Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 15

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 15
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 product offerings. 

For the three months ended June 30, 2025, net investment income was $10.5 million as compared to $6.4 million in the prior year period, an increase of $4.1 million driven by increased yields on investments and increased allocation to fixed income securities compared to cash equivalents. Net realized and unrealized gains were $12.0 million, an improvement of $9.4 million, as compared to net realized and unrealized gains of $2.5 million in the prior year period, primarily driven by the change in fair value of certain equity and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the three months ended June 30, 2025 were $5.1 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 June 30, 2025 compared to 2024

For the three months ended June 30, 2025, net losses and loss adjustment expenses were $197.9 million, member benefit claims were $28.6 million and commission expense was $140.5 million, as compared to $205.3 million, $28.7 million, and $173.3 million, respectively, for the three months ended June 30, 2024. The decrease in net losses and loss adjustment expenses of $7.4 million, or 3.6%, was in line with the decrease in earned premiums, net, driven by the U.S. insurance lines. In addition, the Company experienced favorable prior year development of $4.3 million and $1.6 million, respectively, for the three months ended June 30, 2025 and 2024, driven by lower-than-expected claims in our commercial lines of business. For the three months ended June 30, 2025 and 2024, net catastrophe losses included in net losses and adjustment expenses were de minimis. The decrease in member benefit claims of $0.1 million, or 0.4%, was driven by the decrease in service and administrative fees, partially offset by higher replacement costs and labor rates on vehicle service contracts in the U.S. and Europe. Commission expenses decreased by $32.8 million, or 18.9%, driven by decline in earned premiums, net, and service and administrative fees, in addition to the impacts from sliding scale commissions on warranty contracts.