Slide Insurance (NASDAQ:SLDE) reported third-quarter net income of $138.2 million, up 24.5% from $111 million a year earlier, as growth in voluntary policies and new markets supported premium expansion. Diluted earnings per share were $1.09, while gross written premiums rose 9.3% to $506.5 million.
Chairman and Chief Executive Officer Bruce Lucas said the company’s third-quarter return on equity was about 11%, or approximately 44% on an annualized basis. Slide reported a combined ratio of 59.3% and an accident-year combined ratio excluding catastrophe losses and prior-period reserve development of 54.4%.
Premium Growth and Underwriting Results
Total revenue increased 35.9% year over year to $361.1 million, driven by a 37.1% increase in net premiums earned to $333.3 million. Chief Financial Officer Andy Omiridis said net premiums earned can vary from quarter to quarter because of the timing and volume of Citizens depopulations completed in earlier periods and their place in the policy earning cycle.
Net losses and loss adjustment expenses totaled $101.3 million, including $34.2 million of catastrophe losses related to convective storms in Florida. The catastrophe loss ratio was 10.3%, compared with no catastrophe loss ratio in the year-earlier quarter.
Slide also recognized $18 million of favorable prior-period reserve development, compared with $32.5 million a year earlier. Its accident-year loss ratio, excluding catastrophe losses and prior-period reserve development, improved 200 basis points to 25.5%.
Policy acquisition and other underwriting expenses increased to $46.2 million from $36.4 million, primarily due to higher acquisition costs associated with growth. General and administrative expenses rose to $48.8 million from $45 million as the company invested in personnel and infrastructure for expansion.
Despite those investments, Slide’s expense ratio improved to 28.9% from 34.8%, a 590-basis-point improvement. Lucas said some costs associated with technology, staffing and geographic expansion were front-loaded in earlier periods, while Omiridis said the company expects expense ratios to flatten as the organization gains scale. Management said it expects an expense ratio of roughly 28.5% to 29% for the full year.
Expansion Beyond Florida
Lucas said Slide’s California residential property excess and surplus program, launched in May, continues to ramp up. The company expects to accelerate its California growth through the remainder of 2026 and into 2027.
Slide also began writing residential business in Texas during the third quarter and said it remains on track to launch operations in New York and New Jersey in coming quarters. Lucas said the expansion reflects the scalability of the company’s platform and its ability to pursue markets where it sees prospects for growth and returns.
Looking ahead to 2027, Omiridis said the company expects at least 8% to 9% growth, with potential additional contributions from new territories. He cautioned that regulatory approvals can affect how quickly new markets ramp. Management expects growth next year to be more weighted toward the second half, in part because of state launch timelines and the need to align growth with catastrophe reinsurance planning.
Lucas said competition remains present in both Florida and markets outside the state, but management has not seen conditions it considers outsized or problematic. He also said expansion beyond Florida can provide reinsurance synergies that support the company’s growth model.
Hurricane Isaias and Updated Outlook
In the fourth quarter, Hurricane Isaias made landfall near the Florida-Alabama state line as a Category 2 storm, according to Lucas. Slide expects approximately $50 million of pre-tax retention losses, although Lucas said it was too early to determine the final amount.
Lucas said Slide has limited concentration in the Florida Panhandle, though it has some commercial residential business and affected policyholders in the area. He characterized the company’s estimate as conservative and said Slide does not expect the storm to generate significant retention losses. He also said the insurer does not expect to report a loss to its reinsurance panel from the event.
Slide raised the lower end of its 2026 gross written premium outlook to a range of $1.9 billion to $1.95 billion, from previous guidance of $1.85 billion to $1.95 billion. The company also increased its full-year net income outlook to $500 million to $520 million, compared with prior guidance of $455 million to $470 million. The updated earnings outlook includes up to $50 million of expected pre-tax Hurricane Isaias losses.
Management said the revised outlook implies a full-year return on equity above 40%.
Capital Position and Shareholder Returns
As of Sept. 30, Slide held $700.6 million in cash and cash equivalents and $849.8 million in total invested assets, primarily available-for-sale fixed maturity securities.
During the quarter, the company closed a $1.1 billion credit facility, replacing its prior credit agreement. Lucas said the facility was the largest ever issued to a coastal property insurer and provides flexibility for general corporate purposes, expansion outside Florida and potential strategic mergers and acquisitions.
Lucas said management has seen an increase in M&A activity across public and private companies, though he emphasized that any transaction would depend on price discipline. He also said expectations for future reinsurance pricing are contributing to a more favorable market backdrop for growth.
Slide’s board approved a special cash dividend of $1.50 per share in addition to its regular quarterly cash dividend of $0.07 per share. Since its June 2025 initial public offering, the company has returned approximately $423.1 million to shareholders through dividends and repurchases, according to Lucas.
The company repurchased $230.9 million of stock at an average weighted price of $17.28 per share and paid approximately $192.2 million in dividends. Omiridis also said Slide expects its effective tax rate to remain around 21.5% to 22% under its current tax strategy.
About Slide Insurance (NASDAQ:SLDE)
Slide Insurance Holdings, Inc is a technology-enabled property and casualty insurance company focused primarily on residential homeowners insurance. Through its digital platform, the company uses data, automation and analytics to support the quoting, underwriting, policy administration and claims processes.
Slide offers homeowners coverage designed to protect residential properties and personal belongings against covered risks, along with related liability protection and optional coverage features.
