Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 62

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 reported in other income. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee revenues to total revenues in accordance with GAAP.

Underwriting and fee margin represents income before taxes excluding net investment income, net realized gains (losses), net unrealized gains (losses), cash and cash equivalent interest income, employee compensation and benefits, other expenses, interest expense and depreciation and amortization. We deliver our products and services on a vertically integrated basis to our agents. As 

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such, underwriting and fee margin exclude general and administrative expenses, interest income, depreciation and amortization and other corporate expenses, including income taxes, as these corporate expenses support our vertically integrated delivery model and are not specifically supporting any individual business line. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee margin to total revenues in accordance with GAAP.

Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting. See “—Non-GAAP Reconciliations” for a reconciliation of adjusted net income to net income in accordance with GAAP. 

Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “—Non-GAAP Reconciliations” for a reconciliation of adjusted return on average equity to return on average equity in accordance with GAAP.

Results of Operations - Three Months Ended March 31, 2025 compared to 2024

($ in thousands)Three Months Ended March 31, 20252024Change% ChangeRevenues:Earned premiums, net$363,437 $347,310 $16,127 4.6 %Service and administrative fees97,298 110,487 (13,189)(11.9)%Ceding commissions3,633 2,744 889 32.4 %Net investment income11,729 6,758 4,971 73.6 %Net realized and unrealized gains (losses)(3,419)2,819 (6,238)NM%Other revenue7,903 8,638 (735)(8.5)%