Slide valued at over $2.6 billion in debut after biggest insurance IPO of the year

By Ateev Bhandari

June 18 (Reuters) - Slide Insurance SLDE.O secured a valuation of $2.62 billion after its shares gained nearly 24% in their Nasdaq debut on Wednesday after closing the biggest insurance listing this year, as public markets steadily recover.

The U.S. insurtech's stock opened at $21 apiece, compared with the IPO price of $17, boosting prospects for other companies looking to offer first-time share sales.

The coastal insurer and some of its existing stockholders on Tuesday sold 24 million shares in an upsized offering, at the top of its marketed range of $15 to $17 per share, raising $408 million.

That beats Apollo Global-backed Aspen Insurance AHL.N, which last month raised $397.5 million in its NYSE IPO.

Slide's debut marks the latest in a string of successes for companies offering first-time share sales.

Stablecoin issuer Circle Internet CRCL.N and digital bank Chime CHYM.O also made stellar debuts in New York earlier this month, a trend that is gaining momentum on prospects of easing U.S. trade policy.

U.S. President Donald Trump's erratic trade and foreign policy gambits, paired with a ballooning U.S. debt, have led to alarming market volatility this year.

However, predictable cash flows and underwriting profitability make insurers an attractive listing candidate, according to Kat Liu, vice president at IPOX.

Founded in 2021, Slide provides homeowners and property coverage through both agents and direct channels, targeting coastal areas along the Atlantic seaboard.

Filings show 99.5% of the company's policies are concentrated in Florida, where some insurers are pulling back, due to its history of natural disasters, primarily hurricanes.

"Slide has carved out a profitable niche in a dense, high-demand region with low underwriting capacity, as many insurers avoid this area due to the elevated risk or poor historical pricing models," Liu added.

Company CEO Bruce Lucas, who founded and led Heritage Insurance HRTG.N earlier, stands out as one of the highest-paid executives in the sector. Lucas's $21.2 million total compensation for 2024 is notable even when compared to large carriers like Allstate ALL.N and UnitedHealth UNH.N.

"This level of executive pay could raise governance concerns, especially if it appears disconnected from long-term shareholder value," Liu said.