Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 203

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 203
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 8.7%, was in line with decrease in service and administrative fees, and driven by moderating inflation on replacement costs and labor rates. Commission expense decreased by $5.3 million, or 3.4%, driven by impacts from sliding scale commission structures, partially offset by the growth in earned premiums.

For the three months ended March 31, 2025, employee compensation and benefits were $36.4 million and other expenses were $31.8 million, as compared to $31.5 million and $33.2 million, respectively, for the three months ended March 31, 2024. Employee compensation and benefits increased by $5.0 million, or 15.9%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses decreased by $1.3 million, or 4.0%, driven by a change in fair value of the Fortegra Additional Warrant liability of $2.0 million, in comparison to $4.2 million in three months ended March 31, 2024.

For the three months ended March 31, 2025, interest expense was $8.9 million as compared to $7.6 million for the three months ended March 31, 2024. On November 7, 2024, Fortegra issued 150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064. The proceeds of the 2024 Notes were used to repay outstanding indebtedness under Fortegra’s credit agreement, for insurance company growth capital and general corporate purposes. The increase in interest expense of $1.2 million, or 16.3%, was primarily driven by was primarily driven by the issuance of the new debt. 

For the three months ended March 31, 2025, depreciation and amortization expense was $4.5 million, including $3.3 million of intangible amortization related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023, as compared to $5.1 million, including $4.0 million of intangible amortization from purchase accounting in 2024.

Gross Written Premiums and Premium Equivalents (1)

The below table shows gross written premiums and premium equivalents by business mix for the three months ended March 31, 2025 and 2024:

56

($ in thousands)Three Months Ended March 31,