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

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 12
Chunk 25
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 to investors, Oxbridge Re NS has entered into a retrocession agreement with Oxbridge Reinsurance Limited
effective September 1, 2020. Under this agreement, Oxbridge Re NS receives a quota share of Oxbridge Reinsurance Limited’s catastrophe
business. Oxbridge Re NS is a non-rated insurer and the risks have been fully collateralized by way of funds held in trust for the benefit
of Oxbridge Reinsurance Limited. Oxbridge Re NS is able to provide investors with access to natural catastrophe risk backed by the distribution,
underwriting, analysis and research expertise of Oxbridge Re.

The
Company has determined that Oxbridge Re NS meets the definition of a VIE as it does not have sufficient equity capital to finance its
activities. The Company concluded that it is the primary beneficiary and has consolidated the subsidiary upon its formation, as it owns
80% of the voting shares, 80% of the issued share capital and has a significant financial interest and the power to control the activities
of Oxbridge Re NS that most significantly impacts its economic performance. The Company has no other obligation to provide financial
support to Oxbridge Re NS. Neither the creditors nor beneficial interest holders of Oxbridge Re NS have recourse to the Company’s
general credit.

Upon
issuance of a series of participating notes by Oxbridge Re NS, all of the proceeds from the issuance are deposited into collateral accounts,
to fund any potential obligation under the reinsurance agreements entered into with Oxbridge Reinsurance Limited underlying such series
of notes. The outstanding principal amount of each series of notes generally is expected to be returned to holders of such notes upon
the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes,
in which case the amount returned is expected to be reduced by such noteholder’s pro rata share of such loss, as specified in the
applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable
annually, as determined by the applicable governing documents of each series of notes.

In
addition, holders of such notes are generally entitled to interest payments, payable annually, as determined by the applicable governing
documents of each series of notes.

The
Company receives an origination and structuring fee in connection with the formation, operation and management of Oxbridge Re
NS.

    F-15

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial