Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 344

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 344
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 loss adjustment expenses described below.

Investment
Income

Income
from our investments is primarily comprised of net realized and unrealized gains (losses) 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.

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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.

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, premium taxes and other direct expenses
that relate to our writing of reinsurance contracts. We amortize deferred acquisition costs over the related contract term.

General
and Administrative Expenses

General
and administrative expenses consist of salaries and benefits and related costs, including costs associated with our professional fees,
rent and other general operating expenses consistent with operating as a public company.

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