Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 221

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 221
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 Fortegra issued $150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064 (“the 2024 Notes”). The proceeds of the 2024 Notes were used to repay outstanding indebtedness under the Company’s credit agreement, for insurance company growth capital and general corporate purposes. Beginning on November 15, 2029, the Company may redeem the 2024 Notes at par plus accrued and unpaid interest. 

Consolidated Comparison of Cash Flows

($ in thousands)Three Months Ended March 31, 20252024Cash and cash equivalents provided by (used in):Operating activities$(33,321)$62,704 Investing activities(18,072)40,469 Financing activities61,300 7,977 Effect of exchange rate changes on cash1,787 (754)Change in cash, cash equivalents and restricted cash$11,694 $110,396 

Operating Activities

Cash used in operating activities was $33.3 million for the three months ended March 31, 2025. In 2025, the primary sources of cash from operating activities included growth in insurance premiums written resulting in increases in policy liabilities and unpaid claims, and decreases in prepaid reinsurance premiums and deferred acquisition costs, which were more than offset by increases in accounts receivable, reinsurance recoverables and decreases in reinsurance payables, unearned premiums and deferred revenue. 

Cash provided by operating activities was $62.7 million for the three months ended March 31, 2024. In 2024, the primary sources of cash from operating activities included growth in insurance premiums written resulting in increases in policy liabilities and unpaid claims which were partially offset by increases in accounts receivable and other liabilities and accrued expenses and a decrease in unearned premiums.

Investing Activities 

Cash used in investing activities was $18.1 million for the three months ended March 31, 2025. In 2025, the primary use of cash was the purchases of investments outpacing proceeds from sales and maturities, partially offset by proceeds from notes receivable exceeding issuance of notes receivable. 

Cash used in investing activities was $40.5 million for the three months ended March 31, 2024. In 2024, the primary source of cash was proceeds from the sale of investments outpacing purchases.

Financing Activities

Cash provided by financing activities was $61.3 million for the three months ended March 31,