Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 804

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 4
Chunk 804
---
 to analyze the growth and profitability of business operations. For our reinsurance business, we measure growth
in terms of premiums assumed and we measure underwriting profitability by examining our loss, underwriting expense and combined ratios.
We analyze and measure profitability in terms of net income and return on average equity.

Premiums
Assumed. We use gross premiums assumed to measure our sales of reinsurance products. Gross premiums assumed also correlates to
our ability to generate net premiums earned. See also the analysis above relating to the growth in premiums assumed.

Loss
Ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting
profitability of our reinsurance business. The loss ratio remained consistent at 0% for the year ended December 31, 2024 and 2023.

Acquisition
Cost Ratio. The acquisition cost ratio is the ratio of policy acquisition costs and other underwriting expenses to net premiums
earned. The acquisition cost ratio measures our operational efficiency in producing, underwriting and administering our reinsurance business.
The acquisition cost ratio decreased marginally to 11.0% for the year ended December 31, 2024 from 11.2% in the prior year.

Expense
Ratio. The expense ratio is the ratio of policy acquisition costs, other underwriting expenses and general and administrative
expenses to net premiums earned. We use the expense ratio to measure our operating performance. The expense ratio decreased from 185.2%
for the year ended December 31, 2023 to 94.3 % for the year ended December 31, 2024. The decrease is due to the higher levels of premium
earned and lower general administrative expenses incurred during the year ended December 31, 2024.

Combined
Ratio. We use the combined ratio to measure our underwriting performance. The combined ratio is the sum of the loss ratio and
the expense ratio. The combined ratio decreased from 185.2% for the year ended December 31, 2023 to 94.3 % for the year ended December
31, 2024. The decrease is due to the higher levels of premium earned and lower general administrative expenses incurred during the year
ended December 31, 2024.

FINANCIAL
CONDITION – DECEMBER 31, 2024 COMPARED TO DECEMBER 31, 2023

Restricted
Cash and Cash Equivalents. As of December 31, 2024, our cash and restricted cash