Slide Insurance Holdings, Inc. Income Taxes Disclosure
The Company files a consolidated federal income tax return. The effective income tax rate for 2025 and 2024 differs from the statutory federal income tax rate primarily due to state income taxes and permanent items, including nondeductible expenses.
The components of income before provision for income taxes are as follows for December 31, 2025 and 2024 :
|
|
2025 |
|
|
2024 |
|
||
Domestic |
|
$ |
145,281 |
|
|
$ |
68,850 |
|
Foreign |
|
- |
|
|
- |
|
||
Total |
|
$ |
145,281 |
|
|
$ |
68,850 |
|
We calculate our provision for federal and state income taxes based on current law. The following is a summary of our net provision for income taxes for December 31, 2025 and 2024 :
|
|
2025 |
|
|
2024 |
|
||
Current: |
|
|
|
|
|
|
||
Federal |
|
$ |
50,173 |
|
|
$ |
58,156 |
|
Foreign |
|
|
- |
|
|
|
- |
|
State and local |
|
|
32,950 |
|
|
|
15,811 |
|
Total Current: |
|
$ |
83,123 |
|
|
$ |
73,967 |
|
Deferred: |
|
|
|
|
|
|
||
Federal |
|
|
63,044 |
|
|
|
(4,240 |
) |
Foreign |
|
|
- |
|
|
|
- |
|
State and local |
|
|
(886 |
) |
|
|
(877 |
) |
Total Deferred: |
|
$ |
62,158 |
|
|
$ |
(5,117 |
) |
Total Income tax provision |
|
$ |
145,281 |
|
|
$ |
68,850 |
|
Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:
|
|
2025 |
|
|
2024 |
|
||
Deferred tax assets: |
|
|
|
|
|
|
||
Unearned premiums |
|
|
42,113 |
|
|
|
28,244 |
|
Section 174 amortization |
|
|
2,054 |
|
|
|
4,402 |
|
Right of use liability |
|
|
2,445 |
|
|
|
2,297 |
|
Loss reserve discount |
|
|
3,617 |
|
|
|
3,286 |
|
Other assets |
|
|
1,536 |
|
|
|
2,795 |
|
Total deferred tax assets |
|
$ |
51,765 |
|
|
$ |
41,024 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
||
Deferred acquisition costs |
|
|
(23,755 |
) |
|
|
(16,486 |
) |
Right of use asset |
|
|
(2,148 |
) |
|
|
(2,126 |
) |
Depreciation expense |
|
|
(2,571 |
) |
|
|
(3,027 |
) |
Net unrealized investment gains |
|
|
(2,336 |
) |
|
|
(97 |
) |
Net accretion of discount on securities |
|
|
(1,272 |
) |
|
|
(958 |
) |
Prepaid expenses |
|
|
(1,122 |
) |
|
|
(564 |
) |
Other |
|
|
(229 |
) |
|
|
(395 |
) |
Total deferred tax liabilities |
|
$ |
(33,433 |
) |
|
$ |
(23,653 |
) |
Net deferred tax asset |
|
$ |
18,332 |
|
|
$ |
17,371 |
|
A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. As of December 31, 2025 and 2024, management concluded, based on the evaluation of the positive and negative evidence, that it is more likely than not that the deferred tax assets will be realized and therefore no valuation allowance on the Company’s deferred tax assets is required.
A reconciliation of the statutory federal income tax rate to our effective income tax rate, applying ASU 2023-09 retroactively, is as follows:
|
|
2025 |
|
|
Effective |
|
|
2024 |
|
|
Effective |
|
||||
|
$ |
123,740 |
|
|
|
21.00 |
% |
|
$ |
56,944 |
|
|
|
21.00 |
% |
|
State and local income taxes, net of federal income tax effect(1) |
|
|
25,145 |
|
|
|
4.27 |
% |
|
|
11,613 |
|
|
|
4.30 |
% |
Tax credits |
|
|
(2,546 |
) |
|
|
(0.43 |
)% |
|
|
- |
|
|
|
— |
|
Changes in valuation allowances |
|
|
- |
|
|
|
— |
|
|
|
|
|
|
|
||
Nontaxable or nondeductible items |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock Compensation Expense |
|
|
(5,680 |
) |
|
|
(0.97 |
)% |
|
|
- |
|
|
|
— |
|
162m |
|
|
2,584 |
|
|
|
0.44 |
% |
|
|
- |
|
|
|
— |
|
Other |
|
|
1,114 |
|
|
|
0.19 |
% |
|
|
241 |
|
|
|
0.10 |
% |
Changes in unrecognized tax benefits |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
924 |
|
|
|
0.16 |
% |
|
|
52 |
|
|
|
0.01 |
% |
Effective income tax rate |
|
$ |
145,281 |
|
|
|
24.66 |
% |
|
$ |
68,850 |
|
|
|
25.41 |
% |
(1) The state that contributes to the majority (greater than 50%) of the tax effect in this category includes Florida for 2025 and Florida for 2024.
The effective income tax rate for 2025 was 24.66% compared to 25.41% for 2024. The decrease in the effective income tax rate was primarily due to the favorable treatment of stock options. The increase in the provision for income taxes was primarily due to the increase in income before income taxes in the current period.
Cash paid for income taxes consisted of the following for December 31, 2025 and 2024 :
|
|
2025 |
|
|
2024 |
|
||
Federal |
|
$ |
70,360 |
|
|
$ |
45,800 |
|
State |
|
|
28,525 |
|
|
|
12,706 |
|
Foreign |
|
- |
|
|
- |
|
||
Total |
|
$ |
98,885 |
|
|
$ |
58,506 |
|
In 2025, the individual jurisdiction with cash taxes paid that equaled or exceeded 50% of total income taxes paid was Florida. In 2024, the individual jurisdiction with cash taxes paid that equaled or exceeded 50% of total income taxes paid was Florida. Transferable energy credit purchases are included as part of Federal income taxes paid during the current period.
As of December 31, 2025, all entities within the Company's legal structure are treated as U.S. Corporations.
The Company has no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rates for the year ended December 31, 2025 and 2024. The tax returns filed for the years ending December 31, 2024 and 2023 remain subject to examination by the Company’s major taxing jurisdictions.
The Company does not have any federal net operating loss carryforwards available as of December 31, 2025. The Company has zero state net operating loss carryforwards available as of December 31, 2025.
The Company and/or its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is not currently under audit by the IRS or state jurisdictions for open tax years.
In September of 2025, the Company purchased $67.9 million of transferable Section 45x advanced manufacturing production tax credits for $65.4 million to reduce our federal tax liability. All tax credits other than approximately $0.6 have been applied to prior year tax returns.
On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”), which, among other provisions, permanently restores 100% bonus depreciation and modifies the limitation on business-interest expense under §163(j) to be based on taxable income before interest, amortization, and depreciation. Based on preliminary analysis, management expects OBBBA to reduce U.S. cash income-tax payments. There is not expected to be any impact on the effective tax rate. The Company is continuing to evaluate the Act’s impacts, including potential effects on deferred-tax balances, and will refine these estimates as additional guidance becomes available.
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.