Oxbridge Re raises $7.1M via tokenized reinsurance securities
Oxbridge Re completed five private placements of tokenized reinsurance securities on the Solana blockchain, raising total gross proceeds of approximately $7.1 million. The offerings included three series linked to HCI Group's Fortex Re and two traditional tokenized reinsurance offerings, targeting returns ranging from 17% to 224%. Following the completion, Oxbridge expects to record approximately $13.1 million of new restricted assets on its consolidated balance sheet as collateral.
*this image is generated using AI for illustrative purposes only.
Oxbridge Re has completed five private placements of tokenized reinsurance securities on the Solana blockchain, securing total gross proceeds of approximately $7.1 million from accredited U.S. investors and eligible non-U.S. investors. This capital raise underscores the capability of SurancePlus to originate, structure, and distribute institutional-quality reinsurance investments through blockchain infrastructure. The securities were offered pursuant to Rule 506(c) of Regulation D and Regulation S under the Securities Act of 1933.
The offerings featured three tokenized securities providing synthetic contractual exposure to reinsurance risk associated with HCI Group, Inc.'s Fortex Reinsurance SPC, Ltd. (Fortex Re), alongside the company's traditional tokenized reinsurance offerings. These HCI-related securities were issued as a separate investment structure on blockchain infrastructure and did not affect Fortex Re's or HCI's 2026-2027 reinsurance programs. This structure allows qualified investors to gain blockchain-enabled exposure to specific reinsurance risks without direct participation in the underlying program.
Breakdown of Offerings
The completed offerings consisted of the following series:
| Series | Type | Quantity Issued | Price Per Unit | Gross Proceeds | Target Annual Return | Redemption Value |
|---|---|---|---|---|---|---|
| HCI Re 2026 Series A | Tokenized Interest | 100,000 | $11.10 | $1.11 million | ~224% | $36.00 |
| HCI Re 2026 Series B | Tokenized Interest | 100,000 | $22.12 | $2.212 million | ~122% | $49.00 |
| HCI Re 2026 Series C | Tokenized Interest | 100,000 | $30.01 | $3.001 million | ~17% | $35.20 |
| T42-2027 | Participation Share | 45,335 | $10.00 | ~$453,357 | 32% (adjusted) | N/A |
| T20-2027 | Participation Share | 32,841 | $10.00 | ~$328,408 | 26% (adjusted) | N/A |
The HCI Re 2026 Series A, B, and C target specific annual returns and redemption values assuming no underwriting losses. The T42-2027 and T20-2027 offerings saw adjustments to their originally targeted annual returns, moving to 32% and 26% respectively.
Financial Impact
As a result of the completed offerings, Oxbridge expects to record approximately $13.1 million of new restricted assets on its consolidated balance sheet. These assets represent the collateral supporting the company's tokenized reinsurance securities and participation interests issued through the offerings.
How will the success of these private placements influence Oxbridge Re's strategy for future tokenized reinsurance offerings on the Solana blockchain?
What impact will the $13.1 million in new restricted assets have on Oxbridge Re's liquidity and ability to pursue additional capital raises?
Could the adjustments to targeted annual returns for the T42-2027 and T20-2027 offerings signal broader market trends for tokenized reinsurance risk pricing?
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