Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 876

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 5
Chunk 876
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 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 (if any). 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 of 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, except for
our investment in Jet.AI, 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 December 31, 2024, we believe we had sufficient cash flows from operations to meet our liquidity requirements. We expect that our
operational needs for liquidity will be met by cash, investment income and funds generated from underwriting activities. We have no current
plans to issue debt and expect to fund our operations for the foreseeable future from operating cash flows, as well as from potential
future equity offerings, including our ATM facility and registered direct 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
to us and include a minimum net worth requirement. Currently, the minimum net worth requirement for each subsidiary is $500. As of December
31, 2024, each subsidiary exceeded the minimum required. By law, each subsidiary is restricted from paying a dividend if such a dividend
would cause its net worth to drop to less than the required minimum.

37

Cash
Flows

Our
cash flows from operating, investing, and financing activities for the years ended