Slide Insurance (Nasdaq: SLDE) lifts revenue to 776,100 in H1 2026
Slide Insurance Holdings, Inc. reported strong growth for the quarter and six months ended June 30, 2026. Net premiums earned reached 360,635 and 726,518 (thousands) for the quarter and year‑to‑date, driving total revenue to 386,817 and 776,100 (thousands). Net income was 134,850 and 274,377 (thousands) for the quarter and first half, with diluted EPS of 1.06 and 2.08.
Total assets increased to 3,599,110 (thousands) as of June 30, 2026, and shareholders’ equity rose to 1,194,818 (thousands). Cash, cash equivalents and restricted cash and equivalents totaled 1,821,154 (thousands), supported by net cash provided by operating activities of 590,011 (thousands) in the first half. The company repurchased and retired 10,722,220 shares for 190,932 (thousands), reducing common shares outstanding to 115,568,131.
The insurance business remains highly concentrated in Florida homeowners, which accounted for 96% of direct written premiums, and is heavily reinsured through per‑risk and catastrophe excess‑of‑loss programs. For the June 1, 2026–May 31, 2027 treaty year, catastrophe reinsurance provides a total aggregate limit of $5,463 million, complemented by mandatory participation in the Florida Hurricane Catastrophe Fund.
Positive
- Net income for the six months ended June 30, 2026 increased to $274,377 (thousands) from $162,575, reflecting substantially higher profitability versus the prior‑year period.
- Net cash provided by operating activities rose to $590,011 (thousands) for the first half of 2026 compared with $350,429, significantly strengthening liquidity and internal funding capacity.
- Statutory surplus at SIC totaled $520,411 (thousands) versus a required minimum of $130,866 as of June 30, 2026, indicating substantial regulatory capital headroom.
Negative
- None.
Filing Explained
The July 27 facility amendment provides $530.4 million of borrowing capacity without a reported quarter-end draw; July 30 shares outstanding were 116,811,719.
This Form 10-Q is an unaudited quarterly report for the quarter ended
The immediate structural effect is financing capacity rather than additional debt outstanding. The amendment also terminated the delayed-draw term loans, while the revolving facility matures on
The filing reports 116,811,719 common shares outstanding on
The material follow-up is whether a later filing reports borrowing under the amended revolving facility; this filing reports zero borrowings at quarter-end.
Key Figures
Key Terms
Deferred policy acquisition costs financial
catastrophe excess of loss reinsurance financial
Florida Hurricane Catastrophe Fund financial
risk-based capital financial
variable interest entities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Slide Insurance (SLDE) revenues and net income for the six months ended June 30, 2026?
How did Slide Insurance (SLDE) earnings per share look in Q2 2026?
What is Slide Insurance (SLDE)’s cash and liquidity position as of June 30, 2026?
How much stock did Slide Insurance (SLDE) repurchase in 2026 to date?
How exposed is Slide Insurance (SLDE) to Florida homeowners and catastrophe risk?
What are Slide Insurance (SLDE)’s capital and regulatory surplus levels?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
( State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of July 30, 2026, the registrant had
Table of Contents
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Page |
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PART I. |
FINANCIAL INFORMATION |
1 |
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Item 1. |
Financial Statements (Unaudited) |
1 |
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Condensed Consolidated Balance Sheets June 30, 2026 (unaudited) and December 31, 2025: |
1 |
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Condensed Consolidated Statements of Operations three and six months ended June 30, 2026 and 2025 (unaudited): |
2 |
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Condensed Consolidated Statements of Comprehensive Income three and six months ended June 30, 2026 and 2025 (unaudited): |
3 |
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Condensed Consolidated Statements of Shareholders’ Equity three and six months ended June 30, 2026 and 2025 (unaudited): |
4 |
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Condensed Consolidated Statements of Cash Flows six months ended June 30, 2026 and 2025 (unaudited): |
6 |
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Notes to Unaudited Condensed Consolidated Financial Statements |
7 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
27 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
43 |
Item 4. |
Controls and Procedures |
44 |
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PART II. |
OTHER INFORMATION |
45 |
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Item 1. |
Legal Proceedings |
45 |
Item 1A. |
Risk Factors |
45 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
45 |
Item 5. |
Other Information |
45 |
Item 6. |
Exhibits |
47 |
Signatures |
48 |
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i
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
Slide Insurance Holdings, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands, except per share and par value amounts)
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June 30, 2026 |
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December 31, 2025 |
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(Unaudited) |
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ASSETS |
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Invested assets: |
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Fixed-maturity securities, available-for-sale, at estimated fair value (amortized costs: $ |
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$ |
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Other investments, net |
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Total invested assets |
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$ |
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$ |
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Cash and cash equivalents |
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Restricted cash and cash equivalents |
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Restricted cash and cash equivalents - variable interest entity |
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Accrued interest income |
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Assumed premiums receivable |
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Premiums receivable, net of allowance for credit loss of $ |
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Reinsurance recoverable on paid losses, net of allowance for credit loss: $ |
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Reinsurance recoverable on unpaid losses, net of allowance for credit loss: $ |
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Prepaid reinsurance premiums |
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Deferred income tax assets, net |
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Deferred policy acquisition costs |
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Property and equipment, net |
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Right-of-use lease assets, operating |
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Intangibles, net |
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Goodwill |
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Prepaid expenses |
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Other assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Loss and loss adjustment expense reserves |
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$ |
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$ |
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Unearned premiums |
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Commissions payable |
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Deferred revenue |
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Reinsurance premiums payable |
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Long-term debt, net |
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Interest rate swap liability |
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Income taxes payable |
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Advanced premiums |
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Premium tax liabilities |
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Accounts payable and accrued expenses |
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Lease liabilities, operating |
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Other liabilities |
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Total liabilities |
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$ |
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$ |
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Shareholders’ equity: |
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Common Stock (par value $ |
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Additional paid-in capital |
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Accumulated other comprehensive income, net of taxes |
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( |
) |
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Retained earnings |
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Total shareholders’ equity |
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$ |
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$ |
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Total liabilities and shareholders’ equity |
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$ |
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$ |
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||
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
1
Slide Insurance Holdings, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share amounts)
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Three Months Ended |
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Six Months Ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues: |
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Gross premiums written |
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$ |
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$ |
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$ |
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$ |
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Change in unearned premiums |
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( |
) |
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( |
) |
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( |
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Gross premiums earned |
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Ceded premiums earned |
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( |
) |
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( |
) |
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( |
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( |
) |
Net premiums earned |
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Net investment income |
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Policy fees |
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Other income |
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Total revenue |
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$ |
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$ |
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$ |
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$ |
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Expenses: |
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Losses and loss adjustment expenses incurred, net |
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Policy acquisition and other underwriting expenses |
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General and administrative expenses |
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Interest expense |
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Depreciation expense |
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Amortization expense |
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Total expenses |
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$ |
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$ |
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$ |
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$ |
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Net income before income tax expense |
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Income tax expense |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Weighted average shares outstanding (in thousands) |
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Basic |
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Diluted |
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Earnings per share |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
|
||||
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
2
Slide Insurance Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(Dollar amounts in thousands)
|
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Three Months Ended |
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Six Months Ended |
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||||||||||
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2026 |
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2025 |
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2026 |
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2025 |
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||||
Net income |
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$ |
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$ |
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$ |
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$ |
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||||
Other comprehensive income: |
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Unrealized gains (losses) on securities |
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( |
) |
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( |
) |
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Other comprehensive gain (loss), before tax |
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( |
) |
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( |
) |
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||
Income tax expense on other comprehensive gain (loss) |
|
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( |
) |
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( |
) |
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Income tax expense on other comprehensive gain (loss) |
|
|
( |
) |
|
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( |
) |
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||
Other comprehensive gain (loss) |
|
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( |
) |
|
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( |
) |
|
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||
Comprehensive income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
3
Slide Insurance Holdings, Inc.
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
(Dollar amounts in thousands)
|
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Common Stock (a) |
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Preferred Stock (a) |
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Additional |
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Retained |
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Accumulated |
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Total |
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Shares |
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Amount |
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Shares |
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Amount |
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Capital (a) |
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Earnings |
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Income |
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Equity |
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||||||||
Balance as of March 31, 2026 |
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$ |
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— |
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$ |
- |
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$ |
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$ |
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$ |
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$ |
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||||||
Exercise of vested common stock options |
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— |
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— |
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— |
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— |
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||||
Vesting of RSUs |
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— |
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— |
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( |
) |
|
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— |
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|
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— |
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— |
|
||
Stock-based compensation |
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— |
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— |
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— |
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— |
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|
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— |
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— |
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||
Net income |
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— |
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— |
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— |
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— |
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— |
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— |
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||
Other comprehensive loss |
|
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— |
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|
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— |
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— |
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— |
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|
— |
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|
— |
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|
( |
) |
|
|
( |
) |
Shares withheld for taxes (net share settlement) |
|
|
( |
) |
|
|
( |
) |
|
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— |
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— |
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( |
) |
|
|
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— |
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( |
) |
|
Repurchase and retirement of common stock |
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( |
) |
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( |
) |
|
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— |
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— |
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( |
) |
|
|
— |
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— |
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( |
) |
Balance as of June 30, 2026 |
|
|
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|
$ |
|
|
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$ |
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$ |
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$ |
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$ |
( |
) |
|
$ |
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|||||||
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||||||||
Balance as of March 31, 2025 |
|
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|
$ |
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$ |
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$ |
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$ |
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$ |
|
|
$ |
|
||||||||
Exercise of vested common stock |
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— |
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— |
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— |
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— |
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||||
Other financing activities |
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— |
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— |
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— |
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— |
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( |
) |
|
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— |
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|
— |
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( |
) |
Vesting of RSUs |
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— |
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— |
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( |
) |
|
|
— |
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— |
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— |
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||
Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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— |
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||
Net income |
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— |
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— |
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— |
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— |
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— |
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— |
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||
Other comprehensive income |
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||||||||
Conversion of Preferred Stock to Common Stock as part of IPO |
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|
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( |
) |
|
|
( |
) |
|
|
— |
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— |
|
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— |
|
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— |
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||
Initial Public Offering |
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— |
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— |
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— |
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— |
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||||
Balance as of June 30, 2025 |
|
|
|
|
$ |
|
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|
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|
$ |
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|
$ |
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|
$ |
|
|
$ |
|
|
$ |
|
||||||||
(a)
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
4
|
|
Common Stock (a) |
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Preferred Stock (a) |
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Additional |
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Retained |
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Accumulated |
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Total |
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||||||||||||||
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Shares |
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Amount |
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Shares |
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Amount |
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Capital (a) |
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Earnings |
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Income |
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Equity |
|
||||||||
Balance as of December 31, 2025 |
|
|
|
|
$ |
|
|
|
— |
|
|
$ |
- |
|
|
$ |
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|
$ |
|
|
$ |
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|
$ |
|
||||||
Exercise of vested common stock options |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Vesting of RSUs |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Shares withheld for taxes (net share settlement) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
( |
) |
|
Repurchase and retirement of common stock |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Balance as of June 30, 2026 |
|
|
|
|
$ |
|
|
|
— |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance as of December 31, 2024 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Exercise of vested common stock |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Other financing activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Vesting of RSUs |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Conversion of Preferred Stock to Common Stock as part of IPO |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Initial Public Offering |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Balance as of June 30, 2025 |
|
|
|
|
$ |
|
|
|
— |
|
|
$ |
- |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(a)
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
5
Slide Insurance Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
|
|
Six Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Provision for depreciation and amortization |
|
|
|
|
|
|
||
Deferred income tax expense |
|
|
( |
) |
|
|
( |
) |
Stock-based compensation |
|
|
|
|
|
|
||
Amortization of deferred loan costs |
|
|
|
|
|
|
||
Gain on sale of investments |
|
|
( |
) |
|
|
( |
) |
Net amortization of premiums on investments in fixed-maturity securities |
|
|
( |
) |
|
|
( |
) |
Change in value of interest rate swap |
|
|
( |
) |
|
|
( |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
||
Accrued interest income |
|
|
( |
) |
|
|
( |
) |
Premiums receivable |
|
|
|
|
|
( |
) |
|
Reinsurance recoverable on paid losses |
|
|
( |
) |
|
|
( |
) |
Reinsurance recoverable on unpaid losses |
|
|
|
|
|
|
||
Prepaid reinsurance premiums |
|
|
( |
) |
|
|
( |
) |
Prepaid expenses |
|
|
( |
) |
|
|
( |
) |
Deferred policy acquisition costs |
|
|
( |
) |
|
|
( |
) |
Other assets |
|
|
( |
) |
|
|
|
|
Loss and loss adjustment expense reserves |
|
|
|
|
|
( |
) |
|
Unearned premiums |
|
|
( |
) |
|
|
|
|
Advanced premiums |
|
|
|
|
|
|
||
Income taxes payable |
|
|
|
|
|
|
||
Premium taxes payable |
|
|
|
|
|
( |
) |
|
Commissions payable |
|
|
|
|
|
|
||
Reinsurance premiums payable |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
|
|
|
|
|
||
Net lease liability, net |
|
|
|
|
|
|
||
Other liabilities |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
|
|
$ |
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of fixed-maturity securities available-for-sale |
|
|
( |
) |
|
|
( |
) |
Proceeds from maturities and redemptions of fixed-maturity securities available |
|
|
|
|
|
|
||
Proceeds from redemption of other investments |
|
|
|
|
|
|
||
Purchase of equity method investment |
|
|
( |
) |
|
|
|
|
Purchase of property and equipment |
|
|
( |
) |
|
|
( |
) |
Net cash (used in) provided by investing activities |
|
$ |
( |
) |
|
$ |
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from exercise of stock options |
|
|
|
|
|
|
||
Other financing costs |
|
|
|
|
|
( |
) |
|
Payment of debt issuance costs |
|
|
( |
) |
|
|
( |
) |
Repayment of long-term debt |
|
|
( |
) |
|
|
( |
) |
Proceeds from issuance of initial public offering |
|
|
|
|
|
|
||
Repurchase and retirement of common stock |
|
|
( |
) |
|
|
|
|
Shares withheld for taxes (net share settlement) |
|
|
( |
) |
|
|
|
|
Net cash (used in) provided by financing activities |
|
$ |
( |
) |
|
$ |
|
|
Net increase in cash, cash equivalents and restricted cash |
|
|
|
|
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period |
|
|
|
|
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period |
|
$ |
|
|
$ |
|
||
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
||
Cash paid during the year for: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
|
|
$ |
|
||
Income taxes paid |
|
$ |
|
|
$ |
|
||
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements
6
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Basis of Presentation
The accompanying unaudited consolidated financial statements for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. As of June 30, 2026, there were no changes in the nature of our significant accounting policies or the application of those policies from those reported in our annual report for the year ended December 31, 2025. These unaudited consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2025.
In preparing these interim financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements.
Nature of Business
Slide Insurance Holdings, Inc. (“SIH” or the “Company”) is a Delaware holding company incorporated on March 2, 2021. The Company was organized for the purpose of holding investments in operating subsidiaries engaged in property and casualty insurance activities. Subsidiaries include:
Slide Insurance Company (“SIC”) – a wholly owned property casualty insurance company currently writing homeowners insurance policies in Florida and South Carolina.
Slide MGA, LLC (“SMGA”) – a wholly owned managing general agent that performs policy processing and claims administration for SIC.
Stat Claims Company (“STAT”) – a wholly owned claims administrator.
Trusted Mitigation Contractors (“TMC”) – a wholly owned broker of contractors and loss mitigation service providers.
Slide Reinsurance Holdings, LLC (“Slide Re”) – a wholly owned reinsurance company and owner of the segregated cell (White Rock Insurance, Ltd., account T104).
Slide Technologies, LLC (“Slide Tech”) – a wholly owned subsidiary that will license software developed by the Company. This entity has not begun operations.
SJIG Target, LLC (“SJIG”) – a wholly owned non-operating entity that holds contractual renewal rights to a portion of the policies issued by SIC.
Clegg Insurance Advisors, LLC (“Homefront”) – a wholly owned insurance agency acquired by the Company during 2022.
SIH Technologies, LLP (“Slide India”) – a wholly owned non-operating entity that is in the process of being dissolved.
Slide Specialty Insurance Company (“Slide Specialty”) – a wholly owned property casualty insurance company licensed in New York, New Jersey, Rhode Island and South Carolina.
The Law Offices of Jonathan Hall, PLLC ("LOJH") - a wholly owned law firm.
SIC is domiciled in the state of Florida and is a wholly owned subsidiary of SIH. SIC was incorporated on February 17, 2022, and commenced operations on March 1, 2022, after receiving its Certificate of Authority from the Florida Department of Financial Services, Office of Insurance Regulation (the “FLOIR”). SIC provides homeowners insurance coverage to
7
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
policyholders in Florida and South Carolina, with Florida policyholders representing 96% of direct written premiums written for the six months ended June 30, 2026.
SIC is subject to the broad administrative powers of the FLOIR, which include, but are not limited to, limitation of dividends distributable, modification of management services and tax-sharing agreements, limitations on new and renewal business, and requirements for capital and surplus.
SSIC is domiciled in the state of Rhode Island and is a wholly owned subsidiary of SIH. SSIC currently provides homeowners insurance coverage to policyholders in South Carolina and California. SSIC began writing policies during the second quarter of 2026.
SSIC is subject to the broad administrative powers of the Rhode Island Department of Business Regulation, which include, but are not limited to, limitation of dividends distributable, modification of management services and tax-sharing agreements, and requirements for capital and surplus.
SIH filed its original certificate of incorporation with the Secretary of State of the State of Delaware on March 2, 2021, and was authorized to issue
The Company amended and restated its articles of incorporation on June 18, 2025, authorizing capital stock of
Stock Split
On June 18, 2025, the Company effected a 5.5-for-1 stock split of its common stock and preferred stock. All common stock and preferred stock and per share information included in the accompanying condensed consolidated financial statements and footnotes has been retroactively adjusted to reflect this unit split for all periods presented.
Completion of Initial Public Offering
On June 18, 2025, the Company closed its initial public offering ("IPO") of
On June 25, 2025, the underwriters fully exercised their option to purchase an additional
Stock Repurchase Program
On August 26, 2025, the Company's Board of Directors ("Board") authorized the 2025 Stock Repurchase Program ("repurchase program"), which allowed the Company to repurchase, from time to time, up to $
On March 23, 2026, the Board authorized a new stock repurchase plan ("the March 2026 repurchase program"), which allowed the Company to repurchase, from time to time, up to $
8
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors.
On April 28, 2026, the Board authorized a new stock repurchase plan (the “April 2026 repurchase program” and together with the “March 2026 repurchase program”, the “new stock repurchase programs”), which allows the Company to repurchase, from time to time, up to $
For the three and six months ended June 30, 2026, under the repurchase program and the new stock repurchase programs, the Company repurchased
Upon repurchase, the Company retired the shares of common stock. The repurchase plan has no time deadline and will continue until all authorized shares have been repurchased or it is otherwise modified or terminated by the Board.
Assumed Business
From time to time, the Company may participate in a “take-out program” through which the Company assumes insurance policies held by Citizens Property Insurance Corporation (“Citizens”), a Florida state-supported insurer. The take-out program is a legislatively mandated program designed to reduce the state’s risk exposure by encouraging private companies to assume policies from Citizens. For the three and six months ended June 30, 2026, the Company was approved by the FLOIR to assume a total of
For the three and six months ended June 30, 2025, the Company was approved by the FLOIR to assume a total of
Adoption of New Accounting Standard
In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update enhances income tax disclosures by requiring public entities to report income tax expense disaggregated by federal, state and foreign taxes, with further detail on specific jurisdictions over a quantitative threshold. In addition, public entities must also separately disclose reconciling items equal to or greater than five percent of pretax income from operations by the applicable federal statutory rate. ASU 2023-09 is effective for all public entities for fiscal years beginning after December 15, 2024. ASU 2023-09 was adopted by the Company effective December 31, 2025, and applied the disclosure requirements retroactively. See Note 7 Income Taxes in the accompanying notes to the condensed consolidated financial statements for further details.
Consolidation Policy
The Financial Statements include the accounts of the Company, its wholly owned subsidiaries and Variable Interest Entities (“VIEs”) in which the Company is determined to be the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued, and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the Company’s decision making ability and its ability to influence activities that significantly affect the economic performance of the VIE.
9
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.
Segment Information
The insurance segment derives revenues from direct and assumed premiums written and premiums are earned pro rata over the terms of the policies, or remaining term of the policy for policies assumed post their origination date. Revenue is earned from policies from homeowners, which are annual policies. The accounting policies of the insurance segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker (“CODM”) assesses performance for the insurance segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income and EBITDA. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM uses net income and EBITDA to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the insurance segment or into other parts of the entity, such as for acquisitions. The significant expenses reviewed by the CODM, which are used to assess performance of the company, are not disaggregated at a level lower than the captions disclosed within the Consolidated Statement of Operations. Net income is used to monitor budget versus actual results. The CODM also uses net income and EBITDA in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. The Company has
Accounting Pronouncements Not Yet Adopted
In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU 2024-03, “Income Statement (Topic 220): Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses,” which requires additional information about certain expenses in the financial statements. The amendments in this ASU will be effective for annual periods beginning after December 15, 2026. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures.
In September 2025, the FASB issued Accounting Standards Update ("ASU") 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The update modifies the accounting for internal-use software development costs by eliminating the stage-based model and establishing new capitalization criteria that apply once a project is authorized, funded, and it is probable the software will be completed and used as intended. The new guidance also introduces the concept of significant development uncertainty to help entities determine the appropriate timing of capitalization and integrates prior website development guidance into Accounting Standards Codification (“ASC”) 350-40. The update is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company is currently assessing the impact of adopting this guidance and does not expect the adoption to have a material effect on its financial position or results of operations.
In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements", which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11.
10
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to common stockholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to common stockholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add effect of dilutive securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact of convertible preferred stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact of vested and unvested common stock options |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact of RSU awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The Company does not have any anti-dilutive shares for the three and six months ended June 30, 2026 and 2025, respectively.
The amortized cost, gross unrealized gains and losses, and estimated fair value of investments in fixed-maturity securities available-for-sale at June 30, 2026 and December 31, 2025, are as follows:
|
|
June 30, 2026 |
|
|||||||||||||
|
|
Amortized |
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
||||
U.S. government and agencies |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
States, municipalities and political subdivisions |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
Corporate Bonds |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
Asset-Backed Securities |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Amortized |
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
||||
U.S. government and agencies |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
States, municipalities and political subdivisions |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
Corporate Bonds |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
Asset-Backed Securities |
|
|
|
|
|
|
|
|
( |
) |
|
$ |
|
|||
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
11
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The amortized cost and estimated fair value of investments in fixed-maturity securities at June 30, 2026 and December 31, 2025, by contractual maturity, are shown below.
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
|
|
Amortized |
|
|
Estimated |
|
|
Amortized |
|
|
Estimated |
|
||||
In one year or less |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
After one year through five years |
|
|
|
|
|
|
|
|
|
|
|
|
||||
After five years through 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
||||
After 10 years |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Actual maturities may differ from contractual maturities, as the issuers of the securities may have the right to call or prepay obligations with or without penalty.
The following tables show the estimated fair value and gross unrealized losses of the Company's investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026.
|
|
June 30, 2026 |
|
|||||||||||||||||||||
|
|
Less than 12 months |
|
|
More than 12 months |
|
|
Total |
|
|||||||||||||||
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
||||||
U.S. government and agencies |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
States, municipalities and political subdivisions |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Corporate Bonds |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Asset-Backed Securities |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
A total of
For the six months ended June 30, 2026, the Company did not recognize a credit loss expense related to fixed-maturity securities in the consolidated statements of income.
12
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The following tables show the estimated fair value and gross unrealized losses of the Company's investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025.
|
|
December 31, 2025 |
|
|||||||||||||||||||||
|
|
Less than 12 months |
|
|
More than 12 months |
|
|
Total |
|
|||||||||||||||
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
||||||
U.S. government and agencies |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
States, municipalities and political subdivisions |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Corporate Bonds |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Asset-Backed Securities |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
A total of
For the year ended December 31, 2025, the Company did
Proceeds from maturities, and redemptions of fixed-maturities securities were $
At June 30, 2026 and December 31, 2025, the Company had restricted cash and cash equivalents of $
Major categories of net investment income, excluding realized gains, are summarized as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale fixed-maturity securities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cash and cash equivalents |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Other investments |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Total investment income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Investment expenses |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Net investment income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
13
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Valuation Hierarchy
The FASB established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value. This hierarchy categorizes the inputs into three broad levels as follows:
The following table presents by level the financial assets carried at estimated fair value measured on a recurring basis as of June 30, 2026 and December 31, 2025. The table does not include assets which are measured at historical cost or any basis other than estimated fair value.
|
|
June 30, 2026 |
|
|||||||||||||||||
|
|
Carrying |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Estimated |
|
|||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Restricted cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restricted cash and cash equivalents - variable interest entity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
December 31, 2025 |
|
|||||||||||||||||
|
|
Carrying |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Estimated |
|
|||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Restricted cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restricted cash and cash equivalents - variable interest entity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the estimated fair value measurement; consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level within which any significant input falls.
14
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The Level 1 category includes cash and cash equivalents, restricted cash and cash equivalents, money market securities, certificates of deposit, U.S. treasury bonds, and corporate bonds.
The Level 2 category generally includes municipal bonds, agency bonds, and asset-backed securities. The estimated fair value of fixed-maturity investments included in the Level 2 category was based on the market values obtained from pricing services.
When observable inputs are not available, the market standard valuation methodologies for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value that are not observable in the market, or which cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference or market activity. Generally, these investments are classified as Level 3.
Other Financial Instruments
The Company uses various financial instruments in the normal course of its business. In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, excluded from the scope of financial instruments are certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.
In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:
Cash and Cash equivalents
The carrying amount is a reasonable estimate of fair value, due to the short-term maturity of these investments. These assets are considered to be Level 1 assets.
Restricted cash and cash equivalents
Restricted cash and cash equivalents represents cash held by state authorities and the carrying value approximates fair value. Restricted cash and cash equivalents also includes cash held in trust by the VIE where the Company is the primary beneficiary and the carrying value approximates fair value. These assets are considered to be Level 1 assets.
Fixed-Maturity Securities
Fixed-Maturity securities represent investments held at fair value in U.S. government and agencies, municipalities and political subdivisions, corporate bonds, states, and asset-backed securities. U.S. government and agencies bonds and corporate bonds are considered to be Level 1 assets due to readily available pricing. Municipalities and political subdivisions, corporate bonds, states, and asset-backed securities are considered to be Level 2 assets due to valuations based on observable inputs.
Long-Term Debt
The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values:
|
|
Maturity Date |
|
Valuation Methodology |
Promissory Notes, |
|
|
||
Commercial Loan, variable rate of interest |
|
|
15
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The following tables present fair value information for liabilities that are carried on the condensed consolidated balance sheets at amounts other than fair value as of June 30, 2026 and December 31, 2025:
|
|
Fair Value Measurements Using |
|
|||||||||||||||||
As of June 30, 2026 |
|
Carrying |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Estimated |
|
|||||
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-Term debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Commercial Loan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: unamortized issuance costs |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
Fair Value Measurements Using |
|
|||||||||||||||||
As of December 31, 2025 |
|
Carrying |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Estimated |
|
|||||
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-Term debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Commercial Loan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: unamortized issuance costs |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Deferred policy acquisition costs consist of amounts paid for commissions and premium taxes that relate directly to and vary directly with the production of new and renewal business.
The policy acquisition costs that the Company has capitalized and is amortizing over the effective periods of the related policies are as follows for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Beginning balance |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Policy acquisition costs deferred |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Amortization |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Ending balance |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The Company establishes reserves for the estimated total unpaid costs of Loss and loss adjustment expenses (“LAE”). Loss and LAE reserves reflect management’s best estimate of the total cost of (i) claims that have been incurred, but not yet paid in full, and (ii) claims that have been incurred but not yet reported to the Company (“IBNR”). Reserves established by management represent an estimate of the outcome of future events and, as such, cannot be considered an exact calculation of our liability. Rather, loss and LAE reserves represent management’s best estimate of the Company’s liability based on the application of actuarial techniques and other projection methodologies and taking into consideration other facts and circumstances known at the balance sheet date. The process of establishing loss and LAE reserves is complex and inherently imprecise, as it involves the estimation of the outcome of future uncertain events. The impact of both internal and external variables on ultimate losses and LAE costs is difficult to estimate. In determining loss and LAE reserves, the Company gives careful consideration to all available data and actuarial analyses.
16
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The Company primarily writes insurance in states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.
Activity related to the loss and LAE reserves are summarized as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Balances, beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Less reinsurance recoverables |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net balances, beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Incurred related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current year |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Prior years |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total incurred |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Paid related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current year |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Prior years |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total paid |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Net balances, end of period |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus reinsurance recoverables |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balances at June 30 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are adjusted. During the three and six months ended June 30, 2026, the Company did
The Company recorded income tax expense of $
In September of 2025, the Company purchased $
On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”), which, among other provisions, permanently restores 100% bonus depreciation and modifies the limitation on business-interest expense under §163(j) to be based on taxable income before interest, amortization, and depreciation. Based on preliminary analysis, management expects OBBBA to reduce U.S. cash income-tax payments. There is not expected to be any impact on the effective tax rate.
Certain premiums and losses are ceded to other insurance companies under various excess of loss reinsurance agreements. The ceded reinsurance agreements are intended to provide the Company with the ability to maintain its exposure to losses within its capital resources.
17
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
These reinsurance agreements do not relieve the Company from its primary obligation to policyholders, as it remains liable to its policyholders to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under reinsurance contracts. Therefore, the Company is subject to credit risk with respect to the obligations of its reinsurers, and any failure on the part of these reinsurers could have a material adverse effect on the Company’s business, financial condition and results of operations.
Effective June 1, 2026, the Company entered into a per risk excess of loss treaty for its personal residential property business retaining $
Effective June 1, 2026, the Company entered into a facultative excess of loss reinsurance contract for its personal residential property business which provides $
For the treaty period June 1, 2026 through May 31, 2027, the catastrophe excess of loss reinsurance agreement has a total aggregate reinsurance limit of $
Effective October 29, 2025, the Company entered into a per risk excess of loss treaty for its commercial residential property business retaining $
Effective November 1, 2025, the Company entered into a facultative excess of loss reinsurance contract for its commercial residential property business which provides $
To minimize the Company’s exposure to losses from catastrophes, primarily hurricanes, the Company has entered into a catastrophe excess of loss agreement, and is required to participate in the Florida Hurricane Catastrophe Fund (“FHCF”).
The catastrophe excess of loss agreement has a corridor through it, whereby the FHCF picks up
Effective June 1, 2025, the Company entered into a per risk excess of loss treaty for its personal residential property business retaining $
Effective June 1, 2025, the Company entered into a facultative excess of loss reinsurance contract for its personal residential property business which provides $
For the treaty period June 1, 2025 through May 31, 2026, the catastrophe excess of loss reinsurance agreement has a total aggregate reinsurance limit of $
The catastrophe excess of loss agreement has a corridor through it, whereby the FHCF picks up
18
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Effective October 29, 2024, the Company entered into a per risk excess of loss treaty for its commercial residential property business retaining $
Effective October 29, 2024, the Company entered into a facultative excess of loss reinsurance contract for its commercial residential property business which provides $
On June 25, 2024, the Company entered into an amended and restated credit agreement ("the Credit Agreement") with Regions Bank for (i) a $
On June 25, 2024, the Company entered into a $
On June 25, 2024, in connection with the issuance of the Credit Facility, the Company incurred loan costs and debt discount of $
|
|
Issue Date |
|
Interest |
|
|
Original |
|
|
Outstanding |
|
|
Outstanding |
|
||||
Promissory Notes |
|
|
|
% |
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Commercial Loan 4 |
|
|
Variable |
|
|
|
|
|
|
|
|
|
|
|||||
Less: Deferred loan costs and debt discount |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||
|
|
|
|
|
|
|
|
|
|
$ |
|
|
$ |
|
||||
19
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The following summarizes future maturities of long-term debt principal as June 30, 2026:
|
|
Promissory |
|
|
Commercial |
|
|
Total |
|
|||
2026 |
|
|
|
|
|
|
|
$ |
|
|||
2027 |
|
|
|
|
|
|
|
$ |
|
|||
2028 |
|
|
|
|
|
|
|
$ |
|
|||
2029 |
|
|
|
|
|
|
|
$ |
|
|||
|
|
$ |
|
|
$ |
|
|
$ |
|
|||
The Company had
The Company has entered into operating leases primarily for real estate. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to eight years, and often include one or more options to renew. These renewal terms can extend the lease term from two to ten years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing our right-of-use assets and lease obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Because the rate implicit in each operating lease is not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments.
The components of lease costs were as follows for the respective years:
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
Operating lease cost, include in General and Administrative expenses on the Consolidated Statements of Operations |
|
$ |
|
|
$ |
|
||
Right-of-use lease asset and Lease liability was as follows: |
|
|
|
|
|
|
||
Right-of-use asset |
|
|
|
|
|
|
||
Lease liability |
|
|
|
|
|
|
||
Supplemental cash flow information related to our operating leases as follows: |
|
|
|
|
|
|
||
Right-of-use asset |
|
|
|
|
|
|
||
Lease liability |
|
|
( |
) |
|
|
( |
) |
Weighted-average lease term and discount rate for our operating lease was as follows: |
|
|
|
|
|
|
||
Weighted-average remaining lease term |
|
|
|
|
|
|
||
Operating lease |
|
|
|
|
||||
Weighted-average discount rate |
|
|
|
|
|
|
||
Operating lease |
|
|
% |
|
|
% |
||
20
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Future lease payments for the operating lease were as follows as of June 30, 2026:
2026 (remaining) |
|
|
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
Thereafter |
|
|
|
|
Total lease payments |
|
|
|
|
Less: imputed interest |
|
|
|
|
Present value of lease liability |
|
$ |
|
The Company has no restrictions on the payment of dividends to its shareholders except those restrictions imposed by the General Corporation Law of the State of Delaware and those restrictions imposed by insurance statutes and regulations applicable to the Company’s insurance subsidiaries.
SIC can only pay dividends to SIH out of their available and accumulated surplus funds, which are derived from realized net operating profits on their respective businesses and net unrealized capital gains. Dividend payments without prior written approval of the FLOIR shall not exceed the greater of:
In lieu of the above computations,
Florida Statute Section 624.408 requires SIC to maintain a minimum level of surplus of not less than the greater of
SIC and Slide Specialty are required to comply with the NAIC risk-based capital (“RBC”) requirements. RBC is a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. At June 30, 2026 and December 31, 2025, SIC and Slide Specialty’s total adjusted capital exceeded the RBC company-action level.
U.S. GAAP differs in certain respects from the accounting practices prescribed or permitted by insurance regulatory authorities (statutory-basis). These entities’ statutory-basis financial statements are presented on the basis of accounting practices prescribed or permitted by the FLOIR. The FLOIR has adopted the National Association of Insurance Commissioners (“NAIC”) Accounting Practices and Procedures Manual as the basis of its statutory accounting practices. Statutory-basis surplus differs from shareholders’ equity reported in accordance with U.S. GAAP primarily because policy acquisition costs are expensed when incurred and because of different timing of recognizing the brokerage income for reinsurance recoverables. In addition, the recognition of deferred tax assets is based on different recoverability assumptions and material differences may also arise from the differing treatment of non-admitted assets and unrealized gains and losses from investments.
21
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
SIC is subject to guaranty fund and other assessments in both Florida and in South Carolina, states in which the SIC underwrites policies. Guaranty fund assessments should be accrued when (i) an assessment has been imposed or information available prior to issuance of the statutory-basis financial statements indicates that it is probable that an assessment will be imposed; (ii) the event obligating an entity to pay an imposed or probable assessment has occurred on or before the date of the consolidated financial statements; and (iii) the amount of the assessment can be reasonably estimated at the time of the event triggering the accrual.
SIC is subject to assessments by guaranty funds in the states in which it conducts business, a residual market pool, and a state catastrophe reinsurance pool. The activities of these funds and pools include collecting funds from solvent insurance companies to cover losses resulting from the insolvency or rehabilitation of other insurance companies, or deficits generated by Citizens, and the FHCF. SIC is allowed to recover these assessments through premiums collected from policyholders. As of June 30, 2026, and December 31, 2025, SIC had payables relating to these assessments totaling $
Prior to June 18, 2025, the Company was authorized to issue one class of common stock (par value of $
The Company amended and restated its articles of incorporation on June 18, 2025, authorizing capital stock of
Prior to June 18, 2025, the Company was authorized to issue one class of preferred stock (par value of $
In connection with the IPO, the company effectuated an approximately
On June 30, 2026 and 2025, the Company has two share-based compensation plans, the 2021 Equity Compensation Plan (the “Stock Plan”) and the 2025 Omnibus Incentive Plan (the “2025 Plan”), and one share-based compensation plan, the Stock Plan, respectively.
The compensation cost that has been charged against income for the plans was $
22
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The Stock Plan permits the awarding of common stock share options to its employees and strategic advisors for up to
As part of the IPO, the Company adopted the 2025 Plan, effective as of June 18, 2025. The 2025 Plan permits the awarding of common stock share options and restricted stock units for up to
A summary of option activity under the Stock Plan as of June 30, 2026 and June 30, 2025, respectively, and changes during the year then ended is presented below:
Options |
|
Shares (in |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding at March 31, 2026 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forfeited or expired |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Vested or expected to vest at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercisable at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Options |
|
Shares (in |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding at March 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forfeited or expired |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Vested or expected to vest at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercisable at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Options |
|
Shares (in |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding at January 1, 2026 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forfeited or expired |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Vested or expected to vest at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercisable at June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
23
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
Options |
|
Shares (in |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding at January 1, 2025 |
|
|
|
|
$ |
|
|
|
|
|
|
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forfeited or expired |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Outstanding at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Vested or expected to vest at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercisable at June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
A summary of the status of the Company’s nonvested shares as of June 30, 2026 and 2025, and changes during the three and six months ended June 30, 2026 and 2025, is presented below:
Nonvested Shares |
|
Shares (in |
|
|
Weighted- |
|
||
Nonvested at March 31, 2026 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2026 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Nonvested at March 31, 2025 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2025 |
|
|
|
|
|
|
||
Nonvested Shares |
|
Shares (in |
|
|
Weighted- |
|
||
Nonvested at January 1, 2026 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2026 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Nonvested at January 1, 2025 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2025 |
|
|
|
|
|
|
||
For the six months ended June 30, 2026 and 2025, there was $
Included in the tables above are
24
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
2025,
Restricted Stock Awards
From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grant include service conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the option pricing method of determining the fair value of the Company’s stock on the grant date.
Information with respect to the activity of unvested restricted stock awards during the three and six months ended June 30, 2026 and 2025 is as follows:
Nonvested Restricted Stock |
|
Shares (in |
|
|
Weighted- |
|
||
Nonvested at March 31, 2026 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2026 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Nonvested at March 31, 2025 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2025 |
|
|
|
|
|
|
||
Nonvested Restricted Stock |
|
Shares (in |
|
|
Weighted- |
|
||
Nonvested at January 1, 2026 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2026 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Nonvested at January 1, 2025 |
|
|
|
|
|
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
|
|
|
|
||
Forfeited or expired |
|
|
|
|
|
|
||
Nonvested at June 30, 2025 |
|
|
|
|
|
|
||
The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $
25
Slide Insurance Holdings, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)
The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to stock-based compensation for the six months ended June 30, 2026 and 2025:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Deferred tax benefits recognized |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Tax benefits realized for vested stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fair value of vested stock |
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Company entered into a reinsurance captive arrangement with White Rock Insurance (SAC) Ltd. acting in respect of “Separate Account T104—Slide,” a VIE in the normal course of business and consolidated the VIE since the Company is the primary beneficiary. See “Note 1 (Nature of Business and Significant Accounting Policies — Consolidation Policy)” for more information about the methodology and significant inputs used to consider whether to consolidate a VIE.
In 2025, SIC entered into reinsurance transactions whereby the VIE provided quota share, per risk and catastrophe reinsurance protection to the Insurance Entities for the period of June 1, 2025 through May 31, 2026.
In 2026, SIC entered into reinsurance transactions whereby the VIE provided quota share, per risk and catastrophe reinsurance protection to the Insurance Entities for the period of June 1, 2026 through May 31, 2027.
The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash and cash equivalents held in a reinsurance trust account, which can be used only to settle specific reinsurance obligations of the VIE as of the dates presented.
|
|
June 30, |
|
|
December 31, |
|
||
Restricted cash and cash equivalents |
|
$ |
|
|
$ |
|
||
The Company performed an evaluation of subsequent events through July 30, 2026, the date the consolidated financial statements were issued, and determined there were no recognized or unrecognized subsequent events, other than those listed below, that would require an adjustment or additional disclosure in the consolidated financial statements as of June 30, 2026.
On July 27, 2026, the Company amended its revolving credit facility to increase the revolving credit limit to $
Additionally, on July 27, 2026, the Board of Directors approved the initiation of a regular quarterly dividend of $
26
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations is intended to help investors understand our business, results of operations, liquidity and capital resources and should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q (the "Quarterly Report"). This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions, described under the section titled “Risk Factors” and elsewhere in this Quarterly Report. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those which are not within our control. See “Special Note Regarding Forward-Looking Statements.”
Overview
Launched in 2021, we are a technology-enabled, fast-growing, coastal specialty insurer. We focus on profitable underwriting of single family, condominium and commercial residential policies in the P&C industry in coastal states along the Atlantic seaboard through our insurance subsidiary, Slide Insurance Company (“SIC”). SIC is licensed in Florida and South Carolina. In February 2025, we acquired an additional insurance subsidiary, Slide Specialty Insurance Company ("Slide Specialty"), which is licensed in New York, New Jersey, Rhode Island and South Carolina. We utilize our differentiated technology and data-driven approach to focus on market opportunities that are underserved by other insurance companies. We acquire policies both from inorganic block acquisitions and subsequent renewals, as well as new business sales through a combination of independent agents and our direct-to-consumer (“DTC”) channel, through which we sell our insurance products directly to end consumers, without the use of retailers, brokers, agents or other intermediaries. We do not depend on any one key product or product line within the coastal specialty homeowners and commercial residential insurance market. We control all aspects of our value chain, including technology, underwriting, actuarial, distribution, claims and risk management which allows us to maximize profitability while maintaining disciplined underwriting standards.
Our goal is to deliver long-term value for stockholders by focusing on underserved, coastal specialty markets where market capacity is limited and demand for insurance products is high. Coastal specialty market demand for insurance products has increased over the last few years as the larger, national insurance carriers have reduced their underwriting capacity in such markets, creating a unique market opportunity for us to capitalize on the imbalance of supply and demand.
Key Components of Our Results of Operations
Revenue
Gross premiums written. Gross premiums written represent, with respect to a fiscal period, the sum of assumed premiums written from Citizens policy assumptions (net of opt-outs) plus direct premiums written (premiums from subsequent renewals of such Citizens policies and new and renewal policies written through independent agents and our DTC channel, net of any midterm cancellations), in each case prior to amounts ceded to reinsurers. Gross premiums written in any given fiscal period are affected by:
In 2026 we assumed 37,668 policies, representing approximately $83 million in assumed unearned premiums from Citizens. These policies carry no upfront acquisition costs and are captured in our current treaty year reinsurance program.
27
We believe recent legislative and regulatory changes, improvements in the data that is made available on Citizens policies and rate increases implemented by Citizens making pricing more comparable to what we charge for policies underwritten in other channels make the opportunity to assume policies from Citizens attractive.
Take-out opportunities, however, are subject to a number of market, timing and execution risks, and future take-out opportunities may or may not materialize.
Gross premiums earned. Gross premiums earned represent the portion of our gross premiums written earned during a fiscal period from assumed (including those assumed from Citizens), direct policies written and subsequent renewals of such policies. Gross premiums written associated with assumed policies from Citizens are earned ratably over the remaining term of the policy and gross premiums written associated with voluntary and renewal policies are earned ratably over the term of the policy. All such new and renewal policies currently have a term of 12 months from date of issuance.
Ceded premiums earned. Ceded premiums earned represent the earned portion of our gross premiums written ceded to reinsurers and other costs of our reinsurance during a fiscal period. We recognize the cost of our reinsurance program ratably over the term of the arrangement, which is typically 12 months. Our ceded premiums earned represent costs of reinsurance to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts. The rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned.
Net premiums earned. Net premiums earned reflect gross premiums earned less ceded premiums earned during the fiscal period.
Net investment income. Net investment income represents interest earned from cash, cash equivalents, restricted cash, restricted cash and cash equivalents fixed-maturity securities, money market accounts and other investments and the realized gains or losses from the sale of investments. Factors affecting net investment income include the size of our investment portfolio and the yield generated by the underlying investments in our investment portfolio.
Policy fees. Florida law allows insurers to charge policyholders a $25 policy fee on each policy written. Policy fees represent such upfront policy fees. These fees are not subject to refund, and accordingly we recognize policy fees as income immediately when collected in accordance with ASC 606, which coincides with the completion of our service obligation when the policy is issued.
Other income. Other income represents all pay-plan fees and commission income earned by our retail agency subsidiary that sells on behalf of non-affiliated carriers. We charge pay-plan fees to policyholders that pay their premium in more than one installment and record the fees as income when collected.
Expenses
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net reflect losses paid, expenses paid to resolve claims, such as fees paid to adjusters, attorneys and investigators, and changes in our reserves for unpaid losses and loss adjustment expenses incurred, net during the fiscal period, in each case net of losses ceded to reinsurers. Our reserves for unpaid losses and loss adjustment expenses incurred, net represent the estimated ultimate cost of resolving all reported claims plus all losses we incurred related to insured events that we assume have occurred as of the reporting date, but that policyholders have not yet reported to us (which are commonly referred to as “incurred but not reported,” or “IBNR”). We estimate our reserves for unpaid losses using individual case-based estimates for reported claims and actuarial estimates for IBNR losses. We continually review and adjust our estimated losses as necessary based on industry development trends, our evolving claims experience and new information obtained. If our unpaid losses and loss adjustment expenses incurred, net are considered deficient or redundant, we increase or decrease the liability in the period in which we identify the difference and reflect the change in our current period results of operations.
In general, our losses and loss adjustment expense reserves (“LAE”) are affected by:
28
Losses and LAE are based on actual paid losses and expenses, as well as an actuarial analysis of the estimated losses, including losses incurred during the period and changes in estimates from prior periods. Losses and LAE may be paid out over a period of years.
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses consist of the following items: (i) commissions paid to outside agents at the time of policy issuance, (ii) premium taxes and (iii) inspection fees. We recognize policy acquisition and other underwriting expenses ratably over the term of the underlying policy. Until renewed, policies assumed from Citizens have no associated policy acquisition and other underwriting expenses.
General and administrative expenses. General and administrative expenses include compensation and related benefits, professional fees, office lease and related expenses, information system expenses, corporate insurance, and other general and administrative costs.
Interest expense. Interest expense consists of interest paid on our commercial loans and Credit Facility (as defined below), amortization of debt issuance costs, net settlements of interest rate swaps, and changes in market value of interest rate swaps.
Depreciation expense. Depreciation expense includes depreciation of property and equipment, including software developed for internal use.
Amortization expense. Amortization expense includes amortization of renewal rights and other intangible assets.
Other operating expense. Other operating expense includes other miscellaneous expenses.
Income tax expense. Income tax expense generally consists of income taxes payable by our subsidiaries that are taxed as corporations. We were incorporated as a corporation in the state of Delaware on March 2, 2021. As a corporation, we are subject to typical corporate U.S. federal and state income tax rates which we expect to result in a statutory tax rate of approximately 25% under current tax law.
Key Metrics & Ratios
We discuss certain key financial and operating metrics, described below, which provide useful information about our business and the operational factors underlying our financial performance.
Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses incurred, net to net premiums earned.
Policy acquisition expense ratio, expressed as a percentage, is the ratio of policy acquisition expenses and other underwriting expenses to net premiums earned.
Expense ratio, expressed as a percentage, is the ratio of policy acquisition and other underwriting expenses, general and administrative expenses, and other operating expense to net premiums earned.
Combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.
Debt to capitalization ratio is the ratio, expressed as a percentage, of total outstanding debt to total capitalization.
Return on equity represents net income as a percentage of average beginning and ending shareholders’ equity during the period.
Return on tangible equity is a non-GAAP financial measure. We define tangible shareholders’ equity as shareholders’ equity less goodwill and other intangible assets. We define return on tangible equity as net income as a percentage of average beginning and ending tangible shareholders’ equity during the period. We regularly evaluate acquisition opportunities and have historically made acquisitions that affect shareholders’ equity. We use return on tangible equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial
29
information useful insight into our results of operations and our underlying business performance. “See “Results of Operations - Non-GAAP Financial Measures” for a reconciliation of return on tangible equity to return on equity, the most directly comparable GAAP measure.
Results of Operations
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
|
Change |
|
|
% Change |
|
||||
Gross premiums written |
|
$ |
508,014 |
|
|
$ |
435,384 |
|
|
$ |
72,630 |
|
|
|
16.7 |
% |
Change in unearned premiums |
|
|
(21,917 |
) |
|
|
(96,726 |
) |
|
|
74,809 |
|
|
|
(77.3 |
)% |
Gross premiums earned |
|
|
486,097 |
|
|
|
338,658 |
|
|
|
147,439 |
|
|
|
43.5 |
% |
Ceded premiums earned |
|
|
(125,462 |
) |
|
|
(94,799 |
) |
|
|
(30,663 |
) |
|
|
32.3 |
% |
Net premiums earned |
|
|
360,635 |
|
|
|
243,859 |
|
|
|
116,776 |
|
|
|
47.9 |
% |
Net investment income |
|
|
22,152 |
|
|
|
15,040 |
|
|
|
7,112 |
|
|
|
47.3 |
% |
Policy fees |
|
|
3,382 |
|
|
|
2,455 |
|
|
|
927 |
|
|
|
37.8 |
% |
Other income |
|
|
648 |
|
|
|
253 |
|
|
|
395 |
|
|
|
156.1 |
% |
Total revenue |
|
$ |
386,817 |
|
|
$ |
261,607 |
|
|
$ |
125,210 |
|
|
|
47.9 |
% |
Losses and loss adjustment expenses incurred, net |
|
|
108,740 |
|
|
|
91,369 |
|
|
|
17,371 |
|
|
|
19.0 |
% |
Policy acquisition and other underwriting expenses |
|
|
42,280 |
|
|
|
32,096 |
|
|
|
10,184 |
|
|
|
31.7 |
% |
General and administrative expenses |
|
|
55,028 |
|
|
|
37,935 |
|
|
|
17,093 |
|
|
|
45.1 |
% |
Interest expense |
|
|
924 |
|
|
|
895 |
|
|
|
29 |
|
|
|
3.2 |
% |
Depreciation expense |
|
|
1,354 |
|
|
|
1,117 |
|
|
|
237 |
|
|
|
21.2 |
% |
Amortization expense |
|
|
30 |
|
|
|
1,898 |
|
|
|
(1,868 |
) |
|
|
(98.4 |
)% |
Total expense |
|
$ |
208,356 |
|
|
$ |
165,310 |
|
|
$ |
43,046 |
|
|
|
26.0 |
% |
Net income before income tax expense |
|
$ |
178,461 |
|
|
$ |
96,297 |
|
|
$ |
82,164 |
|
|
|
85.3 |
% |
Income tax expense |
|
|
43,611 |
|
|
|
26,225 |
|
|
|
17,386 |
|
|
|
66.3 |
% |
Net income |
|
$ |
134,850 |
|
|
$ |
70,072 |
|
|
$ |
64,778 |
|
|
|
92.4 |
% |
Loss ratio |
|
|
30.2 |
% |
|
|
37.4 |
% |
|
|
(7.2 |
)% |
|
|
|
|
Expense ratio |
|
|
27.4 |
% |
|
|
30.0 |
% |
|
|
(2.6 |
)% |
|
|
|
|
Combined ratio |
|
|
57.6 |
% |
|
|
67.4 |
% |
|
|
(9.8 |
)% |
|
|
|
|
Policy acquisition expense ratio |
|
|
11.7 |
% |
|
|
13.2 |
% |
|
|
(1.5 |
)% |
|
|
|
|
Debt to capitalization ratio |
|
|
2.4 |
% |
|
|
4.0 |
% |
|
|
(1.6 |
)% |
|
|
|
|
Return on equity |
|
|
11.7 |
% |
|
|
10.0 |
% |
|
|
1.7 |
% |
|
|
|
|
Return on tangible equity(1) |
|
|
11.7 |
% |
|
|
10.1 |
% |
|
|
1.6 |
% |
|
|
|
|
Revenue
Gross premiums written. Gross premiums written increased to $508.0 million for the three months ended June 30, 2026 from $435.4 million for the three months ended June 30, 2025. The increase in net premiums written was driven by growth of voluntary new business, and renewals of previously acquired Citizens policies.
Our policies in force as of June 30, 2026 were 509,075, compared to 348,439 as of June 30, 2025, a 46.1% increase year-over-year. Our average premium per residential policy decreased from $3,614 at June 30, 2026 compared to $3,964 at June 30, 2025 as a result of a decrease in average premium of Citizens policies assumed. Additionally, our average premium per commercial residential policy was $99,515 at June 30, 2026 and $110,575 at June 30, 2025.
30
Gross premiums earned. Gross premiums earned increased to $486.1 million for the three months ended June 30, 2026 from $338.7 million for the three months ended June 30, 2025. The increase was driven primarily by the earnings resulting from strong premium production across the portfolio including prior years Citizen acquisitions.
Ceded premiums earned. Ceded premiums for the three months ended June 30, 2026 and 2025 were approximately $125.5 million and $94.8 million, respectively, representing 25.8% and 28.0%, respectively, of gross premiums earned. The $30.7 million increase was primarily attributable to increased catastrophe reinsurance costs in line with growth of the portfolio.
Net premiums earned. Net premiums earned increased to $360.6 million for the three months ended June 30, 2026 from $243.9 million for the three months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies, offset by higher reinsurance costs directly related to the growth of the portfolio.
Net investment income. Net investment income, inclusive of realized investment gains and losses, increased to $22.2 million for the three months ended June 30, 2026 from $15.0 million for the three months ended June 30, 2025, which was attributable to an increase in investable assets. Our average investable assets increased to $2,535 million for the three months ended June 30, 2026 from $1,613 million for the three months ended June 30, 2025.
Policy fees. Policy fees increased to $3.3 million for the three months ended June 30, 2026 from $2.5 million for the three months ended June 30, 2025. The increase in policy fees was primarily attributable to increased renewals of existing policies.
Other income. Other income increased to $0.7 million for the three months ended June 30, 2026 from $0.3 million for the three months ended June 30, 2025. The increase in other income was primarily attributable to an increase in service fee revenue.
Total revenue. Total revenue increased to $386.8 million for the three months ended June 30, 2026 from $261.6 million for the three months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies.
Expenses
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net increased to $108.7 million for the three months ended June 30, 2026 from $91.4 million for the three months ended June 30, 2025. There were no incurred losses from named storms during the three months ended June 30, 2026 and 2025. The increase in net losses and loss adjustment expenses incurred was primarily driven by the growth of the portfolio partially offset by lower overall loss experience for the period ending June 30, 2026 versus June 30, 2025.
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses for the three months ended June 30, 2026 and 2025 were approximately $42.3 million and $32.1 million, respectively, representing 11.7% and 13.2% of net premiums earned, respectively. The increase was primarily attributable to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
General and administrative expenses. General and administrative expenses for the three months ended June 30, 2026 and 2025 were approximately $55.0 million and $37.9 million, respectively, representing 15.3% and 15.6%, respectively, of net premiums earned. The increase was due primarily to the growth in staffing and technology to support the Company’s strategic growth initiative. Personnel count increased to 627 at June 30, 2026 from 422 at June 30, 2025.
Interest expense. Interest expense increased slightly for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was due primarily to the increase in debt financing costs.
Depreciation expense. Depreciation expense for the three months ended June 30, 2026 and 2025 was $1.4 million and $1.1 million, respectively. The increase was due primarily to depreciation of capitalized costs of internal-use software projects that were put into production in 2025.
Amortization expense. Amortization expense for the three months ended June 30, 2026 and 2025 was $0.0 million and $1.9 million, respectively, representing 0.0% and 0.8%, respectively, of net premiums earned. The decrease was due primarily to intangible assets being fully amortized.
31
Income tax expense. Income tax expense was $43.6 million and $26.2 million for the three months ended June 30, 2026 and 2025 respectively. Our effective tax rate for each of the three months ended June 30, 2026 and 2025 was 24.4% and 27.2%, respectively. The decrease in our effective tax rate was primarily due to the favorable treatment of stock options.
Ratios
Loss ratio. Our loss ratio decreased to 30.2% for the three months ended June 30, 2026 from 37.4% for the three months ended June 30, 2025, primarily due to a decrease in overall loss experience.
Expense ratio. Our expense ratio decreased to 27.4% for the three months ended June 30, 2026 from 30.0% for the three months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Combined ratio. Our combined ratio decreased to 57.6% for the three months ended June 30, 2026 from 67.4% for the three months ended June 30, 2025, primarily due to a decrease in overall loss experience, and scaling impact in net earned premium growth with more moderate operating expense growth.
Policy acquisition expense ratio. Our policy acquisition expense ratio decreased to 11.7% for the three months ended June 30, 2026 from 13.2% for the three months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate policy acquisition expense growth.
Debt to capitalization ratio. Our debt to capitalization ratio decreased to 2.4% for the three months ended June 30, 2026 from 4.0% for the three months ended June 30, 2025, primarily as a result of growth in retained earnings from net income.
Return on equity. Our return on equity increased to 11.7% for the three months ended June 30, 2026 from 10.0% for the three months ended June 30, 2025, primarily due to the IPO proceeds.
32
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
|
|
Six Months Ended June 30, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
|
Change |
|
|
% Change |
|
||||
Gross premiums written |
|
$ |
922,806 |
|
|
$ |
713,633 |
|
|
$ |
209,173 |
|
|
|
29.3 |
% |
Change in unearned premiums |
|
|
44,277 |
|
|
|
(24,084 |
) |
|
|
68,361 |
|
|
|
(283.8 |
)% |
Gross premiums earned |
|
|
967,083 |
|
|
|
689,549 |
|
|
|
277,534 |
|
|
|
40.2 |
% |
Ceded premiums earned |
|
|
(240,565 |
) |
|
|
(179,649 |
) |
|
|
(60,916 |
) |
|
|
33.9 |
% |
Net premiums earned |
|
|
726,518 |
|
|
|
509,900 |
|
|
|
216,618 |
|
|
|
42.5 |
% |
Net investment income |
|
|
42,270 |
|
|
|
28,848 |
|
|
|
13,422 |
|
|
|
46.5 |
% |
Policy fees |
|
|
5,972 |
|
|
|
3,988 |
|
|
|
1,984 |
|
|
|
49.7 |
% |
Other income |
|
|
1,340 |
|
|
|
464 |
|
|
|
876 |
|
|
|
188.8 |
% |
Total revenue |
|
$ |
776,100 |
|
|
$ |
543,200 |
|
|
$ |
232,900 |
|
|
|
42.9 |
% |
Losses and loss adjustment expenses incurred, net |
|
|
219,813 |
|
|
|
175,130 |
|
|
|
44,683 |
|
|
|
25.5 |
% |
Policy acquisition and other underwriting expenses |
|
|
86,405 |
|
|
|
60,668 |
|
|
|
25,737 |
|
|
|
42.4 |
% |
General and administrative expenses |
|
|
101,201 |
|
|
|
79,314 |
|
|
|
21,887 |
|
|
|
27.6 |
% |
Interest expense |
|
|
1,776 |
|
|
|
1,830 |
|
|
|
(54 |
) |
|
|
(3.0 |
)% |
Depreciation expense |
|
|
2,669 |
|
|
|
2,262 |
|
|
|
407 |
|
|
|
18.0 |
% |
Amortization expense |
|
|
99 |
|
|
|
3,792 |
|
|
|
(3,693 |
) |
|
|
(97.4 |
)% |
Total expense |
|
$ |
411,963 |
|
|
$ |
322,996 |
|
|
$ |
88,967 |
|
|
|
27.5 |
% |
Net income before income tax expense |
|
$ |
364,137 |
|
|
$ |
220,204 |
|
|
$ |
143,933 |
|
|
|
65.4 |
% |
Income tax expense |
|
|
89,760 |
|
|
|
57,629 |
|
|
|
32,131 |
|
|
|
55.8 |
% |
Net income |
|
$ |
274,377 |
|
|
$ |
162,575 |
|
|
$ |
111,802 |
|
|
|
68.8 |
% |
Loss ratio |
|
|
30.3 |
% |
|
|
34.3 |
% |
|
|
(4.0 |
)% |
|
|
|
|
Expense ratio |
|
|
26.2 |
% |
|
|
28.6 |
% |
|
|
(2.4 |
)% |
|
|
|
|
Combined ratio |
|
|
56.5 |
% |
|
|
62.9 |
% |
|
|
(6.4 |
)% |
|
|
|
|
Policy acquisition expense ratio |
|
|
11.9 |
% |
|
|
11.9 |
% |
|
|
(0.0 |
)% |
|
|
|
|
Debt to capitalization ratio |
|
|
2.4 |
% |
|
|
4.0 |
% |
|
|
(1.6 |
)% |
|
|
|
|
Return on equity |
|
|
23.8 |
% |
|
|
25.0 |
% |
|
|
(1.2 |
)% |
|
|
|
|
Return on tangible equity(1) |
|
|
23.8 |
% |
|
|
25.3 |
% |
|
|
(1.5 |
)% |
|
|
|
|
Revenue
Gross premiums written. Gross premiums written increased to $922.8 million for the six months ended June 30, 2026 from $713.6 million for the six months ended June 30, 2025. The increase in net premiums written was driven by growth of voluntary new business, and renewals of previously acquired Citizens policies.
Our policies in force as of June 30, 2026 were 509,075, compared to 348,439 as of June 30, 2025, a 46.1% increase year-over-year. Our average premium per residential policy decreased from $3,614 at June 30, 2026 compared to $3,964 at June 30, 2025 as a result of a decrease in average premium of Citizens policies assumed. Additionally, our average premium per commercial residential policy was $99,515 at June 30, 2026 and $110,575 at June 30, 2025.
Gross premiums earned. Gross premiums earned increased to $967.1 million for the six months ended June 30, 2026 from $689.5 million for the six months ended June 30, 2025. The increase was driven primarily by the earnings resulting from strong premium production across the portfolio including prior years Citizen acquisitions.
Ceded premiums earned. Ceded premiums for the six months ended June 30, 2026 and 2025 were approximately $240.6 million and $179.6 million, respectively, representing 24.9% and 26.1%, respectively, of gross premiums earned. The $60.9 million increase was primarily attributable to increased catastrophe reinsurance costs in line with growth of the portfolio.
33
Net premiums earned. Net premiums earned increased to $726.5 million for the six months ended June 30, 2026 from $509.9 million for the six months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies, offset by higher reinsurance costs directly related to the growth of the portfolio.
Net investment income. Net investment income, inclusive of realized investment gains and losses, increased to $42.3 million for the six months ended June 30, 2026 from $28.8 million for the six months ended June 30, 2025, which was attributable to an increase in investable assets. Our average investable assets increased to $2,395 million for the six months ended June 30, 2026 from $1,564 million for the six months ended June 30, 2025.
Policy fees. Policy fees increased to $6.0 million for the six months ended June 30, 2026 from $4.0 million for the six months ended June 30, 2025. The increase in policy fees was primarily attributable to increased renewals of existing policies.
Other income. Other income increased to $1.3 million for the six months ended June 30, 2026 from $0.5 million for the six months ended June 30, 2025. The increase in other income was primarily attributable to an increase in service fee revenue.
Total revenue. Total revenue increased to $776.1 million for the six months ended June 30, 2026 from $543.2 million for the six months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies
Expenses
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net increased to $219.8 million for the six months ended June 30, 2026 from $175.1 million for the six months ended June 30, 2025. There were no incurred losses from named storms during the six months ended June 30, 2026 and 2025. The increase in net losses and loss adjustment expenses incurred was primarily driven by the increase in the growth of the portfolio partially offset by lower overall loss experience for the period ending June 30, 2026 versus June 30, 2025.
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses for the six months ended June 30, 2026 and 2025 were approximately $86.4 million and $60.7 million, respectively, representing 11.9% and 11.9% of net premiums earned, respectively. The increase was primarily attributable to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
General and administrative expenses. General and administrative expenses for the six months ended June 30, 2026 and 2025 were approximately $101.2 million and $79.3 million, respectively, representing 13.9% and 15.6%, respectively, of net premiums earned. The increase was due primarily to the growth in staffing and technology to support the Company’s strategic growth initiatives. Personnel count increased to 627 at June 30, 2026 from 422 at June 30, 2025.
Interest expense. Interest expense decreased slightly for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was due primarily to the decrease in outstanding debt, offset by higher debt issuance costs.
Depreciation expense. Depreciation expense for the six months ended June 30, 2026 and 2025 was $2.7 million and $2.3 million, respectively. The increase was due primarily to depreciation of capitalized costs of internal-use software projects that were put into production in 2025.
Amortization expense. Amortization expense for the six months ended June 30, 2026 and 2025 was $0.1 million and $3.7 million, respectively, representing 0.0% and 0.7%, respectively, of net premiums earned. The decrease was due primarily to intangible assets being fully amortized.
Income tax expense. Income tax expense was $89.8 million and $57.6 million for the six months ended June 30, 2026 and 2025, respectively. Our effective tax rate for each of the six months ended June 30, 2026 and 2025 was 24.9% and 26.2%, respectively. The decrease in our effective tax rate was primarily due to the favorable treatment of stock options.
Ratios
Loss ratio. Our loss ratio decreased to 30.3% for the six months ended June 30, 2026 from 34.3% for the six months ended June 30, 2025, primarily due to a decrease in overall loss experience.
34
Expense ratio. Our expense ratio decreased to 26.2% for the six months ended June 30, 2026 from 28.6% for the six months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Combined ratio. Our combined ratio decreased to 56.5% for the six months ended June 30, 2026 from 62.9% for the six months ended June 30, 2025, primarily due to a decrease in overall loss experience, scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Policy acquisition expense ratio. Our policy acquisition expense ratio remained consistent at 11.9% for the six months ended June 30, 2026 and 2025.
Debt to capitalization ratio. Our debt to capitalization ratio decreased to 2.4% for the six months ended June 30, 2026 from 4.0% for the six months ended June 30, 2025, primarily as a result of growth in retained earnings from net income.
Return on equity. Our return on equity decreased to 23.8% for the six months ended June 30, 2026 from 25.0% for the six months ended June 30, 2025, as a result of growth in equity due to retained earnings from net income, offset by the IPO proceeds.
Non-GAAP Financial Measures
We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements are not required by, or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) under SEC rules and regulations. We refer to these measures as “non-GAAP financial measures.” For example, in this Quarterly Report, we present tangible shareholders’ equity and return on tangible equity, which are a non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. We believe that non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of our non-GAAP financial measures to the most comparable GAAP figures, for the periods presented follows:
Return on tangible equity
The following table sets forth a reconciliation of return on tangible equity to return on equity, the most directly comparable GAAP measure:
|
|
Three Months Ended June 30, |
|
|
Year Ended December 31, |
|
||||||
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||
Numerator: Net Income |
|
$ |
134,850 |
|
|
$ |
70,072 |
|
|
$ |
443,958 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Average shareholders' equity |
|
|
1,154,215 |
|
|
|
700,257 |
|
|
|
773,200 |
|
Less: Average goodwill and other intangible assets |
|
|
(2,618 |
) |
|
|
(7,452 |
) |
|
|
(6,499 |
) |
Average tangible shareholders' equity |
|
|
1,151,597 |
|
|
|
692,805 |
|
|
|
766,701 |
|
Return on tangible equity |
|
|
11.7 |
% |
|
|
10.1 |
% |
|
|
57.9 |
% |
Return on equity |
|
|
11.7 |
% |
|
|
10.0 |
% |
|
|
57.4 |
% |
35
|
|
Six Months Ended June 30, |
|
|
Year Ended December 31, |
|
||||||
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||
Numerator: Net Income |
|
$ |
274,377 |
|
|
$ |
162,575 |
|
|
$ |
443,958 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Average shareholders' equity |
|
|
1,154,030 |
|
|
|
650,610 |
|
|
|
773,200 |
|
Less: Average goodwill and other intangible assets |
|
|
(2,653 |
) |
|
|
(8,399 |
) |
|
|
(6,499 |
) |
Average tangible shareholders' equity |
|
|
1,151,377 |
|
|
|
642,211 |
|
|
|
766,701 |
|
Return on tangible equity |
|
|
23.8 |
% |
|
|
25.3 |
% |
|
|
57.9 |
% |
Return on equity |
|
|
23.8 |
% |
|
|
25.0 |
% |
|
|
57.4 |
% |
Our return on tangible equity increased to 11.7% for the three months ended June 30, 2026 from 10.1% for the three months ended June 30, 2025, primarily due to the IPO proceeds.
Our return on tangible equity decreased to 23.8% for the six months ended June 30, 2026 from 25.3% for the six months ended June 30, 2025, as a result of growth in equity due to an increase in retained earnings from net income, offset by the IPO proceeds.
Liquidity and Capital Resources
We are organized as a Delaware holding company with our operations primarily conducted by our wholly owned insurance company subsidiaries, SIC (domiciled in the State of Florida), Slide Specialty (domiciled in the State of Rhode Island), Slide Reinsurance Holdings, LLC (a holding company which owns 100% of shares of segregated cell T104 of White Rock Insurance (SAC) LTD.) and our services companies Slide MGA, LLC, Clegg Insurance Advisors, LLC D/B/A Homefront, STAT Claims Co., and Trusted Mitigation Contractors.
We may receive cash through (i) capital contributions or issuance of equity and debt securities, (ii) dividends from our insurance company subsidiaries and (iii) distributions from our services companies. We may use these proceeds to contribute funds to our insurance company subsidiaries to support growth, pay dividends, pay taxes, or for other corporate purposes.
SIC and SSIC can only pay dividends to us out of its available and accumulated surplus funds, which are derived from realized net operating profits on its business and net unrealized capital gains.
No dividends were paid by SIC or SSIC in 2026 and 2025.
Florida Statute Section 624.408 requires SIC to maintain a minimum level of surplus of not less than the greater of 10% of its total liabilities, or $15.0 million. Based on this requirement, SIC was required to maintain capital and surplus of $130.9 million and $113.9 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026 and December 31, 2025, SIC’s statutory-basis surplus totaled $520.4 million and $417.9 million, meeting the minimum surplus requirements.
As of June 30, 2026 and December 31, 2025, we had $1.821 billion and $1.683 billion, respectively, in cash, cash equivalents, restricted cash and cash equivalents, which primarily consisted of cash, money market accounts and US Treasury bills. We intend to maintain substantial cash or cash-equivalent balances during hurricane season to meet seasonal liquidity needs relating to potential catastrophic losses. However, in the event of a failure of the financial institution, there is a chance we may be unable to access such funds and may incur a loss to the extent such balance exceeds the FDIC insurance limits, which could have a negative impact on our liquidity and financial condition.
Our insurance subsidiaries generate cash through premium collections, investment income and the sale or maturity of invested assets. We received net proceeds of approximately $263.5 million from the IPO proceeds. Our insurance subsidiaries use cash to pay reinsurance premiums, losses and loss adjustment expenses incurred, net, policy acquisition and other underwriting expenses, salaries and employee benefits and other expenses, as well as to purchase investments.
Although we can provide no assurances, we believe that our available cash, cash equivalents, restricted cash and cash equivalents balance and cash generated from operations, should be sufficient to meet our working capital requirements and other capital expenditures for the next twelve months, and thereafter for the foreseeable future.
Cash Flows
36
Our most significant source of cash is from premiums received from insureds, net of the related commission amount for the policies. Our most significant cash outflows are for claims that arise when a policyholder incurs an insured loss and for catastrophe excess of loss reinsurance. Because the payment of claims occurs after the receipt of the premium, often years later, we invest the cash in various investment securities that generally earn interest and dividends. The table below summarizes our net cash flow.
|
|
Six Months Ended June 30, |
|
|||||||||||||
|
|
2026 |
|
|
2025 |
|
|
Change |
|
|
% Change |
|
||||
Cash Flows provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating activities |
|
|
590,011 |
|
|
|
350,429 |
|
|
|
239,582 |
|
|
|
68.4 |
% |
Investing activities |
|
|
(256,919 |
) |
|
|
17,488 |
|
|
|
(274,407 |
) |
|
|
(1569.1 |
)% |
Financing activities |
|
|
(194,906 |
) |
|
|
257,989 |
|
|
|
(452,895 |
) |
|
|
(175.5 |
)% |
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
138,186 |
|
|
|
625,906 |
|
|
|
(487,720 |
) |
|
|
(77.9 |
)% |
For the six months ended June 30, 2026, cash flows provided by operating activities was $590.0 million, an increase of $239.6 million from the six months ended June 30, 2025, driven by an increase in net income and change in certain balance sheet accounts. For the six months ended June 30, 2026, cash flows used in investing activities was $256.9 million, a decrease of $274.4 million from cash provided by investing activities for the six months ended June 30, 2025, driven by the increased purchases of fixed-maturity securities available-for-sale. For the six months ended June 30, 2026, cash flows used in financing activities was $194.9 million, a decrease of $452.9 million from the six months ended June 30, 2025, driven by the repurchase and retirement of common stock through the repurchase program and 2025 proceeds from the initial public offering.
Credit Facility
On June 25, 2024, the Company entered into an amended and restated credit agreement ("the Credit Agreement") with Regions Bank for (i) a $10 million revolving credit facility, which was amended to a $530.4 million revolving credit facility on July 27, 2026(ii) term loan in an aggregate principal amount of $40 million and (iii) one or more delayed draw term loans in an aggregate principal amount not to exceed $125 million (together, the “Credit Facility”), which was terminated under the amendment.
Under the terms of the Credit Facility, borrowings bear interest at an annual rate equal to the three-month Secured Overnight Financing Rate (“SOFR”) based on the consolidated leverage ratio as defined in the agreement. The interest payment is due quarterly in arrears on the last business day of each quarter. The Credit Facility contains affirmative and negative covenants as well as customary events of default. In addition, the Company must comply with certain financial and non-financial covenants and agree to pay a fee equal to the product of the unused line fee rate and the average of the daily unused available credit balances of the revolving credit facility. The unused line fee rate is 0.5%. The Credit Facility matures on June 25, 2029.
The Credit Facility accrues interest at (i) for base rate loans, the highest of (a) the prime rate, (b) the federal funds rate, as in effect from time to time, plus 0.50% per annum, (c) the term secured overnight financing rate (“SOFR”) in effect on such day for a forward-looking interest period of one month commencing on such day, plus 1.00% per annum, and (d) the floor of 0.00% per annum, in each case plus an applicable margin of (x) if the consolidated total leverage ratio, as defined in the Credit Facility, is less than 1.00:1.00, 2.25%, (y) if the consolidated total leverage ratio is greater than or equal to 1.00:1.00 but less than 1.50:1.00, 2.50% or (z) if the consolidated total leverage ratio is greater than or equal to 1.50:1.00, 2.75%, and (ii) for SOFR based loans, the rate per annum equal to the SOFR reference rate for a forward-looking tenor comparable to the then applicable or selected (as applicable) interest period, determined as of a periodic term
SOFR determination date, or the floor of 0.00% per annum, if applicable, plus an applicable margin of (x) if the consolidated total leverage ratio is less than 1.00:1.00, 3.25%, (y) if the consolidated total leverage ratio is greater than or equal to 1.00:1.00 but less than 1.50:1.00, 3.50% or (z) if the consolidated total leverage ratio is greater than or equal to 1.50:1.00, 3.75%.
Off-Balance Sheet Arrangement
At June 30, 2026, we do not maintain any off-balance sheet arrangements.
37
Seasonality of Our Business
Our insurance business is seasonal as hurricanes typically occur during the period from June 1 through November 30 each year. With our catastrophe reinsurance program effective on June 1 each year, any variation in the cost of our reinsurance, whether due to changes to reinsurance rates or changes in the total insured value of our policy base, will occur and be reflected in our financial results beginning June 1 of each year, subject to certain adjustments.
Contractual Obligations and Commitments
The following table illustrates our contractual obligations and commercial commitments by due date as of June 30, 2026:
|
|
Payments Due by Period |
|
|||||||||||||||||
|
|
Total |
|
|
Less Than One Year |
|
|
One Year to Less Than Three Years |
|
|
Three Years to Less Than Five Years |
|
|
More Than Five Years |
|
|||||
Debt securities and credit agreements |
|
$ |
33,500 |
|
|
$ |
5,500 |
|
|
$ |
28,000 |
|
|
$ |
- |
|
|
$ |
- |
|
Interest payable (1) |
|
|
5,288 |
|
|
|
2,039 |
|
|
|
3,249 |
|
|
|
- |
|
|
|
- |
|
Operating lease obligations |
|
|
9,935 |
|
|
|
2,431 |
|
|
|
5,068 |
|
|
|
2,436 |
|
|
|
- |
|
Total |
|
$ |
48,723 |
|
|
$ |
9,970 |
|
|
$ |
36,317 |
|
|
$ |
2,436 |
|
|
$ |
- |
|
(1) Interest on the Credit Facility is calculated using 6.9% in effect at June 30, 2026 with the assumption that interest rates remain flat over the remainder of the period that the Credit Facility is outstanding. At our option, we may prepay the Credit Facility, in whole or in part, without premium or penalty.
Financial Condition
Stockholders’ Equity
As of June 30, 2026, stockholders’ equity was $1,194.8 million. As of December 31, 2025, total stockholders’ equity was $1,113.2 million. The increase was primarily due to increased retained earnings from net income offset by the repurchase and retirement of common stock through the repurchase program.
Investment Portfolio
Our primary investment objectives are to maintain liquidity, preserve capital and generate a stable level of investment income. We purchase securities that we believe are attractive on a relative value basis and seek to generate returns in excess of predetermined benchmarks. Our Board determines our investment guidelines in compliance with applicable regulatory restrictions on asset type, quality and concentration.
Our cash and invested assets consist of cash and cash equivalents, fixed maturity securities and equity securities. As of June 30, 2026, the majority of our investments, or $830.6 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $7.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,236.9 million and a restricted cash and cash equivalents balance of $584.2 million as of June 30, 2026.
As of December 31, 2025, the majority of our investments, or $588.2 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $4.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,201.2 million and a restricted cash and cash equivalents balance of $481.8 million as of December 31, 2025.
As of June 30, 2026, and December 31, 2025, the amortized cost and fair value on available for sale securities were as follows:
38
|
|
As of June 30, 2026 |
|
|||||||||
Fixed Maturity Securities: |
|
Amortized |
|
|
Fair Value |
|
|
% of Total |
|
|||
|
|
($ in thousands) |
|
|||||||||
Obligations of the U.S. Treasury and U.S. Government |
|
$ |
201,148 |
|
|
$ |
200,919 |
|
|
|
24.1 |
% |
Obligations of state and political subdivisions |
|
|
256,200 |
|
|
|
255,592 |
|
|
|
30.7 |
% |
Corporate securities |
|
|
295,413 |
|
|
|
295,033 |
|
|
|
35.5 |
% |
Asset-backed securities |
|
|
81,513 |
|
|
|
80,537 |
|
|
|
9.7 |
% |
Total available for sale investments |
|
$ |
834,274 |
|
|
$ |
832,081 |
|
|
|
100 |
% |
|
|
As of December 31, 2025 |
|
|||||||||
Fixed Maturity Securities: |
|
Amortized |
|
|
Fair Value |
|
|
% of Total |
|
|||
|
|
($ in thousands) |
|
|||||||||
Obligations of the U.S. Treasury and U.S. Government |
|
$ |
155,600 |
|
|
$ |
157,575 |
|
|
|
26.7 |
% |
Obligations of state and political subdivisions |
|
|
203,485 |
|
|
|
207,274 |
|
|
|
35.1 |
% |
Corporate securities |
|
|
171,501 |
|
|
|
175,007 |
|
|
|
29.7 |
% |
Asset-backed securities |
|
|
49,536 |
|
|
|
49,864 |
|
|
|
8.5 |
% |
Total available for sale investments |
|
$ |
580,122 |
|
|
$ |
589,720 |
|
|
|
100 |
% |
The following tables provide the credit quality of available for sale investments as of June 30, 2026 and December 31, 2025:
|
|
As of June 30, 2026 |
|
|||||||||
Rating: |
|
Amortized |
|
|
Fair Value |
|
|
% of Total |
|
|||
|
|
($ in thousands) |
|
|||||||||
AAA |
|
$ |
77,075 |
|
|
$ |
76,586 |
|
|
|
9.2 |
% |
AA+ |
|
|
326,552 |
|
|
|
325,365 |
|
|
|
39.1 |
% |
AA |
|
|
71,367 |
|
|
|
71,098 |
|
|
|
8.5 |
% |
AA- |
|
|
57,882 |
|
|
|
57,941 |
|
|
|
7.0 |
% |
A+ |
|
|
59,903 |
|
|
|
59,832 |
|
|
|
7.2 |
% |
A |
|
|
67,131 |
|
|
|
66,741 |
|
|
|
8.0 |
% |
A- |
|
|
52,986 |
|
|
|
52,852 |
|
|
|
6.4 |
% |
BBB+ |
|
|
61,821 |
|
|
|
62,250 |
|
|
|
7.5 |
% |
BBB |
|
|
51,213 |
|
|
|
51,079 |
|
|
|
6.1 |
% |
BBB- |
|
|
6,905 |
|
|
|
6,878 |
|
|
|
0.8 |
% |
Not Rated |
|
|
1,438 |
|
|
|
1,460 |
|
|
|
0.2 |
% |
Total available for sale investments |
|
$ |
834,274 |
|
|
$ |
832,081 |
|
|
|
100 |
% |
39
|
|
As of December 31, 2025 |
|
|
|||||||||
Rating: |
|
Amortized |
|
|
Fair |
|
|
% of Total |
|
|
|||
|
|
($ in thousands) |
|||||||||||
AAA |
|
$ |
55,471 |
|
|
$ |
56,321 |
|
|
|
9.6 |
% |
|
AA+ |
|
|
242,675 |
|
|
|
245,780 |
|
|
|
41.7 |
% |
|
AA |
|
|
56,183 |
|
|
|
57,084 |
|
|
|
9.7 |
% |
|
AA- |
|
|
40,755 |
|
|
|
41,733 |
|
|
|
7.1 |
% |
|
A+ |
|
|
34,234 |
|
|
|
34,815 |
|
|
|
5.9 |
% |
|
A |
|
|
37,219 |
|
|
|
37,755 |
|
|
|
6.4 |
% |
|
A- |
|
|
31,055 |
|
|
|
31,712 |
|
|
|
5.4 |
% |
|
BBB+ |
|
|
42,157 |
|
|
|
43,334 |
|
|
|
7.3 |
% |
|
BBB |
|
|
35,257 |
|
|
|
35,935 |
|
|
|
6.1 |
% |
|
BBB- |
|
|
3,694 |
|
|
|
3,772 |
|
|
|
0.6 |
% |
|
Not Rated |
|
|
1,420 |
|
|
|
1,480 |
|
|
|
0.2 |
% |
|
Total available for sale investments |
|
$ |
580,122 |
|
|
$ |
589,720 |
|
|
|
100 |
% |
|
The amortized cost and fair value of our available for sale investments in fixed maturity securities summarized by contractual maturity as of June 30, 2026 and December 31, 2025 are displayed in the tables below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.
|
|
As of June 30, 2026 |
|
|||||||||
|
|
Amortized |
|
|
Fair Value |
|
|
% of Total |
|
|||
|
|
($ in thousands) |
|
|||||||||
Due in one year or less |
|
$ |
52,548 |
|
|
$ |
52,655 |
|
|
|
6.3 |
% |
Due after one year through five years |
|
|
347,113 |
|
|
|
348,198 |
|
|
|
41.8 |
% |
Due after five years through 10 years |
|
|
321,118 |
|
|
|
319,117 |
|
|
|
38.4 |
% |
Due after 10 years |
|
|
113,495 |
|
|
|
112,111 |
|
|
|
13.5 |
% |
Total available for sale investments |
|
$ |
834,274 |
|
|
$ |
832,081 |
|
|
|
100 |
% |
|
|
As of December 31, 2025 |
|
|||||||||
|
|
Amortized |
|
|
Fair Value |
|
|
% of Total |
|
|||
|
|
($ in thousands) |
|
|||||||||
Due in one year or less |
|
$ |
48,155 |
|
|
$ |
48,353 |
|
|
|
8.2 |
% |
Due after one year through five years |
|
|
303,205 |
|
|
|
309,550 |
|
|
|
52.5 |
% |
Due after five years through 10 years |
|
|
165,622 |
|
|
|
168,346 |
|
|
|
28.5 |
% |
Due after 10 years |
|
|
63,140 |
|
|
|
63,471 |
|
|
|
10.8 |
% |
Total available for sale investments |
|
$ |
580,122 |
|
|
$ |
589,720 |
|
|
|
100 |
% |
Critical Accounting Policies and Estimates
Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Recent Accounting Pronouncements
See discussion of recent accounting standards in Note 1 in the accompanying notes to the condensed consolidated financial statements for further details.
Emerging Growth Company Status
We are an emerging growth company, as defined in the JOBS Act. For as long as we are an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that
40
are not “emerging growth companies,” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, exemptions from the requirements of holding advisory “say-on-pay” votes on executive compensation and stockholder advisory votes on golden parachute compensation.
Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.
Special Note Regarding Forward-Looking Statements
This Quarterly Report includes forward-looking statements within the meaning of the federal securities laws. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “aim,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed in Part II, Item 1A “Risk Factors” in this Quarterly Report and in other reports we file with the SEC.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We are under no duty to update any of these forward-looking statements after the date of this Quarterly Report to conform our prior statements to actual results or revised expectations.
The following are some important factors that could cause our actual results to differ from our expectations in any forward-looking statements:
41
For further discussion of certain of these factors, see the risk factors disclosed in the section entitled “Risk Factors” in this Quarterly Report and in Form 10-K, as filed February 27, 2026.
42
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Our investment portfolios include fixed-maturity securities, the purposes of which are not for trading or speculation. Our main objective is to maximize after-tax investment income and maintain sufficient liquidity to meet policyholder obligations while minimizing market risk, which is the potential economic loss from adverse fluctuations in securities’ prices. We consider many factors including credit ratings, investment concentrations, regulatory requirements, anticipated fluctuation of interest rates, durations and market conditions in developing investment strategies. Investment securities are managed by BlackRock and are overseen by the investment committee appointed by the board of directors of SIC. Our investment portfolios are primarily exposed to interest rate risk and credit risk. We classify our fixed-maturity securities as available-for-sale and report any unrealized gains or losses, net of deferred income taxes, as a component of other comprehensive income within our shareholders’ equity. As such, any material temporary changes in their fair value can adversely impact the carrying value of our shareholders’ equity.
Interest Rate Risk
Our fixed-maturity securities are sensitive to potential losses resulting from unfavorable changes in interest rates. We manage the risk by analyzing anticipated movement in interest rates and considering our future capital needs.
The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our fixed-maturity securities at June 30, 2026 ($ in thousands):
Hypothetical Change in Interest Rates |
|
Estimated |
|
|
Change in |
|
|
Percentage |
|
|||
300 basis point increase |
|
$ |
723,817 |
|
|
$ |
(108,264 |
) |
|
|
(13.0 |
)% |
200 basis point increase |
|
|
759,008 |
|
|
|
(73,073 |
) |
|
|
(8.8 |
)% |
100 basis point increase |
|
|
795,096 |
|
|
|
(36,985 |
) |
|
|
(4.4 |
)% |
100 basis point decrease |
|
|
869,962 |
|
|
|
37,881 |
|
|
|
4.6 |
% |
200 basis point decrease |
|
|
908,740 |
|
|
|
76,659 |
|
|
|
9.2 |
% |
300 basis point decrease |
|
|
948,415 |
|
|
|
116,334 |
|
|
|
14.0 |
% |
Credit Risk
Credit risk can expose us to potential losses arising principally from adverse changes in the financial condition of the issuers of our fixed-maturity securities. We mitigate the risk by primarily investing in fixed-maturity securities that are rated “BBB” or higher and diversifying our investment portfolio to avoid concentrations in any single issuer or business sector. Pursuant to our investment policy, only $1.0 million may be invested in below investment grade bonds. The duration of the financial instruments held in our portfolio that are subject to interest rate risk was 4.44 years and 3.50 years at June 30, 2026 and December 31, 2025, respectively. To the extent interest rates decrease during 2026, we anticipate the fair value of our fixed rate debt securities to be subject to increase. Credit risk results from uncertainty in a counterparty’s ability to meet its obligations. Credit risk is managed by maintaining a high credit quality fixed maturity securities portfolio. As of June 30, 2026, the estimated weighted average credit quality rating of the fixed maturity securities portfolio was AA-, at fair value, consistent with the average rating at December 31, 2025. For more information regarding the composition of our fixed-maturity securities portfolio, see “—Financial Condition—Investment Portfolio” within Item 2.
Foreign Currency Exchange Risk
At June 30, 2026, we did not have any material exposure to foreign currency related risk.
43
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) that are designed to assure that information required to be disclosed in our Exchange Act reports are recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. As required by Exchange Act Rule 13a-15(b), as of the end of the period covered by this Quarterly Report, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2026.
Changes in Internal Control over Financial Reporting
During the three months ended June 30, 2026, there were no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as amended) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
44
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
We are subject to routine legal proceedings in the ordinary course of business. We believe that the ultimate resolution of these matters will not have a material adverse effect on our business, financial condition or results of operations.
Item 1A. Risk Factors.
Our operations and financial results are subject to various risks and uncertainties. There have been no material changes in our risk factors from those previously disclosed in Part 1, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Issuer Purchases of Equity Securities
The following table presents information related to our repurchases of common stock during the second quarter of 2026:
Period |
|
Total number of shares purchased |
|
|
Average Price Paid Per Share |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) |
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
|
||||
4/1/2026 - 4/30/2026 |
|
|
2,997,980 |
|
|
$ |
17.95 |
|
|
|
13,349,752 |
|
|
$ |
114,068 |
|
5/1/2026 - 5/31/2026 |
|
|
— |
|
|
$ |
- |
|
|
|
13,349,752 |
|
|
$ |
114,068 |
|
6/1/2026 - 6/30/2026 |
|
|
— |
|
|
$ |
- |
|
|
|
13,349,752 |
|
|
$ |
114,068 |
|
Total |
|
|
2,997,980 |
|
|
$ |
17.95 |
|
|
|
13,349,752 |
|
|
$ |
114,068 |
|
Item 5. Other Information.
On July 27, 2026, the Company entered into the Third Amendment of the Credit Agreement to, among other things, increase its revolving credit facility to $530.4 million. All other material terms of the Credit Agreement, as amended, remained unchanged.
Relationships
There are no material relationships between the Company or any of its subsidiaries or affiliates and the lenders and/or their respective affiliates, other than in respect of the Credit Agreement, Amendment and certain commercial banking and lending relationships, all of which have been entered into in the ordinary course of business.
45
Securities Trading Plans of Directors and Officers
None of the Company's directors or officers (as defined in Rule 16a-1(f))
On
46
Item 6. Exhibits.
Exhibit Number |
|
Description |
|
|
|
10.1 |
|
Third Amendment to the Amended and Restated Credit Agreement, dated as of July 27, 2026, by and among Slide Insurance Holdings, Inc., as borrower, certain subsidiaries of Slide Insurance Holdings, Inc, as guarantors, the lenders party thereto, and Regions Banks, as administrative agent, collateral agent, issuing bank and swingline lender. |
31.1* |
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* |
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1** |
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2** |
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS |
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith.
** Furnished herewith.
47
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
Slide Insurance Holdings, Inc. |
|
|
|
|
|
Date: July 30, 2026 |
|
|
/s/ Bruce Lucas |
|
|
By: |
Bruce Lucas |
|
|
Its: |
Chief Executive Officer (Duly Authorized Officer) |
|
|
|
|
Date: July 30, 2026 |
|
|
/s/ Anastasios Omiridis |
|
|
By: |
Anastasios Omiridis |
|
|
Its: |
Chief Financial Officer (Principal Financial Officer) |
48