Company: TIPT
Filing Date: 2025-10-17
Form Type: PREM14A
Source: 0001140361-25-038514
Chunk: 302

Company: TIPTREE INC.
Filing Date: 2025-10-17
Form: PREM14A
Chunk 302
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 SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) June 30, 2025 (in thousands, unless otherwise noted) During the six months ended June 30, 2024, the Company experienced favorable prior year development of $788, as a result of lower-than-expected losses in its commercial lines of business. Management considers the prior year development for each of the two periods 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 $8,301 in the six months ended June 30, 2025 represented 7.9% of pre-tax income of $105,198 and 1.3% of the opening net liability for losses and loss adjustment expenses of $658,210, as of January 1, 2025. The favorable prior year development of $788 in the six months ended June 30, 2024 represented 0.9% of pre-tax income of $88,061 and 0.2% of the opening net liability for losses and loss adjustment expenses of $393,455, as of January 1, 2024. During the six months ended June 30, 2025, current year incurred losses included $27.4 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 represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. (11) Revenue from Contracts with Customers The Company’s revenues from insurance and contractual and liability insurance operations are primarily accounted for under Financial Services-Insurance (Topic 944) that are not within the scope of Revenue for Contracts with Customers (Topic 606). The Company’s remaining revenues that are within the scope of Topic 606 are primarily comprised of revenues from contracts with customers for monthly membership dues for motor clubs, monthly administration fees for services provided for premiums, claims and reinsurance processing revenues, vehicle service contracts and warranty coverage revenues for household goods and appliances service contracts (collectively, remaining contracts