Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 417

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 417
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 given by CIMA may be punishable by a fine of up to five hundred thousand Cayman Islands dollars (US$609,756.10
based on the Cayman Islands’ pegged exchange rate of CI$0.82 per US$1.00) or imprisonment for a term of five years or both, and
a fine of an additional ten thousand Cayman Islands dollars (US$12,195.12) for every day after conviction on which the offense so continues.

Our
reinsurance subsidiaries are subject to minimum capital and surplus requirements, and our failure to meet these requirements could subject
us to regulatory action.

Pursuant
to the Capital and Solvency Regulations, Oxbridge Reinsurance Limited and Oxbridge Re NS, our reinsurance subsidiaries, are each required
to maintain the statutory minimum capital requirement (as defined under the Capital and Solvency Regulations) of $500 and prescribed
capital requirement (as defined under the Capital and Solvency Regulations) of $500, and a minimum margin of solvency equal to or in
excess of the total prescribed capital requirement. Any failure to meet the applicable requirements or minimum statutory capital requirements
could subject us to further examination or corrective action by CIMA, including restrictions on dividend payments, limitations on our
writing of additional business or engaging in finance activities, supervision or liquidation.

19

As
a holding company, we will depend on the ability of our subsidiaries to pay dividends.

We
are a holding company and do not have any significant operations or assets other than our ownership of the shares of our subsidiaries
Oxbridge Reinsurance Limited and Oxbridge Re NS. Dividends and other permitted distributions from our subsidiaries will be our primary
source of funds to meet ongoing cash requirements, including future debt service payments, if any, and other expenses, and to pay dividends
to our shareholders if we choose to do so. Our subsidiaries will be subject to applicable law as well as significant regulatory restrictions
limiting their ability to declare and pay dividends. The inability of our subsidiaries to pay dividends in an amount sufficient to enable
us to meet our cash requirements at the holding company level could have an adverse effect on our operations and our ability to pay dividends
to our shareholders if we choose to do so and/or meet our debt service obligations, if any.

We
are subject to the risk of possibly becoming an investment company under U.S. federal securities law.

In
the United States, the Investment Company Act of 1940, as amended (