Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 212

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 212
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 2024. The interest expense was $1.2 million as of March 31, 2025. As of March 31, 2025 the outstanding borrowing on the facility was $74.8 million compared to no outstanding borrowings in 2024. Other expenses declined to $1.9 million driven primarily by decreased professional fees.

Provision for Income Taxes

The total income tax expense of $12.4 million and $13.8 million for the three months ended March 31, 2025 and 2024, respectively, is reflected as a component of net income (loss). For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was equal to 48.8% and 46.5%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

On April 15, 2024, the Company sold its 16.98 million shares of Invesque for $0.6 million of proceeds resulting in a capital loss carryforward for tax purposes of approximately $106.8 million.

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. 

As of March 31, 2025, the deferred tax liability relating to Fortegra was $91.8 million, which was an increase of $7.1 million from the year ended December 31, 2024, of which $2.3 million of expense was recorded in OCI, and $4.7 million expense was recorded as a provision for income taxes. As of March 31, 2024, the deferred tax liability relating to Fortegra was $65.6 million, which was an increase of $3.9 million from the year ended December 31, 2023, of which $0.5 million benefit was recorded in OCI, and $4.5 million 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