Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 18

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 18
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 events, reinstatements premiums, reinsurance recoveries and taxes.

Combined Ratio

The combined ratio was 90.0% for the year ended December 31, 2024, compared to 90.3% for the prior year period, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 77.0%, an increase of 0.7 percentage points from the prior year period, which consists of a loss ratio of 45.5%, compared to 40.1% in the prior year period, and an acquisition ratio of 31.5%, compared to 36.2% in the prior year period. The increase in loss ratio was driven by changes in business mix towards commercial lines and increases in repair and labor costs on vehicle service contracts compared to prior year period, which was partially offset by the decline in acquisition ratio as a result of swing rate commission structures. Additionally, for the year ended December 31, 2024, the loss ratio included 2.6 percentage points related to net catastrophe losses as compared to 0.2 percentage points in the prior year period. The primary catastrophic events impacting 2024 were Hurricanes Helene and Milton. The operating expense ratio was 13.0%, as compared to 14.0% in the prior year period, driven by operating efficiencies as premiums and revenues grew.

Underwriting and Fee Revenues and Margin - Non-GAAP 

The below table shows underwriting and fee revenues and underwriting and fee margin by business mix for the years ended December 31, 2024 and 2023.

Year Ended December 31,($ in thousands)20242023InsuranceServicesTotalInsuranceServicesTotalUnderwriting and Fee Revenues (1)$1,480,104 $367,986 $1,848,090 $1,141,019 $359,004 $1,500,023 Net losses and loss adjustment expenses722,190 — 722,190 482,456 50 482,506 Member benefit claims— 119,017 119,017 — 119,288 119,288 Commission expense (2)446,687 135,501 582,188 411,012 132,478 543,490 Underwriting and Fee Margin (1)$311,227 $113,468 $424,695 $247,551 $107,188 $354,739 Loss ratio