Company: OXBRW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001493152-25-021063
Chunk: 122

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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991,000
at December 31, 2024. The increase is due to the new reinsurance contracts placed for the 2025 2026 treaty year.

31

LIQUIDITY
AND CAPITAL RESOURCES

General

We
are organized as a holding company and provide administrative and management services to our subsidiaries. Our operations are conducted
through our reinsurance subsidiaries, Oxbridge Reinsurance Limited and Oxbridge Re NS and our web3 focused subsidiary SurancePlus Inc.
which underwrites risks associated with our property and casualty reinsurance programs as well as the tokenization of RWAs such as Reinsurance
contracts. We have minimal continuing cash needs at the holding company level, with such needs principally being related to the payment
of administrative expenses and shareholder dividends. There are restrictions on Oxbridge Reinsurance Limited’s and Oxbridge Re
NS’ ability to pay dividends which are described in more detail below.

Sources
and Uses of Funds

Our
sources of funds primarily consist of premium receipts (net of brokerage fees and federal excise taxes, where applicable) and investment
income, including interest, dividends and realized gains. We use cash to pay losses and loss adjustment expenses, other underwriting
expenses, dividends, and general and administrative expenses. Substantially all our surplus funds, net of funds required for cash liquidity
purposes, are invested in accordance with our business plan and investment guidelines. Our investment portfolio is primarily comprised of cash and highly liquid securities, which can be liquidated, if necessary, to meet current liabilities.
We believe that we have sufficient flexibility to liquidate any securities that we own to generate liquidity.

As
of September 30, 2025, we believe we had sufficient cash flows from operations to meet our liquidity requirements in the short term.
We expect that our operational needs for liquidity will be met by cash, investment income, sales under our existing ATM facilities and
funds generated from underwriting activities. We have no plans to issue debt, and we expect to fund our operations for the foreseeable
future from operating cash flows, as well as from current and potential future equity offerings. However, we cannot provide assurances
that in the future we will not incur indebtedness to implement our business strategy, pay claims or make acquisitions.

Although
Oxbridge Re Holdings Limited is not subject to any significant legal prohibitions on the payment of dividends, its subsidiaries Oxbridge
Reinsurance Limited and Oxbridge Re NS are subject to Cayman Islands regulatory constraints that affect its ability to pay dividends