Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 34

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 34
---
 expenses include expenses of the holding company for employee compensation and benefits, interest expense, and public company and other expenses. Corporate employee compensation and benefits includes the expense of management, legal and accounting staff. Other expenses primarily consisted of audit and professional fees, insurance, office rent and other related expenses.

Employee compensation and benefits, including incentive compensation expense, were $16.1 million for the six months ended June 30, 2025, compared to $17.2 million for the prior year period, driven by a decrease in accrued incentive compensation expense. Of the incentive compensation expense in the six months ended June 30, 2025, $8.4 million was stock-based compensation expense, compared to $5.4 million in 2024. The interest expense was $3.2 million for the six months ended June 30, 2025. As of June 30, 2025, the outstanding borrowing on the facility was $74.6 million compared to no outstanding borrowings in 2024. Other expenses declined to $4.0 million for the six months ended June 30, 2025 as compared to the prior year period driven primarily by decreased professional fees.

70

Provision for Income Taxes

The total income tax expense of $21.6 million and $18.7 million for the three months ended June 30, 2025 and 2024, respectively, is reflected as a component of net income (loss). For the three months ended June 30, 2025 and 2024, the Company’s effective tax rate was equal to 41.0% and 45.9%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

The total income tax expense of $34.0 million and $32.5 million for the six months ended June 30, 2025 and 2024, respectively, is reflected as components of net income (loss). For the six months ended June 30, 2025 and 2024, the Company’s effective tax rate was equal to 43.5% and 46.2%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

On April 15, 2024, the Company sold its