Slide Insurance Holdings, Inc. Common Stock (SLDE) Earnings

Management highlights

- Started 2026 with strong execution across business, tech-enabled coastal specialty focus. - Meaningfully grew gross written premiums by 49% year over year to $414.8 million. - Grew net income by 51% year over year to $139.5 million, new quarterly record. - First quarter return on equity strong at 12.5% and 50% annualized. - Strategically capitalizing on citizens' depopulation efforts, selectively pursuing citizens' policies. - Geographically expanding, with South Carolina delivering robust voluntary sales, planning diversification in multiple states. - Completing 2026 reinsurance program, expecting completion in next 1-2 weeks, increased first event reinsurance tower by $1 billion. - Completed $120 million stock repurchase program, board authorized new $125 million program, repurchased shares and returned capital to shareholders. - Strong financial performance leading to ample capital flexibility, confident in business plan and share repurchase program supporting best-in-class returns on equity.

Guidance

- Reaffirmed full year 2026 guidance provided on February earnings call. - Expect gross written premiums between $1.85 billion and $1.95 billion. - Expect net income between $455 million and $470 million. - Top line growth expected from sustained organic expansion, including double digit increases in policies in force and premium outside of Florida, supplemented by selective opportunities in Florida meeting targeted returns.

Segment performance

For the first quarter of 2026, gross written premiums grew 49% year over year to $414.8 million. Net income rose 51% year over year to $139.5 million. Return on equity was 12.5% in the first quarter and 50% annualized. Combined ratio improved to 55.5% from 58.9% in the prior year quarter. Gross premiums written reached $414.8 million, up 49.1% from the first quarter of 2025. Net losses and loss adjustments expenses totaled $111.1 million in the quarter compared to $83.8 million in the prior year period, with accident year loss ratio improving to 28.4% from 34.2%. Policy acquisition and other underwriting expenses rose to $44.1 million from $28.6 million, general administrative expenses increased to $46.2 million from $41.4 million, resulting in an overall expense ratio of 25.1% down from 27.4% in the prior period and combined ratio of 55.5%.

Risks & headwinds

- Forward-looking statements subject to various assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially. - Risks and uncertainties impacting future operating results and financial conditions detailed in earnings release and recent SEC filings.

Analyst Q&A

• Q: Just to follow up on the reinsurance commentary, wanted to check on model PML loss and risk profile.

  A: Everything scales in tandem, increased first event reinsurance tower by $1 billion, tower at approximately $3.5 billion of first event coverage, proportionately identical to last year.

• Q: Follow up on reinsurance costs and impact on loss ratio.

  A: No external quota share, reinsurance is single largest expense, decrease in reinsurance pricing good for Florida market, but underlying loss ratio unchanged as only quota share is internal.

• Q: Broader question about citizens' takeouts, why confident and advantage over peers.

  A: Citizen's opportunity not as robust as prior years, focused on profitability, growth not reliant on citizens this year, voluntary growth in new states is real story for 2026, underwrite with $6 trillion TIV underwriting set, PROCAST gives advantage to find accretive policies.

• Q: Additional color on competitive environment, why no rush of competitors.

  A: New entrants have small balance sheets, have to scale, build systems, hire people, loss lead, not seeing new capital flow in, some companies not able to raise necessary funds.

• Q: If major CAD event repeats, impact on net income.

  A: Event like Helene has virtually zero impact, event like Milton has larger impact, consistently capped retention to no more than 25% of pre-tax earnings, retention spread out across large reinsurance tower.

• Q: Details on second and third event loss pretensions.

  A: Expect something similar to last year, step down retentions on event two, buy third event cover, rarity in Florida market.

• Q: Which is larger contributor to new business growth in 2026, citizens takeouts or voluntary channels.

  A: Voluntary is larger channel.

• Q: Pace and composition of top line growth for rest of the year.

  A: Expect top line to steadily increase, launch of new products, new states, navigate within reinsurance tower, acceleration particularly in third and fourth quarters.

• Q: PYD or CAT in loss ratio in the quarter.

  A: Had some relatively minor events in first quarter, no PYD, earnings number 100% quarterly function with no PYD.

• Q: Cash balance and investment income.

  A: Cash balance high due to strong profitability, working with financial advisors to reinvest in higher-yielding assets, but underwriting still a high-yield area.

• Q: Views on new states expansion, most attractive.

  A: Definitely California, launch imminent, New York and New Jersey still accretive due to capacity shortfall and reinsurance synergies, not concerned about New York profit caps as premium in New York small.

• Q: Comment on capital return and buybacks.

  A: Always looking for highest return on equity, first prioritizing business plan opportunities, then excess cash, buying back stock at attractive valuations as stock trading at discount to fair value, will continue buybacks as long as dislocation exists.