TIPT Tiptree Inc

Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three months and year ended December 31, 2024.

 

Three Months Ended

December 31,

 

Year Ended

December 31,

($ in thousands, except per share information)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Total revenues

$

503,599

 

 

$

446,374

 

 

$

2,042,854

 

 

$

1,649,031

 

Net income (loss) attributable to common stockholders

$

19,553

 

 

$

6,871

 

 

$

53,367

 

 

$

13,951

 

Diluted earnings per share

$

0.47

 

 

$

0.15

 

 

$

1.30

 

 

$

0.33

 

Cash dividends paid per common share

$

0.31

 

 

$

0.05

 

 

$

0.49

 

 

$

0.20

 

Return on average equity

 

17.0

%

 

 

6.8

%

 

 

12.2

%

 

 

3.4

%

 

 

 

 

 

 

 

 

Non-GAAP: (1)

 

 

 

 

 

 

 

Adjusted net income

$

27,234

 

 

$

13,854

 

 

$

100,060

 

 

$

61,917

 

Adjusted return on average equity

 

23.7

%

 

 

13.6

%

 

 

22.9

%

 

 

15.2

%

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests.

Fourth Quarter 2024 Summary

• Revenues of $503.6 million for the quarter, an increase of 12.8% from Q4'23, driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues increased 13.0%.

• Net income of $19.6 million compared to a net income of $6.9 million in Q4'23, driven by growth in our insurance business and improvement in our mortgage operations.

• Adjusted net income of $27.2 million increased by 96.6% from $13.9 million in Q4'23, driven by growth in insurance revenues while maintaining a consistent combined ratio. Annualized adjusted return on average equity was 23.7% for the quarter, as compared to 13.6% in Q4'23.

• Declared a dividend of $0.06 per share to stockholders of record on March 10, 2025 with a payment date of March 17, 2025.

Year-to-date 2024 Summary

• Year-to-date revenues of $2.04 billion, an increase of 23.9% from 2023, driven by growth in specialty insurance lines, net investment income, investment gains, and mortgage revenues. Excluding investment gains and losses, revenues increased 22.4%.

• Net income of $53.4 million compared to net income of $14.0 million in 2023, driven by growth in our insurance business and improved mortgage operations.

• Adjusted net income of $100.1 million increased by 61.6% from $61.9 million in 2023. Adjusted return on average equity was 22.9% for the year, as compared to 15.2% in 2023.

Segment Financial Highlights - Fourth Quarter 2024

Insurance (The Fortegra Group):

 

Three Months Ended

December 31,

 

Year Ended

December 31,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gross written premiums and premium equivalents

$

851,876

 

 

$

724,124

 

 

$

3,068,199

 

 

$

2,747,854

 

Net written premiums

$

365,631

 

 

$

384,309

 

 

$

1,438,952

 

 

$

1,319,948

 

Total revenues

$

483,998

 

 

$

433,170

 

 

$

1,973,709

 

 

$

1,593,070

 

Income before taxes

$

47,888

 

 

$

44,232

 

 

$

183,158

 

 

$

129,816

 

Return on average equity

 

26.1

%

 

 

36.9

%

 

 

26.0

%

 

 

25.7

%

Combined ratio

 

89.5

%

 

 

89.8

%

 

 

90.0

%

 

 

90.3

%

 

 

 

 

 

 

 

 

Non-GAAP: (1)

 

 

 

 

 

 

 

Adjusted net income (before NCI)

$

42,540

 

 

$

32,604

 

 

$

157,031

 

 

$

115,705

 

Adjusted return on average equity

 

27.6

%

 

 

30.9

%

 

 

29.1

%

 

 

29.2

%

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.

• Gross written premiums and premium equivalents of $851.9 million for the quarter, an increase of 17.6%, and $3.07 billion for the year, an increase of 11.7%, driven by growth in specialty E&S insurance lines.

• Net written premiums were $365.6 million for the quarter, a decrease of 4.9%, and $1.44 billion for the year, an increase of 9.0%. The increase for the year was consistent with the growth in gross written premiums and premium equivalents and increased retention on Fortegra’s whole account quota share reinsurance agreement. Net written premiums increased by 41.1% for the quarter, and 20.4% for the year, excluding the one-time assumption of premium from a book-roll transaction with one of Fortegra’s MGA partners in Q4'23.

• Revenues increased 11.7% for the quarter and 23.9% for the year driven by premium growth in specialty E&S and admitted lines. Excluding the impact of investment gains and losses, revenues increased by 13.2% for the quarter and 23.0% for the year.

• The combined ratio for the quarter was 89.5%, down 0.3 percentage points, reflecting the consistent underwriting performance and scalability of the Company’s operations. Year-to-date combined ratio was 90.0%, as compared to 90.3% in 2023. Included in the 2024 combined ratio was 2.6 percentage points related to net catastrophe losses as compared to 0.2 percentage points in 2023. The primary catastrophic events impacting 2024 were Hurricanes Helene and Milton.

• Income before taxes was $47.9 million for the quarter, an increase of 8.3%. Year-to-date income before taxes was $183.2 million, an increase of 41.1%. Annualized after-tax return on average equity for the year was 26.0%, compared to 25.7% in 2023.

• Adjusted net income for the quarter of $42.5 million, up 30.5% from Q4'23. Year-to-date adjusted net income of $157.0 million, up 35.7%. Annualized adjusted return on average equity for the year was 29.1%, compared to 29.2% in 2023.

• Fortegra’s total stockholders’ equity was $625.5 million as of December 31, 2024, compared to $452.6 million as of December 31, 2023, with the increase driven by net income and the aggregate capital contribution from Tiptree, Warburg and Fortegra directors of $40 million, partially offset by an increase in the accumulated other comprehensive loss position.

Tiptree Capital:

 

Three Months Ended

December 31,

 

Year Ended

December 31,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Total revenues

$

19,601

 

 

$

13,204

 

 

$

69,146

 

 

$

55,961

 

Income before taxes

$

2,769

 

 

$

(2,058

)

 

$

4,562

 

 

$

(6,549

)

Return on average equity

 

8.3

%

 

 

(3.8

)%

 

 

2.2

%

 

 

(3.6

)%

 

 

 

 

 

 

 

 

Non-GAAP: (1)

 

 

 

 

 

 

 

Adjusted net income

$

(280

)

 

$

(407

)

 

$

1,820

 

 

$

(159

)

Adjusted return on average equity

 

(1.1

)%

 

 

(0.9

)%

 

 

1.3

%

 

 

(0.1

)%

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.

• Tiptree Capital income before taxes was $2.8 million for the quarter, compared to a loss of $2.1 million in Q4'23, driven by improvement in our mortgage operations. For the year, income before taxes was $4.6 million, compared to a loss of $6.5 million in 2023, with the comparative improvement driven by improvement in our mortgage operations and a reduction of investment losses on Invesque.

• Mortgage income before taxes was $3.5 million for the quarter, as compared to a loss of $2.4 million in Q4'23, and an income of $4.7 million for the year, as compared to a loss of $3.3 million in 2023, driven by higher origination volumes and loan servicing fees, and unrealized gains on our mortgage servicing asset.

Corporate:

Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, and public company and other expenses. For the quarter, corporate expenses were $8.5 million compared to $12.1 million in Q4'23 driven by a decline in incentive compensation accruals.

Non-GAAP

Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.

About Tiptree

Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.

Forward-Looking Statements

This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.

Tiptree Inc.

Consolidated Balance Sheets

($ in thousands, except share data)

 

As of

 

December 31,

2024

 

December 31,

2023

Assets:

 

 

 

Investments:

 

 

 

Available for sale securities, at fair value, net of allowance for credit losses

$

1,107,929

 

 

$

802,609

 

Loans, at fair value

 

81,330

 

 

 

69,556

 

Equity securities

 

108,620

 

 

 

68,308

 

Other investments

 

53,084

 

 

 

111,088

 

Total investments

 

1,350,963

 

 

 

1,051,561

 

Cash and cash equivalents

 

320,067

 

 

 

468,711

 

Restricted cash

 

96,197

 

 

 

23,850

 

Notes and accounts receivable, net

 

799,131

 

 

 

684,608

 

Reinsurance recoverable

 

992,883

 

 

 

953,886

 

Prepaid reinsurance premiums

 

1,046,253

 

 

 

900,524

 

Deferred acquisition costs

 

565,872

 

 

 

565,746

 

Goodwill

 

206,706

 

 

 

206,155

 

Intangible assets, net

 

102,859

 

 

 

118,757

 

Other assets

 

213,858

 

 

 

165,515

 

Total assets

$

5,694,789

 

 

$

5,139,313

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Liabilities:

 

 

 

Debt, net

$

427,089

 

 

$

402,411

 

Unearned premiums

 

1,766,068

 

 

 

1,695,058

 

Policy liabilities and unpaid claims

 

1,298,081

 

 

 

844,848

 

Deferred revenue

 

695,772

 

 

 

673,085

 

Reinsurance payable

 

443,083

 

 

 

543,602

 

Other liabilities and accrued expenses

 

407,925

 

 

 

403,744

 

Total liabilities

$

5,038,018

 

 

$

4,562,748

 

 

 

 

 

Stockholders’ Equity:

 

 

 

Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding

$

—

 

 

$

—

 

Common stock: $0.001 par value, 200,000,000 shares authorized, 37,255,838 and 36,756,187 shares issued and outstanding, respectively

 

37

 

 

 

37

 

Additional paid-in capital

 

389,693

 

 

 

382,239

 

Accumulated other comprehensive income (loss), net of tax

 

(27,750

)

 

 

(26,073

)

Retained earnings

 

95,718

 

 

 

60,663

 

Total Tiptree Inc. stockholders’ equity

 

457,698

 

 

 

416,866

 

Non-controlling interests:

 

 

 

Fortegra preferred interests

 

77,679

 

 

 

77,679

 

Common interests

 

121,394

 

 

 

82,020

 

Total non-controlling interests

 

199,073

 

 

 

159,699

 

Total stockholders’ equity

 

656,771

 

 

 

576,565

 

Total liabilities and stockholders’ equity

$

5,694,789

 

 

$

5,139,313

 

Tiptree Inc.

Consolidated Statements of Operations

($ in thousands, except share data)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2024

 

2023

 

2024

 

2023

Revenues:

 

 

 

 

 

 

 

Earned premiums, net

$

366,657

 

$

301,416

 

$

1,471,930

 

$

1,127,834

Service and administrative fees

 

93,497

 

 

105,678

 

 

405,193

 

 

395,969

Ceding commissions

 

3,859

 

 

4,154

 

 

15,384

 

 

14,915

Net investment income

 

10,726

 

 

7,061

 

 

32,976

 

 

26,674

Net realized and unrealized gains (losses)

 

14,051

 

 

12,277

 

 

50,569

 

 

24,736

Other revenue

 

14,809

 

 

15,788

 

 

66,802

 

 

58,903

Total revenues

 

503,599

 

 

446,374

 

 

2,042,854

 

 

1,649,031

Expenses:

 

 

 

 

 

 

 

Policy and contract benefits

 

196,126

 

 

158,419

 

 

841,207

 

 

601,794

Commission expense

 

164,587

 

 

160,140

 

 

648,819

 

 

603,033

Employee compensation and benefits

 

52,917

 

 

48,231

 

 

204,355

 

 

179,075

Interest expense

 

8,329

 

 

7,467

 

 

32,248

 

 

27,692

Depreciation and amortization

 

5,399

 

 

5,991

 

 

21,653

 

 

23,466

Other expenses

 

34,046

 

 

36,061

 

 

145,253

 

 

130,918

Total expenses

 

461,404

 

 

416,309

 

 

1,893,535

 

 

1,565,978

Income (loss) before taxes

 

42,195

 

 

30,065

 

 

149,319

 

 

83,053

Less: provision (benefit) for income taxes

 

12,853

 

 

13,937

 

 

61,652

 

 

43,056

Net income (loss)

 

29,342

 

 

16,128

 

 

87,667

 

 

39,997

Less: net income (loss) attributable to non-controlling interests

 

9,789

 

 

9,257

 

 

34,300

 

 

26,046

Net income (loss) attributable to common stockholders

$

19,553

 

$

6,871

 

$

53,367

 

$

13,951

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

Basic earnings per share

$

0.52

 

$

0.19

 

$

1.44

 

$

0.38

Diluted earnings per share

$

0.47

 

$

0.15

 

$

1.30

 

$

0.33

 

 

 

 

 

 

 

 

Weighted average number of common shares:

 

 

 

 

 

 

 

Basic

 

37,189,433

 

 

36,755,768

 

 

36,872,706

 

 

36,693,204

Diluted

 

38,357,109

 

 

37,744,257

 

 

37,926,792

 

 

37,619,095

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.31

 

$

0.05

 

$

0.49

 

$

0.20

Tiptree Inc. Non-GAAP Reconciliations (Unaudited)

Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity

Adjusted net income is defined as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income is presented before the impacts of non-controlling interests. Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies.

 

Three Months Ended December 31, 2024

 

 

 

Tiptree Capital

 

 

   

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

47,888

 

 

$

3,533

 

 

$

(764

)

 

$

(8,463

)

 

$

42,194

 

Less: Income tax (benefit) expense

 

(7,656

)

 

 

(847

)

 

 

164

 

 

 

(4,514

)

 

 

(12,853

)

Less: Net realized and unrealized gains (losses) (1)

 

(914

)

 

 

(3,139

)

 

 

179

 

 

 

—

 

 

 

(3,874

)

Plus: Intangibles amortization (2)

 

3,856

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,856

 

Plus: Stock-based compensation expense

 

2,999

 

 

 

—

 

 

 

—

 

 

 

1,492

 

 

 

4,491

 

Plus: Non-recurring expenses (3)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Plus: Non-cash fair value adjustments (4)

 

1,418

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,418

 

Plus: Impact of tax deconsolidation of Fortegra(5)

 

—

 

 

 

—

 

 

 

—

 

 

 

6,766

 

 

 

6,766

 

Less: Tax on adjustments (6)

 

(5,051

)

 

 

753

 

 

 

(159

)

 

 

(1,416

)

 

 

(5,873

)

Adjusted net income (before NCI)

$

42,540

 

 

$

300

 

 

$

(580

)

 

$

(6,135

)

 

$

36,125

 

Less: Impact of non-controlling interests

 

(8,891

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,891

)

Adjusted net income

$

33,649

 

 

$

300

 

 

$

(580

)

 

$

(6,135

)

 

$

27,234

 

 

 

 

 

 

 

 

 

   

 

 

Adjusted net income (before NCI)

$

42,540

 

 

$

300

 

 

$

(580

)

 

$

(6,135

)

 

$

36,125

 

Average stockholders’ equity

$

615,922

 

 

$

54,586

 

 

$

46,299

 

 

$

(60,322

)

 

$

656,485

 

Adjusted return on average equity (7)

 

27.6

%

 

 

2.2

%

 

 

(5.0

)%

 

 

NM

%

 

 

22.0

%

 

 

 

 

 

 

 

 

   

 

 

 

Three Months Ended December 31, 2023

 

 

 

Tiptree Capital

 

 

   

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

44,232

 

 

$

(2,391

)

 

$

333

 

 

$

(12,109

)

 

$

30,065

 

Less: Income tax (benefit) expense

 

(5,288

)

 

 

606

 

 

 

(266

)

 

 

(8,989

)

 

 

(13,937

)

Less: Net realized and unrealized gains (losses) (1)

 

(6,395

)

 

 

2,794

 

 

 

(596

)

 

 

—

 

 

 

(4,197

)

Plus: Intangibles amortization (2)

 

4,252

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,252

 

Plus: Stock-based compensation expense

 

780

 

 

 

—

 

 

 

—

 

 

 

1,219

 

 

 

1,999

 

Plus: Non-recurring expenses (3)

 

348

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

348

 

Plus: Non-cash fair value adjustments (4)

 

842

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

842

 

Plus: Impact of tax deconsolidation of Fortegra (5)

 

—

 

 

 

—

 

 

 

—

 

 

 

8,891

 

 

 

8,891

 

Less: Tax on adjustments (6)

 

(6,167

)

 

 

(702

)

 

 

(185

)

 

 

(671

)

 

 

(7,725

)

Adjusted net income (before NCI)

$

32,604

 

 

$

307

 

 

$

(714

)

 

$

(11,659

)

 

$

20,538

 

Less: Impact of non-controlling interests

 

(6,684

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,684

)

Adjusted net income

$

25,920

 

 

$

307

 

 

$

(714

)

 

$

(11,659

)

 

$

13,854

 

 

 

 

 

 

 

 

 

   

 

 

Adjusted net income (before NCI)

$

32,604

 

 

$

307

 

 

$

(714

)

 

$

(11,659

)

 

$

20,538

 

Average stockholders’ equity

$

422,327

 

 

$

53,188

 

 

$

128,827

 

 

$

(44,272

)

 

$

560,070

 

Adjusted return on average equity (7)

 

30.9

%

 

 

2.3

%

 

 

(2.2

)%

 

 

NM

%

 

 

14.7

%

 

Year Ended December 31, 2024

 

 

Tiptree Capital

 

 

 

($ in thousands)

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

$

183,158

 

$

4,725

 

$

(163

)

$

(38,401

)

$

149,319

 

Less: Income tax (benefit) expense

 

(43,260

)

 

(1,091

)

 

(540

)

 

(16,761

)

 

(61,652

)

Less: Net realized and unrealized gains (losses) (1)

 

(8,496

)

 

(2,711

)

 

905

 

 

—

 

 

(10,302

)

Plus: Intangibles amortization (2)

 

15,413

 

 

—

 

 

—

 

 

—

 

 

15,413

 

Plus: Stock-based compensation expense

 

8,998

 

 

—

 

 

—

 

 

8,682

 

 

17,680

 

Plus: Non-recurring expenses (3)

 

3,455

 

 

—

 

 

—

 

 

—

 

 

3,455

 

Plus: Non-cash fair value adjustments (4)

 

7,436

 

 

—

 

 

—

 

 

—

 

 

7,436

 

Plus: Impact of tax deconsolidation of Fortegra (5)

 

—

 

 

—

 

 

—

 

 

23,495

 

 

23,495

 

Less: Tax on adjustments (6)

 

(9,673

)

 

608

 

 

87

 

 

(3,168

)

 

(12,146

)

Adjusted net income (before NCI)

$

157,031

 

$

1,531

 

$

289

 

$

(26,153

)

$

132,698

 

Less: Impact of non-controlling interests

 

(32,638

)

 

—

 

 

—

 

 

—

 

 

(32,638

)

Adjusted net income

$

124,393

 

$

1,531

 

$

289

 

$

(26,153

)

$

100,060

 

 

 

 

 

 

 

 

Adjusted net income (before NCI)

$

157,031

 

$

1,531

 

$

289

 

$

(26,153

)

$

132,698

 

Average stockholders’ equity

$

539,049

 

$

54,113

 

$

80,856

 

$

(57,350

)

$

616,668

 

Adjusted return on average equity (7)

 

29.1

%

 

2.8

%

 

0.4

%

NM

%

 

21.5

%

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

Tiptree Capital

 

 

 

 

 

($ in thousands)

Insurance

 

Mortgage

 

Other

 

Corporate

 

Total

Income (loss) before taxes

$

129,816

 

$

(3,285

)

$

(3,264

)

$

(40,214

)

$

83,053

 

Less: Income tax (benefit) expense

 

(28,224

)

 

837

 

 

153

 

 

(15,822

)

 

(43,056

)

Less: Net realized and unrealized gains (losses) (1)

 

4,207

 

 

1,861

 

 

5,289

 

 

—

 

 

11,357

 

Plus: Intangibles amortization (2)

 

16,919

 

 

—

 

 

—

 

 

—

 

 

16,919

 

Plus: Stock-based compensation expense

 

2,018

 

 

—

 

 

—

 

 

6,251

 

 

8,269

 

Plus: Non-recurring expenses (3)

 

2,824

 

 

—

 

 

—

 

 

—

 

 

2,824

 

Plus: Non-cash fair value adjustments (4)

 

(1,769

)

 

—

 

 

—

 

 

—

 

 

(1,769

)

Plus: Impact of tax deconsolidation of Fortegra (5)

 

—

 

 

—

 

 

—

 

 

19,101

 

 

19,101

 

Less: Tax on adjustments (6)

 

(10,086

)

 

(495

)

 

(1,255

)

 

797

 

 

(11,039

)

Adjusted net income (before NCI)

$

115,705

 

$

(1,082

)

$

923

 

$

(29,887

)

$

85,659

 

Less: Impact of non-controlling interests

 

(23,742

)

 

—

 

 

—

 

 

—

 

 

(23,742

)

Adjusted net income

$

91,963

 

$

(1,082

)

$

923

 

$

(29,887

)

$

61,917

 

 

 

 

 

 

 

 

Adjusted net income (before NCI)

$

115,705

 

$

(1,082

)

$

923

 

$

(29,887

)

$

85,659

 

Average stockholders’ equity

$

395,661

 

$

53,520

 

$

100,325

 

$

5,564

 

$

555,070

 

Adjusted return on average equity (7)

 

29.2

%

 

(2.0

)%

 

0.9

%

NM

%

 

15.4

%

Notes

(1)

 

Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights.

(2)

 

Specifically associated with acquisition purchase accounting. See Note (9) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended December 31, 2024.

(3)

 

For the three months and year ended December 31, 2024 and 2023, included in other expenses were expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024 and acquisitions of services businesses in 2023.

(4)

 

For the three months and year ended December 31, 2024 and 2023, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability which are added-back to adjusted net income.

(5)

 

For the three months and year ended December 31, 2024 and 2023, included in the adjustment is an add-back of $6.8 million and $23.5 million, respectively, and $8.9 million and $19.1 million, respectively, related to deferred tax expense from the WP Transaction.

(6)

 

Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts.

(7)

 

Total Adjusted return on average equity after non-controlling interests was 23.7% and 13.6% for the three months ended December 31, 2024 and 2023, respectively, based on $27.2 million and $13.9 million of Adjusted net income over $459.8 million and $406.5 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 22.9% and 15.2% for the year ended December 31, 2024 and 2023, respectively, based on $100.1 million and $61.9 million of Adjusted net income over $437.3 million and $407.1 million of average Tiptree Inc. stockholders’ equity.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226198754/en/

Investor Relations, 212-446-1400 ir@tiptreeinc.com