Slide Insurance Holdings Inc(SLDE) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Overview This section provides a high-level summary of Slide Insurance Holdings, Inc.'s strong financial and operational achievements in Q2 2025, including key financial metrics and CEO commentary Key Financial Highlights Slide Insurance Holdings, Inc. achieved strong results in Q2 2025, with significant year-over-year growth in gross premiums written, net income, and total revenue, alongside a successful IPO in June 2025 Key Financial Metrics for Q2 2025 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----------------------- | :---------- | :---------- | :--------- | | Gross Premiums Written | $435.4M | $348.3M | +25.0% | | Net Income | $70.1M | $53.7M | +30.5% | | Diluted EPS | $0.56 | $0.45 | +24.4% | | Combined Ratio | 67.4% | 69.9% | -250 bps | - The company successfully completed its Initial Public Offering (IPO) in June 2025[1][3] CEO Commentary CEO Bruce Lucas highlighted the company's continued success, strong year-over-year growth across key metrics, and the successful IPO, attributing it to superior underwriting technology - The CEO reported another strong quarter and the successful completion of the Initial Public Offering, marking a significant milestone[3] - The company's underwriting technology continues to perform exceptionally, generating superior underwriting returns and leveraging a well-capitalized balance sheet and tech-driven underwriting capabilities to support long-term growth strategies and shareholder value creation[3] Second Quarter 2025 Operating Results This section details Slide's financial performance in Q2 2025, analyzing revenue growth drivers, expense trends, and key profitability indicators Revenue Performance Slide achieved robust revenue growth in Q2 2025, driven by additional policy acquisitions from Citizens and stable renewal rates, significantly increasing gross and net earned premiums Q2 2025 Revenue Overview | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------- | :---------- | :---------- | :--------- | | Gross Premiums Written | $435.4M | $348.3M | +25.0% | | Net Premiums Earned | $243.9M | $195.0M | +25.1% | | Total Revenue | $261.6M | $209.1M | +25.1% | Policies in Force | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------- | :-------------- | :------------- | :-------------- | | Policies in Force | 348,439 | 348,029 | 275,178 | - Growth in gross premiums written and net premiums earned was primarily driven by the acquisition of additional policies from Citizens and stable renewal rates for existing policies[4][5][7] Expense Analysis Loss ratio significantly improved despite a slight increase in net losses and loss adjustment expenses due to higher policy count, with policy acquisition and general administrative expenses also rising Key Expenses for Q2 2025 | Expense Category | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------ | :---------- | :---------- | :--------- | | Losses and LAE, net | $91.4M | $89.5M | +2.1% | | Policy acquisition & other underwriting | $32.1M | $17.8M | +80.3% | | General and administrative | $37.9M | $26.8M | +41.4% | - Catastrophe losses from non-hurricane weather events significantly decreased to $6.1 million in Q2 2025 from $29.9 million in the prior year period[8] Profitability Metrics The company enhanced underwriting profitability by reducing the combined ratio, achieving substantial net income growth, though Return on Equity declined due to increased equity from retained earnings and IPO proceeds Q2 2025 Profitability Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------- | :---------- | :---------- | :--------- | | Net Income | $70.1M | $53.7M | +30.5% | | Diluted EPS | $0.56 | $0.45 | +24.4% | | Loss Ratio | 37.4% | 45.9% | -850 bps | | Combined Ratio | 67.4% | 69.9% | -250 bps | | Return on Equity | 10.0% | 16.9% | -690 bps | - The decrease in Return on Equity was due to the growth in equity during Q2 2025, primarily from retained earnings and proceeds from the company's Initial Public Offering[11] Key Ratio Definitions This section defines key insurance industry ratios used to evaluate the company's financial performance, including loss ratio, policy acquisition expense ratio, expense ratio, and combined ratio - The Loss ratio, expressed as a percentage, is the ratio of net losses and loss adjustment expenses incurred to net premiums earned[12] - The Policy acquisition expense ratio, expressed as a percentage, is the ratio of policy acquisition and other underwriting expenses to net premiums earned[12] - The Expense ratio, expressed as a percentage, is the ratio of policy acquisition and other underwriting expenses, general and administrative expenses, and other operating expenses to net premiums earned[13] - The Combined ratio is the sum of the loss ratio and the expense ratio, with a ratio below 100% indicating underwriting profit and above 100% indicating an underwriting loss[13] Company Information This section provides essential corporate details, including webcast and conference call information, forward-looking statements, a company overview, and contact information Webcast and Conference Call This section provides details on the webcast and conference call to discuss financial results, including access methods and replay availability - Slide will host a conference call to discuss financial results on August 12, 2025, at 5:00 PM ET, with dial-in numbers (877) 407-9208 (toll-free) or (201) 493-6784 (international)[14] - A live webcast and replay of the conference will be available at ir.slideinsurance.com, with the replay accessible for one year[14] Forward-Looking Statements This standard disclaimer addresses inherent risks and uncertainties that may cause actual results to differ materially from projections, noting Slide's lack of obligation to update these statements - Statements in this press release and the company's earnings call are forward-looking and subject to risks and uncertainties that could cause actual events and results to differ materially from those discussed[15] - Slide undertakes no obligation to update any forward-looking statements unless required by law[16][17] About Slide Slide is a Tampa, Florida-based tech-enabled insurance company founded by Bruce and Shannon Lucas, leveraging AI and big data to optimize and simplify insurance for homeowners - Slide is a tech-enabled insurance company that leverages artificial intelligence and big data to optimize and simplify the insurance process, helping homeowners choose coverage tailored to their unique needs and budgets[18] - Headquartered in Tampa, Florida, the company was founded by insurance industry veterans Bruce and Shannon Lucas, who possess a deep understanding of how technology can be applied to achieve better underwriting outcomes[18] Contacts Contact information is provided for investor relations and media inquiries - Investor contact: ir@slideinsurance.com[19] - Media contact: Rachel Carr, Chief Marketing Officer, press@slideinsurance.com[19] Financial Statements This section presents the unaudited condensed consolidated statements of operations and balance sheets, along with supplemental financial and operational data for various periods Condensed Consolidated Statements of Operations (Unaudited) This section presents the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, detailing revenues, expenses, and net income Condensed Consolidated Statements of Operations (Unaudited, in thousands) | | | | Three Months Ended | | | | Six Months Ended | | |---|---|---|---|---|---|---|---|---| | | | | June 30, | | | | June 30, | | | | | 2025 | | 2024 | | 2025 | | 2024 | | Revenues: | | | | | | | | | | Gross premiums written | $ | 435,384 | $ | 348,336 | $ | 713,633 | $ | 592,964 | | Change in unearned premiums | | (96,726) | | (87,769) | | (24,084) | | (95,036) | | Gross premiums earned | | 338,658 | | 260,567 | | 689,549 | | 497,928 | | Ceded premiums earned | | (94,799) | | (65,601) | | (179,649) | | (114,854) | | Net premiums earned | | 243,859 | | 194,966 | | 509,900 | | 383,074 | | Net investment income | | 15,040 | | 12,151 | | 28,848 | | 21,714 | | Policy fees | | 2,455 | | 1,971 | | 3,988 | | 2,920 | | Other income | | 253 | | 43 | | 464 | | 549 | | Total revenue | $ | 261,607 | $ | 209,131 | $ | 543,200 | $ | 408,257 | | Expenses: | | | | | | | | | | Losses and loss adjustment expenses incurred, net | | 91,369 | | 89,520 | | 175,130 | | 168,541 | | Policy acquisition and other underwriting expenses | | 32,096 | | 17,782 | | 60,668 | | 34,862 | | General and administrative expenses | | 37,935 | | 26,752 | | 79,314 | | 53,833 | | Interest expense | | 895 | | 1,307 | | 1,830 | | 1,587 | | Depreciation expense | | 1,117 | | 363 | | 2,262 | | 680 | | Amortization expense | | 1,898 | | 1,958 | | 3,792 | | 3,946 | | Total expenses | $ | 165,310 | $ | 137,682 | $ | 322,996 | $ | 263,449 | | Net income before income tax expense | | 96,297 | | 71,449 | | 220,204 | | 144,808 | | Income tax expense | | 26,225 | | 17,707 | | 57,629 | | 36,353 | | Net income | $ | 70,072 | $ | 53,742 | $ | 162,575 | $ | 108,455 | | Basic income earnings per share | $ | 1.05 | $ | 0.96 | $ | 2.63 | $ | 1.93 | | Diluted income earnings per share | $ | 0.56 | $ | 0.45 | $ | 1.30 | $ | 0.90 | Condensed Consolidated Balance Sheets This section provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (Unaudited, in thousands) | | | | | December 31, | |---|---|---|---|---| | | | June 30, 2025 | | 2024 | | | | (Unaudited) | | | | ASSETS Invested assets: | | | | | | Fixed-maturity securities, available-for-sale, at estimated fair value (amortized costs: $447,435 | | | | | | and $464,585, respectively and allowance for credit losses: $0 and $0 respectively) | $ | 454,550 | $ | 464,966 | | Other investments, net | | 4,212 | | 4,548 | | Total invested assets | $ | 458,762 | $ | 469,514 | | Cash and cash equivalents | | 936,187 | | 493,409 | | Restricted cash | | 648 | | 631 | | Restricted cash - variable interest entity | | 478,913 | | 295,802 | | Accrued interest income | | 5,786 | | 5,569 | | Assumed premiums receivable | | 22,312 | | 10,284 | | Premiums receivable, net of allowance for credit loss of $1,512 and $1,048, respectively | | 69,902 | | 47,642 | | Reinsurance recoverable on paid losses net of allowance for credit loss: $0 and $0, respectively | | 45,243 | | — | | Reinsurance recoverable on unpaid losses net of allowance for credit loss: $0 and $0, respectively | | 240,241 | | 341,051 | | Prepaid reinsurance premiums | | 432,733 | | 148,288 | | Deferred tax assets | | 15,742 | | 17,371 | | Deferred policy acquisition costs | | 71,458 | | 65,046 | | Advanced payments of premium tax liability | | 1,115 | | — | | Property and equipment, net | | 12,812 | | 13,578 | | Right-of-use lease asset, operating | | 7,701 | | 8,390 | | Intangibles, net | | 3,900 | | 7,692 | | Goodwill | | 2,603 | | 2,603 | | Prepaid expenses | | 7,361 | | 4,192 | | Other assets | | 610 | | 865 | | Total assets | $ | 2,814,029 | $ | 1,931,927 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | Liabilities: | | | | | | Loss and loss adjustment expense reserves | $ | 571,812 | $ | 595,487 | | Unearned premiums | | 720,394 | | 696,310 | | Commissions payable | | 11,265 | | 8,254 | | Advanced recoveries on reinsurance | | — | | 4,844 | | Deferred revenue | | 90 | | 90 | | Reinsurance premiums payable | | 444,554 | | 70,452 | | Long-term debt, net | | 36,280 | | 39,190 | | Interest rate swap liability | | 103 | | 117 | | Income taxes payable | | 72,638 | | 43,943 | | Advanced premiums | | 50,518 | | 12,051 | | Premium tax liabilities | | — | | 1,206 | | Accounts payable and accrued expenses | | 24,357 | | 13,858 | | Lease liability, operating | | 8,374 | | 9,063 | | Other liabilities | | 5,584 | | 3,903 | | Total liabilities | $ | 1,945,969 | $ | 1,498,768 | | Shareholders' equity: | | | | | | Common Stock (par value $0.01, 1,500,000,000 shares authorized, 125,243,157 and 56,224,168 | | | | | | issued and outstanding at June 30, 2025 and December 31, 2024, respectively) | | 1,252 | | 562 | | Preferred stock (par value $0.01, 150,000,000 shares authorized, 0 and 51,374,125 issued | | | | | | and outstanding at June 30, 2025 and December 31, 2024, respectively) | | — | | 514 | | Additional paid-in capital | | 389,731 | | 122,607 | | Accumulated other comprehensive income, net of taxes | | 5,311 | | 285 | | Retained earnings | | 471,766 | | 309,191 | | Total shareholders' equity | $ | 868,060 | $ | 433,159 | | Total liabilities and shareholders' equity | $ | 2,814,029 | $ | 1,931,927 | Supplemental Information This section offers additional financial and operational data, including detailed revenue breakdowns, key ratios, policies in force, and average premiums across various periods Supplemental Information | | | | Three Months Ended June 30, | | | | Six Months Ended June 30, | | Year Ended December 31, 2024 | | |---|---|---|---|---|---|---|---|---|---|---| | | | | (in thousands) | | | (in thousands) | | | (in thousands) | | | Revenue | | 2025 | | 2024 | | 2025 | | 2024 | 2024 | | | Gross premiums written | $ | 435,384 | $ | 348,336 | $ | 713,633 | $ | 592,964 | $ | 1,334,864 | | Policy fees | | 2,455 | | 1,971 | | 3,988 | | 2,920 | | 6,550 | | Total revenue | $ | 261,607 | $ | 209,131 | $ | 543,200 | $ | 408,257 | $ | 864,814 | | Net income | $ | 70,072 | $ | 53,742 | $ | 162,575 | $ | 108,455 | $ | 201,125 | | Key Ratios | | | | | | | | | | | | Loss ratio | | 37.4% | | 45.9% | | 34.3% | | 44.0% | | 42.8% | | Policy acquisition expense ratio | | 13.2% | | 9.1% | | 11.9% | | 9.1% | | 10.8% | | Expense ratio | | 30.0% | | 24.0% | | 28.6% | | 24.3% | | 29.5% | | Combined ratio | | 67.4% | | 69.9% | | 62.9% | | 68.3% | | 72.3% | | Return on equity | | 10.0% | | 16.9% | | 25.0% | | 37.3% | | 60.0% | | Policies in Force | | | | | | | | | | | | Policies in force at beginning of period | | 348,029 | | 257,405 | | 343,056 | | 211,504 | | 211,504 | | Citizens residential policies assumed | | 14,167 | | 15,985 | | 26,240 | | 64,585 | | 135,530 | | Citizens commercial residential policies assumed | | 44 | | — | | 130 | | — | | 444 | | New residential policies written | | 5,603 | | 16,084 | | 11,376 | | 23,608 | | 46,397 | | New commercial residential policies written | | 41 | | — | | 53 | | — | | — | | Policy renewal rate | | 87.9% | | 88.1% | | 88.3% | | 88.2% | | 85.9% | | Policies in force at end of period | | 348,439 | | 275,178 | | 348,439 | | 275,178 | | 343,056 | | Average premium per residential policy | | 3,963 | | 3,991 | | 3,963 | | 3,991 | | 3,924 | | Average premium per commercial residential policy | | 110,575 | | — | | 110,575 | | — | | 97,240 | | | | | June 30, 2025 | | | | December 31, 2024 | | | | | | | | (in thousands) | | | | (in thousands) | | | | | Total Assets | $ | 2,814,029 | $ | 1,931,927 | | Shareholders' Equity | | 868,060 | | 433,159 | | Total common and preferred shares outstanding | | 125,243 | | 107,598 |