Oxbridge Re has opened subscriptions for its 2026-27 tokenized reinsurance offering, with participation shares targeting annual returns of 20% and 42% - nearly triple the performance of traditional reinsurance and catastrophe bond markets.
The offering will be represented by digital tokens labeled T20-2027 and T42-2027 for the balanced-yield and high-yield participation shares. The tokens will be listed on Alphaledger using the Solana blockchain, marking a shift from the company's previous Midnight blockchain infrastructure deployed in June 2025.
The launch builds on a mixed performance history since Oxbridge entered tokenized reinsurance in 2023. The firm's first offering, DeltaCat Re, raised US$2.4 million and delivered a 49% return that surpassed initial expectations, industry publication Artemis reports.
However, the 2024 EpsilonCat Re program, which raised US$2.88 million with a 42% target, suffered a setback when Hurricane Milton caused a full limit loss of US$2.3 million on one reinsurance contract.
The loss "meaningfully dented the return potential" of those tokens, Artemis noted. Company results for the second quarter of 2025 showed the net impact on equity after accounting for external tokenholders' losses was US$1.18 million.
The current 2025-26 program, which raised just over US$3.6 million through EtaCat Re and ZetaCat Re securities, is performing better. The balanced-yield token is tracking approximately 25%, exceeding its 20% target, while the high-yield token remains on track to achieve its 42% target.
Total capital raised across all three years amounts to approximately US$9 million, which Artemis characterizes as "relatively small in the world of reinsurance-linked investments."
The 42% target return represents a significant premium over traditional reinsurance and insurance-linked securities performance. Data from AM Best shows the average return on equity for the global reinsurance industry was 15.7% in 2024, down from 21.4% in 2023, but still well above the cost of capital.
Gallagher Re figures indicate the reported ROE for a subset of 16 reinsurers was 17% in 2024, while projections for 2025 suggest an underlying ROE of around 15% and a headline ROE between 18% and 19%.
Catastrophe bonds, which have delivered strong recent performance, returned 11.40% for 2025 based on the Swiss Re Global Cat Bond Performance Index. Aon's Catastrophe Bond Total Return Index shows cat bonds delivered an average 14.1% return over the 12-month period ending June 30, 2025, despite major events including Hurricanes Beryl, Helene, and Milton.
The structure prioritizes investor returns through preferred annual hurdle rates of 8% for the T20 balanced-yield strategy and 16% for the T42 high-yield strategy. Oxbridge Re's subsidiary SurancePlus participates in returns only after investors achieve these thresholds.
The reinsurance contracts are written on a 1:1 basis without leverage. Early and large participants may receive purchase discounts of up to 5% based on investment size.
Subscriptions for the 2026-27 contracts will be accepted through March 31.
Jay Madhu, chairman and CEO of Oxbridge and SurancePlus, said the company is building on its performance. "Building on our solid performance thus far, we are proud to announce that this year's contracts will be on the Solana blockchain and will target similar returns," Madhu said.
