Slide grows profit, expands credit facility to $1.07 billion

Slide Insurance  reported third-quarter net income of $138.2 million, up 24.5% from a year earlier, while entering into a new $1.07 billion credit facility and declaring a special dividend.

Gross premiums written increased 9.3% to $506.6 million, driven by voluntary new business, renewals of policies previously acquired from Citizens and contributions from new state launches. Net premiums earned rose 37.1% to $333.3 million, while revenue increased 35.9% to $361.1 million.

The combined ratio increased to 59.3% from 48.5%, primarily reflecting higher catastrophe losses, partially offset by improved operating leverage. Results included $34.2 million in catastrophe losses from Florida convective storms and $18 million in favorable prior-period reserve development. Excluding catastrophe losses and prior-period development, the accident year loss ratio improved to 25.5% from 27.5%.

Slide continued expanding residential E&S business in California and homeowners offerings in South Carolina and Rhode Island. It also began writing residential business in Texas in October.

The new credit facility, led by Huntington National Bank, replaces a $530.4 million agreement and more than doubles borrowing capacity. Borrowings may fund refinancing, growth initiatives and general corporate purposes. Slide disclosed initial interest pricing of 3%, a 25-basis-point improvement over its prior agreement.

The board declared a $1.50-per-share special dividend alongside a quarterly dividend of $0.07 per share. Both are payable November 30 to shareholders of record November 23.

Slide also raised its full-year net income outlook to $500 million–$520 million from $455 million–$470 million. The updated forecast includes up to $50 million in pretax fourth-quarter losses related to Hurricane Isaias. Expected gross premiums written are now $1.90 billion–$1.95 billion, compared with the previous range of $1.85 billion–$1.95 billion.