Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 294

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 294
---
 changes in the past few decades. This market, which was formerly dominated
by large, national, multi-line insurance companies, now includes Citizens Property Insurance Corporation (“Citizens”), a
state-sponsored insurance company created by the Florida Legislature; Florida-based insurance companies that focus primarily on writing
property insurance policies in the state of Florida; and Florida-based subsidiaries of national insurance companies that focus on writing
property insurance policies in the state of Florida. While these four types of companies participate in the market at varying levels,
Citizens and the Florida-based insurance companies are now the dominant market participants. Within the private market, which excludes
Citizens, there is a strong dependence on small insurance companies, which have limited capitalization and a limited ability to diversify.

While
the Florida property and casualty insurance market faces various challenges, the primary challenge is the potential for exposure to catastrophic
windstorms. The state of Florida has approximately $2.18 trillion in insured residential property exposure. In 2024, Hurricanes Helene and Milton caused
significant destruction with a death toll of at least 257 and estimated insured losses exceeding $55 billion.

According
to the National Oceanic and Atmosphere Administration (“NOAA”) Technical Memorandum NWS NHC-6, entitled “The Deadliest,
Costliest, and Most Intense United States Tropical Cyclones from 1851 to 2010 (and Other Frequently Requested Hurricane Facts) (the “NOAA
Memorandum”), “forty percent of all U.S. hurricanes and major hurricanes were in Florida,” and “sixty percent
of category 4 or higher hurricane strikes have occurred in either Florida or Texas.” The NOAA Memorandum also indicates that, between
1851 and 2010, there were 114 hurricane strikes and 37 major hurricanes in Florida. (For these purposes, a “major hurricane”
is a category 3, 4, or 5 hurricane.)

Our
Reinsurance Contracts and Products

We
write primarily property catastrophe reinsurance. We currently expect that substantially all of the reinsurance products we write in
the foreseeable future will be in the form of treaty reinsurance contracts. When we write treaty reinsurance contracts, we do not evaluate
separately each of the individual risks assumed under the contracts and are therefore largely dependent on the individual underwriting
decisions made by the cedant. Accordingly, as part of our initial review and renewal process, we carefully review and analyze the cedant’s
risk management and underwriting practices in