Company: OXBRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023960
Chunk: 102

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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writing 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 correlate to
our ability to generate net premiums earned.

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 increased to 394% and 194.8% for the quarter and six-month
periods ended June 30, 2025, when compared with the prior comparative periods. This was due to the full
limit loss on one of our reinsurance contracts affected by Hurricane Milton.

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 remained consistent at 11.0% for the quarter end and six-month periods ended June 30, 2025 compared with the quarter
and six-month periods ended June 30, 2024.

Expense
Ratio. The expense ratio is the ratio of policy acquisition costs and general and administrative expenses to net premiums
earned. We use the expense ratio to measure our operating performance. For the three-month period ended June 30, 2025, the expense
ratio increased to 227%, from 111.3% for the three-month period ended June 30, 2024. For the six-month period ended June 30, 2025,
the expense ratio increased to 160.7%, from 105.7% for the six-month period ended June 30, 2024. The increases are primarily due to
increased professional costs relating to investor relations and our web3 subsidiary marketing and operations, renewed S-3 related
costs, increased human resources and personnel costs and legal expenditures during the quarter ended June 30, 2025, when compared
with the prior comparable periods.

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. For the three-month period ended June 30, 2025, the combined ratio increased to 621%, from 111.3% for the three-month
period ended June 30, 2024. For the six-month