Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 525

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 525
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GAAP, we are not permitted to establish loss reserves until the occurrence of an actual loss event. As a result, only loss reserves applicable
to losses incurred up to the reporting date may be recorded, with no allowance for the provision of a contingency reserve to account
for expected future losses. Losses arising from future events, which could be substantial, are estimated and recognized at the time the
loss is incurred.

As
at December 31, 2024 we had no reserves for loss and loss adjustment expenses due to no significant events occurring during the year
and no reported claims on contract in force. See Note 7 to the consolidated financial statements.

Our
reserving methodology does not lend itself well to a statistical calculation of a range of estimates surrounding the best point estimate
of our reserve for loss and loss adjustment expense. Due to the low frequency and high severity nature of claims within much of our business,
our reserving methodology principally involves arriving at a specific point estimate for the ultimate expected loss on a contract-by-contract
basis, and our aggregate loss reserves are the sum of the individual loss reserves established.

Deferred
Acquisition Costs. We defer certain expenses that are directly related to and vary with producing reinsurance business, including
brokerage fees on gross premiums assumed, premium taxes and certain other costs related to the acquisition of reinsurance contracts.
These costs are capitalized and the resulting asset, deferred acquisition costs, is amortized and charged to expense in future periods
as premiums assumed are earned. The method followed in computing deferred acquisition costs limits the amount of such deferral to its
estimated realizable value. The ultimate recoverability of deferred acquisition costs is dependent on the continued profitability of
our reinsurance underwriting. If our underwriting ceases to be profitable, we may have to write off a portion of our deferred acquisition
costs, resulting in a further charge to income in the period in which the underwriting losses are recognized.

39

ITEM
7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As
a smaller reporting company as defined by Rule 229.10(f)(1) of the Exchange Act, we are not required to provide the information under
this item.

ITEM
8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The
financial statements and supplementary data have been filed as a part of this Annual Report on Form 10-K as indicated in the Index to
Consolidated Financial Statements and Financial Statement Schedules appearing on page