Oxbridge Re, a leader in digitizing reinsurance securities into tokenized real-world assets (RWA), and its subsidiary SurancePlus have entered into an agreement with HCI Group, Inc. to launch three tokenized reinsurance securities that provide comprehensive contract returns and catastrophe risk exposure based on the results of reinsurance contracts underwritten by HCI’s reinsurance subsidiary Fortex Re.
Oxbridge Re believes these products are one of the first instances where accredited investors may gain access to reinsurance risks associated with an insurance company’s reinsurance program through tokenized securities issued on blockchain infrastructure.
“Blockchain serves as the underlying technology infrastructure for issuance, ownership, management and transfer, while the value of the securities themselves is derived from the underlying reinsurance interests. This structure combines the benefits of blockchain technology with the transparency, governance and regulatory framework associated with traditional securities issuances,” Oxbridge Re added.
SurancePlus marks the issued tokens as HCI Re 2026 Series A, Series B and Series C. Assuming no underwritten losses, the annualized investor returns are expected to be approximately 243%, 133% and 19% respectively.
Oxbridge Re said that following the closing of the offering, SurancePlus will add approximately $12 million in restricted assets to its balance sheet, assuming the offering is fully subscribed.
According to the announcement, the underlying assets supporting these products include composite contract returns based on excess loss reinsurance contract results, premiums and collateral related to Fortex Re’s 2026-2027 reinsurance program.
“Excess loss reinsurance is a widely used risk management tool in the insurance industry and has historically been used primarily by institutional investors, reinsurers and professional market participants,” Oxford Re explains.
The products combine SurancePlus’ expertise in tokenizing real-world assets with the insurance and underwriting capabilities of HCI and Fortex Re, the company added.
SurancePlus will leverage Solana blockchain infrastructure to issue digital securities through the Alphaledger platform, creating a new way for accredited investors to access traditional institutional asset classes.
Jay Madhu, Chairman and CEO of Oxbridge and SurancePlus, commented: “We believe blockchain technology is fundamentally changing how real-world assets are owned, distributed and accessed.
“Tokenized securities combine the innovation of blockchain with the protection and structure of traditional financial markets
“Reinsurance is one of the largest and most mature RWA markets in the world, and our relationship with HCI Group and Fortex Re represents an important step in bringing reinsurance risk on-chain.”
