Company: SLDE
Filing Date: 2025-03-10
Form Type: DRS/A
Source: 0000950123-25-003025
Chunk: 14

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-03-10
Form: DRS/A
Chunk 14
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 strong population growth over the last decade amounting to over 17% since 2013. According to the Weldon Cooper Center for Public Service at the University of Virginia, the
state population is projected to further expand by 32% to approximately 29 million by 2040. As a result of this growth, there has been a sharp increase in the number of residential properties in the state. Combined with the recent inflationary
trends, this has driven an increase in the TIV of residential properties. This, along with inflationary trends and pullback of insurance capacity, has provided additional tailwinds to the homeowners and commercial residential insurance market in
Florida. As a result, the total homeowners’ premiums in Florida have grown from $8.4 billion in 2012 to $14.4 billion in 2022. We believe this trend will continue and accelerate top line growth for the foreseeable future.

Due to its location, Florida is exposed to an increased risk of hurricanes during the Atlantic hurricane season, which usually spans from
June 1 through November 30. Over the past 20 years, several significant hurricanes have made landfall in Florida—including Charley, Frances, Ivan and Jeanne (2004); Katrina, Rita and Wilma (2005); Irma (2017); Michael (2018); lan (2022);
Helene (2024) and Milton (2024). Consequentially, personal residential insurance and claims servicing are vitally important to Florida residents.

6

The Florida personal residential insurance market is highly fragmented and dominated by in-state specialists, including Citizens, Florida’s “insurer of last resort.” Citizens was created in 1992 through a combination of the Florida Residential P&C Joint Underwriting Association and
Florida Windstorm Underwriting Association in the aftermath of Hurricane Andrew, a category five hurricane that caused significant insured losses. The landfall of Hurricane Andrew led to significant dislocation in the Florida property insurance
market, which continued to accelerate following the 2004 and 2005 hurricane seasons.

As a result of this catastrophe risk and the
associated losses, large national carriers have reduced their share of the market in Florida from 62% in 1999 to 28% in 2022, creating a meaningful opportunity for the regional carriers. While the regional carriers are willing to increase their risk
exposure, most of them are unable to take advantage of the supply / demand imbalance due to their weak capitalization, prior accident year losses and reserve development concerns, and catastrophe retention