Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 129

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7A
Chunk 129
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 held in trust accounts, and/or letters of credit. The Company monitors collateral values, authorization status, financial statements and AM Best ratings of its reinsurers periodically. As of December 31, 2024, the Company does not believe there is a risk of loss due to the concentration of credit risk in the reinsurance program given the related collateralization or reinsurer AM Best rating.

($ in thousands)As of December 31,20242023Third-party captivesReinsurance receivables and prepaid reinsurance premiums$835,331 $870,511 Collateral$1,105,124 $1,035,728 % Collateralized132 %119 %Professional ReinsurersReinsurance receivables and prepaid reinsurance premiums$1,203,805 $983,900 Collateral$350,871 $643,853 % Collateralized29 %65 %TotalReinsurance receivables and prepaid reinsurance premiums$2,039,136 $1,854,410 Collateral$1,455,995 $1,679,581 % Collateralized71 %91 %

We were also exposed to counterparty risk of approximately $286.3 million and $265.9 million as of December 31, 2024 and 2023, respectively, related to our retrospective commission arrangements; associated risks are offset by the Company’s contractual ability to withhold future commissions against the retrospective balances. In addition, we are exposed to counterparty risk of approximately $138.2 million and $134.1 million as of December 31, 2024 and 2023, respectively, related to our premium financing business. The risk associated with such arrangements is mitigated by the fact that we have the contractual ability to cancel the insurance policy and have premiums refunded to us by the insurer in the event of a counterparty default.

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