Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 496

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 496
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AIN RISKS AND UNCERTAINTIES

Fair
values

With
the exception of balances in respect of insurance contracts (which are specifically excluded from fair value disclosures under GAAP)
and investment securities as disclosed in Note 4 of these consolidated financial statements, the carrying amounts of all other financial
instruments, which consist of cash and cash equivalents, restricted cash and cash equivalents, premiums receivable and other assets,
loan receivable, notes payable, and accounts payable and other liabilities, approximate their fair values due to their short-term nature.

Concentration
of underwriting risk

A
substantial portion of the Company’s current reinsurance business ultimately relates to the risks of a limited number of entities;
accordingly, the Company’s underwriting risks are not diversified.

Concentrations
of Credit and Counterparty Risk

The
Company markets retrocessional and reinsurance policies worldwide through its brokers. Credit risk exists to the extent that any of these
brokers may be unable to fulfill their contractual obligations to the Company. For example, the Company is required to pay amounts owed
on claims under policies to brokers, and these brokers, may fail to pay over the money to the cedants. In some jurisdictions, if a broker
fails to make such a payment, the Company might remain liable to the ceding company for the deficiency. In addition, in certain jurisdictions,
when the ceding company pays premiums for these policies to brokers, these premiums are considered to have been paid and the ceding insurer
is no longer liable to the Company for those amounts, whether or not the premiums have actually been received.

The
Company remains liable for losses it incurs to the extent that any third-party reinsurer is unable or unwilling to make timely payments
under reinsurance agreements. The Company would also be liable in the event that its ceding companies were unable to collect amounts
due from underlying third-party reinsurers.

The
Company mitigates its concentration of credit risk and counterparty risk by using reputable several counterparties which decreases the
likelihood of any significant concentration of credit risk with any one counterparty.

    F-25

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial Statements, Continued

13.
FAIR VALUE AND CERTAIN RISKS AND UNCERTAINTIES (continued)

Market
risk

Market
risk exists to the extent that the values of the Company’s monetary assets fluctuate as a result of changes in market prices. Changes