Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 73

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 13
Chunk 73
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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 Statements, Continued

6.
VARIABLE INTEREST ENTITIES (continued) 

Notes
Payable to Series 2020-1 noteholders

Oxbridge
Re NS entered into a retrocession agreement with Oxbridge Reinsurance Ltd on June 1, 2020 and issued $216,000 of participating notes
which provides quota share support for Oxbridge Re’s global property catastrophe