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    SLDE
    Earnings call· Jun 2026(Q2 FY26)

    Slide Insurance Holdings Q2 FY26 earnings call SLDE

    Jul 29, 2026 Source

    Executive summary

    Slide Insurance Q2 FY26 — Strong Growth, Profitability, and Capital Returns

    Slide Insurance delivered strong Q2 FY26 results, driven by robust premium growth and significant profitability improvements, including a 92.4% increase in net income. The company expanded its geographic footprint with new market entries and enhanced its capital structure through a new quarterly dividend and continued share repurchases, while maintaining a conservative outlook amidst reinsurance program management.

    Highlights

    5

    • Gross written premiums grew by 16.7% year-over-year to $508 million.

    • Net income increased by 92.4% year-over-year to $134.9 million.

    • Diluted earnings per share reached $1.06.

    • Combined ratio improved to 57.5%, reflecting underwriting discipline and lower catastrophe losses.

    • Launched residential property E&S program in California and received regulatory approval for Rhode Island and New Jersey.

    Concerns

    3

    • Pace of Citizens assumption slowed to bind the 2026 reinsurance treaty, impacting near-term growth from this channel.

    • Potential for a substantial true-up payment to reinsurers if actual exposures exceed initial projections.

    • M&A activity is ongoing but price expectations from target companies remain too high, hindering deal closures.

    Guidance & targets

    3
    CategoryTargetConfidence
    Gross Written Premiums
    $1.85 billion and $1.95 billion
    high materiality
    High
    Net Income
    $455 million and $470 million
    high materiality
    High
    Expense Ratio
    around $28 million
    medium materiality
    Medium

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    California
    Residential property E&S program launched in May. Growth is expected to accelerate towards the end of the year after a thoughtful initial underwriting approach.
    Premium: $2 million (approximate)
    		————

    Operational metrics

    14
    Diluted EPS
    $1.06
    Q2 FY26

    Reported diluted earnings per share for the quarter.

    Total Revenue
    $386.8 millionup 47.9% YoY from $261.6 million
    Q2 FY26

    Total revenue for the second quarter.

    Net Premiums Earned
    $360.6 millionup 47.9% YoY from $243.9 million
    Q2 FY26

    Net premiums earned for the second quarter.

    Net Losses and Loss Adjustment Expenses
    $108.7 millionvs $91.4 million YoY
    Q2 FY26

    Net losses and loss adjustment expenses incurred in the quarter.

    Policy Acquisition and Other Underwriting Expenses
    $42.3 millionrose from $32.1 million YoY
    Q2 FY26

    Increase driven by strong top-line growth.

    General and Administrative Expenses
    $55 millionincreased from $37.9 million YoY
    Q2 FY26

    Increase primarily due to higher staffing levels supporting growth.

    Expense Ratio
    27.4%down from 30% YoY
    Q2 FY26

    Overall expense ratio for the quarter, reflecting operating leverage.

    Cash and Cash Equivalents
    $1.24 billion
    as of June 30, 2026

    Balance of cash and cash equivalents at quarter-end.

    Total Invested Assets
    $839.1 million
    as of June 30, 2026

    Consisting primarily of fixed maturity securities available for sale.

    Accident Year Loss Ratio
    30.2%improved from 37.2%
    Q2 FY26

    Improvement primarily due to overall loss experience, including $8.8 million in convective storm losses.

    First Event Reinsurance Tower Increase
    $1.4 billion
    2026 vs 2025

    Increase in the first event reinsurance tower compared to the prior year.

    Total Reinsurance Capacity Expansion
    over $2 billion
    2026

    Overall expansion of total reinsurance capacity.

    Risk-Adjusted Reinsurance Rate Decrease
    double-digit
    2026 vs 2025

    Achieved a double-digit risk-adjusted rate decrease on the 2026 cat reinsurance program.

    Florida Homeowner Litigation Share
    39%down from 79% in 2020
    Current

    Reflects the impact of tort reforms in Florida, reducing the proportion of US homeowner litigations originating from the state.

    Industry KPIs

    7
    MetricValueDetails
    Combined ratio57.5%%
    Capital returns$114.1 millionUSD
    ROE operating ROE11.7%%
    Catastrophe losses$8.8 millionUSD
    Retention persistency—
    Net premiums written earned$508 millionUSD
    Prior year reserve development$0USD

    Product announcements

    4
    ProductTypeDetails
    Residential Property E&S Programlaunch
    Rhode Island Market Entryexpansion
    New Jersey Market Entryexpansion
    New York Market Entryroadmap

    Risks & headwinds

    4
    Reinsurance True-Up PaymentsOngoing

    Substantial true-up payment

    Mitigation: Managing exposures to align with projections given to reinsurers; more expensive to true-up than to buy upfront.

    High M&A Target Price ExpectationsOngoing

    Price expectation from the target is simply too high

    Mitigation: Continuing to seek meaningful acquisition targets with appropriate deal metrics; deploying capital through buybacks and dividends in the interim.

    Competition from New EntrantsNear-term

    Couple of new entrants that squeaked in with the very minimum of capital

    Mitigation: Not seeing significant impact to top line as new entrants lack underwriting capacity and reinsurance until after hurricane season; core competitive group remains stable.

    Plaintiff Attorney ActivityOngoing

    Plaintiff attorneys are still filing lawsuits every day

    Mitigation: Florida tort reforms have removed legal mechanisms (one-way attorney fees, assignment of benefits) that allowed outsized benefits, stabilizing the market.

    What to watch in Q3 FY26

    5

    California E&S Growth Acceleration

    Towards the end of the year
    CurrentCouple of million of premium
    TargetAccelerated growth

    Why it matters

    Indicates successful execution of geographic expansion strategy and potential for significant new market contribution.

    As we have been in the state for a couple of months, we are taking a thoughtful approach to underwriting new policies, and we expect to accelerate our growth within California towards the end of the year.

    Q&A highlights

    5

    What is the cost of the 2026 reinsurance program relative to the prior year's $431 million, considering the growth?

    Management stated it's difficult to provide an exact apples-to-apples comparison due to significant growth, but confirmed a double-digit risk-adjusted rate decrease on reinsurance.

    “Well, it's hard to do an apples-to-apples, Tommy, because we've had so much growth over the last year. What I can tell you is that on a risk-adjusted basis, we saw reinsurance rate declines that were double digit.”

    asked by Tommy McJoynt · answered by Bruce Lucas

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Profitability

    Slide Insurance reported a robust second quarter, with net income surging 92.4% year-over-year to $134.9 million and diluted EPS reaching $1.06. The company's combined ratio improved significantly by 990 basis points year-over-year to 57.5%, driven by underwriting discipline and lower catastrophe losses. For the first six months of 2026, the combined ratio stood at 56.5%, contributing to an annualized return on equity of 45%.

    02

    Geographic Expansion and Market Entry

    The company continued its strategic expansion, launching a residential property Excess and Surplus (E&S) lines program in California in May, addressing an underserved homeowners market. Slide also secured regulatory approval to enter Rhode Island and New Jersey, marking its fourth and fifth states of operation. This expansion into the Northeast U.S. highlights the scalability of its platform and ability to identify attractive opportunities outside its core Florida market.

    03

    Reinsurance Program Strengthening

    Slide completed its 2026 catastrophe reinsurance program, achieving a double-digit year-over-year risk-adjusted rate decrease. The program significantly enhanced protection, increasing the first event reinsurance tower by $1.4 billion compared to 2025 and expanding total capacity by over $2 billion. This robust reinsurance structure is designed to safeguard the balance sheet against catastrophe events, with a return period well in excess of market standards.

    04

    Capital Management and Shareholder Returns

    The company demonstrated a balanced approach to capital management, repurchasing approximately 3 million shares of common stock at a weighted average price of $17.95 per share during the quarter. Furthermore, the Board of Directors approved the initiation of a quarterly cash dividend of $0.07 per share, reflecting confidence in the company's earnings power, free cash flow generation, and strong capital position. This dividend complements the ongoing share repurchase program.

    05

    Impact of Florida Legal Reforms

    Management noted continued positive impacts from Florida's legal reforms, observing reduced loss costs since early 2023. The litigation environment has improved, with the proportion of homeowner litigations stemming from Florida decreasing from 79% in 2020 to approximately 39% currently. While plaintiff attorneys continue to file lawsuits, the absence of one-way attorney fees and assignment of benefits has stabilized the market and reduced outsized benefits for policyholders.

    AI-generated summary of the company’s earnings call. Not investment advice.