Tiptree Announces Second Quarter 2025 Results

Tiptree Inc. (NASDAQ:TIPT) ("Tiptree" or the "Company"), today announced its financial results for the three and six months ended June 30, 2025.

The Company commented, "Our team delivered strong second-quarter results, highlighted by a 22% annualized adjusted return on average equity. Fortegra's momentum remained solid, with premiums up 17.0% and the combined ratio improving to 88.5%. We continue to identify high-quality underwriting opportunities across both property and casualty lines, as well as in our service offerings. Our $1.7 billion investment portfolio is contributing meaningfully, with growing investable assets and maturing positions driving steady improvement in book yield. These results highlight our disciplined approach to capital deployment and our strong return profile. We remain focused on building long-term shareholder value and are actively exploring ways to better reflect the intrinsic value of Tiptree's businesses in our share price."

Second Quarter 2025 Summary

• Revenues of $528.8 million for the quarter and $1.03 billion for the year, a decrease of 3.3% and 1.8% from the respective prior year periods, driven by declines in net earned premiums and service and administrative fees, partially offset by higher net investment income and investment gains. Included in the prior year periods were earned premiums related to a one-time assumption of a block of premiums from an MGA partner in December 2023. When excluding the assumption of premiums in the prior year periods, revenues increased by 4.1% and 8.0%, for the comparative periods.
  
  
  
  
• Net income of $19.0 million compared to $12.9 million in Q2'24, and year-to-date net income of $24.6 million compared to $21.9 million in the prior year, with increases driven by growth in Fortegra's underwriting and fee income, and higher investments gains, partially offset by incremental interest expense on borrowings at the holding company level.
  
  
  
  
• Adjusted net income of $27.1 million for the quarter and $50.5 million for the year, an increase of 11.1% and 12.2% from the respective prior year periods, driven by growth in our insurance business. Annualized adjusted return on average equity was 22.3% for the quarter, as compared to 22.7% in Q2'24.
  
  
  
  
• Declared a dividend of $0.06 per share to stockholders of record on August 18, 2025 with a payment date of August 25, 2025.

Segment Financial Highlights - Second Quarter 2025

• Record gross written premiums and premium equivalents of $907.6 million for the quarter, an increase of 17.0%, and $1.7 billion for the year, an increase of 15.4%, driven by growth in specialty E&S insurance lines. E&S premiums were $690.4 million for the year-to-date period, an increase of 23.8% from the prior year.
  
  
  
  
• Record net written premiums of $428.8 million for the quarter, an increase of 17.2%, and $786.5 million for the year, an increase of 15.0%, driven by growth in gross written premiums and stable premium retention levels.
  
  
  
  
• Revenues decreased 3.2% for the quarter and 1.5% for the year, driven by declines in net earned premiums, service and administrative fees, partially offset by higher net investment income. Included in the prior year periods were earned premiums related to a one-time assumption of a block of premiums from an MGA partner in December 2023. When excluding the assumption of premiums in the prior year periods, revenues increased by 4.5% and 8.8%, for the comparative periods.
  
  
  
  
• Combined ratio for the quarter of 88.5%, an improvement of 1.4% related to a reduction in the underwriting ratio. CAT losses for Q2'25 and Q2'24 were de minimis. Year-to-date combined ratio was 89.2%, an improvement of 0.8%. Included in the year-to-date combined ratio was 3.3% related to net catastrophe losses of $30.1 million primarily from the California wildfires as compared to 0.1% in 2024.
  
  
  
  
• Record income before taxes of $67.1 million for the quarter, an increase of 31.0%. Year-to-date income before taxes of $105.2 million, an increase of 19.5%. Annualized after-tax return on average equity for the year was 23.5%, compared to 25.8% in 2024.
  
  
  
  
• Record adjusted net income for the quarter of $45.2 million, up 12.0% from Q2'24. Year-to-date adjusted net income of $85.6 million, up 15.0%. Annualized adjusted return on average equity for the year was 25.3%, compared to 29.7% in 2024.
  
  
  
  
• Fortegra's total stockholders' equity was $730.9 million as of June 30, 2025, compared to $625.5 million as of December 31, 2024, an increase of 16.9%, driven by growth in retained earnings and a decrease in the accumulated other comprehensive loss position.

• Mortgage income before taxes was $0.2 million for the quarter, as compared to $0.5 million in Q2'24, and $28.0 thousand for the year, as compared to $1.3 million in 2024, driven by negative fair value adjustments in mortgage servicing rights, partially offset by higher loan servicing fees.

Corporate:

Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, interest expense, and public company and other expenses. For the quarter, corporate expenses were $11.4 million compared to $11.3 million in Q2'24, driven by increased interest expense. As of June 30, 2025, outstanding borrowings at the holding company were $74.6 million.

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.

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.

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