Oxbridge Re, a leader in digitising reinsurance securities as tokenised real-world assets (RWAs), together with its subsidiary SurancePlus, has agreed with HCI Group, Inc. to launch three tokenised reinsurance securities that provide synthetic contractual returns and catastrophe exposures based on the outcome of reinsurance contracts underwritten by HCI’s reinsurance subsidiary, Fortex Re.
The offerings represent what Oxbridge Re believes to be one of the first instances in which qualified investors may gain exposure to reinsurance risk associated with an insurance company’s reinsurance program through tokenised securities issued on blockchain infrastructure.
“The blockchain serves as the underlying technology infrastructure for issuance, ownership, administration and transfer, while the securities themselves derive their value from underlying reinsurance interests. This structure combines the benefits of blockchain technology with the transparency, governance and regulatory framework associated with traditional securities offerings,” Oxbridge Re added.
The tokens to be issued by SurancePlus, labelled HCI Re 2026 Series A, Series B and Series C, are expected to target annualised investor returns of approximately 243%, 133% and 19%, respectively, assuming no underwriting losses.
Oxbridge Re said that, upon closing the offerings, SurancePlus would add approximately $12 million in restricted assets to its balance sheet, assuming the offerings are fully subscribed.
According to the announcement, the underlying assets supporting the offerings consist of synthetic contractual returns based on the outcomes of excess-of-loss reinsurance contracts, premiums, and collateral associated with Fortex Re’s 2026-2027 reinsurance program.
“Excess-of-loss reinsurance is a widely utilised risk management tool within the insurance industry that has historically been accessed primarily by institutional investors, reinsurers and specialised market participants,” Oxbridge Re explained.
The firm added that the offerings combine SurancePlus’ expertise in tokenised real-world assets with the insurance and underwriting capabilities of HCI and Fortex Re.
The digital securities will be issued by SurancePlus utilising Solana blockchain infrastructure through the Alphaledger platform, creating a new pathway for qualified investors to access a traditionally institutional asset class.
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.
“Tokenised securities bring together the innovation of blockchain with the protections and structure of traditional financial markets
“Reinsurance is one of the largest and most established RWA markets in the world, and our relationship with HCI Group and Fortex Re represents an important step in bringing reinsurance risk on-chain.”
