Value Microcaps Motherboard

[cliffvb]

TCHC- It had a maximum exposure to hurricanes of $10 million per event in 2004 with their reinsurers picking up a maximum of $48 million in losses. 4 large hurricanes hit FL that year which caused $50 Mil in net losses to TCHC. Last year, their exposure was reduced to $3 million per hurricane event before their reinsurance kicked in. It sounds like they will have about the same exposure for the coming year.

What is confusing to me on their latest PR is the huge increase in "Change in Prepaid Reinsurance Premiums". That was $8mil or about 10X what it was a year ago. It seems that they are counting premiums that will go to the reinsurers as revenues but then I don't see a corresponding liability for that. No 10K is out yet, but does someone see what they are doing? UVIH handles it differently as well. They have a similiar reinsurance program but they only show net premiums left after reinsurance premiums as revenue on their income statement.