Company: SLDE
Filing Date: 2025-06-18
Form Type: 424B4
Source: 0001193125-25-142810
Chunk: 277

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-06-18
Form: 424B4
Chunk 277
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 ASC 944-20-20definition of reinsurance includes “assumption 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 and the policies acquired from St. Johns Insurance Company in 2022 and United Property Casualty Company in 2023 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 944-20-15-41 as 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 944-20-05-3 simply 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-insurers is 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 similar to direct written premiums. The Company believes its treatment is reasonable based on analogy to the following guidance:

| • |     | ASC 944-30-35-52 provides the following for contract modifications: “Similar to traditional long-duration    
 contracts as discussed beginning in paragraph 944-30-35-46 a revision to a short-duration contract is viewed |

F-40

Slide Insurance Holdings, Inc. Notes to Consolidated Financial Statements For the years ended December 31, 2024 and 2023 (Dollar amounts in thousands, except share and per share amounts, unless otherwise stated)

| as a prospective revision with future recognition of unearned premium and amortization of unamortized deferred acquisition costs adjusted, accordingly, on a prospective basis.” This is 
 consistent with the Company