Company: TIPT
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001393726-25-000028
Chunk: 55

Company: TIPTREE INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 55
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 combined ratio$8 Million, 50% co-participation on $4 million excess of $8 million$40 Million excess of $8 Million per event, $80 million in aggregateProperty Catastrophe Excess of Loss(2024 - 2025)Protection in excess of a 1:200 year catastrophic event; a 1:250 event results in approximately 1% impact to loss / combined ratio$14 Million, 22% co-participation on $14 million excess of $14 million$48 Million excess of $14 Million per event, $130 million in aggregateFor the limited amount of gross property exposures that are in excess of desired retentions, Fortegra works with its distribution partners to purchase facultative reinsurance to cover those individual risks. In addition to the purchase of property catastrophe reinsurance, Fortegra also manages its property exposures by leveraging catastrophe models to monitor risk aggregations that are measured in terms of probable maximum loss (“PML”) and Tail Value-at-Risk (“TVAR”), both of which estimate the amount of loss it would expect in extreme loss scenarios. 16

In Fortegra’s commercial insurance lines, its reinsurers tend to be highly rated, well-capitalized, professional third-party reinsurers. Fortegra typically contracts with third-party reinsurers that have attained an “A-” or better financial strength rating from A.M. Best. Those reinsurers that fall below this threshold are required to post collateral on a funds held basis or with letters of credit.Counterparty RiskFortegra monitors its counterparty risk monthly through both adjustments to the sliding scale commission arrangements and a thorough evaluation of its reinsurance receivables and prepaid insurance premiums, and associated collateral.($ in millions)As of December 31,20242023Third-party captives (1)Reinsurance receivables and prepaid reinsurance premiums$835 $871 Collateral$1,105 $1,036 % Collateralized132 %119 %Professional Reinsurers (2)Reinsurance receivables and prepaid reinsurance premiums$1,204 $984 Collateral$351 $644 % Collateralized29 %65 %TotalReinsurance receivables and prepaid reinsurance premiums$2,039 $1,854 Collateral$1,456 $1,680 % Collateralized71 %91 %_________________(1)    Includes domestic insurance companies owned by distribution partners.(2)   “Professional reinsurers” include all reinsurers