Company: SLDE
Filing Date: 2025-01-22
Form Type: DRS/A
Source: 0000950123-25-000502
Chunk: 118

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-01-22
Form: DRS/A
Chunk 118
---
189 at September 30, 2023 and from 199 at January 1, 2024 to 280 at September 30, 2024. Software and IT infrastructure expenses increased from
$4.3 million to $18.8 million for the nine months ended September 30, 2023 and 2024, respectively. This increase is attributed to increased software costs related to increased policies in force. Professional services expenses
decreased from $14.9 million to $12.9 million for the nine months ended September 30, 2023 and 2024, respectively. This decrease is attributed to reduced costs from third parties in servicing policies in force.

79

Interest expense.Interest expense increased from $1.3 million for the nine
months ended September 30, 2023 to $3.0 million for the nine months ended September 30, 2024. The increase was due primarily to the increase in outstanding debt.

Depreciation expense.Depreciation expense for the nine months ended September 30, 2023 and 2024 were $0.0 million and
$1,4 million, respectively. The increase was due primarily to increased expenses related to capitalized software in use.

Amortization expense. Amortization expense for the nine months ended September 30, 2023 and 2024 were $5.9 million and
$5.9 million, respectively, representing 2.0% and 1.0%, respectively, of net premiums earned. There was no change in amortization expense.

Other operating expense. Other operating expense for the nine months ended September 30, 2023 and 2024 were approximately
$0.0 million and $0.0 million, respectively. There was no change in other operating expenses.

Income tax expense.Income
tax expense was $18.8 million and $43.1 million for the nine months ended September 30, 2023 and 2024, respectively. Our effective tax rate for the nine months ended September 30, 2023 and 2024 was 25.75% and 25.50%,
respectively. The decrease in effective tax rate was due to an increase in tax-exempt investment income.

Ratios

Loss ratio. Our loss ratio increased from 43.8% for the nine months ended September 30, 2023 to 49.3% for the nine months
ended September 30, 2024