Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 592

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1C
Chunk 592
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in force at December 31, 2022. In contrast, the current year ended December 31, 2024 accounted for a full twelve (12) months of policy
acquisition costs.

General
and Administrative Expenses. General and administrative expenses for the year ended December 31, 2024 decreased to $1.9 million
from $2.2 million for the year ended December 31, 2023. The decrease in 2024 is due to expense fluctuations along with efficiencies associated
with SurancePlus offerings being recognized during the year, in addition to previous recognition of costs associated with Maxim equity
distribution agreement in 2023.

MEASUREMENT
OF RESULTS

We
use various measures to analyze the growth and profitability of business operations. For our reinsurance business, we measure growth
in terms of premiums assumed and we measure underwriting profitability by examining our loss, underwriting expense and combined ratios.
We analyze and measure profitability in terms of net income and return on average equity.

Premiums
Assumed. We use gross premiums assumed to measure our sales of reinsurance products. Gross premiums assumed also correlates to
our ability to generate net premiums earned. See also the analysis above relating to the growth in premiums assumed.

Loss
Ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting
profitability of our reinsurance business. The loss ratio remained consistent at 0% for the year ended December 31, 2024 and 2023.

Acquisition
Cost Ratio. The acquisition cost ratio is the ratio of policy acquisition costs and other underwriting expenses to net premiums
earned. The acquisition cost ratio measures our operational efficiency in producing, underwriting and administering our reinsurance business.
The acquisition cost ratio decreased marginally to 11.0% for the year ended December 31, 2024 from 11.2% in the prior year.

Expense
Ratio. The expense ratio is the ratio of policy acquisition costs, other underwriting expenses and general and administrative
expenses to net premiums earned. We use the expense ratio to measure our operating performance. The expense ratio decreased from 185.2%
for the year ended December 31, 2023 to 94.3 % for the year ended December 31, 2024. The decrease is due to the higher levels of premium
earned and lower general administrative expenses incurred during the year ended December 31, 2024.

Combined
Ratio. We use the