflect our discipline underwriting approach and further demonstrate the ability of tokenized reinsurance structures to provide differentiated uncorrelated returns with the approximately $750 billion global reinsurance market. We have also continued advancing the reach and visibility of assurance bus platform through strategic relations involving Solana, Alpha Ledger, and Layer Zero. supporting expanded interoperability and ecosystem access across more than 160 blockchain networks. We believe these relationships positioning ShonesPlus within a growing ecosystem for real-world asset adoption. As we look ahead to the 2026-27 underwriting cycle, we are preparing our T20 and T42 offerings targeting annual returns of 20% and 42% respectively. Recent forecasts from the Colorado State University indicate the potential for a more constructive hurricane environment relative to recent years, supported in part by anticipated El Nino conditions. In parallel, we are making meaningful progress in advancing opportunities to broaden the short-slush model into additional high-quality cash-generating asset categories including initiatives involving tokenized data center revenue streams and infrastructure aligned with a continued growth of artificial intelligence. As of March 31st, 2026, the company reported 8.19 million in cash and restricted cash, supporting our ongoing strategic initiatives and long-term growth opportunities. Overall, we remain focused on disciplined execution, expanding ecosystem relationships, and scaling up through our growing real-world asset initiatives. as we continue building long-term shareholder value. With that, we are ready to open the call for questions. Operator, please provide the appropriate instructions.

Thank you, Sal. Ladies and gentlemen, we will now begin the question and answer session for the conference. If you would like to ask a question, please press star and then 1 now. If you would like to remove yourself from the question queue, please press star and then 2. Again, if you would like to ask a question, please first stop and then one now. We'll pause a moment while the question queues both. The first question we have comes from Kent Engelke of Capital Securities. Please go ahead.

Hey, Jane. Hey, Brendan. Again, I'm very interested in the comments that you're making about capital using tokenized data center for revenue streams and the like and just the infrastructure growth within AI and stuff like that. Larry Sink the other day predicted that there's going to be a massive futures market for computing power using tokenized assets and the like. Can you give a little bit more color on that really, I think, really cool part of your organization?

Yeah, thank you, Ken. We've been tokenizing reinsurance contracts, right? So reinsurance is a significantly large TAM market. The AI data center space over here could probably dwarf that significantly as well. And since we've been tokenizing reinsurance, we've made great strides over there. And we could potentially tokenize other opportunities as well, while it's a little early for us to talk about that just yet. But in the past, people have asked us, you know, when would you probably consider tokenizing other items, right? And I think the timing is right. As you just mentioned, you know, not only Larry Fink, but various other folks have talked about tokenization. And we seem to be doing this under the four corners of the SEC. So, I believe we have an amazing opportunity ahead of us, and we definitely plan on seizing that.

Cool. So, it is an exciting new industry on so many different levels, competing with some very, you know, deep-pocketed people that see something as similar as you do. And, you know, obviously, I hope that Oxbridge is going to be at the forefront of all this.

Yes, absolutely. Absolutely.

Thank you. Ladies and gentlemen, just a reminder, if you would like to ask a question, please press star and then one now. We'll pause a moment to see if we have any further questions. We have a question from Dwayne Roberts of Charis Industries. Please go ahead.

Hi, Jim. I hope you guys are doing well. When you're talking, when you're saying that you're looking to tokenize, many of you here, right, you're going to tokenize, looking to tokenize other assets, is that correct, besides the insurance?

Yes, potentially, yes, but I unfortunately can't speak in detail about that. It's opportunities we're still evaluating. But as I just mentioned, if we're able to tokenize an elusive asset, such as reinsurance, it gives us, it gives us, we feel, we feel well about, you know, the potential of Charles Klaus going forward with other assets.

Okay. You may not be able to comment on this either, but, like, how hard is that, like, the process? The one thing that you mentioned earlier with the other, with the other caller, was that you were under the SEC, which I would assume is significant. So how, when you're looking at other potential assets, the back office part, all of the software, all of that, how hard is it?

Yeah, it's extremely hard, right? Because if it wasn't hard, other people would be doing it. And because the barrier to entry is also high, it's an opportunity that Oxbridge can take advantage of it.

Yeah. Okay. All right. Thank you. All right. Thank you, Dwayne.

Thank you. Just a final reminder, if you would like to ask a question, please press star and then one, now. At this stage, there seems to be no further questions on the conference. I will now hand back to Jay Madhu for closing remarks. Please go ahead, sir.

Thank you for joining us on today's call. Before we conclude, I would like to extend my gratitude to our employees, business partners, and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team whose extensive experience has been instrumental in navigating and advancing our business amidst these challenging circumstances. We anticipate providing you with future updates on our progress during our next call, and should you have any additional questions, please do not hesitate to reach out to us anytime. Once again, thank you for your time and attention today, and for your ongoing interest in Oxbridge. Operator?

Thank you, sir. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.