Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 313

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 313
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16

We
are required to maintain sufficient collateral accounts, which could significantly and negatively affect our ability to implement our
business strategy.

We
are not licensed or admitted as a reinsurer in any jurisdiction other than the Cayman Islands. Certain jurisdictions, including the United
States, do not permit insurance companies to take credit for reinsurance obtained from unlicensed or non-admitted insurers on their statutory
financial statements unless appropriate security measures are implemented. Consequently, we must continue to maintain sufficient funds
in escrow accounts to serve as collateral for our reinsurance contracts. Because we intend to continue to utilize our funds (rather than
utilizing the credit markets) to serve as collateral for our reinsurance obligations, we may not be able to fully utilize our capital
to expand our reinsurance coverage as rapidly as other reinsurers.

The
inability to obtain business provided from brokers could adversely affect our business strategy and results of operations.

We
anticipate that a substantial portion of our business will be placed primarily through brokered transactions, which involve a limited
number of reinsurance brokers. If we are unable to identify and grow the brokered business provided through one or more of these reinsurance
brokers, many of whom may not be familiar with our Cayman Islands jurisdiction, this failure could significantly and negatively affect
our business and results of operations.

The
involvement of reinsurance brokers may subject us to their credit risk.

As
a standard practice of the reinsurance industry, reinsurers frequently pay amounts owed on claims under their policies to reinsurance
brokers, and these brokers, in turn, remit these amounts to the ceding companies that have reinsured a portion of their liabilities with
the reinsurer. In some jurisdictions, if a broker fails to make such a payment, the reinsurer might remain liable to the client for the
deficiency notwithstanding the broker’s obligation to make such payment. Conversely, in certain jurisdictions, when the client
pays premiums for policies to reinsurance brokers for payment to the reinsurer, these premiums are considered to have been paid and the
client will no longer be liable to the reinsurer for these premiums, whether or not the reinsurer has actually received them. Consequently,
we assume a degree of credit risk associated with the brokers that we do business with.

Our
use of fair value accounting of our significant investment in Jet.AI Inc. could result in income statement volatility, which in turn,
could cause significant market price and trading volume fluctuations for our securities.

Our