Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 194

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 194
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 reconciles the total amount of losses incurred on short duration contracts per the table above to the amount of total losses incurred as presented in the consolidated statements of operations, excluding the amount for member benefit claims:For the Year Ended December 31,202420232022Short duration incurred$719,920 $482,000 $360,604 Other lines incurred53 30 354 Unallocated loss adjustment expenses2,217 476 643 Total losses incurred$722,190 $482,506 $361,601 During the year ended December 31, 2024, the Company experienced favorable prior year development of $624, as a result of lower-than-expected losses in its commercial lines of business.During the year ended December 31, 2023, the Company experienced favorable prior year development of $11,187, primarily  driven by lower-than-expected claims paid development in our commercial lines of business for the 2018 and 2020 accident years.During the year ended December 31, 2022, the Company experienced favorable prior year development of $858, primarily as 

F-48

TIPTREE INC. AND SUBSIDIARIESNotes to Consolidated Financial StatementsDecember 31, 2024(in thousands, except share data)

a result of lower-than-expected claim severity in our commercial lines of business.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 $624 in the year ended December 31, 2024 represented 0.3% of our insurance business income before taxes of $183,158 and 0.2% of the opening net liability for losses and loss adjustment expenses of $393,455, as of January 1, 2024.The favorable prior year development of $11,187 in the year ended December 31, 2023 represented 8.6% of our insurance business income before taxes of $129,816, and 3.8% of the opening net liability for losses and loss adjustment expenses of $298,057, as of January 1, 2023. The favorable prior year development of