Company: OXBRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009673
Chunk: 2

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 share
by writing business that generates attractive underwriting profits relative to the risk we bear. Additionally, we intend to complement
our underwriting profits with investment profits on an opportunistic basis. Our underwriting business focus is on fully collateralized
reinsurance contracts for property catastrophes, primarily in the Gulf Coast region of the United States. Within that market and risk
category, we attempt to select the most economically attractive opportunities across a variety of property and casualty insurers. As we
attempt to grow our capital base, we expect that we will consider further growth opportunities in other geographic areas and risk categories.

Our level of profitability is
primarily determined by how adequately our premiums assumed and investment income cover our costs and expenses, which consist primarily
of acquisition costs and other underwriting expenses, claim payments and general and administrative expenses. One factor leading to variation
in our operational results is the timing and magnitude of any follow-on offerings we undertake (if any), as we are able to deploy new
capital to collateralize new reinsurance treaties and consequently, earn additional premium revenue. In addition, our results of operations
may be seasonal in that hurricanes and other tropical storms typically occur during the period from June 1 through November 30. Further,
our results of operations may be subject to significant variations due to factors affecting the property and casualty insurance industry
in general, which include competition, legislation, regulation, general economic conditions, judicial trends, and fluctuations in interest
rates and other changes in the investment environment.

Because we employ an opportunistic
underwriting and investment philosophy, period-to-period comparisons of our underwriting results may not be meaningful. In addition, our
historical investment results may not necessarily be indicative of future performance. Due to the nature of our reinsurance and investment
strategies, our operating results will likely fluctuate from period to period.

Compared to most of our competitors,
we are small and have low overhead expenses. We believe that our expense efficiency, agility and existing relationships support our competitive
position and allows us to profitably participate in lines of business that fit within our strategy. Over time we expect our expense advantage
to erode as the industry acts to reduce frictional costs.

Recent Developments

Formation of SurancePlus

SurancePlus, an indirectly owned subsidiary of the Company, was incorporated as a British Virgin Islands Business Company on December 19, 2022 for
the purpose of tokenizing reinsurance contracts underwritten by its affiliated licensed reinsurer, Oxbridge Re NS.

On March