Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 326

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 326
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) for years before 2021, the income is earned by a corporation that
is predominantly engaged in an insurance business, and (ii) for years after 2021, the income is earned by a “qualifying insurance
corporation”. In order for a non-U.S. property and casualty insurance company to be treated as a “qualifying insurance corporation”
for a taxable year, the company’s “applicable insurance liabilities” generally must be greater than 25% of the company’s
assets for the taxable year. In the case of a non-U.S. property and casualty insurance company, the term “applicable insurance
liabilities” means the amount of loss and loss adjustment expenses, but shall not exceed the amount reported to the applicable
regulator in an applicable financial statement. It is not clear whether the term “applicable insurance liabilities” includes
not only the unpaid loss and loss adjustment expenses, but also includes the paid loss and loss adjustment expenses during the taxable
year. If each of Oxbridge Reinsurance Limited and Oxbridge Re NS is a “qualified insurance corporation” for a taxable year,
then neither Oxbridge Re Holdings Limited, nor Oxbridge Reinsurance Limited, nor Oxbridge Re NS should be deemed to be a PFIC for the
taxable year.

Regardless
of whether the term “applicable insurance liabilities” includes not only the unpaid loss and loss adjustment expenses but
also the paid loss and loss adjustment expenses, we believe that each of Oxbridge Reinsurance Limited and Oxbridge Re NS met the requirements
for being a “qualified insurance corporation” for the years after 2021. For years prior to 2021, we also believe that
each of those corporations met the requirement of being predominantly engaged in an insurance business. Accordingly, we believe that
we have not been a PFIC during 2024 or prior years. We do not have an expectation, however, as to whether or not we may be a PFIC in
years after 2024. If you are a United States person, we urge you to consult your own tax advisor concerning the potential tax consequences
to you under the PFIC rules.

We
may be treated as a CFC and may be subject to the rules for related person insurance income, and in either case this may subject a U.S.
holder of our ordinary shares to disadvantageous rules under U.S. federal income tax laws.

Controlled
Foreign Corporation. United States persons who, directly or constructively through attribution rules, own