Q1 2025 Oxbridge Re Holdings Ltd Earnings Cal
Speaker Change: [music].
Yes.
Operator: Today's conference will start in about two minutes. We thank you for your patience and understanding. The conference will start momentarily. Thank you for your patience.
Speaker Change: Today's conference will start in about two minutes, we thank you for your patience and understanding.
Speaker Change: [music].
Speaker Change: The conference will start momentarily. Thank you for your patience.
Speaker Change: [music].
Operator: Good afternoon and welcome to Oxbridge Re's first quarter 2025 earnings conference.
Robert: Good afternoon, and welcome to Oxbridge Re's first quarter 2025 earnings Conference call. My name is Robert and I'll be your conference operator this afternoon at.
Robert: My name is Robert, and I'll be your conference operator this afternoon. At this time, all participants will be in a listen-only mode.
Robert: At this time, all participants will be in a listen only mode.
Operator: Joining us for today's presentation is Oxbridge Re's Chairman, President and Chief Executive Officer Jay Madhu and Chief Financial Officer and Corporate Secretary Wrendon Timothy. With all of their remarks, we will open up the call for your questions.
Speaker Change: Joining us for today's presentation is Oxbridge Re's, Chairman, President and Chief Executive Officer, Jay Madhu, and Chief Financial Officer, and corporate Secretary Brandon Timothy following their remarks, we will open up the call for your questions.
Operator: I would like to remind everyone that this call will be available via telephone replay until May 26, 2025. Details for telephone replay are included in the press release issued today.
Speaker Change: I would like to remind everyone that this call will be available via telephone replay until May 26, 2025 details for telephone replay are included in the press release issued today.
Wrendon Timothy: Now I would like to turn the call over to your host, Wrendon Timothy, Chief Financial Officer of Oxbridge Re Hldg, 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 Re's future financial performance. These four looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, project, and other similar words and expressions are intended to signify forward looking. for watching.
Speaker Change: Now I'd like to turn the call over to your host random Timothy 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.
Timothy Timothy: 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 19 at 95 one.
Timothy Timothy: 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 guarantee of future results and conditions, but rather are subject to various risks and uncertainties.
Wrendon Timothy: A detailed discussion of the risks and uncertainties that can 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 26, 2025, with the Security 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 watching. and accept as required by law.
Timothy Timothy: A detailed discussion of the risks and uncertainties that can 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 26, 2025, with the Securities and Exchange Commission.
Timothy Timothy: The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business financial condition, and the volatile CFO womens which into income caused significant market price and trading volume fluctuations for securities any forward looking statements made on this conference call speak only as of the date of this conference call.
Timothy Timothy: 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 no I'd like to turn the call over to our chairman President and Chief Executive Officer, Jim Jaye.
Wrendon Timothy: 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.
Jay Madhu: 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 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 losses from specific capacities. And because we write fully collateralized contracts, we believe we can compete effectively with large carriers.
Speaker Change: Thank you Brendon 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 diversify our business. While we are solidly entrenched in the <unk> space, where we issued talk to reinsurance securities in an <unk> or real world assets.
Speaker Change: Our core business remains of reinsurance, where we write fully collateralized policies to cover property losses from specific catastrophes.
Speaker Change: 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 exists to effectively analyze the risk return profile of reinsurance contracts. Our objective is to effect to achieve long term growth and book value per share by writing Biz.
Jay Madhu: We specialize in underwriting low-frequency, high-severity risks, where we believe sufficient data exists to effectively analyze the risk-return profile of reinsurance contracts. Our objective is to achieve long-term growth and book value per share by running business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk.
Speaker Change: That's on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk building onto stable reinsurance Foundation, we began to diversify our business in 2022, we expanded our business portfolio by establishing shorts plus Inc. Our new subsidiary refocus our W. Webb.
Jay Madhu: Building on the Stable Reinsurance Foundation, we began to diversify our business in 2022. We expanded our business portfolio by establishing Shorts Plus, Inc., a new subsidiary-focused RWA Web3 technology. Shorts Plus 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. Consequently, this initiative aims to broaden investor participation, extending opportunities beyond what traditionally has been a select group of ultra-high net worth individuals. Crucially, the establishment of Assurance Plus was achieved without incurring new debt, reflecting our efficient approach to diversification.
Speaker Change: With <unk> technology.
Speaker Change: But sean.
Speaker Change: <unk> specializes in democratizing took a nice world wealth assets, our RW ways offering Cocainize reinsurance securities as alternative investment opportunities. These securities leverage blockchain technology to ensure complete transparency and compliance with SEC guidelines.
Speaker Change: Representing a significant advancement in the digital security market. Consequently, this initiative aims to important investor participation extending opportunities beyond what traditionally has been a select group of ultra high net worth individuals.
Speaker Change: Crucially the establishment of assurance plus was achieved without incurring new debt, reflecting our efficient approach to diversification.
Speaker Change: Excuse me we are we are enthusiastic about the prospects of these new investments and remain committed to keeping our stakeholders informed of that progress in the upcoming quarters.
Jay Madhu: We are enthusiastic about the prospects of these new investments and remain committed to keeping our stakeholders informed of their progress in the upcoming quarters.
Jay Madhu: Looking ahead, we intend to position Oxbridge as a prominent player in the real world or RWA Web3 sector. In summary, we maintain a strong sense of optimism regarding the long-term outlook of our core reinsurance business.
Speaker Change: Looking ahead, we intend to position Oxbridge is a prominent player in the real world are W. A battery sector.
Speaker Change: In summary.
Speaker Change: We maintain a strong sense of optimism.
Speaker Change: Regarding the long term outlook of our core reinsurance business.
Jay Madhu: Alongside a successful integration of insurance plus as we embrace the RW market more competitive I would like to remind you that our typical contract period is from June 1 to May 31 of the following year.
Speaker Change: Alongside the successful integration of assurance plus as we embrace the <unk> market more competitively.
Speaker Change: I'll now turn things over to Brendan take us through our financial results. Thank you Jay I would like to remind you that our typical contract period is from June one to meet the inputs of the following year.
Jay Madhu: Net premium earned for the quarter ended March 31, 2025 increased to $595,000 from $549,000 for the quarter ended March 31, 2021. The increase is due to the rates, high rates and contracts that were enforced in the quarter ending March. 2005 when compared to the contracts in force in the prior period. Our investment income and other income increased to $79,000 from $62,000 from prior first quarter. We also recognized a $35,000 realized gain on the sales of our investment in JetEI. All these factors taken together resulted in total revenues of $692,000 for the three months ending March 31st, 2025, compared to negative $125,000 in the prior first quarter.
Speaker Change: Net premium for the <unk>.
Speaker Change: What ended March 31st 2025 increased to 595000 from $5 9000 for the quarter ended March 31st 2024. The increase is due to the Reed higher recent contracts that we enforce in the quarter ended March 31st thing 25, when compared to the contracts enforced in the prior period.
Speaker Change: And that's meant in government other income increased to 79000 from 62000 from prior year first quarter. We also recognize a 35000 realized gain on the seal affluent or the investment in <unk>. All of these factors taken together resulted in total revenues of six times 2000 for the three months ended March 31, 2025, compared to a negative 185 films into price.
Speaker Change: Okay.
Jay Madhu: For the three months ending March 31st, 2025, total expenses, including policy acquisition costs and general and admin expenses, increased to $570,000 from $548,000 for the quarter ending March 31st, 2024. The increase is primarily due to the value of stock-based compensation incurred during the three-month period ending March 31st, 2025, as a result of higher share price on. For the three-month-ending March 31, 2025, the company generated net loss of $139,000 or $0.02 per basic, undiluted loss per share compared to a net loss of $905,000 or $0.15 per basic, undiluted earnings loss per share for the quarter-ending March 31, 2025.
Speaker Change: For the three months ended March 31st 2025 total expenses included in policy acquisition cost and general and admin expenses increased 5% with element from 540000 for the quarter ended March 31st 2024. The increase is primarily due to the value of stock based compensation. During the three months ended March 31st 2025.
Speaker Change: The result of higher share price on grass seed.
Speaker Change: For the three months ended March 31st 2095, the company generated a net loss of 100, <unk> thousand or <unk> could be sick and diluted loss per share compared to a net loss of <unk> 5000, or 15 cents per basic and diluted loss per share for the quarter ended March 31st 2020 for the decrease in net loss is primarily due to the <unk>.
Jay Madhu: The decrease in net loss is primarily due to the positive change in the fair value of equity security and the sale of investments in JetEI during the quarter. Quarter ended March the 1st, 2025 when compared with the price.
Speaker Change: The change in the fair value of equity securities of <unk> during the quarter June quarter.
Speaker Change: Quarter ended March 31st 2025, when compared with the prior period.
Jay Madhu: As we have discussed before in our investor calls, we use various measures to analyze the growth and profit. for our business operations. For reinsurance business, we measure underwriting profitability by examining our loss ratio, our acquisition ratio, our expense ratio, and combined. Our large ratio which measures underwriting profitability is the ratio of loss and loss of inexpensive and good and negative. Lottery shall remain consistent at 0% for the quarter ending March 31st, 2025, compared with the quarter ending March 31st, 2020. of Sanjay Madhu. Our expense ratio, which measures operating performance, compares policy acquisition costs and general and admin expenses.
Speaker Change: As we have discussed before noise, but the calls we use various measures to analyze the growth and profitability for our business operations for our reinsurance business, we measure underwriting profitability by examining our loss ratio.
Speaker Change: <unk> ratio or expense ratio and combined ratio or loss ratio, which measures underwriting profitability is the ratio of loss and loss adjustment expenses and good in that program.
Speaker Change: The loss ratio remained consistent at 3% for the quarter ended March 31st try 25, compared with the quarter ended March 31st 2024 of acquisition cost ratio, which measures operational efficiency compares policy acquisition costs and that the acquisition cost ratio remained at 10, 9% for the quarter ended March 31st 2002.
Speaker Change: 95, compared with the prior year quarter.
Speaker Change: Our expense ratio, which measures operating performance compares policy acquisition costs, and general and admin expenses would be understood.
Jay Madhu: The expenditure should decrease marginally from 99.8% for the three-month period and then match the difference between 24th and 95.8% for the three-month period. The decrease is due to higher net premium earned during the three-month period and in March 31st, 2075 when compared with the price. Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio also decreased marginally from 99.8% for the three-month period and then March 31, 2024, to 95.8% for the three-month period and then March 31, 2025. The decrease is due to higher net premium earned during the three-month period and 2025 when campaigned with the private.
Speaker Change: The expense ratio decreased marginally from 99, 8% for the three month period ended March 24th and 95 eight for the three month period ended March 31st 2025. The decrease is due to higher net premiums earned during the three months period ended March 31st phase five when compared with the prior period.
Speaker Change: Our combined ratio, which is used to measure underwriting performance is the sum of the loss ratio on the expense ratio. The combined ratio also decreased marginally from 99, 8% for the three months period ended March 2024.
Speaker Change: Five 8% for the three month period ended March 31, 2025 that increases due to high in the preamble even during this period ended March 2025, when compared with the prior period.
Speaker Change: Turning to the balance sheet, our investment portfolio increased marginally to 116000 at March 31st Slide 25 from 115000 at prior year end, primarily due to the increase in fair value of equity securities. During the quarter ended March 31st thing 25.
Jay Madhu: Our investment portfolio increased marginally to $116,000 at March 2025, from $113,000 at a prior year end, primarily due to the increase in fair value of equity securities during the quarter.
Jay Madhu: Cash & Cash Equivalents and Restricted Cash & Cash Equivalents increased by $3.7 million or 62.8% to $9.6 million from $5.9 million as of December 2, 2020.
Speaker Change: Cash equivalents and restricted cash and cash equivalents increased by $3 7 million or 62, 8% to $9 6 million from $5 9 million as of December 31st 2024. The increase is primarily due to premium deposits made during the three months ended March 30 for 30 35 as well as the completion of the registered direct offering that generated.
Jay Madhu: The increase is primarily due to premium deposits made during the three-month ending March 30th, 2025, as well as the completion of a registered direct offering that generated 2.7 million net of I'll now turn the call back over to Jay to wrap up before we take your questions, Jay.
Speaker Change: $2 7 million net of expenses I will now turn the call back what the G to wrap up before we take your questions.
Jay Madhu: Thank you, Wrendon. As highlighted earlier in today's discussion, we have implemented decisive measures over the last two years to strengthen and diversify our operations.
Speaker Change: Thank you Brendan as highlighted earlier in todays discussion we have implemented decisive measures over the last two years to strengthen and diversify our operations in December of 2020 to be launched <unk> plus with the objective of totalizing securities representing rationalized interest in reinsurance contracts.
Jay Madhu: In December of 2022, we launched Surence+, with the objective of tokenizing securities representing fractionalized interest in reinsurance contracts underwritten by a reinsurance subsidiary. In the second quarter of 2023, we successfully completed the initial offering of these security tokens, known as Delta Cat III, issued on Avalanche Blocks. Notably, investors in Delta Category achieved returns exceeding 49%, surpassing the initial 42% projection. Despite the challenges posed by Hurricane Idalia, which made landfall as a Category 3 storm in 2020, We believe these are the first tokenized reinsurance securities backed by publicly traded companies. an accomplishment that underscores our ability to lead through innovation.
Speaker Change: Underwritten by our reinsurance subsidiary.
Speaker Change: In the second quarter of 2023, we successfully completed the initial offering of security tokens known as Delta country issued an avalanche blockchain, notably investments in Delta category achieved returns exceeding 49%, surpassing the initial 42% projections. Despite the challenges posed by Hurricane Italia, which.
Speaker Change: Made landfall as a category three storm in 2023.
Speaker Change: We believe these are the first token is reinsurance securities <unk> backed by a publicly traded company.
Speaker Change: An accomplishment that underscores our ability to lead through innovation.
Jay Madhu: Insurance Plus was established to democratize access to reinsurance as an alternative investment, leveraging blockchain technology to create sophisticated digital security. Our security tokens are designed to offer broader investor participation, securely and transparently recorded on the blockchain. Using Reg D and Reg S frameworks, investors can seamlessly complete AML, KYC and document signing requirements, accessing this historically Exclusive asset class within minutes by lowering the financial barriers that have traditionally restricted access to reinsurance We are making this asset class accessible to a wider range of investors As part of our commitment to growth and industrial leadership, we have actively participated in key global tokenization and blockchain events.
Speaker Change: Sharp plus wasn't was established to democratize access to reinsurance at an alternative investment leveraging block chain technology to create sophisticated digital securities.
Speaker Change: Security tokens are designed to offer a broad broader investor participation securely on transparency recorded on the blockchain.
Speaker Change: Using Reg D and Reg S frameworks investors can seamlessly compete complete AML <unk> and document signing requirements accessing this historically.
Speaker Change: Exclusive asset class within minutes by lowering the financial barriers that have traditionally restricted access to reinsurance we are making this asset class accessible to a wider range of investors.
Speaker Change: As part of our commitment to growth and industrial leadership, we have actively participated in key global organization of blockchain events. This includes consensus 2024, and Austin, Texas token 2049 in Singapore, and Tokyo 2049 in Dubai, where we engaged with industry leaders innovators at <unk>.
Jay Madhu: This includes Consensus 2024 in Austin, Texas, Token 2049 in Singapore, and Token 2049 in Dubai, where we engage with industry leaders, innovators, and investors.
Speaker Change: <unk>.
Jay Madhu: Our presence at these forums allowed us to showcase ShortsPlus, strengthen business relationships, and explore collaborative opportunities with prominent blockchain platforms. In addition to our core operations, Oxbridge Re has initiated a strategic review process, forming a special committee on the board to explore a full range of strategic alternatives for the company and its Web3 division. Shorts Plus Holdings Ltd.
Speaker Change: Our presence at these forums allowed us to showcase shorts, plus strengthen our industry relationships and explore collaborative opportunities that prominent blockchain platforms.
Speaker Change: In addition to our core operations Oxbridge re has initiated a strategic review process, forming a special special Committee on the board to explore a full range of strategic alternatives for the company and its about three division Sharp plus holdings limited. These alternatives may include a sale spin out, whereas our divestiture a recapitalization or.
Jay Madhu: These alternatives may include a sales, spin-out, merger, Q1 2025 Our Board of Directors approved the inclusion of Bitcoin, Ethereum, and potentially other cryptocurrencies as part of our Corporate Treasury Reserve Strategy. This decision aligns with our commitment to innovation, diversification, and long-term value creation recognized by the growing global adoption of blockchain-based assets.
Speaker Change: <unk> to operate as a publicly traded entity.
Speaker Change: In Q1 2025, our board of directors approved the inclusion of bitcoin and ethereum potentially other cryptocurrencies as part of our corporate Treasury reserves strategy.
Speaker Change: This decision aligns with our commitment to innovation diversification and long term value creation recognized by the growing global adoption of blockchain based assets.
Jay Madhu: We recently announced a Memorandum of Understanding, or MOU, with Plume, a leading blockchain platform supporting 4.5 billion in assets and more than 18 million unique wallets. This relationship has a potential to significantly expand distribution channels for our tokenized re-insurance options.
Speaker Change: We recently announced a memorandum of understanding or Mou with flu.
Speaker Change: Leading blockchain platform supporting $4 $5 billion of assets and more than 18 billion unique wallet that dresses. This relationship has the potential to significantly expand distribution channels for our token is reinsurance offerings enhancing our presence within the <unk> ecosystem, while we continue to explore additional strategic.
Jay Madhu: Enhancing our Presence Within the RWA Ecosystem. While we continue to explore additional strategic relationships, this partnership highlights a commitment to growth.
Speaker Change: Like relationships this partnership highlights our commitment to grow.
Jay Madhu: Building on the Proom MOU, we remain focused on identifying and forming additional strategic partnerships to accelerate our growth in RWA tokenization and Web3 infrastructure. These alliances will enhance distribution capabilities and strengthen investor access to our innovative digital security.
Speaker Change: Building on approved Mou, we remain focused on identifying and forming additional strategic partnerships to accelerate our growth and RWD token ization and rep three infrastructure.
Speaker Change: These alliances will enhance distribution capabilities and strengthen our access to our innovative digital securities.
Jay Madhu: As of now, we do not anticipate any material impact from Hurricane Helene. Regarding Milton, we continue to monitor the developments and await finalized data. Our discipline approach to risk management positions us to navigate market dynamics with confidence.
Speaker Change: As of now we do not anticipate any material impact on Hurricanes elite regarding Milton we continue to monitor the developments in our base finalize data our disciplined approach to risk management positions us to navigate market dynamics with confidence looking ahead. We are pleased to highlight our 2025 and 2025.
Jay Madhu: Looking ahead, we are pleased to highlight our 2025 and 2025-2026 tokenized reinsurance offerings, which include two distinct options. A balanced yield tokenized security targeting a 20% annual return designed for investors seeking stable, attractive yields with moderate risk and a high yield tokenized security targeting 42% annual returns, offering a high offering a higher risk reward reward profile. This two tiered structure expands our product suite, catering to a broader range of investor preferences and furthering our mission to make institutional grade reinsurance accessible through blockchain powered real world assets.
Speaker Change: 2026, Taco night reinsurance offerings, which include two distinct options.
Speaker Change: Our balance sheet token at security targeting a 20% annual return designed for investors seeking stable attractive yields with moderate risk and a high yield token high security targeting 42% annual returns offering a high offering a higher risk reward profile. This two tiered structure expands our product suite.
Speaker Change: Catering to a broader range of investor preferences, and furthering our mission to make institutional grade reinsurance accessible.
Speaker Change: Through blockchain powered real world assets.
Jay Madhu: Recent industry reports, including those from Standard Charter and Sine Plus, forecast specific growth in the tokenized asset market, potentially reaching $30 trillion by 2034. As a pioneer in this evolving landscape, we are well positioned to capitalize on this growth, leveraging our expertise and first move advantage.
Speaker Change: Recent industry reports.
Speaker Change: Including those from standard chartered.
Speaker Change: <unk> plus <unk>.
Speaker Change: <unk> specific growth in total <unk> asset market potentially reaching 30 trillion by 2034 as a pioneer in this evolving landscape, we are well positioned to capitalize on this growth leveraging our expertise in first move advantage.
Jay Madhu: Our achievements today reflect a clear vision and disciplined approach to execution. With a strong balance sheet, innovative products, and expanding strategic relationships, we are well positioned to drive sustainable growth and create long-term value for our shareholders.
Speaker Change: Our achievements to date reflect a clear vision and disciplined approach to execution with a strong balance sheet innovative products and expanding strategic relationships, we're well positioned to drive sustained sustainable growth and create long term value for our shareholders with that we are ready to open the call for questions. Operator, please provide.
Jay Madhu: With that, we are ready to open the call for questions. Operator, please provide the appropriate instructions. Thank you.
Speaker Change: The appropriate instructions.
Speaker Change: Thank you at this time, we'll be conducting a question and answer session.
Operator: At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the... For participants using speaker equipment, it may be necessary to pick up your handset before pressing the story button.
Speaker Change: To ask a question. Please press star one on your telephone keypad.
Speaker Change: All information Callaway indicate your line is in the question queue. You May press star two if you'd like to remove your question from the Q.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Operator: One moment, please, while we poll for questions.
Speaker Change: One moment, please while we poll for questions.
Kent Engelke: Our first question comes from Kent Engelke with Capital Securities Management. Please proceed with your question. Hey, Wrendon. Hey, Jay. How is the marketing going on for the tokenized securities? And secondly, you said it's about a $30 trillion market. How much do you think that you all could capture of that market? And obviously, the market is in its infancy. Is there any correlation back to the catastrophic bond market where they started trying to create an ETF? Is there any correlation back to the cap market there?
Our first question comes from Kent, Engelke with Capitol Securities Management.
Speaker Change: Please proceed with your question.
Speaker Change: Hey, Brian Hey, Jay how is the marketing going on the token is securities.
Speaker Change: Secondly, you said, it's about a 30 trillion dollar market how much do you think that you all could capture of that market in <unk>.
Speaker Change: The market as it is in its infancy.
Speaker Change: Is there any correlation back to the catastrophic bond market or they started tried to create an ETF is there any correlation back to the cat market there.
Jay Madhu: Hey Ken, thanks for the question. Marketing efforts are going fine. What we've been targeting, though, is two sides of things, right? Number one is the marketing, but also we've been coupling this with outreach. Getting we currently find ourselves in somewhat of a no man's world, so to speak. So while we are a traditional finance SEC company, we are also going into the RWA space or the Web3 or RWA tokenization. We find ourselves in the middle of both worlds. Moving more towards the RWA space, attending the various different conferences, striking relationships with the various different players in this space, we are finding that we're getting more adoption and more acceptance in that space, because that's the space we are pivoting towards.
Speaker Change: Hey, Ken Thanks for the question marketing efforts are going fine what we've been targeting though is two sides of things number one is the marketing, but also we've been coupling this with.
Speaker Change: Outreach.
Speaker Change: Getting we currently find ourselves in somewhat of a nomads wallet. So to speak so while we are a traditional finance SEC company. We are also going into the <unk> space or the web three R. R. W. A token ization aspect of things, we find ourselves in the middle of bulk.
Speaker Change: Well, it's so <unk>.
Speaker Change: Moving more towards the <unk> space attending the various deferred comp.
Speaker Change: Cockpits as striking relationships with the various different players in this space, we are finding them better we're getting more adoption and more.
Speaker Change: More acceptance in that space because that's the space. We are pivoting towards it's it's like turning up it's like turning a battleship not a speed boat and I think we're doing that quite well.
Jay Madhu: It's like turning a battleship, not a speedboat, and I think we're doing that quite well. So we've been focusing a lot in both directions because as we grow into Assurance Plus 2.0, I think it's critical that we get more adoption in that side of the world, right? So I think we're doing well with that. As far as the $30 trillion business opportunity over here, the size of company we are currently, even if we got a small, very minuscule piece of that, that's a game changer for Oxbridge, insurance plus. So we continue effortlessly to move forward and I believe we're making some good progress.
Speaker Change: So we've been focusing a lot in both directions, because as we grow into <unk> plus two point, though I think it's critical that we get more adoption in that side of the world right that that piece of it.
Speaker Change: So I think.
Speaker Change: We're doing well with that.
Speaker Change: As far as the $30 trillion dollar business opportunity over here.
Speaker Change: Size of company. We are currently even if we got even if we got a small very miniscule piece of that that's that's a game changer for Oxford to insurance plus so we continue effort lastly to move forward and I believe we're making some good progress.
Operator: Great. As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. One moment, please, while we poll for questions.
Speaker Change: Great.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.
Alan Klee: Our next question comes from Alan Klee with Maxim Group. Please proceed with your Yes, hi, um, pound one, not star one. So figure that out. Okay.
Speaker Change: Our next question comes from Allen Klee with Maxim Group. Please proceed with your question.
Allen Klee: Yes, hi.
Speaker Change: Okay.
Speaker Change: And one not starwood, so figure that out okay. Congrats on a solid quarter.
Jay Madhu: Congrats on a solid quarter. Um, Just following up on the last question on the marketing for the tokenizations, could you tell us what we should kind of look for in terms of information we could be hearing in the next three to six months? Yeah. Hi, Alan. Thanks for the question. I think I think we're making some good progress. Well, time will tell. We're not there at the end of it. But I believe we should be in good shape in terms of. in terms of this next token launch. So as you're well aware, we have two sides of the token, two sets of tokens.
Speaker Change: <unk>.
Speaker Change: Just following up on the last question on.
Speaker Change: On the marketing for the <unk>.
Speaker Change: Could you tell us what we should kind of look for in terms of information we could be hearing in the next.
Speaker Change: Next three to six months.
Speaker Change: Yes, hi, Alan Thanks for the question.
Speaker Change: I think I think we're making some good progress will time will tell.
Speaker Change: Not there at the end of it.
Speaker Change: But.
Speaker Change: I believe we should be in good shape in terms of.
Speaker Change: In terms of this next this next.
Speaker Change: <unk> launch so as well.
Speaker Change: Well aware, we have two sides of the token two sets of tokens. One is our balance sheet and what is our one is our high yield token the high yield. We've traditionally offered back then in your target of 42% return, but what we're finding is that there's a much larger audience out there that is that is probably looking for a more sustainable balanced.
Jay Madhu: One is our balanced yield, and one is our high yield token. The high yield, we've traditionally offered that, and we target a 42% return, but what we're finding is there's a much larger audience out there that is probably looking for a more sustainable balanced yield, and thus we've come out with our balanced yield token of the 20% token. So while it's not completed, while we're not at the end of the situation, I think time will tell, but so far so good. That's great.
Speaker Change: Sheila that's we've come up with our balance sheet will talk enough about 2020% poker. So.
Speaker Change: While it's not while it's not completed while we are not at the end of the situation.
Speaker Change: Thank you.
Speaker Change: Time will tell but so far so good.
Speaker Change: That's great and then talk a little about just the reinsurance market it.
Jay Madhu: And then talk a little about just the reinsurance market at how you're feeling about the kind of premiums and underwriting and then kind of the potential returns. Just how you're thinking about the overall health of the market that you're pursuing.
Speaker Change: Are you feeling about that.
Speaker Change: Kind of.
Speaker Change: Premiums and.
Speaker Change: Underwriting and then.
Speaker Change: Kind of the potential returns just how youre thinking about the overall health.
Speaker Change: Of the market that you're pursuing.
Jay Madhu: So I'll talk about the health of the market first, right? So I think from what we're seeing and what we're hearing, premiums are, you know, premiums seem to be in various different directions. And we're still working through finalizing contracts and so on. We won't know that till probably the end of the month. But all directions are, you know, solid contracts, solid opportunities, solid premiums. In terms of underwriting, what we've also seen, now, majority of the business that we write is in the state of Florida. And the various different things that Florida has implemented towards, their underwriting situations and the AOB, which is Assignment of Benefits, et cetera, is playing out well in situations as it comes to claims. So in years gone by, with either of these hurricanes that have gone through, it would have been a vastly different situation.
Speaker Change: So.
Speaker Change: I'll talk about the health of the market for us right. So.
Speaker Change: From what we're seeing and what we're hearing premiums are premiums seem to be in various different directions, and we still have we're still working through finalizing contracts and so on and we won't know that till probably the end of the month, but all directions are.
Speaker Change: Solid contracts solid opportunity solid premiums in terms of in terms of underwriting what we've also seen now majority of the business that we write is on the state of Florida and the various different things that Florida has implemented towards.
Speaker Change: <unk>.
Speaker Change: Their underwriting their underwriting situations of the <unk>, which as assignment of benefits et cetera is playing out well and be in situations as it comes to claims so in euro has gone by.
Speaker Change: Right.
Speaker Change: These hurricanes on our gone through its sort of been a vastly different situation.
Jay Madhu: Currently, with all the different changes that have come about with the OIR has put through and the state of Florida has put through, it's boarding well for the various different insurance as well as reinsurance companies. So again, we don't have anything, we don't have pure clarity as to where this goes, but so far we have not been affected. So I take solace with that. It doesn't mean we don't get an email tomorrow or today after this call, right? But so far so good.
Speaker Change: Currently with all the different changes that have come about in the with the IR has put through on the state of Florida has put through its boarding well for the various different insurance as well as reinsurance companies. So again, we don't have we don't have anything we don't have pure clarity as to where this goes but so.
Speaker Change: <unk>, we have not been affected so it takes us with that.
Speaker Change: It doesn't mean, we don't get.
Speaker Change: Don't get an email tomorrow or today after this call right, but so far so good but at the end of the day, the marketing or the market that we're after as the high yield Cogan.
Jay Madhu: But at the end of the day, the marketing or the market that we're after is the high yield. you don't get a 42% return without taking risk. So. This is something that every now and then will get affected, but traditionally. Since 1952, 82% of the time, you don't have a Category 3 hurricane. And sometimes, actually in the last couple of years, we did have a Category 3 hurricane but it didn't make landfall. Category 3, in Florida, it needs to make landfall and it needs to hit a populated area. Looking at these various different things, majority of the time nothing happens, but sometimes when it does happen, it could go wrong.
Speaker Change: You don't get a 42% return without taking risk so.
Speaker Change: This is something that every now and then we'll get affected but traditionally.
Speaker Change: Since $19 50, 282% of the time, you don't have a category three hurricane and sometimes.
Speaker Change: Actually the last couple of years, we did have a category III, but it did make landfall so.
Category three in Florida, it needs to make landfall and it needs to hit a populated area.
Speaker Change: So <unk>.
Speaker Change: Looking at these various different things majority of the time nothing happens, but sometimes when it does happen. It could go wrong, so there's that risk reward, but 42% return token so.
Jay Madhu: So there's that risk reward with a 42% return token. While we have that, it's a risk that is known and it's a risk that is accepted.
Speaker Change: While we have that it is a risk that is known and it's a risk that is acceptable.
Jay Madhu: the balance shield token What we're being told, had we had a balance shield token last year, that would be a non-event at the moment. How things go are to be determined, but we are confident in where we are in the turn of the business, in turning this battleship, moving from the trad-fi, or the traditional finance business, to the RWA, or Web 3 Opportunity business, where we are taking in additional capital, almost like the hedge fund model, and putting it to work, and getting capital as we go forward, attempt to get capital from anywhere in the world where we can do proper AML and KYC, put that money to work.
Speaker Change: The balance sheet token.
Speaker Change: What we're being told had the balance sheet. We've had we had a balance sheet target last year that would be a non event that the bulk of it.
Speaker Change: No.
Speaker Change: How things go.
Speaker Change: To be determined but we are confident in where we are and be in the turn of the business and turning this battleship moving from the Crag Fi or the traditional finance business. So the <unk> or web three opportunity business, where we are taking additional capital.
Speaker Change: Almost like the hedge fund model and putting it to work and getting capital as we go forward attempt to get capital from anywhere.
Speaker Change: The wells, where we can do proper <unk> put that money to work.
Jay Madhu: It's a great thing for our business.
Speaker Change: It's a great thing for our business now two things will come from that one.
Jay Madhu: Now, two things will come from that. One. We, the company, will have access to additional capital and put more monies to work and grow the business opportunity together, but the flip side of things will be, as additional capital comes into the RWA space, into the tokenization space, and more capital comes into the reinsurance space through tokenization, a few different things will happen. A, the companies that are doing that will do well, but also the homeowner or the policy holders will achieve a slightly better rate as they go forward because there's more capital coming into the ecosystem of reinsurance.
We the company will have access to additional capital or put more money to work and get get.
Speaker Change: Grow the business opportunity together, but the flip side of things will be.
Speaker Change: As additional capital comes into the <unk> space into the polka monetization space add more capital comes into the reinsurance space through <unk>, a few different things will happen and other companies that are doing that will do well, but also be the homeowner or the policyholders will achieve.
Slightly better rate as they go forward because there is more capital coming into the ecosystem of reinsurance.
Jay Madhu: It's a win-win on both sides. Makes sense, yeah.
Speaker Change: And win on both sides.
Speaker Change: Makes sense.
Alan Klee: And I've looked at, I'm sure you know well too, some of the companies that have reported that do insurance and leverage to Florida for their first quarter, good numbers and good outlook. So that's encouraging.
Speaker Change: I've looked at I'm sure.
Speaker Change: Well too so.
Speaker Change: Some of the companies that have reported that do insurance and <unk>.
Speaker Change: Florida for their first quarter, good numbers and good outlook. So that's encouraging.
Alan Klee: In terms of the partnership you talked about, that sounds like that could be a good distribution channel.
Speaker Change: In terms of the partnership you talked about could you.
Speaker Change: Sounds like that could be a good distribution channel could you talk a little bit more about it.
Jay Madhu: Could you talk a little bit more about how this actually works? Yes, so the MOU that we signed with Plume, that could be a very good distribution channel because they have a highly evolved ecosystem. So while we have Plume, we were at Token 2049 in Dubai, and we were on a panel invited by Midnight. Midnight is a new chain that's coming out. It's born from the Cardano chain. We were invited by the folks from Midnight, and the folks from BitGo were also on that same panel. So we are making some strides to where before we were standing from afar looking in the inside, now we're making some strides with some of the larger players in the ecosystem where they are recognizing that there is a marked difference between crypto as opposed to tokenized securities.
Speaker Change: How this actually works.
Speaker Change: Yes, so the Mou that we signed with <unk> that could be a very good distribution channel because they have a highly evolved ecosystem.
Speaker Change: No.
Speaker Change: While we have <unk> we were on.
Speaker Change: <unk> 2049 in Dubai.
Speaker Change: And we run a panel invited by midnight midnight as a new chain that's coming out it's born from the car down. Okay. We were invited by the folks from midnight and we were also.
Speaker Change: Folks are a bit over also on that same panel.
Speaker Change: We are making some strides to where before we.
Speaker Change: We're expanding from afar looking in the inside now, we're making some strides with with some of the larger players in the ecosystem.
Speaker Change: They are recognizing that there is a marked difference between crypto as.
Speaker Change: As opposed to <unk> securities So.
Jay Madhu: So. Moving forward, I think we are in great shape in terms of in terms of the various different folks that we are working with. That's shorts plus 2.0, we're evolving, we're moving more into that section, but while we are moving more in that direction, we are working within the framework of what the SEC allows us to do the do's and don'ts. We're very careful to make sure that we that we color within the light.
Speaker Change: Moving forward I think we are in great shape in terms of in terms of the various different folks that we are working with.
Speaker Change: That short plus 2.0, we're evolving we're moving more into that section, but while we are moving more in that direction. We are working within the framework of what the SEC allows us to do the dues adults were very careful to make sure that we that we color within the lines.
Jay Madhu: That's great. Okay.
Speaker Change: That's great Okay.
Operator: Thank you very much. Thank you. As a reminder, if you'd like to ask a question, please press star 1 on your telephone. One moment, please, while we poll for questions.
Speaker Change: Thank you very much.
Speaker Change: Thanks Roger.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.
Operator: At this time, this concludes our question and answer session.
Speaker Change: At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. <unk> for closing remarks.
Jay Madhu: I'd now like to turn the call back over to Mr. Madhu for closing remarks. Thank you for joining us on the calls today on the call today. Before we conclude, I would like to extend my gratitude to our employees, business partner and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team whose extensive experience expertise has been instrumental in navigating and advancing our business. Administer admits, admits 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 anytime.
Speaker Change: Thank you for joining us on the calls today on the call today before we conclude I would like to extend my gratitude to our employees business partners and investors for their unwavering support, particularly want to acknowledge our dedicated oximetry team who has extensive experience expertise has been instrumental in navigating and advancing our business.
Speaker Change: Administer administer at MIT these challenging circumstances.
Speaker Change: 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 anytime once again. Thank you for your time and attention today and for your ongoing interest in Oxbridge operator.
Jay Madhu: Once again, thank you for your time and attention today, and for your ongoing interest in Oxbridge.
Operator: Operator.
Operator: Before we conclude today's call, I'd like to remind everyone that a recording of today's call will be available for replay via a link available in the investor sections of the company's website. Thank you for joining us today for our presentation.
Speaker Change: Before we conclude today's call I'd 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.
Operator: You may now disconnect. Today's call has ended. Please disconnect your lines at this time. Thank you.
Speaker Change: Todays call has ended please disconnect your lines at this time. Thank you.