Company: OXBRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023960
Chunk: 43

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 amounts due to the cedants 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 six-month period June 30, 2025, the Company’s subsidiary, SurancePlus, effectively entered into subscription agreements for
the sale of ZetaCat Re and EtaCat Re Participation Shares representing fractionalized interest in reinsurance contracts underwritten
by Oxbridge Re NS. The ZetaCat Re and EtaCat 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 ZetaCat Re and EtaCat Re Tokens. These fees are included in SurancePlus fees income line
item in the consolidated statement of operations.

28

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