Company: CVCO
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0000278166-25-000007
Chunk: 33

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 defined in the Credit Agreement) cannot exceed 3.25 to 1.00 and (ii) a requirement to maintain Consolidated EBITDA (as defined in the Credit Agreement) for any period of four fiscal quarters of at least $75 million.As of December 28, 2024 and March 30, 2024, there were no borrowings outstanding under the Revolving Credit Facility or the previous credit agreement entered into on November 22, 2022 and we were in compliance with all covenants.

12. Reinsurance and Insurance Loss Reserves

Certain of Standard Casualty Company's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. We remain obligated for amounts ceded in the event that the reinsurers do not meet their obligations.The effects of reinsurance on premiums written and earned were as follows (in thousands):Three Months EndedDecember 28, 2024December 30, 2023WrittenEarnedWrittenEarnedDirect premiums$19,260 $24,645 $11,135 $10,693 Assumed premiums—nonaffiliated21,534 20,629 8,430 8,459 Ceded premiums—nonaffiliated(17,387)(17,387)(6,406)(6,406)$23,407 $27,887 $13,159 $12,746 Nine Months EndedDecember 28, 2024December 30, 2023WrittenEarnedWrittenEarnedDirect premiums$32,763 $36,947 $31,581 $28,740 Assumed premiums—nonaffiliated33,269 30,133 27,735 25,880 Ceded premiums—nonaffiliated(25,572)(25,572)(18,971)(18,971)$40,460 $41,508 $40,345 $35,649 

11

Typical insurance policies written or assumed have a maximum coverage of $0.4 million per claim, of which we cede $0.15 million of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $0.25 million per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $4.0 million per occurrence, up to a maximum of $110 million in the aggregate for that occurrence