Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 127

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7A
Chunk 127
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 2024 and 2023, respectively. These investments do not represent a credit risk and are excluded.

(2)    The Company also holds investments in mortgage loans held for sale of $71.1 million and $58.3 million as of December 31, 2024 and 2023, respectively. These investments do not represent a credit risk and are excluded.

(3)    The Company also holds other investments of $3.1 million and $4.3 million as of December 31, 2024 and 2023, respectively. These investments do not represent a credit risk and are excluded.

Credit risk within the Company’s investments represents the exposure to the adverse changes in the creditworthiness of individual investment holdings, issuers, groups of issuers, industries, and countries. Our policy is to invest in high-quality securities and to limit investments in the instruments that are either unrated or rated below investment grade. As of December 31, 2024 and 2023, 84% and 72%, respectively, of the investments subject to credit risk had investment grade ratings.

In addition, our mortgage business also underwrites mortgage loans for the purpose of selling them into the secondary market. Due to the relatively short holding period, the credit risk associated with mortgage loans held for sale is not expected to be significant. 

See Note (6) Investments to the consolidated financial statements for more information regarding our investments in loans by type.

Market Risk

We are primarily exposed to market risk related to the following investments: 

($ in thousands)As of December 31, 2024As of December 31, 2023InsuranceTiptree Capital - OtherTotalInsuranceTiptree Capital - OtherTotalInvesque$— $— $— $719 $3,442 $4,161 Exchange traded funds5,075 — 5,075 1,349 — 1,349 Other equity securities99,393 4,152 103,545 25,045 37,753 62,798 Total equity securities$104,468 $4,152 $108,620 $27,113 $41,195 $68,308 

A 10% increase or decrease in the fair value of such investments would result in $10.8 million and $6.8 million of unrealized gains and losses as of December 31, 2024 and 2023,