Company: SLDE
Filing Date: 2025-04-25
Form Type: DRS/A
Source: 0000950123-25-003716
Chunk: 10

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-04-25
Form: DRS/A
Chunk 10
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our obligations, we strategically purchase reinsurance from third parties to protect our capital base from severity events related to severe convective storms and hurricanes. At peak hurricane season, estimated as of September 30, 2024, we purchased
catastrophe excess of loss reinsurance to the 194-year return period, well in excess of the 130-year return period primarily used in Florida and required by our rating
agency and regulators. As of June 1, 2024, 100% of our private reinsurance counterparties were either fully collateralized or reinsurers rated “A-” (Excellent) by A.M. Best, or better. All
reinsurance we purchase is on an excess of loss basis and covers all perils, except for FHCF and our multi-year catastrophe bond program, which is limited to covering named storms. We treat our reinsurers as long-term partners. As such, we target
underwriting profitability on a gross basis, before utilization of reinsurance, to ensure consistent support from our

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reinsurance partners and to protect ourselves from changes in the reinsurance market. Based upon catastrophe modeling, at the peak of the 2024 hurricane season, we estimate it would take an event
beyond our 1-in-194-year probable maximum loss (“PML”) to exhaust our catastrophe coverage. We currently seek to retain
no more than 25% of our annual pre-tax earnings from a first-event catastrophic loss that is below the top of our reinsurance program. We believe that our reinsurance program provides more robust coverage for
catastrophic events compared to our competitors.

Our sophisticated modeling and large insurance dataset allows us to consider prospective
reinsurance costs in our underwriting decisions, ensuring that we target profitable policies aligned with our reinsurance program. We include assumptions on individual policies and the prospective impact of each additional risk on our PML and
expected reinsurance costs, which combined with multi-year reinsurance capacity limits uncertainty and unexpected increases in future reinsurance costs. We also have a robust per risk and facultative reinsurance program that protects against shock
losses above $700,000. This enhanced protection allows us to write higher value homes with higher premiums and profit margins.

Fully integrated and disciplined underwriting approach focused on delivering strong and consistent returns

We are focused on delivering strong and
consistent underwriting results, with a proven track record of profitability. We believe our proprietary AI-driven data analytics and underwriting process allows us to better select insurance policies,
including those we