Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 410

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 410
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 new risk capital from alternative capital market participants such as hedge funds and pension funds, we believe that
the reinsurance industry is currently over-capitalized and will continue in this trend for the foreseeable future. The over-capitalization
of the market is not uniform as there are a number of insurers and reinsurers that have suffered and continue to suffer from capacity
issues. We continue to assess the opportunities that may be available to us with insurance and reinsurance companies with this profile.
If the reinsurance market continues to soften, our strategy is to reduce premium writings rather than accept mispriced risk and conserve
our capital for a more opportune environment. Significant rate increases could occur if financial and credit markets experience adverse
shocks that result in the loss of capital of insurers and reinsurers, or if there are major catastrophic events, especially in North
America.

Our
property and property catastrophe reinsurance operations will make us vulnerable to losses from catastrophes and may cause our results
of operations to vary significantly from period to period.

Our
reinsurance operations expose us to claims arising out of unpredictable catastrophic events, such as hurricanes, hailstorms, tornados,
windstorms, earthquakes, floods, fires, explosions, and other natural or man-made disasters. Because of our emphasis on Florida, we are
particularly vulnerable to hurricanes and with windstorm losses occurring in Florida. The incidence and severity of catastrophes are
inherently unpredictable but the loss experience of property catastrophe reinsurers has been generally characterized as low frequency
and high severity. Claims from catastrophic events could reduce our earnings and cause substantial volatility in our results of operations
for any fiscal quarter or year and adversely affect our financial condition. Corresponding reductions in our surplus levels could impact
our ability to write new reinsurance policies.

15

Catastrophic
losses are a function of the insured exposure in the affected area and the severity of the event. Because accounting standards do not
permit reinsurers to reserve for catastrophic events until they occur, claims from catastrophic events could cause substantial volatility
in our financial results for any fiscal quarter or year and could significantly and negatively affect our financial condition and results
of operations.

We
could face unanticipated losses from war, terrorism, and political unrest, and these or other unanticipated losses could have a material
adverse effect on our financial condition and results of operations.

Like
other reinsurers, we face potential exposure to large, unexpected losses resulting from man-made catastrophic events, such as acts of
war, acts of terrorism and