Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 916

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 5
Chunk 916
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 claim (i.e. the severity). By analyzing claims experience by its frequency and severity components, the Company can examine trends
    and patterns in the rates of claims emergence (i.e. reporting) and settlement (i.e. closure) as well as in the average cost of claims.

    The
    approach is valuable because sometimes there is more inherent stability in the frequency and severity data when viewed separately
    rather than in the total losses

    F-19

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial Statements, Continued

7.
RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES (continued)

Reserving
methodologies and assumptions (continued)

In
addition, the Company may supplement its analysis with other reserving methodologies that are deemed to be relevant to specific contracts.

For
each contract, the Company utilizes reserving methodologies that are deemed appropriate to calculate a best estimate, or point estimate,
of reserves. The decision of whether to use a single methodology or a combination of multiple methodologies depends upon the judgment
of the independent actuary, if utilized. The Company’s reserving methodology does not require a fixed weighting of the various
methods used. Certain methods are considered more appropriate depending on the type and structure of the contract, the age and maturity
of the contract, and the duration of the expected paid losses on the contract.

The
Company’s gross aggregate reserves are the sum of the point estimate reserves of all portfolio exposures. Generally, IBNR loss
reserves are calculated by estimating the ultimate incurred losses at any point in time and subtracting cumulative paid claims and case
reserves, which incorporate specific exposures, loss payment and reporting patterns and other relevant factors.

There
were no significant changes in the Company’s methodology or assumptions relating to the Company’s reserve for loss and loss
adjustment expenses for the years ended December 31, 2024 or 2023.

Claims
Development Tables, IBNR Reserves and Claims Frequency

The
following table discloses information about the Company’s incurred and paid claims development as of December 31, 2024, as well
as cumulative claim frequency and the total of incurred-but-not-reporting and expected development on reported claims included within
the net incurred claims amounts. A claim is defined as a reported loss from a cedant on an excess-of-loss reinsurance contract arising
from a loss event for which the Company records a paid loss or case reserve. The Company operates a single