Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 112

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 112
---
3,338 $11,339 $7,114 Director compensation77 69 147 138 Income tax benefit(354)(715)(1,403)(1,523)Net stock based compensation expense$1,923 $2,692 $10,083 $5,729  Additional information on total non-vested stock based compensation is as follows:As of June 30, 2025Subsidiary Stock optionsRestricted stock awards and RSUsPerformance Restricted Stock UnitsUnrecognized compensation cost related to non-vested awards (1)$13,805 $1,093 $11,133 Weighted - average recognition period (in years)1.51.11.1(1)    Includes unrecognized compensation cost of $13,805 related to stock options and $2,264 related to PRSUs at The Fortegra Group.

(18) Income Taxes

The following table presents the Company’s provision (benefit) for income taxes reflected as a component of income (loss):Three Months Ended June 30, Six Months EndedJune 30, 2025202420252024Total income tax expense (benefit)$21,608 $18,673 $33,990 $32,491 Effective tax rate (ETR)41.0 %(1)45.9 %(1)43.5 %(1)46.2 %(1)(1)   Higher than the U.S. federal statutory income tax rate of 21% primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra and other discrete items.Tiptree owns less than 80% of Fortegra and is required to record deferred taxes on the outside basis on its investment in Fortegra. This deferred tax liability represents the tax that would be due, before consideration of loss carryforwards, if Tiptree were to sell all of its Fortegra stock at its carrying value on Tiptree’s balance sheet. For the three months ended June 30, 2025, the deferred tax liability relating to Fortegra increased by $10,208, of which $2,271 of expense was recorded in OCI, and $7,937 expense was recorded as a provision for income taxes. For the three months ended June 30, 2024, the deferred tax liability relating to Fortegra increased by $6,001, of which $356 of benefit was recorded in OCI, and $6,