Company: OXBRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009673
Chunk: 11

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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 higher share price on grant date.

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 correlate to our ability to generate
net premiums earned.

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 quarter end March 31, 2025 compared with the quarter ended
March 31, 2024.

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 remained
consistent at 10.9% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

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 marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31,
2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when
compared with the prior period.

Combined
Ratio. We use the combined ratio to measure our underwriting performance. The combined ratio is the sum of the loss ratio
and the expense ratio. The combined ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8%
for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the
three-month period ended March 31, 2025, when compared with the prior period.

FINANCIAL CONDITION –MARCH 31, 2025 COMPARED
TO DE