
PART I. FINANCIAL INFORMATION This section presents the company's financial statements, management's analysis, market risk, and internal controls Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including balance sheets, operations, comprehensive income, equity, and cash flows Condensed Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and shareholders' equity at specific dates Condensed Consolidated Balance Sheets Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Total assets | $2,814,029 | $1,931,927 | | Total liabilities | $1,945,969 | $1,498,768 | | Total shareholders' equity | $868,060 | $433,159 | - Total assets increased by approximately $882 million, driven by significant increases in cash and cash equivalents, restricted cash, and prepaid reinsurance premiums8 - Shareholders' equity more than doubled, primarily due to the Initial Public Offering (IPO) proceeds and retained earnings8 Condensed Consolidated Statements of Operations This section presents the company's revenues, expenses, and net income for the reported periods Condensed Consolidated Statements of Operations Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $713,633 | $592,964 | | Net premiums earned | $243,859 | $194,966 | $509,900 | $383,074 | | Total revenue | $261,607 | $209,131 | $543,200 | $408,257 | | 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 | - Net income increased by 30.4% for the three months ended June 30, 2025, and by 49.9% for the six months ended June 30, 2025, compared to the respective prior-year periods10 - Gross premiums written saw a 25.0% increase for the three-month period and a 20.4% increase for the six-month period year-over-year10 Condensed Consolidated Statements of Comprehensive Income This section outlines the company's net income and other comprehensive income components for the periods Condensed Consolidated Statements of Comprehensive Income Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Net income | $70,072 | $53,742 | $162,575 | $108,455 | | Other comprehensive gain (loss) | $1,551 | $(1,322) | $5,026 | $(2,909) | | Comprehensive income | $71,623 | $52,420 | $167,601 | $105,546 | - The company reported a significant shift from other comprehensive loss in 2024 to a gain in 2025, primarily due to unrealized gains on securities12 Condensed Consolidated Statements of Shareholders' Equity This section details changes in the company's shareholders' equity, including common stock, preferred stock, and retained earnings Condensed Consolidated Statements of Shareholders' Equity Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Common Stock | $1,252 | $562 | | Preferred Stock | $0 | $514 | | Additional Paid-in Capital | $389,731 | $122,607 | | Retained Earnings | $471,766 | $309,191 | | Accumulated Other Comprehensive Income | $5,311 | $285 | | Total Shareholders' Equity | $868,060 | $433,159 | - Total shareholders' equity increased significantly from $433.2 million at December 31, 2024, to $868.1 million at June 30, 2025, primarily driven by the Initial Public Offering (IPO) and retained earnings1517 - All preferred stock was converted to common stock upon the completion of the IPO, leading to a substantial increase in common stock shares and additional paid-in capital1517 Condensed Consolidated Statements of Cash Flows This section presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Data | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net cash provided by operating activities | $350,429 | $275,336 | | Net cash provided by (used in) investing activities | $17,488 | $(146,356) | | Net cash provided by financing activities | $257,989 | $7,227 | | Net increase in cash | $625,906 | $136,207 | | Cash, cash equivalents and restricted cash, end of period | $1,415,748 | $578,569 | - Net cash provided by operating activities increased by $75.1 million, driven by higher net income and increased reinsurance premiums payable20 - Investing activities shifted from a net outflow of $146.4 million in 2024 to a net inflow of $17.5 million in 2025, primarily due to reduced purchases of fixed-maturity securities20 - Financing activities saw a substantial increase in cash provided, from $7.2 million to $258.0 million, largely due to proceeds from the Initial Public Offering (IPO)20 Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations of the company's accounting policies, business operations, and financial instrument valuations 1. Nature of Business and Significant Accounting Policies This section describes the company's core business, its property and casualty insurance focus, and key accounting principles - Slide Insurance Holdings, Inc (SIH) is a Delaware holding company focused on property and casualty insurance, primarily homeowners insurance in Florida and South Carolina through its subsidiary, Slide Insurance Company (SIC)2331 - The company completed its Initial Public Offering (IPO) on June 18, 2025, selling 16.7 million shares and receiving net proceeds of approximately $263.5 million. All preferred stock was converted to common stock upon IPO completion36 - SIH participates in Florida's 'take-out program,' assuming policies from Citizens Property Insurance Corporation. For the six months ended June 30, 2025, the company assumed approximately 26,400 policies, representing $104.8 million in annualized gross premiums38 2. Basic and Diluted Earnings Per Share This section details the calculation and presentation of basic and diluted earnings per share for the reporting periods 2. Basic and Diluted Earnings Per Share Data | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Basic earnings per share | $1.05 | $0.96 | $2.63 | $1.93 | | Diluted earnings per share | $0.56 | $0.45 | $1.30 | $0.90 | | Weighted average shares outstanding (basic, in thousands) | 66,773 | 56,224 | 61,715 | 56,224 | | Diluted weighted average common shares outstanding (in thousands) | 125,979 | 120,457 | 124,792 | 120,580 | - Basic EPS increased by 9.4% for the three-month period and 36.3% for the six-month period year-over-year48 - Diluted EPS increased by 24.4% for the three-month period and 44.4% for the six-month period year-over-year48 3. Fixed-Maturity Securities Available-For-Sale This section provides information on the company's fixed-maturity securities portfolio, including fair values and investment income 3. Fixed-Maturity Securities Available-For-Sale Data | Category | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | U.S. government and agencies | $156,766 | $166,283 | | States, municipalities and political subdivisions | $165,728 | $146,905 | | Corporate Bonds | $128,576 | $150,025 | | Asset-Backed Securities | $3,480 | N/A | | Total | $454,550 | $464,966 | - The company's fixed-maturity securities portfolio decreased slightly in fair value from $464.9 million at December 31, 2024, to $454.5 million at June 30, 20254950 - Unrealized losses on fixed-maturity securities were primarily caused by interest rate changes, with 43 securities having unrealized losses at June 30, 2025, compared to 125 securities at December 31, 20245356 3. Fixed-Maturity Securities Available-For-Sale Data | Net Investment Income Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Available-for-sale fixed-maturity securities | $5,382 | $4,725 | $10,885 | $8,642 | | Cash and short-term investments | $9,763 | $7,467 | $18,162 | $13,116 | | Total net investment income | $15,040 | $12,151 | $28,848 | $21,714 | 4. Fair Value of Financial Assets and Liabilities This section outlines the fair value measurement of financial assets and liabilities using a three-level hierarchy - The company categorizes financial instruments into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs) for fair value measurement63 4. Fair Value of Financial Assets and Liabilities Data | Asset Category | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | Cash and cash equivalents (Level 1) | $936,187 | $493,409 | | Restricted cash (Level 1) | $648 | $631 | | Restricted cash - VIE (Level 1) | $478,913 | $295,802 | | Fixed-maturity securities (Level 1 & 2) | $454,550 | $464,966 | | Total Assets at Fair Value | $1,870,298 | $1,254,808 | - Long-term debt, including promissory notes and commercial loans, is valued using the discounted cash flow method with Level 3 inputs, indicating significant unobservable inputs71 5. Deferred Policy Acquisition Costs This section details the capitalization and amortization of costs related to acquiring new and renewal insurance policies 5. Deferred Policy Acquisition Costs Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Beginning balance | $60,750 | $41,675 | $65,046 | $42,995 | | Policy acquisition costs deferred | $42,804 | $36,218 | $67,080 | $51,978 | | Less: Amortization | $(32,096) | $(17,782) | $(60,668) | $(34,862) | | Ending balance | $71,458 | $60,111 | $71,458 | $60,111 | - Deferred policy acquisition costs increased to $71.5 million at June 30, 2025, from $60.1 million at June 30, 2024, reflecting higher new and renewal business production72 6. Loss and Loss Adjustment Expenses This section discusses the company's reserves for estimated unpaid losses and loss adjustment expenses, including IBNR claims - The company establishes reserves for estimated unpaid losses and loss adjustment expenses (LAE), including incurred but not yet reported (IBNR) claims, which are inherently imprecise due to future uncertain events7374 6. Loss and Loss Adjustment Expenses Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Balances, beginning of period | $571,180 | $272,837 | $595,487 | $249,567 | | Total incurred | $91,369 | $89,520 | $175,130 | $168,541 | | Total paid | $47,023 | $60,946 | $97,995 | $97,689 | | Balances at June 30 | $571,812 | $293,687 | $571,812 | $293,687 | - For the six months ended June 30, 2025, the company recognized favorable development of losses related to prior years of approximately $21.6 million, primarily due to lower than expected non-catastrophe payments76 7. Income Taxes This section presents the company's income tax expense and effective tax rates for the reported periods 7. Income Taxes Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Income tax expense | $26,225 | $17,707 | $57,629 | $36,353 | | Effective tax rate | 27.2% | 24.8% | 26.2% | 25.1% | - The effective tax rate increased in 2025 compared to 2024, primarily due to recording the IRC Section 162(m) permanent difference77 8. Reinsurance This section describes the company's use of reinsurance agreements to manage exposure to losses and catastrophe risks - The company uses various excess of loss reinsurance agreements to manage exposure to losses, including per risk and catastrophe excess of loss treaties, and mandatory participation in the Florida Hurricane Catastrophe Fund (FHCF)788485 - For the treaty period June 1, 2025, through May 31, 2026, the catastrophe excess of loss agreement has multiple layers of coverage, with the FHCF picking up 90% of losses in a specific corridor8485 - The company's maximum projected payout from the FHCF is estimated to be $865.6 million, with a retention of $540.3 million for the 2025-2026 treaty period85 9. Revolving Credit Facility This section details the company's revolving credit agreement, its borrowing capacity, and compliance with covenants - The company has an amended secured revolving credit agreement with Regions Bank, providing a borrowing capacity of $45 million, expiring June 25, 20298889 - As of June 30, 2025, the company had no outstanding borrowings under the revolving credit facility and was in compliance with all covenants, with $45 million available capacity91 10. Long-Term Debt This section outlines the company's long-term debt obligations, including commercial loans and promissory notes - The company has a $40 million 5-year commercial loan agreement, with an outstanding principal of $36 million at June 30, 20259294 10. Long-Term Debt Data | Year | Promissory Notes (in thousands) | Commercial Term Loan (in thousands) | Total (in thousands) | |:---|:---|:---|:---| | 2025 (remaining) | $1,000 | $2,000 | $3,000 | | 2026 | $2,000 | $4,000 | $6,000 | | 2027 | $500 | $4,000 | $4,500 | | 2028 | — | $4,000 | $4,000 | | 2029 | — | $22,000 | $22,000 | | Total | $3,500 | $36,000 | $39,500 | 11. Affiliate Transactions This section confirms the absence of material non-eliminated affiliate transactions during the reporting periods - The company reported no material transactions with affiliates that were not fully eliminated in consolidation for the six months ended June 30, 2025 and 202495 12. Leases This section details the company's operating lease obligations, primarily for real estate, and related accounting metrics - The company has operating leases primarily for real estate, with terms ranging from one to eight years, and uses its incremental borrowing rate to determine the present value of lease payments9697 12. Leases Data | Lease Metric | June 30, 2025 | June 30, 2024 | |:---|:---|:---| | Operating lease cost (in thousands) | $935 | $750 | | Right-of-use asset (in thousands) | $7,701 | $6,085 | | Lease liability (in thousands) | $8,374 | $6,759 | | Weighted-average remaining lease term | 4.83 years | 5.83 years | | Weighted-average discount rate | 5.08% | 3.85% | 13. Regulatory Matters This section discusses regulatory restrictions on dividend payments and minimum surplus requirements for the insurance subsidiary - SIC's dividend payments to SIH are restricted by the Florida Office of Insurance Regulation (FLOIR), requiring prior approval if exceeding certain thresholds100101 - SIC is required to maintain a minimum surplus of $93.3 million at June 30, 2025, and $70.8 million at December 31, 2024, which it met with statutory-basis surpluses of $213.9 million and $208.0 million, respectively102 - SIC's total adjusted capital exceeded the NAIC risk-based capital (RBC) company-action level at both June 30, 2025, and December 31, 2024103 14. Commitments and Contingencies This section addresses potential contingent liabilities from routine legal proceedings, deemed immaterial by management - Management does not consider contingent liabilities arising from routine legal proceedings material to the company's financial position105 15. Guaranty Fund and Other Assessments This section outlines the company's obligations for guaranty fund and other assessments in its operating states - SIC is subject to guaranty fund and other assessments in Florida and South Carolina, with payables totaling $3.99 million at June 30, 2025, and $2.15 million at December 31, 2024106107 16. Shareholders' Equity This section details changes in the company's authorized and outstanding shares, including the impact of the IPO - The company amended its articles of incorporation on June 18, 2025, authorizing 1.5 billion common shares and 150 million preferred shares. As of June 30, 2025, 125.2 million common shares were outstanding, and all preferred stock was converted to common stock110113 - The IPO on June 18, 2025, involved the sale of 16.7 million common shares by the company, generating net proceeds of approximately $263.5 million112 17. Stock-based Compensation This section covers the company's stock-based compensation plans, related expenses, and unrecognized compensation costs 17. Stock-based Compensation Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Compensation cost (Stock Plan) | $3,000 | $271 | $6,014 | $543 | | Income tax benefit | $817 | $67 | $1,574 | $136 | - The company adopted the 2025 Omnibus Incentive Plan, authorizing up to 12.0 million shares for equity-based and cash-based incentive awards, with no shares issued as of June 30, 2025118 - Unrecognized compensation cost related to nonvested share-based compensation was $1.47 million at June 30, 2025, and $3.86 million at June 30, 2024120 - Compensation expense for restricted stock increased significantly to $5.53 million for the six months ended June 30, 2025, from $0 in the prior year, with $16.5 million of unrecognized expense remaining123 18. Variable Interest Entities This section explains the consolidation of a Variable Interest Entity (VIE) providing reinsurance protection to the company - The company consolidates White Rock Insurance (SAC) Ltd acting in respect of 'Separate Account T104—Slide' as a Variable Interest Entity (VIE), being its primary beneficiary125 - The VIE provides quota share, per risk, and catastrophe reinsurance protection to the company's insurance entities126127 18. Variable Interest Entities Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Restricted cash and cash equivalents | $478,913 | $295,802 | 19. Subsequent Events This section reports significant events occurring after the balance sheet date, such as new legislative enactments - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, which includes significant tax provisions, and the company is currently assessing its impact on its financial statements131 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial performance, condition, and liquidity, highlighting key drivers and operational metrics Overview This section introduces Slide Insurance Holdings, Inc. as a technology-enabled coastal specialty insurer and its market strategy - Slide Insurance Holdings, Inc is a technology-enabled, fast-growing coastal specialty insurer, focusing on profitable underwriting of single-family and condominium policies in coastal states, primarily Florida and South Carolina134 - The company leverages its differentiated technology and data-driven approach to capitalize on underserved market opportunities where larger national carriers have reduced capacity134135 Overview Data | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $713,633 | $592,964 | | Total revenue | $261,607 | $209,131 | $543,200 | $408,257 | | Net income | $70,072 | $53,742 | $162,575 | $108,455 | | Combined ratio | 67.4% | 69.9% | 62.9% | 68.3% | | Return on equity | 10.0% | 16.9% | 25.0% | 37.3% | | Total Assets (June 30, 2025 / Dec 31, 2024) | $2,814,029 | N/A | $2,814,029 | $1,931,927 | | Shareholders' Equity (June 30, 2025 / Dec 31, 2024) | $868,060 | N/A | $868,060 | $433,159 | Key Components of Our Results of Operations This section explains the primary drivers of the company's revenues and expenses, including premiums and loss adjustment costs - Gross premiums written are influenced by policy assumptions from Citizens, block acquisitions, renewals, new business sales, average premium, and premium rates138146 - Net premiums earned are gross premiums earned less ceded premiums earned, with reinsurance costs recognized ratably over the arrangement term143 - Losses and loss adjustment expenses incurred, net, are affected by claim frequency and severity, reinsurance agreements, business mix, regulatory changes, and inflation148155 Key Metrics & Ratios This section defines key financial metrics and non-GAAP ratios used to assess the company's underwriting performance and profitability - Key metrics include loss ratio, policy acquisition expense ratio, expense ratio, and combined ratio, which indicates underwriting profit if below 100%157158 - Non-GAAP measures like combined ratio, excluding catastrophic losses & prior year claims development, and return on tangible equity are used to provide insight into underlying business performance by adjusting for volatile items and goodwill/intangibles159161 Results of Operations This section analyzes the company's financial results for the reported periods, detailing revenue, expenses, and profitability changes Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024 This section compares the company's financial performance for the three months ended June 30, 2025, against the prior year Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024 Data | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $87,048 | 25.0% | | Net premiums earned | $243,859 | $194,966 | $48,893 | 25.1% | | Total revenue | $261,607 | $209,131 | $52,476 | 25.1% | | Net income | $70,072 | $53,742 | $16,330 | 30.4% | | Loss ratio | 37.4% | 45.9% | (8.5)% | (18.6)% | | Expense ratio | 30.0% | 24.0% | 6.0% | 25.0% | | Combined ratio | 67.4% | 69.9% | (2.5)% | (3.6)% | | Debt to capitalization ratio | 4.0% | 11.0% | (7.0)% | (63.6)% | | Return on equity | 10.0% | 16.9% | (6.9)% | (40.8)% | - Gross premiums written increased by 25.0% due to policies assumed from Citizens and higher renewal rates164 - The combined ratio improved from 69.9% to 67.4%, driven by increased net premiums earned and a decrease in catastrophe losses183 - General and administrative expenses increased by 41.8% due to growth in staffing and IT infrastructure to support increased policies in force177 Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 This section compares the company's financial performance for the six months ended June 30, 2025, against the prior year Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 Data | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Gross premiums written | $713,633 | $592,964 | $120,669 | 20.4% | | Net premiums earned | $509,900 | $383,074 | $126,826 | 33.1% | | Total revenue | $543,200 | $408,257 | $134,943 | 33.1% | | Net income | $162,575 | $108,455 | $54,120 | 49.9% | | Loss ratio | 34.3% | 44.0% | (9.7)% | (22.0)% | | Expense ratio | 28.6% | 24.3% | 4.3% | 17.7% | | Combined ratio | 62.9% | 68.3% | (5.4)% | (7.9)% | | Debt to capitalization ratio | 4.0% | 11.0% | (7.0)% | (63.6)% | | Return on equity | 25.0% | 37.3% | (12.3)% | (33.0)% | - Gross premiums written increased by 20.4% due to Citizens policy assumptions, increased renewal rates, and new policies from Farmers renewal rights agreement188 - The combined ratio decreased from 68.3% to 62.9%, primarily due to higher net premiums earned and reduced catastrophe losses207 - Net investment income increased by 32.9% to $28.8 million, driven by a larger average investable asset base196 Non-GAAP Financial Measures This section presents and reconciles non-GAAP financial measures, providing additional insights into underlying business performance Non-GAAP Financial Measures Data | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Combined Ratio, excluding catastrophic losses & prior year claims development | 70.8% | 54.1% | 65.3% | 55.4% | | Return on tangible equity | 10.1% | 17.7% | 25.3% | 39.5% | - The combined ratio, excluding catastrophic losses & prior year claims development, increased for both the three-month and six-month periods, primarily due to a reduction in premiums earned from Citizens policies in the assumption period with reduced policy acquisition and reinsurance costs212213 - Return on tangible equity decreased for both periods, reflecting growth in equity from retained earnings and IPO proceeds214215 Liquidity and Capital Resources This section discusses the company's cash flow, capital structure, and ability to meet its short-term and long-term obligations - The holding company receives cash from equity/debt issuances, and dividends/distributions from subsidiaries, used to support growth, pay dividends, and cover corporate expenses217 - SIC's dividend payments are subject to FLOIR approval and minimum surplus requirements; no dividends were paid in 2024218 - Cash, cash equivalents, and restricted cash increased to $1.42 billion at June 30, 2025, from $789.8 million at December 31, 2024, with substantial balances maintained for seasonal liquidity needs219 - The company believes IPO proceeds, available cash, and operating cash flow will be sufficient to meet working capital and capital expenditure needs for the next 12 months221 Off-Balance Sheet Arrangements This section confirms the absence of material off-balance sheet arrangements beyond those disclosed in the financial statements - The company does not maintain any other off-balance sheet arrangements beyond those disclosed in the financial statements230 Contractual Obligations and Commitments This section outlines the company's future payment obligations under debt, interest, and operating lease agreements Contractual Obligations and Commitments Data | Obligation Type | Total (in thousands) | Less Than One Year (in thousands) | One Year to Less Than Three Years (in thousands) | Three Years to Less Than Five Years (in thousands) | More Than Five Years (in thousands) | |:---|:---|:---|:---|:---|:---| | Debt securities and credit agreements | $39,500 | $6,000 | $9,500 | $24,000 | — | | Interest payable | $8,312 | $2,552 | $4,141 | $1,619 | — | | Operating lease obligations | $9,452 | $1,855 | $3,867 | $3,730 | — | | Total | $57,264 | $10,407 | $17,508 | $29,349 | — | Financial Condition This section reviews the company's overall financial health, including stockholders' equity and investment portfolio composition - Stockholders' equity increased to $868.1 million at June 30, 2025, from $433.2 million at December 31, 2024, primarily due to retained earnings and IPO proceeds232 - The investment portfolio primarily consists of fixed-income securities rated BBB- or better, with $452.9 million at June 30, 2025, and $464.8 million at December 31, 2024234235 Financial Condition Data | Rating | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | AAA | $41,201 | $210,577 | | AA+ | $194,733 | $28,222 | | AA | $30,550 | $24,792 | | AA- | $44,751 | $37,378 | | A+ | $29,421 | $38,228 | | A | $25,931 | $26,992 | | A- | $27,846 | $34,131 | | BBB+ | $25,446 | $24,612 | | BBB | $25,081 | $32,171 | | BBB- | $7,931 | $7,699 | | Not Rated | $1,659 | $164 | | Total | $454,550 | $464,966 | Critical Accounting Policies and Estimates This section highlights key accounting policies and estimates that require significant management judgment and impact financial reporting - Key accounting estimates include premiums (earned pro rata, allowance for credit losses), reserves for unpaid losses and LAE (case and IBNR reserves), policy acquisition costs (capitalized and amortized), and reinsurance (recoverables, creditworthiness)240244249251253255 - Investments are classified as available-for-sale and reported at fair value, with changes in value recorded in other comprehensive income, and are subject to interest rate risk257258 - Fair value measurements are categorized into a three-level hierarchy based on input observability, with most investments valued using Level 1 or Level 2 inputs259266 Recent Accounting Pronouncements This section assesses the impact of recently issued accounting pronouncements on the company's financial statements - The company determined that all recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations, and cash flows267 Emerging Growth Company Status This section explains the company's status as an emerging growth company and the associated reporting requirement exemptions - As an emerging growth company, Slide Insurance Holdings, Inc benefits from exemptions from certain reporting requirements, including auditor attestation for Section 404(b) of Sarbanes-Oxley and delayed adoption of new accounting standards268269 Special Note Regarding Forward-Looking Statements This section cautions readers about forward-looking statements, highlighting inherent risks and uncertainties that could affect future results - The report contains forward-looking statements subject to risks and uncertainties, including macroeconomic conditions, underwriting success, reinsurance availability, regulatory environment, and weather conditions270272274 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section details the company's exposure to market risks, primarily interest rate and credit risk, from its investment portfolios - The company's investment portfolios are primarily exposed to interest rate risk and credit risk, managed by BlackRock and overseen by SIC's investment committee275 Item 3. Quantitative and Qualitative Disclosures About Market Risk Data | Hypothetical Change in Interest Rates | Estimated Fair Value After Change (in thousands) | Change in Estimated Fair Value (in thousands) | Percentage Increase (Decrease) in Estimated Fair Value | |:---|:---|:---|:---| | 300 basis point increase | $408,283 | $(46,267) | (10.2)% | | 200 basis point increase | $423,698 | $(30,851) | (6.8)% | | 100 basis point increase | $439,120 | $(15,429) | (3.4)% | | 100 basis point decrease | $469,986 | $15,436 | 3.4% | | 200 basis point decrease | $485,429 | $30,880 | 6.8% | | 300 basis point decrease | $500,879 | $46,330 | 10.2% | - Credit risk is mitigated by investing primarily in fixed-maturity securities rated 'BBB' or higher and diversifying the portfolio, with a weighted average credit quality rating of AA- at June 30, 2025277 Item 4. Controls and Procedures This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025280 - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025281 PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits Item 1. Legal Proceedings This section states the company is involved in routine legal proceedings, but management expects no material adverse effect on financial condition - The company is subject to routine legal proceedings, but management does not expect a material adverse effect on its business, financial condition, or results of operations284 Item 1A. Risk Factors This section refers to the risk factors documented in the IPO prospectus and confirms no material changes to these risks - There have been no material changes to the company's risk factors since the filing of its final IPO prospectus on June 18, 2025285 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details the company's IPO completion, including shares sold, net proceeds, and confirms no material change in the planned use of proceeds - The company completed its IPO on June 18, 2025, issuing and selling 16.7 million common shares at $17.00 per share, generating net proceeds of approximately $263.5 million286 - The underwriters fully exercised their option to purchase an additional 3.6 million shares from selling stockholders on June 25, 2025, but the company did not receive any proceeds from these sales286 - There has been no material change in the planned use of proceeds from the IPO as described in the related prospectus287 Item 3. Defaults Upon Senior Securities This section states that there were no defaults upon senior securities during the reporting period - The company reported no defaults upon senior securities288 Item 4. Mine Safety Disclosures This section indicates that there are no mine safety disclosures required for the company - The company has no mine safety disclosures to report289 Item 5. Other Information This section confirms no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025290 Item 6. Exhibits This section lists the exhibits filed with the Quarterly Report, including corporate documents, executive certifications, and XBRL documents - Exhibits include the Amended and Restated Certificate of Incorporation and Bylaws, certifications of principal executive and financial officers, and Inline XBRL documents291