Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 298

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 298
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 estimated amount of the
exposure at that time. The estimate reflects the judgment of management based on general reserving practices, the experience and knowledge
of the manager regarding the nature of the specific claim and, where appropriate, advice of outside counsel. Reserves are also established
to provide for the estimated expense of settling claims, including legal and other fees and the general expenses of administering the
claims adjustment process.

Loss
Reserves

Loss
reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and
administration costs of claims incurred (including claims incurred but not reported (“IBNR”)). Estimates are not precise
in that, among other things, they are based on predictions of future developments and estimates of future trends in claims severity and
frequency and other variable factors such as inflation. It is likely that the ultimate liability will be greater or less than such estimates
and that, at times, this variance will be material.

For
our property and other catastrophe policies, we initially establish our loss reserves based on loss payments and case reserves reported
by ceding companies. As we are not the only reinsurer on most contracts, the lead reinsurer will set the loss amount estimates for the
contract and the cedant will have the ability to pay for case losses consistent with that amount on our pro-rata share of the contract.

We
then add to these case reserves our estimates for IBNR. To establish our IBNR estimates, in addition to the loss information and estimates
communicated by cedants, we also use the services of an independent actuary. We may also use our computer-based vendor and proprietary
modeling systems to measure and estimate loss exposure under the actual event scenario, if available. Although the loss modeling systems
assist with the analysis of the underlying loss, and provide us with information and the ability to perform an enhanced analysis, the
estimation of claims resulting from catastrophic events is inherently difficult because of the variability and uncertainty of property
catastrophe claims and the unique characteristics of each loss.

If
IBNR estimates are made, we assess the validity of the assumptions we use in the reserving process on a quarterly basis during an internal
review process. During this process actuaries verify that the assumptions we have made continue to form what they consider to be a sound
basis for projection of future liabilities.

9

Although
we believe that we are prudent in our assumptions and methodologies, we cannot be certain that our ultimate payments will not