Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 831

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 4
Chunk 831
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 Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Subsequent
adjustments of premiums assumed, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium,
are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods
have expired, in which case the premium adjustments are fully earned when assumed.

Certain
contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiration of the contract. A reinstatement
premium is not due until there is a full limit loss event and therefore, in accordance with GAAP, the Company records a reinstatement
premium as written only in the event that the reinsured incurs a full limit loss on the contract and the contract allows for a reinstatement
of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement
premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned
over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums
are earned over the remaining coverage period.

Unearned
Premiums Ceded: The Company may reduce the risk of future losses on business assumed by reinsuring certain risks and exposures
with other reinsurers (retrocessionaires). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations
and to the extent that the Company does not hold sufficient security for their unpaid obligations.

Ceded
premiums are written during the period in which the risk incept and are expensed over the contract period in proportion to the period
of protection. Unearned premiums ceded consist of the unexpired portion of the reinsurance obtained. There were no unearned premiums
ceded at December 31, 2024 and 2023.

SurancePlus
Fee Income: SurancePlus incentive, technology, origination and management (“ITOM”) fee income represents fee income
related to the completion of the EpsilonCat Re and DeltaCat tokenized reinsurance securities as well as placement of the underlying insurance
policies. The Company recognizes the associated revenue at the time of the placement of the underlying insurance policies as the performance
obligation is satisfied at that time.

Uncertain
income tax positions: The authoritative GAAP guidance on accounting for, and disclosure of, uncertainty in income tax positions