Company: SLDE
Filing Date: 2025-01-22
Form Type: DRSLTR
Source: 0000950123-25-000503
Chunk: 1

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-01-22
Form: DRSLTR
Chunk 1
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 you note that the acquired policies are subsequently accounted for following the general revenue recognition policy disclosed on page F-35 of the amended                                      
 draft registration statement. Please tell us how you initially recognize and measure the acquired policies, such as an explanation of any contractual assets or liabilities that are recognized as part of the acquired policies and how they are 
 measured. Please revise your disclosure as appropriate and tell us the authoritative guidance upon which you relied.                                                                                                                              |

Response:The Company respectfully acknowledges the Staff’s comment and has revised its disclosure on pages F-8and F-29of Submission No. 4. The Company considered the Citizens assumed policies as reinsurance accounting as indicated by the ASC 944-20-20definition of reinsurance includes “[a]ssumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity’s liability to the policyholder”. Further, guidance at ASC 944-20-15-37a.indicates reinsurance accounting applies to any “transaction…whose individual terms indemnify an insurer against loss or liability relating to insurance risk. That is, all contracts, including contracts that may not be structured or described as reinsurance, shall be accounted for as reinsurance if those conditions are met.” The Citizens policies assumed are short-duration contracts under ASC 944 as the original and remaining policy periods is one year or less. The Company meets the conditions of ASC 944-20-15-41as it completely assumes the insurance risk of the policy going forward with the policyholder, and as such the Company has risk of significant loss as it has assumed all aspects of the policy going forward. ASC 944 is generally silent on the accounting for an assumed reinsurance contract. ASC 944-20-05-3simply notes: “Four methods of premium revenue and contract liability recognition for insurance contracts have developed: short-duration contract accounting and three methods of long-duration contract accounting…. Generally, the four methods reflect the nature of the insurance entity’s obligations and policyholder rights under the provisions of the contract.” The Company views assuming insurance risk from another insurer or from non-insurersis economically the same, and thus would follow the same short-duration contract accounting as its direct written premiums. The Company accounts for the unearned premium pro rata over the remaining policy period as discussed in its Note 1 “Revenue Recognition” section, similar to direct written premiums. The Company believes its treatment is reasonable based on analogy to the following guidance:

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 944