Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 311

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 311
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Our
reinsurance operations expose us to claims arising out of unpredictable catastrophic events, such as hurricanes, hailstorms, tornados,
windstorms, earthquakes, floods, fires, explosions, and other natural or man-made disasters. Because of our emphasis on Florida, we are
particularly vulnerable to hurricanes and with windstorm losses occurring in Florida. The incidence and severity of catastrophes are
inherently unpredictable but the loss experience of property catastrophe reinsurers has been generally characterized as low frequency
and high severity. Claims from catastrophic events could reduce our earnings and cause substantial volatility in our results of operations
for any fiscal quarter or year and adversely affect our financial condition. Corresponding reductions in our surplus levels could impact
our ability to write new reinsurance policies.

15

Catastrophic
losses are a function of the insured exposure in the affected area and the severity of the event. Because accounting standards do not
permit reinsurers to reserve for catastrophic events until they occur, claims from catastrophic events could cause substantial volatility
in our financial results for any fiscal quarter or year and could significantly and negatively affect our financial condition and results
of operations.

We
could face unanticipated losses from war, terrorism, and political unrest, and these or other unanticipated losses could have a material
adverse effect on our financial condition and results of operations.

Like
other reinsurers, we face potential exposure to large, unexpected losses resulting from man-made catastrophic events, such as acts of
war, acts of terrorism and political instability. These risks are inherently unpredictable and recent events may indicate that the frequency
and severity of these types of losses may increase. It is difficult to predict the timing of these events or to estimate the amount of
loss that any given occurrence will generate. To the extent that losses from these risks occur, our financial condition and results of
operations could be significantly and negatively affected.

We
depend on our clients’ evaluations of the risks associated with their insurance underwriting, which may subject us to reinsurance
losses.

In
the proportional reinsurance business, in which we assume an agreed percentage of each underlying insurance contract being reinsured,
or quota share contracts, we do not separately evaluate each of the original individual risks assumed under these reinsurance contracts.
Therefore, we are largely dependent on the original underwriting decisions made by ceding companies. We are subject to the risk that
the clients may not have adequately evaluated the insured risks and that the premiums ceded may not adequately compensate us for the
risks we