Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 202

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 202
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.6% of revenues were derived from fees that were not solely dependent upon the underwriting performance of Fortegra’s insurance products, resulting in more diversified earnings. For the three months ended March 31, 2025, 79.5% of fee-based revenues were generated in non-regulated service companies, with the remainder in regulated insurance companies.

For the three months ended March 31, 2025, net investment income was $11.7 million as compared to $6.8 million in the prior year period, an increase of $5.0 million driven by increased yields on investments. Net realized and unrealized losses were $3.4 million, compared to net realized and unrealized gains of $2.8 million in the prior year period, primarily driven by the change in fair value of equity securities and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the three months ended March 31, 2025 were $9.9 million, driven by positive fair value adjustments on U.S. Treasury securities and obligations of U.S. government authorities and agencies, corporate bonds and other investments.

Expenses - Three Months Ended March 31, 2025 compared to 2024

For the three months ended March 31, 2025, net losses and loss adjustment expenses were $179.8 million, member benefit claims were $29.5 million and commission expense was $151.6 million, as compared to $175.4 million, $32.3 million, and $156.9 million respectively, for the three months ended March 31, 2024. The increase in net losses and loss adjustment expenses was $4.5 million, or 2.5%. During the three months ended March 31, 2025, the Company experienced favorable prior year development of $4.0 million primarily as a result of lower-than-expected claims in its commercial lines of business. In the three months ended March 31, 2024, the Company experienced unfavorable prior year development of $0.8 million primarily driven by higher-than-expected claim severity in our commercial lines of business, primarily driven by one partner. For the three months ended March 31, 2025 and 2024, net losses and adjustment expenses included $30.3 million and $1.1 million of net catastrophe losses, respectively, primarily related to the California wildfires for the 2025 period. The decrease in member benefit claims of $2.8 million, or