Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 318

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 318
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 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 (the “Investment Company Act”), regulates certain companies
that invest in or trade securities. We run the risk of inadvertently being deemed to be an investment company that is required to register
under the Investment Company because a significant portion of our assets may be deemed to consist of, or may be deemed to have consisted
of, investment securities, including potentially Oxbridge Reinsurance Limited’s interest in Oxbridge Acquisition Corp. However,
we rely on an exemption under the Investment Company Act for an entity organized and regulated as a foreign insurance company which is
engaged primarily and predominantly in the reinsurance of risks on insurance agreements. The law in this area is subjective and there
is a lack of guidance as to the meaning of ‘‘primarily and predominantly’’ under the relevant exemption to the
Investment Company Act. For example, there is no standard for the amount of premiums that need to be written relative to the level of
an entity’s capital in order to qualify for the exemption. If this exception were deemed inapp