Slide Insurance Holdings, Inc.

Greetings and welcome to the Slide Insurance Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the call over to Investor Relations. Thank you. You may begin.

Thank you and good morning. With us today are your hosts, Bruce Lucas, Chairman and Chief Executive Officer of Slide and Andy Omiridis, Chief Financial Officer. By now, everyone should have access to our earnings release, which was published yesterday after the market closed and can be found on our website at ir.slideinsurance.com. Before we begin our formal remarks, I need to remind everyone that part of our discussion today may include forward-looking statements, which are based on the expectations, estimates, and projections of management regarding the company's future performance, anticipated events, or trends, and other matters that are not historical facts. Forward-looking statements in our discussion are subject to various assumptions, risks, uncertainties, and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance and therefore under-reliance should not be placed upon them. We refer all of you to our earnings release and recent filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition of slide. Our statements are as of today, July 29, 2026, and we undertake no obligation to update any forward-looking statements we may make except as required by law. In addition, this call is being webcast and an archived version will be available shortly after the call ends on the investor relations portion of the company's website at www.slideinsurance.com. With that, I'd now like to turn the call over to our founder, chairman and CEO, Bruce Lucas.

Please go ahead. Thank you and welcome to our second quarter 2026 earnings call. We once again executed at a high level this quarter, reinforcing the strength of our tech-enabled coastal specialty model and its ability to produce industry-leading top and bottom line results. For the quarter, we grew gross written premiums by 16.7% year-over-year to $508 million, driven by continued growth in voluntary sales and renewals of previously acquired citizens' policies. In the second quarter, our pace of citizens' assumptions slowed in order to allow the company to bind its 2026 reinsurance treaty. We continued to grow gross written premiums driven by policy retention and continued growth in voluntary sales and the launch of our California E&S products. In addition to our top line growth, Sly grew net income by 92.4% year-over-year to $134.9 million, with diluted earnings per share of $1.06. Second quarter return on equity was 11.7%, and our combined ratio improved to 57.5%, reflecting continued underwriting discipline and a lower level of catastrophe losses. For the first six months of 2026, Our combined ratio is 56.5% and our return on equity is 23.8%, which equates to an annualized ROE of 45%. Our second quarter results provide further testament to our ability to deliver meaningful value creation for our shareholders. We continue to make meaningful progress in expanding our footprint. In May, we launched our residential property excess and surplus lines program in California, bringing much-needed capacity to an underserved homeowner's market. 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. In addition, we recently received regulatory approval to enter both Rhode Island and New Jersey, our fourth and fifth states of operation, respectively. Our expansion to the Northeast U.S. further reflects the scalability of our platform and our ability to identify and act on attractive opportunities outside of Florida, where we believe we have an expertise to produce significant growth coupled with attractive returns. We remain confident in our ability to execute on our diversified growth strategy, creating long-term value for our shareholders. We have purposely built our coastal specialty platform around one of the strongest balance sheets in the sector, giving us the financial flexibility to pursue this kind of expansion. As we move through the back half of the year, we expect to continue investing in the systems and underwriting talent to maintain our industry-leading top and bottom line results. During the quarter, we completed our 2026 CAT reinsurance program. All in, we recorded a double-digit year-over-year risk-adjusted rate decrease while maintaining one of the strongest reinsurance towers in SLIDE's history. We increased our first event reinsurance tower by $1.4 billion versus 2025, while significantly expanding our total capacity by over $2 billion.