Company: SLDE
Filing Date: 2025-04-28
Form Type: DRSLTR
Source: 0000950123-25-003800
Chunk: 3

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-04-28
Form: DRSLTR
Chunk 3
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 have when they renew. All of the policies selected by the Company are annual policies which are rewritten at the Company’s rates using the Company’s coverage and forms within a year. The Company reunderwrites the policies assumed before sending an offer to the policyholder. For example, the Company will review age of roof, age of home, roof material, roof shape, secondary modifiers, reported loss history, value of the structure, distance to coast, building code effectiveness grading schedule grades, and numerous other property characteristics. This often results in a different offer of insurance and price by the Company vs. Citizens. Policyholders are free to accept or reject the Company’s offer of a new Slide policy using Slide’s forms and rates. The Company’s offer of coverage is usually more expensive than the premium paid by the policyholder to Citizens. The Company’s ability to renew each policy can vary from date to date and takeout to takeout. Some policies selected by the Company have a good renewal rate; other policies selected at other dates may have a renewal rate that is 50% lower. Each policy selected is unique and has unique renewal rates based on market conditions and the Company’s new offer of coverage using the Company’s forms and rates. Accordingly, we respectfully submit that the nature of the revenue producing activity is therefore quite different when the policies acquired are rewritten by a private for-profitinsurer. It is not just the revenue producing activity that is quite different but also the financial performance. As noted in the Financial Reporting Manual, “[a] ”business“ for purposes of S-X 3-05is identified by evaluating whether there is sufficient continuity of operations so that disclosure of prior financial information is material to an understanding of future operations”. We respectfully submit that the historical financial performance of the policies written by Citizens at different rates with different coverage is not material to an investor’s understanding of the Company’s future operations. There is no correlation between the performance of the acquired policies at Citizens vs. their performance with the Company. Citizens is a regulated not-for-profitgovernment entity with different underwriting criteria, forms, rates, reinsurance costs, reinsurance structures, general and administrative expenses, claims handling, policyholder assessments, agent commissions, reinsurance brokerage expenses, renewal rates, loss ratios, and tax rates. There is no meaningful continuity of operations between Citizens and the Company, and combining the Company’s results with those of the policies acquired from Citizens would be misleading to investors.

| CONFIDENTIAL |

Admittedly, if one were to consider the policies acquired to be a “