Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 33

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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 for member benefit claims:Three Months EndedMarch 31, 20252024Short duration incurred$178,511 $175,313 Other lines incurred(68)(105)Unallocated loss adjustment expenses1,405 172 Total losses incurred$179,848 $175,380 During the three months ended March 31, 2025, the Company experienced favorable prior year development of $4,031, as a result of lower-than-expected losses in its commercial lines of business.During the three months ended March 31, 2024, the Company experienced unfavorable prior year development of $773, primarily driven by higher-than expected claims paid development in our commercial lines of business, primarily with a single partner.

F-34

TIPTREE INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial StatementsMarch 31, 2025(in thousands, except share data)

Management considers the prior year development for each of these years to be insignificant when considered in the context of our annual earned premiums, net as well as our net losses and loss adjustment expenses and member benefit claims expenses. We analyze our development on a quarterly basis and given the short duration nature of our products, favorable or adverse development emerges quickly and allows for timely reserve strengthening, if necessary, or modifications to our product pricing or offerings. The favorable prior year development of $4,031 in the three months ended March 31, 2025 represented 10.6% of our insurance business income before taxes of $38,054 and 0.6% of the opening net liability for losses and loss adjustment expenses of $658,210, as of January 1, 2025.The unfavorable prior year development of $773 in the three months ended March 31, 2024 represented 2.1% of our insurance business income before taxes of $36,811, and 0.2% of the opening net liability for losses and loss adjustment expenses of $393,455, as of January 1, 2024. During the three months ended March 31, 2025, current year incurred losses included $27.1 million related to the January 2025 California wildfires.Based upon our internal analysis and our review of the statement of actuarial opinions provided by our actuarial consultants, we believe that the amounts recorded for policy liabilities and unpaid claims reasonably represent the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.