Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 88

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 13
Chunk 88
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 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
in market prices can arise from factors specific to individual securities or their respective issuers, or factors affecting all securities
traded in a particular market. Relevant factors for the Company are both volatility and liquidity of specific securities and markets
in which the Company holds investments. The Company has established investment guidelines that seek to mitigate significant exposure
to market risk.

14.
LEASES

Operating
lease right-of-use assets and operating lease liabilities are recognized in the consolidated balance sheets. We determine if a contract
contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present
value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental
borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease
agreements that have lease and non-lease components, are accounted for as a single lease component. Lease expense is recognized on a
straight-line basis over the lease term.

The
Company has two operating lease obligations namely for the Company’s office facilities located at Suite 201, 42 Edward Street Grand
Cayman, Cayman Islands and residential space at Turnberry Villas in Grand Cayman, Cayman Islands. The office lease has a remaining lease
term of approximately twenty-six (