Company: OXBRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023960
Chunk: 9

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 and discounts or premiums arising from
the purchase of debt securities are recognized in investment income using the interest method over the remaining term of the security.

Non-controlling
interests: Non-controlling interests represent the portion of net assets and net income of consolidated subsidiaries that are
not attributable to the Company. The Company recognizes non-controlling interests as a separate component of equity in the consolidated
balance sheets and separately presents the portion of net income (loss) attributable to non-controlling interests in the consolidated
statements of operations. Changes in the Company’s ownership interests in its subsidiaries that do not result in loss of control
are accounted for as equity transactions. The non-controlling interest holders are not obligated to fund losses in the consolidated subsidiaries.
The Company evaluates all transactions with non-controlling interest holders based on Accounting Standards Codification 810 guidance
and records any gains or losses directly to equity.

Fair
value measurement: GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GAAP are as
follows:

    Level
    1 
    Inputs
    that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access
    at the measurement date; 

    Level
    2 
    Inputs
    other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets
    that are not considered to be active; and

    Level
    3 
    Inputs
    that are unobservable.

    8

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial Statements (unaudited) 

June
30, 2025

2.
SIGNIFICANT ACCOUNTING POLICIES (continued)

Fair
value measurement (cont’d)

Inputs
are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation
decisions, including assumptions about risk. For fixed maturity debt securities, inputs may include price information, volatility statistics,
specific and broad credit data, liquidity statistics, broker quotes for similar securities and other factors. The fair value of investments
in stocks and exchange-traded funds is based on the last traded price. A financial instrument’s