Company: SLDE
Filing Date: 2025-06-09
Form Type: S-1/A
Source: 0001193125-25-137410
Chunk: 16

Company: Slide Insurance Holdings, Inc.
Filing Date: 2025-06-09
Form: S-1/A
Chunk 16
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 Hurricane Andrew led to significant dislocation in the Florida property insurance market, which continued to accelerate following
the 2004 and 2005 hurricane seasons.

As a result of this catastrophe risk and the associated losses, large national carriers have reduced
their share of the market in Florida from 62% in 1999 to 28% in 2022, creating a meaningful opportunity for the regional carriers. While the regional carriers are willing to increase their risk exposure, most of them are unable to take advantage of
the supply / demand imbalance due to their weak capitalization, prior accident year losses and reserve development concerns, and catastrophe retention costs. In addition, besides Slide, no significant new capital has entered the market recently to
take advantage of this market dislocation.

When private carriers reduce their exposure in Florida, Citizens steps in to provide personal
homeowners and commercial residential insurance to Florida residents. As a result, following the events of 2004 and 2005, Citizens’ policy count grew from roughly 810,000 in 2005 to a peak level of approximately 1.5 million in late 2011.
In 2012, Citizens reformed its takeout process to increase private market participation. Citizens reforms combined with a multi-year decline in reinsurance rates and no hurricane losses in Florida increased the demand for Citizens takeouts, allowing
its policy count to drop to a low of 427,000 in 2018. Market conditions began to decline following Hurricanes Irma and Michael, resulting in rising reinsurance costs. These increasing costs, combined with a significant increase in Assignment of
Benefits (“AOB”) and the perception of litigation abuse by Florida’s trial bar resulted in Citizens’ policy count beginning to rise; by 2023 it had reached 1.4 million policies. For the year ended December 31, 2023,
Citizens was the largest homeowner insurance provider in Florida by direct premiums written, with a market share of approximately 25%. For the same period, we ranked 6 in Florida, with a market
share of approximately 4% after just two years in operation. Recent legislative changes combined with our position as a leading and well-capitalized carrier within the Florida market positions us well to continue our growth through the acquisition
of additional Citizens policies.

Recent Florida legislative developments

In recent years, the Florida homeowners’ and commercial residential landscape experienced unprecedented social inflation resulting from
outsized attorney fees and AOB abuse whereby insurers were generally unprotected from frivolous claims and litigation abuses. The two main