Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 427

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 427
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 insured or reinsured is a RPII shareholder or a related person
to the RPII shareholder. A “RPII shareholder” is a United States person who owns, directly or indirectly through foreign
entities, any amount of our ordinary shares. Generally, for purposes of the RPII rules, a related person is someone who controls or is
controlled by the RPII shareholder or someone who is controlled by the same person or persons which control the RPII shareholder. Control
is measured by either more than 50% in value or more than 50% in voting power of shares after applying certain constructive ownership
rules. For purposes of taking into account RPII, and subject to the exceptions described below, Oxbridge Reinsurance Limited or Oxbridge
Re NS will be treated as a CFC if our RPII shareholders collectively own, indirectly, 25% or more of the total combined voting power
or value of their respective shares on any day during a taxable year. If Oxbridge Reinsurance Limited or Oxbridge Re NS is a CFC at any
time during a taxable year under the special RPII rules, any U.S. Holder that owns ordinary shares on the last day of any such taxable
year must include in gross income for U.S. federal income tax purposes the U.S. Holder’s allocable share of the RPII of Oxbridge
Reinsurance Limited for the entire taxable year, subject to certain modifications. Among other exceptions, the RPII rules do not apply
if the insurance company’s RPII, determined on a gross basis, is less than 20% of such respective entity’s gross insurance
income for such taxable year. We do not believe that the 20% gross insurance income threshold will be met. However, we cannot assure
you that this is or will continue to be the case. Consequently, we cannot assure you that a person who is a direct or indirect United
States shareholder will not be required to include amounts in its income in respect of RPII in any taxable year.

24

United
States tax-exempt organizations who own ordinary shares may recognize unrelated business taxable income.

If
you are a United States tax-exempt organization you may recognize unrelated business taxable income if a portion of our Code Subpart
F insurance income is allocated to you. In general, Code Subpart F insurance income will be allocated to you if we are a CFC as discussed
above and you are a United States 10% shareholder or