Company: SLDE
Filing Date: 2025-06-18
Form Type: 424B4
Source: 0001193125-25-142810
Chunk: 159

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-06-18
Form: 424B4
Chunk 159
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 the sub-section“— Geographic Distribution” below includes both PIF and Locations. In contrast to personal residential policies, commercial policies commonly have multiple locations with distinct rating characteristics. In the sub-sections“— Distance to Coast”, “— Primary and Secondary Risk Characteristics”, locations are shown, not PIF, as a single commercial policy can contain more than one risk characteristic and would therefore, in management’s view, result in inaccurate PIF totals. The Company believes that the strong correlation between the primary and secondary characteristics of the assumed Citizens policies and the Company’s historical portfolio discussed below strongly supports the Company’s expectation that the financial performance of the assumed policies will approximate that of the rest of the Company’s portfolio and that therefore the Company’s historical financial performance is the best indicator of the amount, timing and probability of future cash flows and liabilities. Geographic Distribution The Company evaluates geographic distribution of Citizens’ policies to enhance balance of risks and to prevent unintended concentrations of risk. Concentrations of risk increase the risk of catastrophe losses and result in higher reinsurance costs. Accordingly, the Company often selects geographical distributions that differ from its existing distributions to enhance its spread of risk and reduce or maintain current reinsurance expenses. As part of its underwriting strategy, the Citizens policies selected by the Company generally have similar levels of geographic distribution as the Company’s existing policies in force and are selected in complimentary regions so as not to materially alter the geographic distribution of the Company’s policies in force. The Company uses geographic spread of risk and policy distribution to form opinions about policy distribution and the reinsurance costs associated with the portfolio. To determine the expected loss in a given geography, frequency of events (number of events) and severity of events (e.g., Category 5 wind speeds versus Category 1 wind speeds) are considered by the Company. Having a high frequency and high severity will on average produce more loss than a low frequency and low severity relative to comparable policies. This is where the Company’s catastrophe models come into consideration, as they take into account both frequency and severity of events. When Florida is the first landfalling area in the catastrophe model the Company licenses, 34% of all events make landfall in Monroe or Miami-Dade counties and 37% of the major hurricanes (i.e., Category 3, 4 and 5) are in those two counties. In contrast, the four most Western counties in the Florida Panhandle (Escambia, Santa Rosa, Okaloosa, and Walton) make up 9% of all hurricanes and 7% of