Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 28

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 28
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 with GAAP, and other companies may define underwriting and fee margin differently.70

($ in thousands)Year EndedDecember 31, 20242023Income (loss) before income taxes$183,158 $129,816 Less: Net investment income(32,976)(26,674)Less: Net realized and unrealized gains (losses)(8,496)4,207 Less: Cash and cash equivalent interest income (1)(17,516)(11,037)Plus: Depreciation and amortization19,860 21,425 Plus: Interest expense30,247 25,836 Plus: Employee compensation and benefits137,743 114,341 Plus: Other expenses112,675 96,825 Underwriting and fee margin (2)$424,695 $354,739 (1)   Cash and cash equivalent interest income was included in other revenue on the statement of operations.(2)   Underwriting and fee margin exclude cash and cash equivalent interest income.Adjusted Net Income — Non-GAAPWe define adjusted net income as 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, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income should not be viewed as a substitute for income before taxes calculated in accordance with GAAP, and other companies may define adjusted net income differently. Adjusted net income (before NCI) is presented before the impacts of non-controlling interests. We present adjustments for amortization associated with acquired intangible assets. The intangible assets were recorded as part of purchase accounting in connection with Tiptree’s acquisition of Fortegra Financial in 2014, and additional services businesses from 2019 to 2024. The intangible assets acquired contribute to overall revenue generation, and the respective purchase accounting adjustments will continue to occur in future periods until such intangible assets are fully amortized in accordance with the respective amortization periods required by GAAP.Adjusted Return on Average Equity — Non-GAAPWe define adjusted return on average equity as adjusted net income expressed on an annualized basis as a