Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 207

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 207
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 Total underwriting and fee revenues increased $3.1 million, or 0.7%, driven by growth in Insurance. The increase in Insurance was $14.5 million, or 4.2%, driven by growth in commercial, E&S, and credit insurance lines. The decrease in Services was $11.4 million, or 11.6%, driven by decrease in vehicle service contracts and premium finance offerings.

Underwriting and fee margin was $108.6 million for the three months ended March 31, 2025 as compared to $100.8 million for the three months ended March 31, 2024. Total underwriting and fee margin increased $7.7 million, or 7.7%, driven by growth in Insurance. Insurance grew by $14.9 million, or 21.4%, from growth in specialty E&S and admitted lines. Services decreased by $7.1 million, or 22.8%, primarily driven by decrease in vehicle service contracts and premium finance offerings.

Return on Average Equity

Return on average equity was 17.7% for the three months ended March 31, 2025, as compared to 22.3% for the three months ended March 31, 2024, with the decrease driven by slower revenue growth, partially offset by improvement of the combined ratio. 

Adjusted Net Income and Adjusted Return on Average Equity - Non-GAAP

For the three months ended March 31, 2025, adjusted net income and adjusted return on average equity were $40.5 million and 25.0%, respectively, as compared to $34.1 million and 28.3%, respectively, for the three months ended March 31, 2024. The improvement of adjusted net income was driven by the growth in revenues and consistent combined ratio, in addition to improvements in net investment income.

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Tiptree Capital

Tiptree Capital consists of our Mortgage segment, which includes the operating results of Reliance, our mortgage business, and Tiptree Capital - Other, which consists of our other non-insurance operating businesses and investments. 

Mortgage

Through our Mortgage operating subsidiary, Reliance, we originate, sell, securitize and service one-to-four-family, residential mortgage loans, comprised of conforming mortgage loans, Federal Housing Administration (“FHA”), Veterans Administration (“VA”), United States Department of Agriculture (“USDA”), and to a lesser extent, non-agency jumbo prime.

We are an approved seller