Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 408

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 408
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olus Re, and Nephila which are dominant companies in the reinsurance
industry, as well as smaller companies and other niche reinsurers. Although we seek to provide coverage where capacity and alternatives
are limited, we will directly compete with these larger companies due to the breadth of their coverage across the property and casualty
market in substantially all lines of business.

We
cannot assure you that we will be able to compete successfully in the reinsurance market. Our failure to compete effectively could significantly
and negatively affect our financial condition and results of operations and may increase the likelihood that we may be deemed to be a
passive foreign investment company or an investment company.

If
actual renewals of our existing contracts do not meet expectations, our premiums assumed in future years and our future results of operations
could be materially adversely affected.

Many
of our contracts are generally written for a one-year term. In our financial forecasting process, we make assumptions about the renewal
of our prior year’s contracts. The insurance and reinsurance industries have historically been cyclical businesses with periods
of intense competition, often based on price. If actual renewals do not meet expectations or if we choose not to write on a renewal basis
because of pricing conditions, our premiums assumed in future years and our future operations would be materially adversely affected.

Reputation
is an important factor in the reinsurance industry, and our lack of an established reputation may make it difficult for us to attract
or retain business.

Reputation
is a very important factor in the reinsurance industry, and competition for business is, in part, based on reputation. Although our reinsurance
policies will be fully collateralized, we are a relatively newly formed reinsurance company and do not yet have a well-established reputation
in the reinsurance industry. Our lack of an established reputation may make it difficult for us to attract or retain business. In addition,
we do not have or currently intend to obtain financial strength ratings, which may discourage certain counterparties from entering into
reinsurance contracts with us.

14

If
our losses and loss adjustment expenses greatly exceed our loss reserves, our financial condition may be significantly and negatively
affected.

Our
results of operations and financial condition will depend upon our ability to accurately assess the potential losses and loss adjustment
expenses associated with the risks we reinsure. Reserves are estimates at a given time of claims an insurer ultimately expects to pay,
based upon facts and circumstances then known, predictions of future events, estimates of future trends in claim severity and other