Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 409

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 409
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 variable
factors. The inherent uncertainties of estimating loss reserves are generally greater for reinsurance companies as compared to primary
insurers, primarily due to:

    ●
    the lapse of time from
    the occurrence of an event to the reporting of the claim and the ultimate resolution or settlement of the claim;

    ●
    the diversity of development
    patterns among different types of reinsurance treaties; and

    ●
    the necessary reliance
    on the client for information regarding claims.

Our
estimation of reserves may be less reliable than the reserve estimations of a reinsurer with a greater volume of business and an established
loss history. Our actual losses and loss adjustment expenses paid may deviate substantially from the estimates of our loss reserves and
could negatively affect our results of operations. If our loss reserves are later found to be inadequate, we would increase our loss
reserves with a corresponding reduction in our net income and capital in the period in which we identify the deficiency, and such a reduction
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