Oxbridge Re Holdings Limited (OXBR) Q3 Earnings call transcript Nov 13, 2024

Daily EarningsWednesday, Nov 13, 2024 9:16 pm ET

1min read

In a recent earnings call, Jay Madhu, Chairman, President, and CEO of Oxbridge Re, provided a comprehensive overview of the company's financial performance and strategic initiatives. The call was marked by a strong sense of optimism, particularly in the context of the company's strategic diversification efforts and its entry into the real-world asset (RWA) market.

Financial Highlights

Oxbridge Re reported a net loss of $540,000 for the third quarter of 2024, representing a significant improvement compared to the net loss of $10.3 million in the same period last year. The company's net premiums earned for the quarter increased by 10.4% to $595,000, with total revenues standing at $205,000. These improvements were largely attributed to the successful execution of its reinsurance contracts and the strategic expansion into the RWA market through its subsidiary, SurancePlus.

Strategic Diversification and SurancePlus

Jay Madhu highlighted the company's strategic efforts to diversify its business portfolio through the establishment of SurancePlus Inc., which specializes in RWA technology and tokenized real-world assets. This initiative, which was achieved without incurring new debt, is poised to broaden investor participation and democratize tokenized securities. Madhu expressed his enthusiasm about the prospects of these new investments and reiterated the company's commitment to keeping stakeholders informed of their progress.

Competitive Landscape

Madhu acknowledged the presence of competitors in the RWA market but emphasized the unique value proposition of Oxbridge Re, particularly in terms of transparency and trust. The company's PCOB audited financials and strategic adherence to SEC guidelines set it apart from competitors. Madhu also highlighted the successful launch of SurancePlus's Delta CatRe tokenized securities and the recent private placement of Epsilon CatRe, which raised approximately $2.9 million.

Market Opportunities

Madhu expressed optimism about the future of RWA tokenization, citing its potential to reach $10 trillion in the next decade. Oxbridge Re plans to issue two tranches of tokenized securities, targeting returns of 42% and 22%, respectively. The company's rebranding efforts as an RWA/Web3 focused entity are also seen as strategic moves to capitalize on emerging market trends.

Conclusion

Overall, Oxbridge Re's earnings call presented a positive outlook, underscored by the company's strategic diversification efforts and its entry into the RWA market. The company's commitment to transparency, trust, and innovation positions it well for future growth and success. As the company continues to navigate the evolving financial landscape, it remains focused on providing value to its stakeholders and capitalizing on emerging opportunities.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.