Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 46

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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24Employee compensation and benefits$9,139 $3,776 Director compensation69 69 Income tax benefit(1,049)(808)Net stock based compensation expense$8,159 $3,037  Additional information on total non-vested stock based compensation is as follows:As of March 31, 2025Subsidiary Stock optionsRestricted stock awards and RSUsPerformance Restricted Stock UnitsUnrecognized compensation cost related to non-vested awards (1)$14,298 $1,255 $12,678 Weighted - average recognition period (in years)1.61.21.2(1)    Includes unrecognized compensation cost of $14,298 related to stock options and $2,556 related to PRSUs at The Fortegra Group.

(18) Income Taxes

The following table presents the Company’s provision (benefit) for income taxes reflected as a component of income (loss):Three Months EndedMarch 31, 20252024Total income tax expense (benefit)$12,382 $13,818 Effective tax rate (ETR)48.8 %(1)46.5 %(1)(1)   Higher than the U.S. federal statutory income tax rate of 21% primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra and other discrete items.Tiptree owns less than 80% of Fortegra and is required to record deferred taxes on the outside basis on its investment in Fortegra. This deferred tax liability represents the tax that would be due, before consideration of loss carryforwards, if Tiptree were to sell all of its Fortegra stock at its carrying value on Tiptree’s balance sheet. For the three months ended March 31, 2025, the deferred tax liability relating to Fortegra increased by $7,072, of which $2,349 of expense was recorded in OCI, and $4,723 expense was recorded as a provision for income taxes. For the three months ended March 31, 2024, the deferred tax liability relating to Fortegra increased by $3,930, of which $535 of benefit was recorded in OCI, and $4,465 expense was recorded as a provision for income taxes.  Excluding the impact of these deferred taxes, the effective tax rates for the three months ended March 31, 2025 and 2024 were 30.2% and 31.5%,