Slide Insurance Holdings, Inc.
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
SLDE$25.94-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001193125-26-197194
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001193125-26-326333
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 144 previous paragraphs and 170 current paragraphs.
101 unchanged; 39 reworded; 14 added; 4 removed; 0 previous and 16 current paragraphs rearranged.
Tables are not compared: 11 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Total revenue. Total revenue increased to $386.8 million for the three months ended June 30, 2026 from $261.6 million for the three months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies.
Current report
Combined ratio. Our combined ratio decreased to 57.6% for the three months ended June 30, 2026 from 67.4% for the three months ended June 30, 2025, primarily due to a decrease in overall loss experience, and scaling impact in net earned premium growth with more moderate operating expense growth.
Current report
Return on equity. Our return on equity increased to 11.7% for the three months ended June 30, 2026 from 10.0% for the three months ended June 30, 2025, primarily due to the IPO proceeds.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Revenue
Current report
Net premiums earned. Net premiums earned increased to $726.5 million for the six months ended June 30, 2026 from $509.9 million for the six months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies, offset by higher reinsurance costs directly related to the growth of the portfolio.
Current report
Total revenue. Total revenue increased to $776.1 million for the six months ended June 30, 2026 from $543.2 million for the six months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies
Current report
General and administrative expenses. General and administrative expenses for the six months ended June 30, 2026 and 2025 were approximately $101.2 million and $79.3 million, respectively, representing 13.9% and 15.6%, respectively, of net premiums earned. The increase was due primarily to the growth in staffing and technology to support the Company’s strategic growth initiatives. Personnel count increased to 627 at June 30, 2026 from 422 at June 30, 2025.
Current report
Ratios
Current report
Loss ratio. Our loss ratio decreased to 30.3% for the six months ended June 30, 2026 from 34.3% for the six months ended June 30, 2025, primarily due to a decrease in overall loss experience.
Current report
Expense ratio. Our expense ratio decreased to 26.2% for the six months ended June 30, 2026 from 28.6% for the six months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Current report
Policy acquisition expense ratio. Our policy acquisition expense ratio remained consistent at 11.9% for the six months ended June 30, 2026 and 2025.
Current report
Our return on tangible equity increased to 11.7% for the three months ended June 30, 2026 from 10.1% for the three months ended June 30, 2025, primarily due to the IPO proceeds.
Current report
Under the terms of the Credit Facility, borrowings bear interest at an annual rate equal to the three-month Secured Overnight Financing Rate (“SOFR”) based on the consolidated leverage ratio as defined in the agreement. The interest payment is due quarterly in arrears on the last business day of each quarter. The Credit Facility contains affirmative and negative covenants as well as customary events of default. In addition, the Company must comply with certain financial and non-financial covenants and agree to pay a fee equal to the product of the unused line fee rate and the average of the daily unused available credit balances of the revolving credit facility. The unused line fee rate is 0.5%. The Credit Facility matures on June 25, 2029.
Removed paragraphs (4)
Previous report
We have one reportable segment, insurance. See the below table for a summary of gross premiums written, policy fees, total revenue, combined ratio, return on equity, and return on tangible equity(1) for the three months ended March 31, 2026 and 2025 and the year ended December 31, 2025, and the total assets, shareholders' equity and tangible shareholders' equity(1) as of March 31, 2026 and December 31, 2025.
Previous report
Expenses
Previous report
Total revenue. Total revenue increased to $389.3 million for the three months ended March 31, 2026 from $281.6 million for the three months ended March 31, 2025. The increase in total revenue was due primarily to an increase in net premiums earned primarily attributable to increased assumptions of policies from Citizens and increased renewals of existing policies.
Reworded paragraphs (39)
Previous wording
In Q1 2026 we assumed 28,783 policies, representing approximately $67 million in assumed unearned premiums from Citizens. These policies carry no upfront acquisition costs and are captured in our current treaty year reinsurance program.
Current wording
In 2026 we assumed 37,668 policies, representing approximately $83 million in assumed unearned premiums from Citizens. These policies carry no upfront acquisition costs and are captured in our current treaty year reinsurance program.
Previous wording
Net investment income. Net investment income represents interest earned from cash, cash equivalents, restricted cash, fixed-maturity securities, money market accounts and other investments and the realized gains or losses from the sale of investments. Factors affecting net investment income include the size of our investment portfolio and the yield generated by the underlying investments in our investment portfolio.
Current wording
Net investment income. Net investment income represents interest earned from cash, cash equivalents, restricted cash, restricted cash and cash equivalents fixed-maturity securities, money market accounts and other investments and the realized gains or losses from the sale of investments. Factors affecting net investment income include the size of our investment portfolio and the yield generated by the underlying investments in our investment portfolio.
Previous wording
Return on equity represents net income expressed on an annualized basis as a percentage of average beginning and ending shareholders’ equity during the period.
Current wording
Return on equity represents net income as a percentage of average beginning and ending shareholders’ equity during the period.
Previous wording
Return on tangible equityis a non-GAAP financial measure. We define tangible shareholders’ equity as shareholders’ equity less goodwill and other intangible assets. We define return on tangible equity as net income expressed on an annualized basis as a percentage of average beginning and ending tangible shareholders’ equity during the period. We regularly evaluate acquisition opportunities and have historically made acquisitions that affect shareholders’ equity. We use return on tangible equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. “See “Results of Operations - Non-GAAP Financial Measures” for a reconciliation of return on tangible equity to return on equity, the most directly comparable GAAP measure.
Current wording
Return on tangible equityis a non-GAAP financial measure. We define tangible shareholders’ equity as shareholders’ equity less goodwill and other intangible assets. We define return on tangible equity as net income as a percentage of average beginning and ending tangible shareholders’ equity during the period. We regularly evaluate acquisition opportunities and have historically made acquisitions that affect shareholders’ equity. We use return on tangible equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. “See “Results of Operations - Non-GAAP Financial Measures” for a reconciliation of return on tangible equity to return on equity, the most directly comparable GAAP measure.
Previous wording
Gross premiums written. Gross premiums written increased to $414.8 million for the three months ended March 31, 2026 from $278.2 million for the three months ended March 31, 2025. The increase in net premiums written was driven by growth of voluntary new business, renewals of previously acquired Citizens policies, and further Citizens acquisitions.
Current wording
Gross premiums written. Gross premiums written increased to $508.0 million for the three months ended June 30, 2026 from $435.4 million for the three months ended June 30, 2025. The increase in net premiums written was driven by growth of voluntary new business, and renewals of previously acquired Citizens policies.
Previous wording
Our policies in force as of March 31, 2026 were 509,928, compared to 348,029 as of March 31, 2025, a 46.2% increase year-over-year. Our average premium per residential policy decreased from $3,641 at March 31, 2026 compared to $3,933 at March 31, 2025 as a result of a decrease in average premium of Citizens policies assumed. Additionally, our average premium per commercial residential policy was $100,307 at March 31, 2026.
Current wording
Our policies in force as of June 30, 2026 were 509,075, compared to 348,439 as of June 30, 2025, a 46.1% increase year-over-year. Our average premium per residential policy decreased from $3,614 at June 30, 2026 compared to $3,964 at June 30, 2025 as a result of a decrease in average premium of Citizens policies assumed. Additionally, our average premium per commercial residential policy was $99,515 at June 30, 2026 and $110,575 at June 30, 2025.
Previous wording
Gross premiums earned. Gross premiums earned increased to $481.0 million for the three months ended March 31, 2026 from $350.9 million for the three months ended March 31, 2025. The increase was driven primarily by the earnings resulting from strong premium production across the portfolio including prior years Citizen acquisitions.
Current wording
Gross premiums earned. Gross premiums earned increased to $486.1 million for the three months ended June 30, 2026 from $338.7 million for the three months ended June 30, 2025. The increase was driven primarily by the earnings resulting from strong premium production across the portfolio including prior years Citizen acquisitions.
Previous wording
Ceded premiums earned. Ceded premiums for the three months ended March 31, 2026 and 2025 were approximately $115.1 million and $84.9 million, respectively, representing 23.9% and 24.2%, respectively, of gross premiums earned. The $30.3 million increase was primarily attributable to increased catastrophe reinsurance costs in line with growth in policies in force.
Current wording
Ceded premiums earned. Ceded premiums for the three months ended June 30, 2026 and 2025 were approximately $125.5 million and $94.8 million, respectively, representing 25.8% and 28.0%, respectively, of gross premiums earned. The $30.7 million increase was primarily attributable to increased catastrophe reinsurance costs in line with growth of the portfolio.
Previous wording
Net premiums earned. Net premiums earned increased to $365.9 million for the three months ended March 31, 2026 from $266.0 million for the three months ended March 31, 2025. The increase in net premiums earned in the comparable periods was primarily attributable to increased assumptions of policies from Citizens and increased renewals of existing policies, offset by higher reinsurance costs directly related to the growth of the portfolio.
Current wording
Net premiums earned. Net premiums earned increased to $360.6 million for the three months ended June 30, 2026 from $243.9 million for the three months ended June 30, 2025. The increase and year-over-year growth were directly driven by earnings growth from previous increase in voluntary homeowners and Citizens acquired policies, offset by higher reinsurance costs directly related to the growth of the portfolio.
Previous wording
Net investment income. Net investment income, inclusive of realized investment gains and losses, increased to $20.1 million for the three months ended March 31, 2026 from $13.8 million for the three months ended March 31, 2025, which was attributable to an increase in investable assets. Our average investable assets increased to $2,345 million for the three months ended March 31, 2026 from $1,307 million for the three months ended March 31, 2025.
Current wording
Net investment income. Net investment income, inclusive of realized investment gains and losses, increased to $22.2 million for the three months ended June 30, 2026 from $15.0 million for the three months ended June 30, 2025, which was attributable to an increase in investable assets. Our average investable assets increased to $2,535 million for the three months ended June 30, 2026 from $1,613 million for the three months ended June 30, 2025.
Previous wording
Policy fees. Policy fees increased to $2.6 million for the three months ended March 31, 2026 from $1.5 million for the three months ended March 31, 2025. The increase in policy fees was primarily attributable to increased renewals of existing policies.
Current wording
Policy fees. Policy fees increased to $3.3 million for the three months ended June 30, 2026 from $2.5 million for the three months ended June 30, 2025. The increase in policy fees was primarily attributable to increased renewals of existing policies.
Previous wording
Other income. Other income increased to $0.7 million for the three months ended March 31, 2026 from $0.2 million for the three months ended March 31, 2025. The increase in other income was primarily attributable to an increase in service fee revenue.
Current wording
Other income. Other income increased to $0.7 million for the three months ended June 30, 2026 from $0.3 million for the three months ended June 30, 2025. The increase in other income was primarily attributable to an increase in service fee revenue.
Previous wording
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net increased to $111.1 million for the three months ended March 31, 2026 from $83.8 million for the three months ended March 31, 2025. There were no incurred losses from named storms during the three months ended March 31, 2026 and 2025. The increase in net losses and loss adjustment expenses incurred was primarily driven by the increase in policies in force partially offset by lower catastrophe losses for the period ending March 31, 2026 versus March 31, 2025.
Current wording
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net increased to $108.7 million for the three months ended June 30, 2026 from $91.4 million for the three months ended June 30, 2025. There were no incurred losses from named storms during the three months ended June 30, 2026 and 2025. The increase in net losses and loss adjustment expenses incurred was primarily driven by the growth of the portfolio partially offset by lower overall loss experience for the period ending June 30, 2026 versus June 30, 2025.
Previous wording
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses for the three months ended March 31, 2026 and 2025 were approximately $44.1 million and $28.6 million, respectively, representing 12.6% and 10.7% of net premiums earned, respectively. The increase was primarily attributable to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
Current wording
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses for the three months ended June 30, 2026 and 2025 were approximately $42.3 million and $32.1 million, respectively, representing 11.7% and 13.2% of net premiums earned, respectively. The increase was primarily attributable to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
Previous wording
General and administrative expenses. General and administrative expenses for the three months ended March 31, 2026 and 2025 were approximately $46.2 million and $41.4 million, respectively, representing 12.1% and 15.6%, respectively, of net premiums earned. The increase was due primarily to the growth in staffing to support the Company’s increased policies in force. Personnel count increased to 558 at March 31, 2026 from 392 at March 31, 2025.
Current wording
General and administrative expenses. General and administrative expenses for the three months ended June 30, 2026 and 2025 were approximately $55.0 million and $37.9 million, respectively, representing 15.3% and 15.6%, respectively, of net premiums earned. The increase was due primarily to the growth in staffing and technology to support the Company’s strategic growth initiative. Personnel count increased to 627 at June 30, 2026 from 422 at June 30, 2025.
Previous wording
Interest expense. Interest expense decreased slightly for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was due primarily to the decrease in outstanding debt.
Current wording
Interest expense. Interest expense increased slightly for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was due primarily to the increase in debt financing costs.
Previous wording
Depreciation expense. Depreciation expense for the three months ended March 31, 2026 and 2025 was $1.3 million and $1.1 million, respectively. The increase was due primarily to depreciation of capitalized costs of internal-use software projects that were put into production in 2025.
Current wording
Depreciation expense. Depreciation expense for the three months ended June 30, 2026 and 2025 was $1.4 million and $1.1 million, respectively. The increase was due primarily to depreciation of capitalized costs of internal-use software projects that were put into production in 2025.
Previous wording
Amortization expense. Amortization expense for the three months ended March 31, 2026 and 2025 was $0.1 million and $1.9 million, respectively, representing 0.0% and 0.7%, respectively, of net premiums earned. The decrease was due primarily to intangible assets being fully amortized at the end of 2025.
Current wording
Amortization expense. Amortization expense for the three months ended June 30, 2026 and 2025 was $0.0 million and $1.9 million, respectively, representing 0.0% and 0.8%, respectively, of net premiums earned. The decrease was due primarily to intangible assets being fully amortized.
Previous wording
Income tax expense. Income tax expense was $46.1 million and $31.4 million for the three months ended March 31, 2026 and 2025, respectively. Our effective tax rate for each of the three months ended March 31, 2026 and 2025 was 24.9% and 25.4%, respectively. The decrease in our effective tax rate was primarily due to the favorable treatment of stock options.
Current wording
Income tax expense. Income tax expense was $43.6 million and $26.2 million for the three months ended June 30, 2026 and 2025 respectively. Our effective tax rate for each of the three months ended June 30, 2026 and 2025 was 24.4% and 27.2%, respectively. The decrease in our effective tax rate was primarily due to the favorable treatment of stock options.
Previous wording
Loss ratio. Our loss ratio decreased to 30.4% for the three months ended March 31, 2026 from 31.5% for the three months ended March 31, 2025, primarily due to a decrease in catastrophe losses.
Current wording
Loss ratio. Our loss ratio decreased to 30.2% for the three months ended June 30, 2026 from 37.4% for the three months ended June 30, 2025, primarily due to a decrease in overall loss experience.
Previous wording
Expense ratio. Our expense ratio decreased to 25.1% for the three months ended March 31, 2026 from 27.4% for the three months ended March 31, 2025, primarily due to scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized at the end of 2025.
Current wording
Expense ratio. Our expense ratio decreased to 27.4% for the three months ended June 30, 2026 from 30.0% for the three months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Previous wording
Policy acquisition expense ratio. Our policy acquisition expense ratio increased to 12.1% for the three months ended March 31, 2026 from 10.7% for the three months ended March 31, 2025, primarily due to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
Current wording
Policy acquisition expense ratio. Our policy acquisition expense ratio decreased to 11.7% for the three months ended June 30, 2026 from 13.2% for the three months ended June 30, 2025, primarily due to scaling impact in net earned premium growth with more moderate policy acquisition expense growth.
Previous wording
Debt to capitalization ratio. Our debt to capitalization ratio decreased to 2.8% for the three months ended March 31, 2026 from 6.6% for the three months ended March 31, 2025, primarily as a result of growth in retained earnings from net income.
Current wording
Debt to capitalization ratio. Our debt to capitalization ratio decreased to 2.4% for the three months ended June 30, 2026 from 4.0% for the three months ended June 30, 2025, primarily as a result of growth in retained earnings from net income.
Previous wording
Non-GAAP financial measure. See “Results of Operations – Non-GAAP Financial Measures” for a reconciliation of tangible shareholder's equity to shareholder's equity and return on tangible equity to return on equity, the most directly comparable GAAP measure.
Current wording
Non-GAAP financial measure. See “Results of Operations – Non-GAAP Financial Measures” for a reconciliation of return on tangible equity to return on equity, the most directly comparable GAAP measure.
Previous wording
Combined ratio. Our combined ratio decreased to 55.5% for the three months ended March 31, 2026 from 58.9% for the three months ended March 31, 2025, primarily due to a decrease in catastrophe losses, scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized at the end of 2025.
Current wording
Combined ratio. Our combined ratio decreased to 56.5% for the six months ended June 30, 2026 from 62.9% for the six months ended June 30, 2025, primarily due to a decrease in overall loss experience, scaling impact in net earned premium growth with more moderate operating expense growth and a reduction in amortization expense as intangible assets were fully amortized.
Previous wording
Return on equity. Our return on equity decreased to 12.5% for the three months ended March 31, 2026 from 19.2% for the three months ended March 31, 2025, as a result of growth in equity due to retained earnings from net income.
Current wording
Return on equity. Our return on equity decreased to 23.8% for the six months ended June 30, 2026 from 25.0% for the six months ended June 30, 2025, as a result of growth in equity due to retained earnings from net income, offset by the IPO proceeds.
Previous wording
Our return on tangible equity decreased to 12.6% for the three months ended March 31, 2026 from 19.5% for the three months ended March 31, 2025, as a result of growth in equity due to an increase in retained earnings from net income.
Current wording
Our return on tangible equity decreased to 23.8% for the six months ended June 30, 2026 from 25.3% for the six months ended June 30, 2025, as a result of growth in equity due to an increase in retained earnings from net income, offset by the IPO proceeds.
Previous wording
SIC can only pay dividends to us out of its available and accumulated surplus funds, which are derived from realized net operating profits on its business and net unrealized capital gains.
Current wording
SIC and SSIC can only pay dividends to us out of its available and accumulated surplus funds, which are derived from realized net operating profits on its business and net unrealized capital gains.
Previous wording
No dividends were paid by SIC in 2026 and 2025. Florida Statute Section 624.408 requires SIC to maintain a minimum level of surplus of not less than the greater of 10% of its total liabilities, or $15.0 million. Based on this requirement, SIC was required to maintain capital and surplus of $124.1 million and $113.9 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026 and December 31, 2025, SIC’s statutory-basis surplus totaled $484.1 million and $417.9 million, meeting the minimum surplus requirements.
Current wording
Florida Statute Section 624.408 requires SIC to maintain a minimum level of surplus of not less than the greater of 10% of its total liabilities, or $15.0 million. Based on this requirement, SIC was required to maintain capital and surplus of $130.9 million and $113.9 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026 and December 31, 2025, SIC’s statutory-basis surplus totaled $520.4 million and $417.9 million, meeting the minimum surplus requirements.
Previous wording
As of March 31, 2026 and December 31, 2025, we had $1.700 billion and $1.683 billion, respectively, in cash, cash equivalents and restricted cash, which primarily consisted of cash, money market accounts and US Treasury bills. We intend to maintain substantial cash or cash-equivalent balances during hurricane season to meet seasonal liquidity needs relating to potential catastrophic losses. However, in the event of a failure of the financial institution, there is a chance we may be unable to access such funds and may incur a loss to the extent such balance exceeds the FDIC insurance limits, which could have a negative impact on our liquidity and financial condition.
Current wording
As of June 30, 2026 and December 31, 2025, we had $1.821 billion and $1.683 billion, respectively, in cash, cash equivalents, restricted cash and cash equivalents, which primarily consisted of cash, money market accounts and US Treasury bills. We intend to maintain substantial cash or cash-equivalent balances during hurricane season to meet seasonal liquidity needs relating to potential catastrophic losses. However, in the event of a failure of the financial institution, there is a chance we may be unable to access such funds and may incur a loss to the extent such balance exceeds the FDIC insurance limits, which could have a negative impact on our liquidity and financial condition.
Previous wording
Our insurance subsidiaries generate cash through premium collections, investment income and the sale or maturity of invested assets. We received net proceeds of approximately $263.3 million from the IPO proceeds. Our insurance subsidiaries use cash to pay reinsurance premiums, losses and loss adjustment expenses incurred, net, policy acquisition and other underwriting expenses, salaries and employee benefits and other expenses, as well as to purchase investments.
Current wording
Our insurance subsidiaries generate cash through premium collections, investment income and the sale or maturity of invested assets. We received net proceeds of approximately $263.5 million from the IPO proceeds. Our insurance subsidiaries use cash to pay reinsurance premiums, losses and loss adjustment expenses incurred, net, policy acquisition and other underwriting expenses, salaries and employee benefits and other expenses, as well as to purchase investments.
Previous wording
Although we can provide no assurances, we believe that our available cash, cash equivalents, and restricted cash balance and cash generated from operations, should be sufficient to meet our working capital requirements and other capital expenditures for the next twelve months.
Current wording
Although we can provide no assurances, we believe that our available cash, cash equivalents, restricted cash and cash equivalents balance and cash generated from operations, should be sufficient to meet our working capital requirements and other capital expenditures for the next twelve months, and thereafter for the foreseeable future.
Previous wording
For the three months ended March 31, 2026, cash flows provided by operating activities was $289.5 million, an increase of $192.7 million from the three months ended March 31, 2025, driven by an increase in net income and change in certain balance sheet accounts. For the three months ended March 31, 2026, cash flows used in investing activities was $134.1 million, a decrease of $145.8 million from cash provided by investing activities for the three months ended March 31, 2025, driven by the increased purchases of fixed-maturity securities available-for-sale. For the three months ended March 31, 2026, cash flows used in financing activities was $138.0 million, a decrease of $136.5 million from the three months ended March 31, 2025, driven by the repurchase and retirement of common stock through the repurchase program.
Current wording
For the six months ended June 30, 2026, cash flows provided by operating activities was $590.0 million, an increase of $239.6 million from the six months ended June 30, 2025, driven by an increase in net income and change in certain balance sheet accounts. For the six months ended June 30, 2026, cash flows used in investing activities was $256.9 million, a decrease of $274.4 million from cash provided by investing activities for the six months ended June 30, 2025, driven by the increased purchases of fixed-maturity securities available-for-sale. For the six months ended June 30, 2026, cash flows used in financing activities was $194.9 million, a decrease of $452.9 million from the six months ended June 30, 2025, driven by the repurchase and retirement of common stock through the repurchase program and 2025 proceeds from the initial public offering.
Previous wording
On June 25, 2024, we entered into an amended and restated credit agreement with Regions Bank for a $10.0 million revolving credit facility, which was increased to $45.0 million pursuant to the accordion feature on March 20, 2025, a term loan in an aggregate principal amount of $40.0 million and one or more delayed draw term loans in an aggregate principal amount not to exceed $125.0 million (together, the “Credit Facility”). The Credit Facility contains covenants that, among other things, restrict our ability to make certain restricted payments, incur additional debt, engage in certain asset sales, mergers, acquisitions or similar transactions, create liens on assets, engage in certain transactions with affiliates, change our business or make investments and require us to comply with certain financial covenants. Pursuant to the terms of the Credit Facility, we may from time to time establish one or more additional term loans subject to certain conditions precedent contained therein. The Credit Facility is guaranteed by certain of our subsidiaries and is secured by certain of our cash and deposit account balances. The Credit Facility matures on June 25, 2029. At March 31, 2026, the Company had no borrowings outstanding under the revolving credit facility and an outstanding balance of $36.0 million on the term loan. At March 31, 2026, the Company was in compliance with all required covenants and had available borrowing capacity of $170.0 million.
Current wording
On June 25, 2024, the Company entered into an amended and restated credit agreement ("the Credit Agreement") with Regions Bank for (i) a $10 million revolving credit facility, which was amended to a $530.4 million revolving credit facility on July 27, 2026(ii) term loan in an aggregate principal amount of $40 million and (iii) one or more delayed draw term loans in an aggregate principal amount not to exceed $125 million (together, the “Credit Facility”), which was terminated under the amendment.
Previous wording
Interest on the Credit Facility is calculated using 7.09% in effect at March 31, 2026 with the assumption that interest rates remain flat over the remainder of the period that the Credit Facility is outstanding. At our option, we may prepay the Credit Facility, in whole or in part, without premium or penalty.
Current wording
(1) Interest on the Credit Facility is calculated using 6.9% in effect at June 30, 2026 with the assumption that interest rates remain flat over the remainder of the period that the Credit Facility is outstanding. At our option, we may prepay the Credit Facility, in whole or in part, without premium or penalty.
Previous wording
As of March 31, 2026, stockholders’ equity was $1,113.6 million. As of December 31, 2025, total stockholders’ equity was $1,113.2 million. The increase was primarily due to increased retained earnings from net income offset by the repurchase and retirement of common stock through the repurchase program.
Current wording
As of June 30, 2026, stockholders’ equity was $1,194.8 million. As of December 31, 2025, total stockholders’ equity was $1,113.2 million. The increase was primarily due to increased retained earnings from net income offset by the repurchase and retirement of common stock through the repurchase program.
Previous wording
Our cash and invested assets consist of cash and cash equivalents, fixed maturity securities and equity securities. As of March 31, 2026, the majority of our investments, or $714.6 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $4.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,217.6 million and a restricted cash balance of $482.8 million as of March 31, 2026.
Current wording
Our cash and invested assets consist of cash and cash equivalents, fixed maturity securities and equity securities. As of June 30, 2026, the majority of our investments, or $830.6 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $7.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,236.9 million and a restricted cash and cash equivalents balance of $584.2 million as of June 30, 2026.
Previous wording
As of December 31, 2025, the majority of our investments, or $588.2 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $4.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,201.2 million and a restricted cash balance of $481.8 million as of December 31, 2025.
Current wording
As of December 31, 2025, the majority of our investments, or $588.2 million, was comprised of fixed income securities rated BBB- or better. Our investments also include $4.0 million of other securities. In addition, we maintained a non-restricted cash and cash equivalent balance of $1,201.2 million and a restricted cash and cash equivalents balance of $481.8 million as of December 31, 2025.
Previous wording
the impact of macroeconomic conditions, including declining consumer confidence, inflation, high unemployment and the read of recession;
Current wording
the impact of macroeconomic conditions, including declining consumer confidence, inflation, high unemployment and the threat of recession;
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
Current report — wording carried from elsewhere
Gross premiums written. Gross premiums written increased to $922.8 million for the six months ended June 30, 2026 from $713.6 million for the six months ended June 30, 2025. The increase in net premiums written was driven by growth of voluntary new business, and renewals of previously acquired Citizens policies.
Current report — wording carried from elsewhere
Our policies in force as of June 30, 2026 were 509,075, compared to 348,439 as of June 30, 2025, a 46.1% increase year-over-year. Our average premium per residential policy decreased from $3,614 at June 30, 2026 compared to $3,964 at June 30, 2025 as a result of a decrease in average premium of Citizens policies assumed. Additionally, our average premium per commercial residential policy was $99,515 at June 30, 2026 and $110,575 at June 30, 2025.
Current report — wording carried from elsewhere
Gross premiums earned. Gross premiums earned increased to $967.1 million for the six months ended June 30, 2026 from $689.5 million for the six months ended June 30, 2025. The increase was driven primarily by the earnings resulting from strong premium production across the portfolio including prior years Citizen acquisitions.
Current report — wording carried from elsewhere
Ceded premiums earned. Ceded premiums for the six months ended June 30, 2026 and 2025 were approximately $240.6 million and $179.6 million, respectively, representing 24.9% and 26.1%, respectively, of gross premiums earned. The $60.9 million increase was primarily attributable to increased catastrophe reinsurance costs in line with growth of the portfolio.
Current report — wording carried from elsewhere
Net investment income. Net investment income, inclusive of realized investment gains and losses, increased to $42.3 million for the six months ended June 30, 2026 from $28.8 million for the six months ended June 30, 2025, which was attributable to an increase in investable assets. Our average investable assets increased to $2,395 million for the six months ended June 30, 2026 from $1,564 million for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Policy fees. Policy fees increased to $6.0 million for the six months ended June 30, 2026 from $4.0 million for the six months ended June 30, 2025. The increase in policy fees was primarily attributable to increased renewals of existing policies.
Current report — wording carried from elsewhere
Other income. Other income increased to $1.3 million for the six months ended June 30, 2026 from $0.5 million for the six months ended June 30, 2025. The increase in other income was primarily attributable to an increase in service fee revenue.
Current report — wording carried from elsewhere
Losses and loss adjustment expenses incurred, net. Losses and loss adjustment expenses incurred, net increased to $219.8 million for the six months ended June 30, 2026 from $175.1 million for the six months ended June 30, 2025. There were no incurred losses from named storms during the six months ended June 30, 2026 and 2025. The increase in net losses and loss adjustment expenses incurred was primarily driven by the increase in the growth of the portfolio partially offset by lower overall loss experience for the period ending June 30, 2026 versus June 30, 2025.
Current report — wording carried from elsewhere
Policy acquisition and other underwriting expenses. Policy acquisition and other underwriting expenses for the six months ended June 30, 2026 and 2025 were approximately $86.4 million and $60.7 million, respectively, representing 11.9% and 11.9% of net premiums earned, respectively. The increase was primarily attributable to increased renewal policies from prior year assumed Citizens' policies, resulting in increased policy acquisition costs in 2026.
Current report — wording carried from elsewhere
Interest expense. Interest expense decreased slightly for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was due primarily to the decrease in outstanding debt, offset by higher debt issuance costs.
Current report — wording carried from elsewhere
Depreciation expense. Depreciation expense for the six months ended June 30, 2026 and 2025 was $2.7 million and $2.3 million, respectively. The increase was due primarily to depreciation of capitalized costs of internal-use software projects that were put into production in 2025.
Current report — wording carried from elsewhere
Amortization expense. Amortization expense for the six months ended June 30, 2026 and 2025 was $0.1 million and $3.7 million, respectively, representing 0.0% and 0.7%, respectively, of net premiums earned. The decrease was due primarily to intangible assets being fully amortized.
Current report — wording carried from elsewhere
Income tax expense. Income tax expense was $89.8 million and $57.6 million for the six months ended June 30, 2026 and 2025, respectively. Our effective tax rate for each of the six months ended June 30, 2026 and 2025 was 24.9% and 26.2%, respectively. The decrease in our effective tax rate was primarily due to the favorable treatment of stock options.
Current report — wording carried from elsewhere
Debt to capitalization ratio. Our debt to capitalization ratio decreased to 2.4% for the six months ended June 30, 2026 from 4.0% for the six months ended June 30, 2025, primarily as a result of growth in retained earnings from net income.
Current report — wording carried from elsewhere
No dividends were paid by SIC or SSIC in 2026 and 2025.