Oxbridge Re Holdings Limited Aktie

Good afternoon. Welcome to Oxbridge's First Quarter 2026 Earnings Call. My name is Denise, and I will be your conference operator this afternoon. [Operator Instructions] Joining us on today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon 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 Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions 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 Re's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation 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 contained in our Form 10-K filed on March 30, 2026, with the Securities and Exchange Commission.

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.

Now I would like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we're proud of the strong performance of our business and progress we're making executing on our long-term strategy. At our core, we are a disciplined reinsurance business, writing fully collateralized 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 advancing SurancePlus and our broader real-world asset initiatives, expanding access tokenized reinsurance opportunities through strategic ecosystems relationships involving Solana, Alphaledger and LayerZero.

As we approach May 31, 2026, conclusion of the current contract season, our existing tokenized reinsurance offerings remain unaffected with the balance yield token currently tracking 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 and expanding ecosystem relationships positions Oxbridge well as we continue executing on opportunities within the growing real-world asset market.

I will now turn the call over to Brandon to take us through our financial results. Wrendon?

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums written for the 3 months ended March 31, 2026, decreased to $555,000 from $595,000 for the quarter ended March 31, 2025.

The decrease is due to a lower weighted average rate on reinsurance contracts in during the quarter ended March 31, 2026, when compared with the prior period. Our net investment income and other income for the 3 months ended March 31, 2026, decreased to $68,000 from $29,000 from prior comparable period.

Along with net premiums, our total revenue amounted to $623,000 for the 3 months ended March 31, 2026, compared to $692,000 in the prior year comparable period. For the 3 months ended March 31, 2026, total expenses included policy acquisition costs and general admin expenses increased to $583,000 from $578,000 for the quarter ended March 31, 2025. The increase is primarily due to professional costs, investor relations and our work through subsidiary marketing.

Net income for the quarter ended March 31, 2026, was $22,000 or 0 basic and diluted income per share compared to a net loss of $139,000 or $0.02 basic and diluted loss per share for the prior year quarter. The decrease in net loss is primarily due to a decreased allocation of underwriting income to token holders as the company itself is a major contributor in the 2025, 2026 treaty contract in place.

Coupled with a decrease in unrealized loss on other 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 reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio.

The loss ratio is a ratio of loss sales and loss adjustment expenses include the premiums earned and it measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the 3 months ended March 31, 2026, when compared with the prior year comparative period. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned.

The acquisition cost ratio increased marginally to 11% for the quarter ended March 31, 2026, up from 10.9% for the prior year quarter. Our expense ratio, which measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the 3-month period ended March 31, 2026, the expense ratio increased to $105,000 from $95,800 for the 3 months ended 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 the expense ratio. For the 3 months ended March 31, 2026, the combined ratio increased to 105% from 95.8% for the 3 months ended March 31, 2025. The increase again is primarily due to increased professional costs related to Investor Relations and our W3 subsidiary marketing and operations.

Now turning to the balance sheet. Cash and cash equivalents and restricted cash and cash equivalents increased by $1.21 million to $8.19 million, up from $6.98 million as of December 31, 2025. The increase is a net result of premium deposits made in the 3-month period ended March 31, 2026, as well as $1 million proceeds from a short-term loan that was secured.

I'll now turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. 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 sheet token currently tracking 25% ahead of its original 20% targeted return, while the high-yield token remains on track towards this 42% targeted return.

These results reflect our disciplined 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 SurancePlus platform through strategic relations involving Solana, Alphaledger and LayerZero, supporting expanded interoperability and ecosystem access across more than 160 blockchain networks.

We believe these relationships position SurancePlus 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 forecast 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 SurancePlus model into additional high-quality cash-generating asset categories, including initiatives involving tokenized data center revenue streams and infrastructure aligned with the continued growth of artificial intelligence. As of March 31, 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 our business 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.

[Operator Instructions] The first question we have comes from Kent Engelke of Capitol Securities.

Again, I'm very interested in the comments that you're making about using tokenized data center for revenue streams and the like and just the infrastructure growth within AI and stuff like that.

Larry Fink 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?

Yes. Thank you, Kent. 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, when would you probably consider tokenizing other items, right? And I think the timing is right.

As you just mentioned, not only Larry Fink, but various other folks have talked about tokenization. And we seem to have -- we seem to be doing this under the 4 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 deep pocketed people that see something as similar as you do. And obviously, hoping that Oxbridge is going to be at the forefront of all this.

Yes, absolutely.

[Operator Instructions] We have a question from Duane Roberts of Charis Industries.

When you're talking -- when you're saying that you're looking to tokenize -- maybe I didn't hear it right, you're going to looking to tokenize other assets. Is that correct? Besides reinsurance?

Yes, potentially, yes. But I, unfortunately, Duane, 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 -- we feel well about the potential of SurancePlus going forward with other assets.

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

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

[Operator Instructions] 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 any time. 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.

Good afternoon. Welcome to Oxbridge's Fiscal 2025 Earnings Call. My name is Shamali, and I will be your conference operator this afternoon. [Operator Instructions]

Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon 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 April 13, 2026. Details for the telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation 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 forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed today, March 30, 2026, with the Securities and Exchange Commission. 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 could cause significant market price and trade 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 our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on chain and broadening investor access. At our core, we are a disciplined reinsurance business, writing fully collateralized 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 risk where significant data exists to rigorously evaluate the risk return profile. We emphasize disciplined risk selection, appropriate pricing and thoughtful structuring, supported by our fully collateralization to ensure transparency and alignment. Building on this foundation, SurancePlus continues to expand our ability to bring reinsurance on chain in a compliant and scalable manner, broadening access to an asset class that has historically been limited to institutional partnerships.

We believe this combination of underwriting discipline and evolving platform capabilities positions Oxbridge well as we continue to execute our strategy and pursue opportunities within the growing real estate asset market -- pardon me, growing real-world asset market.

We now turn things over to Wrendon to take us through our financial results. Wrendon?

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums earned for the 3 months ended December 31, 2025, decreased to $555,000 from $595,000 for the quarter ended December 31, 2024. The decrease is due to lower weighted average rate on reinsurance contracts in force during the quarter ended December 31, 2025, when compared with the prior period.

Net premiums earned for the years ended December 31, 2025 and 2024 was approximately $2.3 million. Our net investment income for the 3 months ended December 31, 2025, increased to $63,000 from $68,000 from prior comparable period. There was a decrease in the fair value of equity securities during this period. And along with net premiums, our total revenue amounted to $576,000 for the 3 months ended December 31, 2025, compared to $422,000 in the prior year comparable period.

Our net investment and other income for the fiscal year ended December 31, 2025, increased to $314,000 from $248,000 from the prior year comparable period. Along with net premiums, change in fair value of equity securities and other investments resulted in total revenues of $2.58 million for the fiscal year ended December 31, 2025, compared to $546,000 in the prior year comparable period.

Regarding total expenses for the 3 months ended December 31, 2025, total expenses, including policy acquisition costs and general and admin expenses and underwriting costs increased to $1.04 million from $497,000 for the quarter ended December 31, 2024. The increase is primarily due to the recording of underwriting losses incurred on Hurricane Milton, which occurred in 2024 as a result of adverse loss development as well as increased general and admin expenses when compared with the prior period.

For the year ended December 31, 2025, total expenses, which includes policy acquisition costs, loss and loss adjustment expenses and general and admin expenses increased to $6.04 million from $2.17 million for the year ended December 31, 2024. Again, the increase is due primarily to the recording of losses on reinsurance contracts affected by Hurricane Milton in 2024, increased professional costs relating to investor relations, our web3 subsidiary tokenization costs, S-3 related costs, increased human resources and personnel and legal expenditures.

Net income for the quarter ended December 31, 2025, was $120,000 or $0.02 per basic and diluted income per share compared to a net loss of $460,000 or $0.05 basic and diluted loss per share for the quarter ended December 31, 2024. The decrease in net loss is primarily due to the allocation of underwriting losses to token holders coupled with a decrease in negative change in fair value of equity securities and unrealized loss on other investments, an increase in investment income and other income during the quarter ended December 31, 2025, when compared with the prior period.

Net loss for the year December 31, 2025, was $2.08 million or $0.28 basic and diluted loss per share compared to a net loss of $2.73 million or $0.45 basic and diluted loss per share for the year ended December 31, 2024. The change is primarily due to higher overall revenues driven by a significant decrease in unrealized loss on investments, partially offset by higher expenses and higher underwriting losses borne by token holders during the year ended December 31, 2025, 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 reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. The loss ratio is the ratio of loss and loss adjusted expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio increased to 80.9% for the 3-month period ended December 2025 when compared with the prior comparative period. The loss ratio increased 119.9% for the fiscal year ended December 31, 2025, when compared with the prior comparative period. These increases were due to losses recognized on reinsurance contracts affected by Hurricane Milton, which was a loss event occurring in 2024.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned. The acquisition cost ratio remained consistent at 11% for the quarter and year ended December 31, 2025, when compared with the prior comparative period. Our expense ratio measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the 3 months ended December 31, 2025, the expense ratio increased to 106.7% from 83.5% for the 3-month period ended December 31, 2024.

For the year ended December 31, 2025, the expense ratio increased to 144.2% from 94.3% for the year ended December 31, 2024. The increase are primarily due to increased professional costs relating to our Investor Relations and marketing, our web3 subsidiary costs, renewed S-3 related costs, increased human resources and personnel and legal costs during the quarter and year ended December 31, 2025, when compared with the prior comparable periods.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and expense ratio. For the 3-month period ended December 31, 2025, the combined ratio increased to 187.6% from 83.5% for the 3-month period ended December 31, 2024. For the year ended December 31, 2025, the combined ratio increased to 264% from 94.3% for the year ended December 31, 2024. Again, the increase is due to higher general and admin expenses and losses incurred due to Hurricane Milton that have been recorded during the quarter and the year ended December 31, 2025, when compared with prior comparable periods.

Now turning to the balance sheet. Our investment portfolio decreased to 0 at December 31, 2025, from $113,000 at the prior year-end, primarily due to the sale of our 2 equity securities during the year ended December 31, 2025. Cash and cash equivalents and restricted cash and cash equivalents increased by $1.08 million to approximately $7 million from $5.89 million as of December 31, 2024. The increase is due primarily to new collateral deposits for the current treaty year ended May 31, 2026, more than offset in fund being released from the underlying trust or loss payments during 2025 relating to Hurricane Milton.

I'll now turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. We are encouraged by the performance of our 2025 and 2026 tokenized reinsurance contracts. The balance yield token is tracking 25% ahead of its 20% target, and the high-yield token is tracking its 42% target. These results reflect our disciplined underwriting approach and demonstrate the ability of our platform to deliver attractive uncorrelated returns within the global reinsurance market.

We have also made meaningful progress expanding our platform through strategic relationships, including our entry into the Solana ecosystem and expanded distribution across more than 160 blockchain networks enabled by Layer 0 through the Alphaledger platform. These developments significantly broaden access to our offering and position SurancePlus within one of the leading blockchain ecosystems for real-world asset adoption.

As we look ahead to the 2026, 2027 contract cycle, we are targeting returns of 20% and 42% for our T20 and T42 offerings. Industry commentary, including reports from Artemis include -- indicate that El Nino conditions may support a favorable risk environment, and we are optimistic about the opportunities these presents. In parallel, we are exploring opportunities to extend our model into additional high-quality cash-generating assets such as the tokenization of data center revenue streams, particularly as it relates to the growth of artificial intelligence, AI.

We also believe our current market valuation does not fully reflect the strength of our balance sheet, including our cash and restricted cash positions nor the opportunities we are actively evaluating to significantly drive shareholder value. Overall, we remain focused on our disciplined execution, expanding distribution and scaling our platform as we continue to build long-term shareholder value.

With that, we are ready to open the call for questions.

[Operator Instructions]

Our first question comes from the line of Peter Roy with Bloomberg.

Peter are you on the line? And it appears that Peter, there's no one on the line of Peter.

[Operator Instructions]

Our next question comes from the line of Kent Engelke with Capitol Securities.

Jay, in the press release, you mentioned this 2 different times, and you also said it in your comments as well. Can you expand a little bit more about when you're talking about the tokenization of artificial intelligence infrastructure. Can you expand on that at all? That sounds really, really intriguing. On top of that, it sounds like you got a bunch of stuff going on. And some of the stuff is -- looks like it's just about to hit. But first off, can you expand on the tokenization of data center revenue?

Yes, absolutely. Thanks, Ken, for that question. So the data center revenue, let me kind of back -- take it back a little further, right? So SurancePlus, the reinsurance tokenization, that's moving along. But reinsurance cycles, as you guys are well aware, are June 1 to May 31 of the following year. So once we get through this next month, 1.5 months, 2 months, we look for new and additional things to go forward to, right?

So the data center revenue streams, what we're considering doing is we're evaluating entering into strategic relationships with partners, developers, customers, operators. But the interesting thing over here is not only would that be significant for our shareholder valuation for Oxbridge, but also significant value proposition for SurancePlus. So while we are working on the other endeavors that we've already talked about, we're evaluating some extremely interesting endeavors that will be -- that could be very interesting.

Look forward to following that as you go along. Also, it appears as though you have plenty of cash to go forward and the like. Am I reading that correctly in regards to your cash balances and your restricted cash?

Yes. Yes. We have about $6.9 million in cash and restricted cash. That puts us in great position not only to do things with the reinsurance tokenization, but also to evaluate other opportunities. So great position, great opportunities ahead.

I look forward to following you -- have been following you for a long time and it looks like there's just a bunch of things that is about to come to fruition and look forward to seeing it.

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Madhu for his closing remarks.

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 expertise has been instrumental in navigating and advancing our business. We anticipate providing you with further updates to our progress during the next call. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the Investors section of the company's website. Thank you for joining us today for our presentation. You may now disconnect.

Good afternoon. Welcome to Oxbridge's Third Quarter 2025 Earnings Call. My name is Rochelle, and I will be your conference operator this afternoon. [Operator Instructions] Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open up the call for your questions.

I would now like to remind everyone that this call will be available via telephone replay until November 20, 2025. Details for telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Please go ahead.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation 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 contained in our Form 10-K filed March 26, 2025, with the Securities and Exchange Commission.

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 could, in turn, 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 would like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on chain and broadening investor access. While we remain solidly rooted in our core reinsurance business, underwriting fully collateralized policies that cover property losses from specific catastrophes, we continue to compete effectively with large carriers by focusing on selective data-driven underwriting.

Our objective is to achieve long-term growth in book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk. We specialize in low frequency, high severity risk where sufficient data exists to analyze the risk return profile with discipline.

We are intentional about risk selection, pricing and structure, and we maintain full collateralization to protect counterparties and ensure transparency. Building on this foundation, in 2022, we started SurancePlus, our Web3 real-world asset or RWA subsidiary dedicated to bringing reinsurance on chain.

SurancePlus specializes in democratizing tokenized real-world assets or RWAs, offering tokenized reinsurance securities as alternative investment opportunities. These securities leverage blockchain technology to support transparency and regulatory compliance, representing a meaningful advantage in the digital securities market. This initiative is designed to broaden investor participation, intending opportunities beyond what traditionally has been a select group of ultra-high net worth investors.

We believe we are the first publicly traded company to issue tokenized reinsurance securities. We are advancing this focus and momentum. Our blend of disciplined underwriting and modern compliant technology is positioning Oxbridge for the opportunities ahead.

Looking ahead, we remain focused on expanding Oxbridge's presence in the RWA and Web3 sector. In summary, we maintain a strong sense of optimism regarding the long-term outlook of our core reinsurance business alongside the successful integration of SurancePlus as we embrace the RWA market more comprehensively. I will turn things over now to Wrendon to take us through our financial results. Wrendon?

Thank you, Jay. I'd like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums earned for the quarter ended September 30, 2025, decreased to $555,000 from $595,000 for the quarter ended September 30, 2024. The decrease is due to lower weighted average rate on reinsurance contracts in force during the quarter ended September 30, 2025, when compared with the prior period.

Net premiums earned for the 9-month period ended September 30, 2025, increased to $1.73 million from $1.71 million for the 9-month period ended September 30, 2024. The increase is due to higher weighted average rate on reinsurance contracts in force during the 9-month period ended September 30, 2025, when compared to the prior period.

Our net investment income and other income for the 3 months ended September 30, 2025, increased to $79,000 from $62,000 from prior year third quarter. There was an increase in the fair value of equity securities during this period of $11,000. And along with net premiums, our total revenue amounted to $645,000 for the 3-month period ended September 30, 2025, compared to $205,000 in the prior year third quarter.

Our net investment and other income for the 9 months ended September 30, 2025, increased to $251,000 from $188,000 from the prior period. The lower net premiums and along with the change in the fair value of equity securities and other investments resulted in total revenues of $2 million for the 9-month period ended September 30, 2025, compared to $124,000 in the prior year.

For the 3 months ended September 30, 2025, total expenses, including policy acquisition costs general and admin expenses increased to $815,000 from $498,000 for the quarter ended September 30, 2024. The increase is primarily due to increased professional costs related to Investor Relations, our Web3 subsidiary tokenization costs, S-3 related costs, increased human resource and personnel costs and legal expenditures when compared with prior comparable period.

For the 9 months ended September 30, 2025, total expenses, including policy acquisition costs, loss and loss adjustment expenses and general and admin expenses increased to $4.99 million from $1.67 million for the 9 months ended September 30, 2024. The increase is primarily due to the recording of full limit loss on one of our reinsurance contracts during the quarter ended June 30, 2025, along with increased professional costs, increased human resource and personnel costs and legal expenditures.

Net income for the quarter ended September 30, 2025, was $187,000 or $0.02 to basic and diluted loss per share compared to a net loss of $540,000 or $0.09 basic and diluted loss per share for the quarter ended September 30, 2024. The decrease in net loss is primarily due to the decrease in the unrealized loss on other investments during the quarter ended September 30, 2025, when compared with the prior period.

Net loss for the 9 months ended September 30, 2025, was $2.19 million or $0.30 basic and diluted loss per share compared to a net loss of $2.7 million or $0.37 basic and diluted loss per share for the 9 months ended September 30, 2024.

Again, the decrease in net loss is primarily due to the decrease in unrealized loss on other investments in the 9-month period ended September 30, 2025, when compared with the prior period.

As we have discussed before on investor calls, we use various measures to analyze the growth and profitability of our business operations. For reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. Our loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses includes net premiums.

Loss ratio. The loss ratio is the ratio of loss adjustment expenses incurred the premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the 3-month period ended September 30, 2025, when compared with the prior comparative period. The loss ratio, however, increased to 132.4% for the 9-month period ended September 30, 2025, when compared with the prior comparative period. This was due again to the full limit loss on one of our reinsurance contracts affected by Hurricane Milton.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs to net premiums earned. The acquisition cost ratio remained consistent at 11% for the quarter and 9-month period ended September 30, 2025, when compared to the prior comparative period.

The expense ratio, which measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the quarter ended September 30, 2025, the expense ratio increased to 146.8% from 83.7% for the 3-month period ended September 30, 2024. For the 9-month period ended September 30, 2025, the expense ratio increased to 156.2% from 98% for the 9-month period ended September 30, 2024. The increase is primarily due to the increased professional costs related to the investor relating to Investor Relations of overseas subsidiary, marketing and operations, renewed S-3 related costs, increased human resources, personnel and legal expenditures during the quarter ended September 30, 2025, when compared with prior comparable period.

Now turning to the balance sheet. Our investment portfolio increased to $115,000 at September 30, 2025, from $113,000 at the prior year-end, primarily due to the increase in fair value of the equity securities during the 9-month period ended September 30, 2025.

Cash and cash equivalents and restricted cash and cash equivalents increased by $1.28 million to $7.18 million from $5.9 million at December 31, 2024. The increase is the net result of premium deposits during the 9-month period ended September 30, 2025, the registered direct offering that generated $2.7 million net of expenses and payment of Hurricane Milton losses and general and admin expenses.

Now I'd like to turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. We are encouraged by the compelling performance of our 2025, 2026 tokenized reinsurance contracts. The Balanced Yield Token, EtaCat Re is on pace to achieve approximately 25%, exceeding its 20% target, while the High Yield Token, ZetaCat Re remains on track to achieve its 42% return target. These results reflect disciplined underwriting and show how our tokenized platform is delivering attractive high-quality uncorrelated returns within the $750 billion TAM for reinsurance.

Equally important, our structure is built for transparency and alignment. We write fully collateralized one-on-one contracts and do not use leverage. Our risk selection focuses on low frequency, high severity perils, where the data support rigorous analysis for expected loss and trail risk -- tail risk, pardon me.

Tokenization provides compliant digital access and enables clearer, more frequent reporting for investors. Looking ahead, we are evaluating a move towards regular dividend payouts for our security-backed CatRe tokens, moving away from a purely annual payout model. This new approach aligns with current Web3 market demand and investor preference.

Consistent presence at marquee industry events continues to expand our partner platform and investor pipeline and elevate awareness across traditional finance and Web3. Since the prior quarter updates, we have participated in TOKEN2049 in Singapore, Rare Evo, which is in Las Vegas and Spectrum Cayman in Grand Cayman.

Operationally, we are focused on 3 priorities: one, maintaining underwriting quality and diversification across cedents and perils; two, scaling compliant distribution channels that support broadened investor participation; and three, advancing product enhancements such as regular dividends that improve accessibility without compromising risk controls.

Taken together, these efforts position Oxbridge and SurancePlus to deepen our roles in bringing reinsurance returns on chain. With continued discipline, strategic relationships and technology-driven product innovation, we remain focused on building long-term shareholder value and expanding investor access to this unique uncorrelated asset class. With that, we are open to calls for questions.

[Operator Instructions] And it appears there are no questions. I will turn the call back over to the speakers for any additional or closing remarks.

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 expertise has been instrumental in navigating and advancing our business amidst these challenging circumstances. We anticipate providing you with further updates on our progress during our next call. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?

Thank you. That will conclude today's call. We thank you for your participation. You may now disconnect.

Good afternoon, and welcome to Oxbridge Re's Second Quarter 2025 Earnings Call. My name is Dine, and I will be your conference operator this afternoon. [Operator Instructions]

Joining us for today's presentation is Oxbridge Re's Chairman, President, Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon 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 August 28, 2025. Details for the telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge Re, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Over to you, sir.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge Re's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects and other similar rules 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 are included in the section entitled Risk Factors contained in our Form 10-K filed on March 26, 2025 with the Securities and Exchange Commission. 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 could 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 our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we're proud of the significant steps we have taken to fortify and diversify our business. While we are solidly entrenched in the RWA Web3 space where we issue tokenized reinsurance securities in an RWA or real-world assets, our core business remains reinsurance where we write fully collateralized policies to cover property loss from specific catastrophes. And because we write fully collateralized contracts, we believe we can compete effectively with large carriers.

We specialize in underwriting low-frequency, high-severity risks where we believe sufficient data exist to effectively analyze the risk/return profile of reinsurance contracts. Our objective is to achieve long-term growth in book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk.

Building on the stable reinsurance foundation, we have begun to diversify our business in 2022. We expanded our business portfolio by establishing SurancePlus Inc., our new subsidiary focused on RWA Web3 technology. SurancePlus specializes in democratizing tokenized real-world assets or RWAs, offering tokenized reinsurance securities as alternative investment opportunities. These securities leverage blockchain technology to ensure complete transparency and compliance with SEC guidelines, representing a significant advancement in the digital security market. This initiative aims to broaden investor participation, extending our opportunities beyond what traditionally has been a select group of ultra-high net worth individuals.

We are enthusiastic about the prospects of these 2 new investments and remain committed to keep our stakeholders informed of our progress in the forthcoming quarters. Looking ahead, we intend to position Oxbridge as a prominent player in the real-world asset or RWA and Web3 sector.

In summary, we maintain a strong sense of optimism regarding the long-term outlook of our core reinsurance business alongside the successful integration of SurancePlus as we embrace the RWA market more comprehensively.

I'll now turn things over to Wrendon and take us through our financial results. Wrendon?

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year.

With respect to net premiums earned, net premiums earned for the quarter ended June 30, 2025 increased to $582,000 from $564,000 for the quarter ended June 30, 2024. Net premiums earned for 6 months ended June 30, 2025 increased to $1.18 million from $1.1 million for the 6 months ended June 30, 2024. The increases are due to higher rates on contracts that were in force in the 3 and 6-month periods ended June 30, 2025 when compared to the contracts in force in the prior year periods.

Our net investment income and other income for the 3 months ended June 30, 2025 increased to $93,000 from $66,000 from prior year second quarter. These factors combined resulted in total revenues of $654,000 for the 3 months ended June 30, 2025, compared to $44,000 in the prior year second quarter.

Our net investment and other income for the 6 months ended June 30, 2025 increased to $173,000 from $126,000 from prior year period. These factors taken together resulted in total revenues of $1.36 million for the 6 months ended June 30, 2025, compared to negative $81,000 in the prior year comparable period.

For the quarter ended June 30, 2025, total expenses, which comprise of loss and loss adjustment expenses, policy acquisition costs and general and admin expenses, increased to $2.61 million from $628,000 for the quarter ended June 30, 2024. For the 6 months ended June 30, 2025, total expenses increased to $4.18 million from $1.18 million for the 6 months ended June 30, 2024. These increases are primarily due to the adverse development and loss recognition from Hurricane Milton on 1 of our reinsurance contracts, coupled with increased human resources and personnel costs, professional marketing and IR costs, our Web3 subsidiary tokenization costs, renewed S-3 related costs and legal expenditures when compared with prior year periods.

Our net loss for the quarter ended June 30, 2025 was $1.87 million or $0.25 per basic and diluted loss per share, compared to a net loss of $821,000 or $0.14 basic and diluted loss per share for the quarter ended June 2024. Net loss for the 6 months ended June 30, 2025 was $2.01 million or $0.28 basic and diluted loss per share, compared to a net loss of $1.73 million or $0.29 per basic and diluted loss per share for the 6 months ended June 30, 2024. The increases again are primarily due to the adverse development and loss recognition from Hurricane Milton on 1 of our reinsurance contracts during the 3 and 6-month periods ended June 30, 2025 when compared with prior periods.

As we have discussed before in our investor calls, we use various measures to analyze the growth and profitability of our business operations. For our reinsurance business, we measure underwriting profitability by determining our loss ratio, acquisition ratio, expense ratio and combined ratio.

Our loss ratio, which measures underwriting profitability, is the ratio of loss and loss adjustment expenses incurred to net premiums earned. The loss ratio increased to 394% and 194.8% for the quarter and 6-month periods ended June 30, 2025, respectively, when compared with the prior comparative period. This was due to the full limit loss of approximately $2.3 million on 1 of our reinsurance contracts affected by Hurricane Milton. Net impact of Hurricane Milton's loss on the company's equity, however, after accounting for the portion of losses borne by external tokenholders was approximately $1.2 million.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs to net premiums earned. The acquisition cost ratio remained consistent at approximately 11% for the quarter ended and 6 months ended June 30, 2025 when compared with the quarter and 6-month period ended June 30, 2024.

Our expense ratio, which measures operating performance, compares policy acquisition costs and general and admin expenses with net premiums earned. For the quarter ended June 30, 2025, the expense ratio increased to 227% from 111.3% from the quarter ended June 30, 2024. For the 6 month period ended June 30, 2025, the expense ratio increased to 160.7% from 105.7% for the 6 months period ended June 30, 2024. The increases are primarily due to increased professional costs related to Investor Relations and our Web3 subsidiary marketing and operations, renewed S-3 related costs, increased human resources and personnel costs and legal expenditures during the quarter and 6-month periods ended June 30, 2025 when compared with the prior comparable periods.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio increased to 621% from 111.3% for the quarter ended June 30, 2024. For the 6-month period ended June 30, 2025, the combined ratio increased to 355.5% from 105.7% for the 6-month period ended June 30, 2024. The increase again is primarily due to losses incurred from Hurricane Milton and increased general and admin expenses during the 3 and 6-month period ended June 30, 2025 when compared with the prior comparable periods.

Now turning to the balance sheet. Our investment portfolio decreased to $104,000 at June 30, 2025 from $113,000 at prior year-end, primarily due to the decrease in fair value of equity securities during the 6-month period ended June 30, 2025. Cash and cash equivalents and restricted cash and cash equivalents increased by $760,000 or 12.9% to $6.7 million from $5.9 million as of December 31, 2024. The increase is a net result of premium deposits made during the 6 months ended June 30, 2025, the registered direct offering that generated $2.7 million net of expenses and payment of Hurricane Milton losses and general admin expenses during the period.

I'll now turn the call back over to Jay to wrap up before we take any questions. Jay?

Thank you, Wrendon. This quarter marks a pivotal moment for Oxbridge and SurancePlus. We've not only expanded our footprint in the rapidly-growing tokenized reinsurance market, but also forged strategic partnerships that position us for accelerated growth. As the first Nasdaq-listed company to tokenize -- to issue a tokenized reinsurance security, we are proving that innovation and compliance can go hand in hand, creating new opportunities for investors and setting a high standard for the industry.

To further accelerate our strategy and strengthen our leadership position, we have scheduled an Extraordinary General Meeting to approve measures that will accelerate our strategy and strengthen our leadership. These initiatives combined with our ongoing focus of transparency position us to capture significant opportunity in the quarters ahead.

Building on our Memorandum of Understanding with Plume last quarter, a leading real-world asset platform with an institutional-grade tokenization infrastructure and a track record in scaling compliant blockchain solutions, we have now entered into a strategic partnership with Midnight Foundation, which is an Input Output Growth company, the same founders of Cardano. The Midnight Foundation supports ecosystem growth and enterprise adoption of the Midnight Network, a private focused blockchain developed by Shielded Technologies, a subsidiary of Input Output Global, the team behind Cardano again.

Today, these alliances expands SurancePlus' reach, strengthen distribution capabilities and position our platform at the forefront of blockchain-enabled RWA innovation. We have advanced our 2025 and 2026 tokenized reinsurance offerings, which provides some diversity of investment opportunities within the $760 billion reinsurance market TAM, a sector uncorrelated to broader capital markets. Our balanced-yield product targets a 20% annual return and our high-yield product targets a 42% annual return, assuming no underlying losses. By delivering compliant blockchain-powered pathways into this traditionally elusive asset class, we are broadening investor participation and reinforcing our mission to democratize reinsurance investment.

This year, we have been an active participant and sponsor at leading blockchain and RWA events globally, including iConnect in Miami, ETHDenver 2025 and RWA Day in Denver, Apex Invest 2025 in the Cayman Islands, Token2049 in Dubai Money20/20 in Europe, in Amsterdam, Permissionless IV and Yield Day NYC in New York and EthCC in Cannes and Rare Evo recently in 2025, again, in Las Vegas. These forums provide an opportunity to showcase SurancePlus, strengthen industry leadership, sign new partnerships and explore collaborative opportunities with leading blockchain platforms.

Our achievement in the quarter reflects a disciplined approach to execution and clear vision of the future. With a strong balance sheet, innovative products and an expanding network of strategic relationships, Oxbridge is well positioned to drive sustainable growth, create long-term shareholder value and lead the tokenized reinsurance market into its next phase of evolution.

With that, we are ready to open the call for questions. Operator, please provide the appropriate instructions.

[Operator Instructions] The first question that we have comes from Allen Klee of Maxim Group.

Congrats on growing your premium. I was interested in -- sure. You've been very active on the conference front. I was just wondering kind of what takeaways you have to share with us from what you've gotten from all those attendance.

Yes. So first off, Allen, thanks for getting on the call and listening. Conferences, in my opinion, are very important, right, because you have various different people in the ecosystem that can congregate in various different places. And being front and center at these events is very important. We not only gain -- not only glean important information about our ecosystem, but we're also able to talk to folks about how they could -- how we all can add value by collaborating together.

So some of the things that we have learned from all these conferences is what investors are, very importantly, want to know is compliance and transparency. So it's great to show yield, everybody wants to see yield, but they also want to know what kind of compliance and transparency are part of our tokenized product. Are we writing -- how are we doing -- what kind of leverage are we putting on our product? What kind of opportunity there is?

And they're stunned when we tell them, there's no leverage on our product, we write one to one. And there's total transparency compliance. So SurancePlus has PCAOB-audited financials, as does Oxbridge, everything flows up. But SurancePlus has segregated PCAOB-audited financials, which is, I think, key in making sure that whole compliance aspect works.

So we're making some great strides. We're making some great opportunity over here. We've opened a few different doors, some of which we have already put out and some of which we are still working to, which I think would be extremely interesting as we go forward. So all in all, very important to go on the trail, but more importantly, it's important to get the right mix of folks involved.

That's great. You talked about an upcoming EGM meeting and some proposals. Could you elaborate on that, please?

Yes. We -- it's nothing new that we're always very transparent and open. We've put out information in the past that we are looking to get into blockchain space, RWA space in a bigger way. So part of this is not only planning for the future, making sure that we have the right partners and so on involved in this, but it's also important when the timing is right, and let me emphasize, when the timing is right, and we need to do something, we need to make sure that all the bits and pieces are in place.

So the EGM that we have over here is making sure that, as opposed to hoping that things will go right once we kind of get into that spot, we are putting all the building blocks in place. So that way, when timing is right, we can move in the right direction.

So very interesting space. The current administration has talked widely, widely, about not only the blockchain and crypto space, but they've also, recently in the last 2 days, have talked highly about the RWA space. We're slap-bang in that.

Just to put some perspective to this, the reinsurance space is -- the TAM of the reinsurance space is $700 billion. And to just kind of put a point to it, the -- put a point to it, the -- to put a point to it, $150 is the stablecoin TAM, right? So stablecoins, which everybody talks about, the TAM on stablecoins is $150 billion. But reinsurance is a $750 billion market.

So compliance, transparency, positioning the company in the right direction, making the right partners, growing the right partnerships and getting it into the right direction is where we're currently working towards.

[Operator Instructions] At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Madhu for any 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 further updates on our progress during our next call or before. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge.

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