Company: SLDE
Filing Date: 2025-06-18
Form Type: 424B4
Source: 0001193125-25-142810
Chunk: 152

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-06-18
Form: 424B4
Chunk 152
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insurance

We
strategically purchase reinsurance to limit exposure to catastrophic events and protect our capital base from severe convective storms and hurricanes. Reinsurance is an important part of our risk management strategy and premiums paid to reinsurers
is our single largest cost. We seek a diversified portfolio of reinsurance with the use of traditional reinsurance capacity, utilization of the FHCF and the use of multi-year catastrophe bonds. All reinsurance we purchase is on an excess of
loss basis and covers all perils. We currently purchase 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 recoverables were either fully collateralized or derived from reinsurers rated
“A-” (Excellent) by A.M. Best, or better.

Our annual reinsurance program, which is
segmented into layers of coverage, protects us for excess property catastrophe losses and loss adjustment expenses. In placing our reinsurance program, we seek to obtain multiple years of coverage for certain layers through multi-year reinsurance
agreements. We believe this limits uncertainty on reinsurance coverage and pricing. 61% of our 2024 reinsurance program, excluding the FHCF, was on a multi-year basis.

The FHCF is a tax-exempt state trust fund under the supervision of the Florida State Board of
Administration. The fund is operated with the objective of maintaining adequate homeowners and commercial residential insurance capacity within the state of Florida. Participation in FHCF is mandatory for Florida domestic residential property
insurers. The fund provides excess of loss coverage below the cost that would be provided for similar coverage within the private market.

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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 reinsurance partners and to protect ourselves from changes in the reinsurance market. Our sophisticated modeling and large database allow 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. Based upon catastrophe modeling, it would take an event beyond our 1-in-194-yearPML