Company: OXBRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009673
Chunk: 13

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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 restrictions on Oxbridge Reinsurance Limited’s and Oxbridge Re NS’ ability to pay dividends which are
described in more detail below.

Sources and Uses of Funds

Our sources of funds primarily
consist of premium receipts (net of brokerage fees and federal excise taxes, where applicable) and investment income, including interest,
dividends and realized gains. We use cash to pay losses and loss adjustment expenses, other underwriting expenses, dividends, and general
and administrative expenses. Substantially all our surplus funds, net of funds required for cash liquidity purposes, are invested in accordance
with our business plan and investment guidelines. Our investment portfolio, except for our investment in Jet.AI, is primarily comprised
of cash and highly liquid securities, which can be liquidated, if necessary, to meet current liabilities. We believe that we have sufficient
flexibility to liquidate any securities that we own to generate liquidity.

As of March 31, 2025, we believe
we had sufficient cash flows from operations to meet our liquidity requirements. We expect that our operational needs for liquidity will
be met by cash, investment income and funds generated from underwriting activities. We have no plans to issue debt, and we expect to fund
our operations for the foreseeable future from operating cash flows, as well as from potential future equity offerings. However, we cannot
provide assurances that in the future we will not incur indebtedness to implement our business strategy, pay claims or make acquisitions.

Although Oxbridge Re Holdings
Limited is not subject to any significant legal prohibitions on the payment of dividends, its subsidiaries Oxbridge Reinsurance Limited
and Oxbridge Re NS are subject to Cayman Islands regulatory constraints that affect its ability to pay dividends to us and include a minimum
net worth requirement. Currently, the minimum net worth requirement for each subsidiary is $500. As of March 31, 2025, each subsidiary
exceeded the minimum required. By law, each subsidiary is restricted from paying a dividend if such a dividend would cause its net worth
to drop to less than the required minimum.

Cash Flows

Our
cash flows from operating, investing, and financing activities for the three-month periods ended March 31, 2025 and 2024 are summarized
below.

Cash Flows for the Three
months ended March 31, 2025 (in thousands)

Net
cash provided by operating activities for the three months ended March 31, 2025 totaled $272, which consisted primarily of cash received