Oxbridge Re Holdings Limited, a provider of reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States, announced the incorporation of SurancePlus Inc., a new wholly-owned subsidiary.
SurancePlus, incorporated in the British Virgin Islands (BVI) in December 2022, will issue tokenized reinsurance securities that indirectly represent fractionalized interests in reinsurance contracts. These contracts will be underwritten by Oxbridge Re’s reinsurance subsidiary, Oxbridge Re NS. The DeltaCat RE Tokens will be offered to accredited investors in the United States by SurancePlus under Rule 506(c) of Regulation D and to non-US investors pursuant to Regulation S. Token holders will receive the right to a return on the investment from the performance of the underlying reinsurance contracts created by Oxbridge Re Holdings Limited. In a profitable year, SurancePlus anticipates token holders could receive an annualized return of up to ~20% to ~40%.
The token offering is expected to commence in the upcoming months. SurancePlus has partnered with Securitize LLC, an SEC-registered transfer agent, to implement these tokenized reinsurance securities on its Securitize.io platform. It has also engaged Ogier BVI as its BVI counsel and Bull Blockchain Law LLP, as its United States Securities and Exchange Commission (SEC) counsel. Both firms were selected because each holds digital securities and tokenization expertise.
“High barriers to entry have traditionally excluded reinsurance as an alternative investment opportunity for many investors. SurancePlus will democratize access to reinsurance as an alternative investment opportunity by offering a solution that leverages key qualities of blockchain technology to create a well-designed digital security, the performance of which will not be correlated to the financial markets. Instead, the proceeds raised from the offering of the DeltaCat Re tokens will be invested in reinsurance contracts,” commented Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu. “By complying with applicable U.S. securities laws, we expect to create significant shareholder value by raising additional capital through token issuance and investing these funds in underwriting higher value reinsurance contracts.”
“Security tokens are an innovative way of both financing projects such as SurancePlus’ and enabling more investors to participate. With investors able to purchase fractional interests through a website and have their interest permanently and transparently recorded on a blockchain, investors can access opportunities that were typically out of reach,” said Jamie Finn, President of Securitize, Inc. “SurancePlus is leveraging the Securitize platform to validate and onboard their investors, whose security tokens will be transacted and recorded on the blockchain.”
Oxbridge Re Holdings Limited is a Cayman Islands exempted company that was organized in April 2013 to provide reinsurance business solutions primarily to property and casualty insurers in the Gulf Coast region of the United States. Through Oxbridge Re’s licensed reinsurance subsidiaries, Oxbridge Reinsurance Limited and Oxbridge RE NS, it writes fully collateralized policies to cover property losses from specified catastrophes. Oxbridge Re specializes in underwriting medium frequency, high severity risks, where it believes sufficient data exists to analyze effectively the risk/return profile of reinsurance contracts and it makes investments that can contribute to the growth of capital and surplus in its licensed reinsurance subsidiaries over time.
Photo by Kenan Kitchen on Unsplash
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