Company: OXBRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009673
Chunk: 8

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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edants under two of our reinsurance contracts.
These contracts contain retrospective provisions that adjust premiums in the event losses are minimal or zero. We recognize a liability
pro-rata over the period in which the absence of loss experience obligates us to refund premiums under the contracts, and we will derecognize
such liability in the period in which a loss experience arises. The change in loss experience refund is negatively correlated to loss
and loss adjustment expenses described below.

Investment Income 

Income from our investments is
primarily comprised of net realized and unrealized (losses) gains interest income and dividends on investment securities. Such income
is primarily from the Company’s investments, which includes other investments in Jet.AI and investments held in trust accounts that
collateralize the reinsurance policies that we write. The investment parameters for trust accounts are generally be established by the
cedant for the relevant policy.

Incentive, Technology, Origination and Management
Fee Income

During the year ended December
31, 2024, the Company’s subsidiary, SurancePlus, entered into subscription agreements for the sale of EpsilonCat Re
Participation Shares representing fractionalized interest in reinsurance contracts underwritten by Oxbridge Re NS. The EpsilonCat Re Tokens were issued on the Avalanche
blockchain.

SurancePlus
receives an incentive, technology, origination and management (“ITOM”) fee to cover costs associated with origination,
structuring and the blockchain technology related to the EpsilonCat Re Tokens. These fees are included in SurancePlus fees income line item in
the consolidated statement of operations.

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Expenses

Our expenses consist primarily
of the following:

    ●
    losses and loss adjustment expenses;

    ●
    policy acquisition costs and underwriting expenses; and

    ●
    general and administrative expenses.

Loss and Loss Adjustment Expenses

Loss and loss adjustment expenses
are a function of the amount and type of reinsurance contracts we write and of the loss experience of the underlying coverage. As described
below, loss and loss adjustment expenses are based on the claims reported by our Company’s ceding insurers, and may include an actuarial
analysis of the estimated losses, including losses incurred during the period and changes in estimates from prior periods. Depending on
the nature of the contract, loss and loss adjustment expenses may be paid over a period of years.

Policy Acquisition Costs and
Underwriting Expenses

Policy acquisition costs and underwriting
expenses consist primarily of brokerage fees, ceding commissions,