Reinsurance pricing in Florida, where insurers pay about $0.45 on the dollar for coverage, could face new capital flows if tokenized structures gain traction, according to Oxbridge Re CEO Jay Madhu, The Royal Gazette reported.
“Constraint to capital is what drives prices,” Madhu said, pointing to Florida as an example. He said access to capital is the central force shaping reinsurance pricing and, in turn, the cost of homeowners’ insurance. If access to reinsurance capital were widened through tokenization, pricing could fall, he said. Two things will happen, he said. The investors who are investing in reinsurance will make a good return, and the general public will also benefit, he added.
Oxbridge Reinsurance Limited is licensed in the Cayman Islands and focuses on US Gulf Coast property and casualty business. Insurers in the region purchase reinsurance through Oxbridge Reinsurance Limited and Oxbridge Re NS. The group also operates SurancePlus Inc, its Web3-focused subsidiary.
Oxbridge has opened subscriptions for its 2026-27 tokenized reinsurance program, targeting annual returns of 20% and 42% through digital tokens labeled T20-2027 and T42-2027. The tokens will be listed on Alphaledger using the Solana blockchain, shifting from the Midnight blockchain infrastructure used in June 2025.
The 2023 DeltaCat Re issuance raised $2.4 million and delivered a 49% return. In 2024, EpsilonCat Re raised $2.88 million with a 42% target return. Hurricane Milton caused a full limit loss of $2.3 million on one reinsurance contract. The loss “meaningfully dented the return potential” of those tokens. Company results for the second quarter of 2025 showed the net impact on equity, after accounting for external tokenholders’ losses, was $1.18 million.
The 2025-26 program, including EtaCat Re and ZetaCat Re securities, raised just over $3.6 million. The balanced-yield token is tracking approximately 25%, above its 20% target, while the high-yield token remains on track to achieve its 42% target.
Across three years, total capital raised amounts to approximately $9 million, which was described as relatively small in the reinsurance-linked investment market.
The structure provides preferred annual hurdle rates of 8% for the T20 strategy and 16% for the T42 strategy. SurancePlus participates in returns only after investors reach those thresholds. Contracts are written on a 1:1 basis without leverage. Early and large participants may receive discounts of up to 5%. Subscriptions for the 2026-27 contracts will be accepted through March 31.
Oxbridge has said SurancePlus developed what it describes as the first “onchain” reinsurance real-world asset sponsored by a subsidiary of a publicly traded company. In a statement, the company said digitizing interests in reinsurance contracts as onchain RWAs has democratised access to reinsurance for US and non-US investors without the use of leverage.
The 42% target return stands above recent industry performance. AM Best reported that the global reinsurance industry generated a 15.7% return on equity in 2024, down from 21.4% in 2023. Gallagher Re reported a 17% ROE for a subset of 16 reinsurers in 2024, with 2025 projections suggesting underlying ROE of around 15% and headline ROE between 18% and 19%.
In February 2026, Oxbridge Re Holdings entered into a $1,000,000 promissory note with Real World Digital Assets LLC. The note bears 16% annual interest, matures on August 14, 2026, and carries a default rate of 36% per annum or the maximum permitted by law. The company executed a security agreement granting a security interest in substantially all assets until the note is repaid.
Madhu has said tokenized reinsurance may be closer than many expect, citing increasing experimentation with tokenization across traditional finance. He also said compliance and transparency remain non-negotiable in any move toward onchain structures.
Taken together, the company’s Florida pricing argument, high return targets, limited scale and recent borrowing frame its tokenized strategy within both capital formation and balance sheet realities.
