Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 293

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 293
---
 liabilities with reinsurers.

Types
of Reinsurance Contracts

Property
reinsurance products are often written in the form of treaty reinsurance contracts, which are contractual arrangements that provide for
the automatic reinsurance of a type or category of risk underwritten. Treaty reinsurance premiums, which are typically due in installments,
are a function of the number and type of contracts written, as well as prevailing market prices. The timing of premiums written varies
by line of business. The majority of property catastrophe business is written at the January and June annual renewal periods, depending
on the type and location of the risks covered. Most hurricane and wind-storm coverage, particularly in the Gulf Coast region of the United
States, is written at the June annual renewal periods.

Property
catastrophe reinsurance contracts are typically “all risk” in nature, providing protection to the ceding company against
losses from hurricanes and other natural and man-made catastrophes such as floods, earthquakes, tornadoes, storms and fires, referred
to herein collectively as “perils.” The predominant exposures covered by these contracts are losses stemming from property
damage and business interruption resulting from a covered peril. Coverage can also vary from “all natural” perils, which
is the most expansive form, to more limited types such as windstorm-only coverage.

Property
catastrophe reinsurance contracts are typically written on an “excess-of-loss” basis, which provides coverage to the ceding
company when aggregate claims and claim expenses from a single occurrence for a covered peril exceed an amount that is specified in a
particular contract. The coverage provided under excess-of-loss reinsurance contracts may be on a worldwide basis or may be limited in
scope to specific regions or geographical areas. Under these contracts, protection is provided to an insurer for a portion of the total
losses in excess of a specified loss amount, up to a maximum amount per loss specified in the contract.

Excess-of-loss
contracts are typically written on a losses-occurring basis, which means that they cover losses that occur during the contract term,
regardless of when the underlying policies came into force. Premiums from excess-of-loss contracts are earned rateably over the contract
term, which is ordinarily 12 months. Most excess-of-loss contracts provide for a reinstatement of coverage following a covered loss event
in return for an additional premium.

The
Florida Property and Casualty Insurance Market

General
Overview

Florida’s
property and casualty insurance market has undergone significant