Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 411

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 411
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 political instability. These risks are inherently unpredictable and recent events may indicate that the frequency
and severity of these types of losses may increase. It is difficult to predict the timing of these events or to estimate the amount of
loss that any given occurrence will generate. To the extent that losses from these risks occur, our financial condition and results of
operations could be significantly and negatively affected.

We
depend on our clients’ evaluations of the risks associated with their insurance underwriting, which may subject us to reinsurance
losses.

In
the proportional reinsurance business, in which we assume an agreed percentage of each underlying insurance contract being reinsured,
or quota share contracts, we do not separately evaluate each of the original individual risks assumed under these reinsurance contracts.
Therefore, we are largely dependent on the original underwriting decisions made by ceding companies. We are subject to the risk that
the clients may not have adequately evaluated the insured risks and that the premiums ceded may not adequately compensate us for the
risks we assume. We also do not separately evaluate each of the individual claims made on the underlying insurance contracts under quota
share arrangements. Therefore, we are dependent on the original claims decisions made by our clients.

Changing
climate conditions may adversely affect our financial condition, profitability or cash flows.

Climate
change, to the extent it produces extreme changes in temperatures and changes in weather patterns, could impact the frequency or severity
of weather events and wildfires. Further, it could impact the affordability and availability of homeowners insurance, which could have
an impact on pricing. Changes in weather patterns could also affect the frequency and severity of other natural catastrophe events to
which we may be exposed. The occurrence of these events would significantly and negatively affect our financial condition and results
of operations.

Operational
risks, including human or systems failures, are inherent in our business.

Operational
risks and losses can result from, among other things, fraud, errors, failure to document transactions properly or to obtain proper internal
authorization, failure to comply with regulatory requirements, information technology failures or external events.

We
believe that our modeling, underwriting and information technology and application systems are critical to our business and our growth
prospects. Moreover, we rely on our information technology and application systems to further our underwriting process and to enhance
our ability to compete successfully. A major defect or failure in our internal controls or information technology and application systems
could result in management distraction, harm to our reputation or increased expenses.

The
effect