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HCI Group partners with Oxbridge Re on Solana tokenized reinsurance
The pilot will issue SurancePlus tokens tied to Fortex Re and set targets for annualized investor returns of about 243% for Series A, assuming no underwriting losses.
HCI Group is exploring tokenized access to catastrophe reinsurance through a new partnership with Oxbridge Re, with Chairman and CEO Paresh Patel saying the approach can lower investment barriers and shorten investment duration.
According to Artemis, Oxbridge Re and its subsidiary, SurancePlus, partnered with HCI Group in June to launch three Solana-based tokenized reinsurance securities tied to HCI’s newly formed reinsurer, Fortex Re. The vehicle, Fortex Reinsurance SPC, Ltd., is domiciled in the Cayman Islands, and it selectively participated in HCI’s reinsurance program towers 1 and 3 at the mid-year renewals.
Artemis reports that the tokens are labeled HCI Re 2026 Series A, Series B and Series C. The offering targets annualized investor returns of approximately 243% for Series A, 133% for Series B, and 19% for Series C, under an assumption of no underwriting losses, and it outlines per-token pricing and estimated redemption values: Series A at $11.10 with estimated redemption value of $36.00, Series B at $22.12 with estimated redemption value of $49.00, and Series C at $30.01 with estimated redemption value of $35.20.
The securities are structured to mirror specific participations by Fortex Re in HCI catastrophe excess-of-loss reinsurance programs and to align with the annual reinsurance treaty cycle, Artemis said. HCI also stated that a minimum investment size of $5,000 is intended to reduce capital requirements, with US accredited investors eligible under Rule 506(c) and non-US participation offered under Regulation S of the U.S. Securities Act of 1933.
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