Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 166

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 15
Chunk 166
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, or their operations, or to the ordinary shares
or related obligations, until April 23, 2033 and May 17, 2033, respectively.

The
Company and its subsidiaries intend to conduct substantially all of their operations in the Cayman Islands in a manner such that they
will not be engaged in a trade or business in the U.S. However, because there is no definitive authority regarding activities that constitute
being engaged in a trade or business in the U.S. for federal income tax purposes, the Company cannot assure that the U.S. Internal Revenue
Service will not contend, perhaps successfully, that the Company or its subsidiaries are engaged in a trade or business in the U.S. A
foreign corporation deemed to be so engaged would be subject to U.S. federal income tax, as well as branch profits tax, on its income
that is treated as effectively connected with the conduct of that trade or business unless the corporation is entitled to relief under
an applicable tax treaty.

6.
VARIABLE INTEREST ENTITIES

Oxbridge
Re NS. On December 22, 2017, the Company established Oxbridge Re NS, a Cayman domiciled and licensed special purpose insurer, formed
to provide additional collateralized capacity to support Oxbridge Reinsurance Limited’s reinsurance business. In respect of the
debt issued by Oxbridge Re NS to investors, Oxbridge Re NS has entered into a retrocession agreement with Oxbridge Reinsurance Limited
effective September 1, 2020. Under this agreement, Oxbridge Re NS receives a quota share of Oxbridge Reinsurance Limited’s catastrophe
business. Oxbridge Re NS is a non-rated insurer and the risks have been fully collateralized by way of funds held in trust for the benefit
of Oxbridge Reinsurance Limited. Oxbridge Re NS is able to provide investors with access to natural catastrophe risk backed by the distribution,
underwriting, analysis and research expertise of Oxbridge Re.

The
Company has determined that Oxbridge Re NS meets the definition of a VIE as it does not have sufficient equity capital to finance its
activities. The Company concluded that it is the primary beneficiary and has consolidated the subsidiary upon its formation, as it owns
80% of the voting shares, 80% of the issued share capital and has a significant financial interest and the power to control the activities
of Oxbridge Re NS that most significantly impacts its economic performance. The Company has no other obligation to provide financial
support to Oxbridge Re NS. Neither