Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 295

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 295
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 evaluating whether to provide treaty reinsurance and in appropriately pricing the treaty.

Our
portfolio of business continues to be characterized by relatively large transactions with a relatively few number of cedants. We anticipate
that our business will continue to be characterized by a relatively small number of reinsurance contracts for the foreseeable future.

Our
contracts are written on an excess-of-loss basis, generally with a per-event cap. We generally receive the premium for the risk assumed
and indemnify the cedant against all or a specified portion of losses and expenses in excess of a specified dollar or percentage amount.
Our contracts are generally both single-year or multi-year contracts and our policy years generally commence on June 1 of each year and
end on May 31 of the following year.

7

The
bulk of our portfolio of risks is assumed pursuant to traditional reinsurance contracts. However, from time to time we take underwriting
risk by purchasing a catastrophe-linked bond, or via a transaction booked as an industry loss warranty (as described below) or an indemnity
swap. An indemnity swap is an agreement which provides for the exchange between two parties of different portfolios of catastrophe exposure
with similar expected loss characteristics (for example, U.S. earthquake exposure for Asian earthquake exposure).

We
believe our most attractive near-term opportunity is in property catastrophe reinsurance coverage for insurance companies. In addition
to seeking profitable pricing, we manage our risks with contractual limits on our exposure. Property catastrophe reinsurance contracts
are typically “all risk” in nature, meaning that they protect against losses from earthquakes and hurricanes, as well as
other natural and man-made catastrophes such as tornados, fires, winter storms, and floods (where the contract specifically provides
for such coverage). Losses on these contracts typically stem from direct property damage and business interruption. We generally write
property catastrophe reinsurance on an excess-of-loss basis. These contracts typically cover only specific regions or geographical areas.

We
are not licensed or admitted as an insurer in any jurisdiction other than the Cayman Islands. In addition, we do not have a financial
rating and do not expect to have one in the near future. Many jurisdictions such as the United States do not permit clients to take credit
for reinsurance on their statutory financial statements if such reinsurance is obtained from unlicensed or non-admitted insurers without
appropriate collateral. As a result, we anticipate that all of our clients will require us to fully collateralize the reinsurance contracts
we bind with them. Each of