Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 166

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 166
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Presented in whole numbers.Management believes that it is more likely than not that the Company will be able to hold the fixed maturity AFS securities that were in an unrealized loss position as of December 31, 2024 until full recovery of their amortized cost basis.The table below presents a roll-forward of the activity in the allowance for credit losses on AFS securities by type as of December 31, 2024:Obligations of state and political subdivisionsCorporate securitiesAsset backed securitiesObligations of foreign governmentsTotalBalance at December 31, 2022$(3)$(183)$(1)$(3)$(190)(Increase) in allowance for credit losses— (33)(10)— (43)Additions for AFS securities purchased with credit deterioration during the year— (2)— — (2)Reduction in credit losses due to AFS securities sold during the year— 1 — — 1 Gains from recoveries of amounts previously written off2 144 1 3 150 Balance at December 31, 2023$(1)$(73)$(10)$— $(84)(Increase) in allowance for credit losses— (98)(59)— (157)Additions for AFS securities purchased with credit deterioration during the year— (3,013)— (1)(3,014)Reduction in credit losses due to AFS securities sold during the year— 2 — — 2 Gains from recoveries of amounts previously written off— 25 1 — 26 Balance at December 31, 2024$(1)$(3,157)$(68)$(1)$(3,227)The Company applies a discounted cash flow model, based on assumptions and model outputs provided by an investment management company, in determining its lifetime expected credit losses on AFS securities. This includes determining the present value of expected future cash flows discounted at the book yield of the security.The table below presents the amount of gains from recoveries (credit losses, including Current Expected Credit Losses (CECL)) on AFS securities recorded by the Company for the following period:For the Year Ended December 31,202420232022Net gains from recoveries (credit losses) on AFS securities$(3,153)$106 $55 Pursuant to certain reinsurance agreements and statutory licensing requirements, the Company has deposited invested assets in custody accounts or insurance department safekeeping