Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 249

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part II, Item 8
Chunk 249
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30, 2025, net losses and loss adjustment expenses were $377.7 million, member benefit claims were $58.1 million and commission expense was $292.1 million, as compared to $380.6 million, $61.0 million, and $330.2 million respectively, for the six months ended June 30, 2024. The decrease in net losses and loss adjustment expenses was $2.9 million, or 0.8%. During the six months ended June 30, 2025 and 2024, the Company experienced favorable prior year development of $8.3 million and $0.8 million, respectively, primarily as a result of lower-than-expected claims in its commercial lines of business. For the six months ended June 30, 2025 and 2024, net losses and adjustment expenses included $30.1 million and $1.3 million of net catastrophe losses, respectively, primarily related to the California wildfires for the 2025 period. The decrease in member benefit claims of $2.9 million, or 4.8%, was in line with decrease in service and administrative fees, partially offset by higher replacement costs and labor rates. Commission expense decreased by $38.1 million, or 11.5%, driven by impacts from sliding scale commission structures.

For the six months ended June 30, 2025, employee compensation and benefits were $74.1 million and other expenses were $60.2 million, as compared to $63.0 million and $60.7 million, respectively, for the six months ended June 30, 2024. Employee compensation and benefits increased by $11.1 million, or 17.7%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses decreased by $0.6 million, or 0.9%, driven by a change in fair value of the Fortegra Additional Warrant liability of $0.6 million, in comparison to $5.1 million in six months ended June 30, 2024. Included in other expenses were $4.2 million of deal-related expenses in the 2025 period, compared to $3.3 million of expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in February 2024.

For the six months ended June 30, 2025, interest expense was $17.3 million as compared to $15.