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According to Insurancebusinessmag, SurancePlus is testing the viability of blockchain technology to open one of finance's most exclusive markets to a wider pool of capital. The initiative involves the issuance of three tokenized securities—HCI Re 2026 Series A, B, and C—which provide synthetic exposure to excess-of-loss reinsurance contracts within Fortex Reinsurance SPC’s 2026–2027 program.
High-yield targets and risk profiles
The proposed securities offer annualized return targets that significantly exceed traditional benchmarks. While the specific attachment points for the reinsurance towers remain undisclosed, the target returns are structured as follows:
- Series A: Approximately 243% annualized return
- Series B: Approximately 133% annualized return
- Series C: Approximately 19% annualized return
These figures assume no underwriting losses, highlighting the high level of risk associated with the top-tier series. For context, the Swiss Re Global Cat Bond Performance Index reported a return of 11.40% for 2025. Investors must also consider significant downside; SurancePlus’s 2024 EpsilonCat Re program experienced a full limit loss of $2.3 million following Hurricane Milton.
Expanding the reinsurance landscape
The offering is currently open to US accredited investors under Rule 506(c) and non-US investors under Regulation S. If fully subscribed, SurancePlus expects to add roughly $12 million in restricted assets to its balance sheet. This move comes as the global reinsurance sector, currently valued at over $784 billion, is projected to reach $2 trillion within the next decade.
The shift toward blockchain-based financial infrastructure is gaining momentum among major asset managers. BlackRock’s tokenized money market fund has already surpassed $2.5 billion in assets under management, while firms like Apollo and Franklin Templeton have launched similar vehicles. Furthermore, the London Stock Exchange Group recently debuted a blockchain-powered digital markets platform for issuance and settlement.
"We believe blockchain technology is fundamentally changing how real-world assets are owned, distributed, and accessed," — Jay Madhu, chairman and CEO of Oxbridge Re and SurancePlus. The success of this model will likely depend on ongoing regulatory clarity and the ability of on-chain infrastructure to deliver deep capital in a market traditionally built on rated paper and long-standing counterparty relationships.