Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 923

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 5
Chunk 923
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At
December 31, 2024, the Oxbridge Re NS’ net worth of $374 thousand exceeded the minimum and prescribed capital requirement. For
the years ended December 31, 2024 and 2023, Oxbridge Re NS’ net income was approximately $151,000 and $68,000, respectively.

The
Subsidiaries are not required to prepare separate statutory financial statements for filing with CIMA, and there were no material differences
between the Subsidiaries’ GAAP capital, surplus and net income, and its statutory capital, surplus and net income as of December
31, 2024 or for the year then ended.

13.
FAIR VALUE AND CERTAIN RISKS AND UNCERTAINTIES

Fair
values

With
the exception of balances in respect of insurance contracts (which are specifically excluded from fair value disclosures under GAAP)
and investment securities as disclosed in Note 4 of these consolidated financial statements, the carrying amounts of all other financial
instruments, which consist of cash and cash equivalents, restricted cash and cash equivalents, premiums receivable and other assets,
loan receivable, notes payable, and accounts payable and other liabilities, approximate their fair values due to their short-term nature.

Concentration
of underwriting risk

A
substantial portion of the Company’s current reinsurance business ultimately relates to the risks of a limited number of entities;
accordingly, the Company’s underwriting risks are not diversified.

Concentrations
of Credit and Counterparty Risk

The
Company markets retrocessional and reinsurance policies worldwide through its brokers. Credit risk exists to the extent that any of these
brokers may be unable to fulfill their contractual obligations to the Company. For example, the Company is required to pay amounts owed
on claims under policies to brokers, and these brokers, may fail to pay over the money to the cedants. In some jurisdictions, if a broker
fails to make such a payment, the Company might remain liable to the ceding company for the deficiency. In addition, in certain jurisdictions,
when the ceding company pays premiums for these policies to brokers, these premiums are considered to have been paid and the ceding insurer
is no longer liable to the Company for those amounts, whether or not the premiums have actually been received.

The
Company remains liable for losses it incurs to the extent that any third-party reinsurer is unable or unwilling to make timely payments
under reinsurance agreements. The Company would also be