Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 310

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 310
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would also negatively affect our results of operations. If our losses and loss adjustment expenses greatly exceed our loss reserves,
our financial condition may be significantly and negatively affected.

The
property and casualty reinsurance market may be affected by cyclical trends and over-supply.

We
write reinsurance in the property and casualty markets, which tend to be cyclical in nature. Ceding company underwriting results, prevailing
general economic and market conditions, liability retention decisions of companies and ceding companies and reinsurance premium rates
each influence the demand for property and casualty reinsurance. Prevailing prices and available surplus to support assumed business
then influence reinsurance supply. Supply may fluctuate in response to changes in return on capital realized in the reinsurance industry,
the frequency and severity of losses and prevailing general economic and market conditions.

Continued
increases in the supply of reinsurance may have consequences for the reinsurance industry generally and for us, including lower premium
rates, increased expenses for customer acquisition and retention, less favorable policy terms and conditions and/or lower premium volume.
Furthermore, unpredictable developments, including courts granting increasingly larger awards for certain damages, increases in the frequency
of natural disasters (such as hurricanes, windstorms, tornados, earthquakes, wildfires and floods), fluctuations in interest rates, changes
in the investment environment that affect market prices of investments and inflationary pressures, affect the industry’s profitability.
The effects of cyclicality could significantly and negatively affect our financial condition and results of operations.

Due
to the influx of 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