Company: SLDE
Filing Date: 2025-06-18
Form Type: 424B4
Source: 0001193125-25-142810
Chunk: 15

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-06-18
Form: 424B4
Chunk 15
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 of approximately 4% after just two years in operation. Recent legislative changes combined with our position as a leading and well-capitalized carrier within the Florida market positions us well to continue our growth through the acquisition
of additional Citizens policies.

Recent Florida legislative developments

In recent years, the Florida homeowners’ and commercial residential landscape experienced unprecedented social inflation resulting from
outsized attorney fees and AOB abuse whereby insurers were generally unprotected from frivolous claims and litigation abuses. The two main drivers of the abuse were AOBs, a process that assigns the homeowner’s insurance claim to contractors who
can then inflate the claim, and Florida’s unique one-way attorney fee statute that required insurance companies to pay the plaintiff’s attorney fees, which were regularly inflated, if the plaintiff
recovered any amount from the insurance company. The combination of these two factors, together with hurricane losses from Irma and Michael, resulted in a dramatic increase in claim frequency, severity, litigation and litigation expenses that
negatively impacted the Florida market, caused

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widespread underwriting losses, significant increases to reinsurance pricing, a decline in underwriting capacity and numerous Florida insurer insolvencies. As a result of the deteriorating market conditions, Florida passed comprehensive reforms to improve the Florida insurance market. Through a special session held in May 2022, the legislature passed Senate Bill 2D and Senate Bill 4D to specifically address a number of these issues. Key items in this legislation (i) included a new $2 billion reinsurance program which allowed insurers to obtain reimbursement for hurricane losses below the FHCF retention limits, (ii) introduced stricter standards for the award of higher attorney fees in property insurance litigation, (iii) created more stringent requirements for AOB and made it possible for a carrier to recover attorney fees when they had a suit dismissed and (iv) created a statutory exception to the Florida building code, making it possible to repair certain roofs instead of replacing them. Subsequently, in December 2022, the Florida Legislature passed Senate Bill 2-Awhich had the effect of (i) eliminating one-wayattorney fees for property claims, (ii) prohibiting AOB, (iii) shortening the time to file/reopen claims from two years to one year, (iv) eliminating attorney fee multipliers and (v) making it more difficult to allege bad faith in insurance suits. These historic tort reforms have significantly improved market conditions in Florida. However, these measures remain subject to future challenges from interested parties. Removing policies from Citizens has been difficult historically