Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 61

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 13
Chunk 61
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 financial interest and all variable interest entities (“VIE”)
in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether
an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use
of Estimates: In preparing the consolidated financial statements, management was required to make certain estimates and assumptions
that affect the reported amounts of the consolidated assets, liabilities, revenues, expenses and related disclosures at the financial
reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective
and complex and consequently actual results may differ from these estimates, which would be reflected in future periods. Material estimates
that are particularly susceptible to significant change in the near-term relate to the determination of the reserve for losses and loss
adjustment expenses (if any), which may include amounts estimated for claims incurred but not yet reported. The Company uses various
assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. Although considerable variability
is likely to be inherent in these estimates, management believes that the amounts provided are reasonable. These estimates are continually
reviewed and adjusted if necessary. Such adjustments are reflected in current operations.

    F-7

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES 

Notes
to Consolidated Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue
Recognition

SurancePlus
incentive, technology, origination and management (“ITOM”) fee income represents fee income related to the completion of
the SurancePlus’ CatRe tokenized reinsurance securities as well as placement of the underlying insurance policies. The Company
recognizes the associated revenue at the time of the placement of the underlying insurance policies as the performance obligation is
satisfied at that time.

Cash
and cash equivalents: Cash and cash equivalents are comprised of cash and short- term investments with original maturities of
three months or less.

Restricted
cash and cash equivalents: Restricted cash and cash equivalents represent funds held in accordance with the Company’s trust
agreements with ceding insurers and trustees, which requires the Company to maintain collateral with a market value greater than or equal
to the limit of liability, less unpaid premium.

Investments:
The Company from time to time invests in fixed-maturity securities and equity securities,