Oxbridge Re — Q2 2026 Earnings Summary

Financial Performance

• Net income for the quarter ended June 30, 2026, was $176,000 ($0.02 per share), compared to a net loss of $1.87 million ($0.25 per share) in the same period in 2025.
• Net income for the six months ended June 30, 2026, was $198,000 ($0.02 per share), compared to a net loss of $2.01 million ($0.28 per share) in the same period in 2025.
• Net premiums earned decreased to $368,000 for the quarter (from $582,000 in Q2 2025) and $924,000 for the six months (from $1.11 million in H1 2025), driven by lower weighted average rates and reduced capital deployment.
• Total expenses decreased to $647,000 for the quarter (from $3.6 million in Q2 2025) and $1.2 million for the six months (from $4.2 million in H1 2025), primarily due to zero underwriting losses and reduced professional fees.
• Loss ratio improved to 0% for both the quarter and six-month period, down from 394% and 194.8% respectively in the prior year periods, as no underwriting losses were recorded.
• Combined ratio improved to 175.8% for the quarter (from 621%) and 133.1% for the six months (from 355.5%).
• Restricted cash and cash equivalents increased to $19.82 million as of June 30, 2026, from $6.98 million at December 31, 2025.
• Total assets increased to $20.372 million as of June 30, 2026, from $8.053 million at December 31, 2025.
• Total liabilities decreased to $1.02 million as of June 30, 2026, from $1.56 million at December 31, 2025.
• Total shareholders' equity increased to $6.774 million as of June 30, 2026, from $5.975 million at December 31, 2025.

Business Segments and Product Lines

• SurancePlus: Completed five private placements of tokenized reinsurance securities on the Solana blockchain during the quarter and six-month period, raising $7.1 million in aggregate gross proceeds.
• SurancePlus Performance: The 2025-2026 EtaCat Re and ZetaCat Re offerings delivered actual annualized returns of 29.3% and 43.4%, exceeding their original targets of 20% and 42%.
• SurancePlus Offerings: Current T20 and T42 offerings (targeting 20% and 42% annual returns) are on track with targets. Three third-party HCI Re 2026 offerings target annual returns of 224% (Series A), 122% (Series B), and 17% (Series C).
• SurancePlus Cumulative: Since launch, the platform has issued approximately 1.27 million tokenized securities raising over $16 million in cumulative gross proceeds, backing over $31 million of deployed capital.
• AI GridWorks: Launched as a new subsidiary focused on developing, owning, and operating AI data centers and related infrastructure.
• AI GridWorks Team: Assembled a team with experience supporting approximately 2.9 GW of deployed hyperscale data center infrastructure and originating approximately 3 GW of powered land opportunities.
• Strategic Expansion: SurancePlus expanded to include third-party reinsurance opportunities with HCI Group, Inc. and Fortex Reinsurance SPC, Ltd., in addition to Oxbridge-originated assets.

Market and Competitive Landscape

• Management cites the continued growth of artificial intelligence and increasing demand for computing capacity as creating significant long-term opportunities for physical infrastructure development.
• The company positions itself at the intersection of digital finance and AI infrastructure, leveraging tokenization for real-world assets (RWAs).

Risks and Challenges

• Forward-looking statements regarding AI GridWorks and SurancePlus growth are subject to risks and uncertainties detailed in the company's Form 10-K filed on March 30, 2026.
• Underwriting performance remains a factor for the T20 and T42 offerings, which are subject to the applicable treaty period.

Management Commentary and Tone

• Jay Madhu, Chairman and CEO, stated the company is entering an "important new phase of growth" driven by two complementary platforms.
• Management expressed confidence that AI GridWorks and SurancePlus provide multiple avenues for long-term shareholder value creation.
• The tone highlights the successful execution of tokenized reinsurance returns and the strategic pivot into physical AI infrastructure.

Other Key Points

• New Subsidiary: AI GridWorks was launched post-quarter end to develop and own AI data centers.
• Tokenization Expansion: SurancePlus now structures and tokenizes assets from third parties (HCI Group, Fortex Re) alongside internal reinsurance.

Conference Call: Management hosted a call on August 13, 2026, at 4:30 p.m. Eastern time, featuring CEO Jay Madhu and CFO Wrendon Timothy.

• Capital Deployment: The increase in restricted cash is attributed to investments in new tokenized securities, release of collateral from 25-26 reinsurance treaties, and premium deposits.
• Balance Sheet: Mezzanine equity increased significantly to $12.578 million as of June 30, 2026, from $518,000 at December 31, 2025, driven by the addition of HCI 2026 token series.