Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 473

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 473
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 losses and loss adjustment expenses. Management believes that the amounts are adequate;
however, the inherent impossibility of predicting future events with precision, results in uncertainty as to the amount which will ultimately
be required for the settlement of losses and loss expenses, and the differences could be material. Adjustments are reflected in the consolidated
statements of operations in the period in which they are determined.

Loss
experience refund payable: Certain contracts include retrospective provisions that adjust premiums or result in profit commissions
in the event losses are minimal or zero. In accordance with GAAP, the Company will recognize a liability in the period in which the absence
of loss experience obligates the Company to pay cash or other consideration under the contracts. On the contrary, the Company will derecognize
such liability in the period in which a loss experience arises. Such adjustments to the liability, which accrue throughout the contract
terms, will reduce the liability should a catastrophic loss event covered by the Company occur.

Premiums
assumed: The Company records premiums assumed, net of loss experience refunds, as earned pro-rata over the terms of the reinsurance
agreements, or period of risk, where applicable, and the unearned portion at the consolidated balance sheet date is recorded as unearned
premiums reserve. A reserve is made for estimated premium deficiencies to the extent that estimated losses and loss adjustment expenses
exceed related unearned premiums. Investment income is not considered in determining whether or not a deficiency exists.

    F-9

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES 

Notes
to Consolidated Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Subsequent
adjustments of premiums assumed, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium,
are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods
have expired, in which case the premium adjustments are fully earned when assumed.

Certain
contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiration of the contract. A reinstatement
premium is not due until there is a full limit loss event and therefore, in accordance with GAAP, the Company records a reinstatement
premium as written only in the event that the reinsured incurs a full limit loss on the contract and the contract allows for a reinstatement
of coverage upon payment of an additional premium. For catastrophe contracts which contractually require