Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 413

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 413
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 amounts owed on claims under their policies to reinsurance
brokers, and these brokers, in turn, remit these amounts to the ceding companies that have reinsured a portion of their liabilities with
the reinsurer. In some jurisdictions, if a broker fails to make such a payment, the reinsurer might remain liable to the client for the
deficiency notwithstanding the broker’s obligation to make such payment. Conversely, in certain jurisdictions, when the client
pays premiums for policies to reinsurance brokers for payment to the reinsurer, these premiums are considered to have been paid and the
client will no longer be liable to the reinsurer for these premiums, whether or not the reinsurer has actually received them. Consequently,
we assume a degree of credit risk associated with the brokers that we do business with.

Our
use of fair value accounting of our significant investment in Jet.AI Inc. could result in income statement volatility, which in turn,
could cause significant market price and trading volume fluctuations for our securities.

Our
significant beneficial interests in Jet.AI Inc.’s common stock and public warrants are recorded at fair value with changes in fair
value being recorded in the consolidated statements of operations during the period of change. Additionally, the fair value of the investment
must be remeasured quarterly. Because of this, and due to significance of our investment in Jet.AI relative to our total assets, our
earnings may experience greater volatility in the future as a decline in the fair value of our investment in Jet.AI Inc. could significantly
reduce both our earnings and shareholders’ equity, which in turn, could cause significant market price and trading volume fluctuations
for our securities.

U.S.
and global economic downturns could harm our business, our liquidity and financial condition and the price of our securities.

Weak
economic conditions may adversely affect (among other aspects of our business) the demand for and claims made under our products, the
ability of customers, counterparties and others to establish or maintain their relationships with us, our ability to access and efficiently
use internal and external capital resources and our investment performance. Volatility in the U.S. and other securities markets may adversely
affect our investment portfolio and our resulting results of operations.

17

Our
ability to implement our business strategy could be delayed or adversely affected by Cayman Islands employment restrictions.

Under
Cayman Islands law, persons who are not Caymanian, do not possess Caymanian status, or are not otherwise entitled to reside and work
in the Cayman Islands