Oxbridge Re (NASDAQ:OXBR) reported a wider third-quarter loss as it deployed less capital into reinsurance contracts, while executives outlined plans to develop data center infrastructure and potentially use tokenized securities to help finance projects.
The company posted a net loss of $421,000, or $0.05 per share, for the quarter ended September 30, 2026, compared with a loss of $187,000, or $0.02 per share, a year earlier. Chief Financial Officer and Corporate Secretary Wrendon Timothy attributed the increase primarily to lower net premiums earned, partly offset by higher investment and other income and lower general and administrative expenses.
Net premiums earned fell to $86,000 from $555,000 as Oxbridge put less capital into reinsurance contracts. Total revenue declined to $261,000 from $645,000, while total expenses fell to $647,000 from $815,000, primarily because of lower professional fees and compensation, Timothy said.
Nine-Month Loss Narrows
For the first nine months of 2026, Oxbridge reported a net loss of $223,000, or $0.03 per share, compared with a loss of $2.19 million, or $0.30 per share, in the prior-year period.
Timothy said the improvement primarily reflected lower loss and loss adjustment expenses, with no underwriting losses recorded during the 2026 period. Management fee income from the SurancePlus platform and lower professional fees and compensation also contributed.
Nine-month net premiums earned declined to $1.01 million from $1.73 million, while total revenue fell to $1.8 million from $2 million. Total expenses dropped to $1.87 million from $4.99 million.
The company’s nine-month loss ratio fell to 0% from 132.4%. Timothy said Oxbridge recognized a full-limit loss on one reinsurance contract in the prior-year period. The quarterly combined ratio rose to 752.3% from 146.8%, primarily because of lower net premiums earned.
Combined cash, restricted cash and cash equivalents stood at $19.5 million on September 30, compared with $6.9 million at the end of 2025. Timothy said the change reflected investment in new tokenized securities, collateral released from successful 2025-2026 reinsurance contracts and premium deposits.
Tokenized Reinsurance Offerings
Chairman, President and CEO Jay Madhu said SurancePlus, Oxbridge’s real-world asset tokenization platform, completed five offerings for the 2026-2027 treaty year with approximately $7.1 million in aggregate gross proceeds.
Two offerings were tied to reinsurance originated by Oxbridge. The other three, associated with HCI Group and Fortex Re, were SurancePlus’ first offerings tied to third-party reinsurance, Madhu said.
Madhu said HCI reported on October 21 that it expected Hurricane Isaias to affect only Series B among its three offerings and that Series B remained profitable at the time of that update. Actual returns depend on underwriting results, he added.
Data Center Plans and Financing
Oxbridge’s AI GridWorks business is evaluating sites, working with utilities on power availability and discussing zoning and infrastructure requirements with local authorities, Madhu said. The business is primarily targeting projects in the 10-megawatt to 100-megawatt range.
Madhu said the company’s focus is on land, utility power and facilities that customers and operating partners could use for their computing equipment. Depending on the project, Oxbridge could sell a powered site, bring in a partner or develop and retain ownership of a powered shell for lease.
In response to analyst questions, Madhu said the company is seeking sites where power could be available in 2027, with capacity to ramp up quickly. He did not provide a specific construction start date. He also said officials in states and counties under consideration remained supportive of data centers following recent elections, though projects would still need approvals.
Madhu said tokenization could be one part of project financing alongside traditional capital sources. Potential structures could include project-level debt, fractional ownership in a facility-owning entity or an investment tied to a facility’s cash flow.
One idea under consideration is reserving portions of an offering for eligible residents of a host county, with SurancePlus potentially used to administer allocations and verify residency. Madhu said terms and eligibility would depend on the project and applicable securities laws.
About Oxbridge Re (NASDAQ:OXBR)
Oxbridge Re Holdings Limited is a specialty reinsurance holding company listed on the Nasdaq Capital Market under the symbol OXBR. The company conducts its reinsurance activities primarily through Oxbridge Reinsurance Limited, a Bermuda-based subsidiary, and focuses on providing collateralized property catastrophe reinsurance.
Its coverage is designed to protect insurance companies against losses from major natural-catastrophe events, including hurricanes and other severe weather-related disasters.
