Company: SLDE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001193125-25-267339
Chunk: 7

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 3
Chunk 7
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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 September 30, 2025 ($ in thousands): 

     Hypothetical Change in Interest Rates
      
     EstimatedFair ValueAfter Change

     Change inEstimatedFair Value

     PercentageIncrease(Decrease) inEstimatedFair Value

     300 basis point increase
      
     $
     425,552

     $
     (49,051
     )

     (10.3
     )%

     200 basis point increase

     442,057

     (32,545
     )

     (6.9
     )%

     100 basis point increase

     458,408

     (16,195
     )

     (3.4
     )%

     100 basis point decrease

     490,642

     16,040

     3.4
     %

     200 basis point decrease

     506,527

     31,924

     6.7
     %

     300 basis point decrease

     522,254

     47,651

     10.0
     %

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