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

Management highlights

### Core Financial Performance and Business Model Strength - Management reports high execution in Q2 2026, highlighting the strength of Slide's tech-enabled coastal specialty insurance model, which has produced industry-leading top and bottom-line results. - Q2 results reflect strong underwriting discipline, lower than average catastrophe losses, and growing operating leverage as the business scales. - The company maintains one of the strongest balance sheets in the sector, providing financial flexibility for expansion and capital return. ### Geographic Expansion Update - In May 2026, Slide launched a residential property excess and surplus lines program in California, serving an underserved homeowner market. Growth is proceeding thoughtfully, with acceleration expected by the end of 2026. - The company recently received regulatory approval to enter Rhode Island and New Jersey, its fourth and fifth states of operation, expanding into the U.S. Northeast and demonstrating platform scalability beyond Florida. - Launch in New York is targeted for Q3 2026. At year-end 2026, the vast majority of in-force premium will still come from Florida, with material geographic diversification expected in 2027. ### Reinsurance Program Completion - Slide completed its 2026 catastrophe reinsurance program during Q2. On a risk-adjusted basis, the program achieved a double-digit year-over-year rate decrease while maintaining one of the strongest reinsurance towers in the company's history. - The first event reinsurance tower was increased by $1.4 billion compared to 2025, and total reinsurance capacity was expanded by over $2 billion, providing robust protection for the Atlantic hurricane season and safeguarding the balance sheet. - Slide buys reinsurance to an 180-year return period for first events, exceeding the 130-year industry standard in Florida, to better insulate the company from large shock losses. ### Capital Management Updates - The company repurchased approximately 3 million common shares in Q2 at a weighted average price of $17.95 per share, with $114.1 million remaining in the repurchase program authorization. - The Board of Directors approved the initiation of a quarterly cash dividend of $0.07 per share, marking a key milestone as a public company that complements the share repurchase program. - The balanced capital strategy prioritizes returning value to shareholders while retaining flexibility to fund growth initiatives and maintain strong balance sheet strength.

Guidance

Management reaffirmed its full year 2026 guidance, maintaining the prior outlook rather than raising guidance despite stronger than expected catastrophe loss experience in the first half of 2026. Management maintains a conservative approach to guidance, consistent with its historical guidance practices. Management expects full-year top-line results will land in or exceed the guided range, and full-year net income is also trending above the initial guided estimates. The decision to keep guidance unchanged is partially driven by reinsurance treaty terms: if in-force exposures end up significantly above the projections provided to reinsurers, the company would be required to make a true-up payment to reinsurers that would reduce net income, so management retains a cautious outlook.

Segment performance

Slide Insurance reports all performance as a single unified coastal specialty property insurance business, with no separate product segments disclosed in the transcript. For the full business in Q2 2026: Gross written premiums grew 16.7% year-over-year to $508 million; Total revenue increased 47.9% year-over-year to $386.8 million; Net income grew 92.4% year-over-year to $134.9 million, with diluted EPS of $1.06; Combined ratio improved 990 basis points year-over-year to 57.5%; Overall expense ratio was 27.4%, down from 30% in Q2 2025. For the first half of 2026, the combined ratio is 56.5% and return on equity is 23.8% (45% annualized).

Risks & headwinds

- Catastrophe loss risk remains a core risk for Slide's coastal-focused business, though the expanded 2026 reinsurance program mitigates this risk and protects the balance sheet from large shock loss events. - Reinsurance true-up risk: Excess growth in premium and exposures above the projections provided to reinsurers would result in additional required payments to reinsurers, which would negatively impact net income. - Competitive risk in Florida: While small new entrants have entered the market, management noted they have limited capital and reinsurance capacity and have not impacted Slide's top-line growth or profitability to date. No near or medium-term margin contraction from competition is expected. - Florida litigation risk: While Florida tort reforms have reduced litigation volume by nearly half, plaintiff attorneys still continue to file lawsuits, creating ongoing loss cost risk, though the reforms have eliminated the most impactful legal mechanisms that drove outsized litigation costs.

Analyst Q&A

• Q: What is the geographic split of premium that management expects at the end of 2026, after entering new markets in California and the Northeast? /

  A: New markets are still in their early nascent stage, with only a couple million dollars in written premium to date. Slide starts with small beta tests and scales gradually over quarters as it builds its agent network. The vast majority of full-year 2026 premium will still come from Florida, with material changes to geographic mix expected to occur in 2027 as new markets scale.

• Q: Why did you maintain full-year guidance despite better than expected catastrophe losses in the first half of 2026? Is this a deliberate conservative choice? /

  A: Yes, management has always maintained conservative guidance dating back to before the IPO, and chooses to retain this conservative approach here. Management is confident top-line will hit or exceed the guided range, and income is also trending above original estimates. However, the company slowed the pace of policy assumptions to align with the 2026 reinsurance treaty: if growth exceeds the projections shared with reinsurers, a material true-up payment would be owed that cuts into net income, so guidance remains unchanged to account for this uncertainty.

• Q: What impact are you seeing from recent Florida tort reforms on loss cost trends in your core Florida market? /

  A: Slide saw reduced loss costs starting immediately after the 2023 reforms, when it acquired a large portfolio of policies from insolvent UPC Insurance that could be reissued with new language aligned with the reforms. Litigation frequency has dropped sharply: Florida's share of all U.S. homeowner litigation has fallen from 79% to 39% as the reforms eliminated one-way attorney fees and assignment of benefits that enabled abusive litigation. While lawsuits are still filed, loss costs are lower and the market is currently stable.

• Q: How interested is Slide in pursuing M&A to accelerate expansion into new markets, given your strong balance sheet and excess capital? /

  A: Management is always evaluating M&A opportunities and has held discussions with multiple potential targets over the last six months, but has not completed any deals because seller price expectations remain too high. There are several attractive targets that would create significant combined value if acquired at the right price. In the interim, while waiting for the right opportunity, Slide is deploying excess capital via share repurchases and its newly initiated quarterly dividend to return value to shareholders.