Company: TIPT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393726-25-000076
Chunk: 98

Company: TIPTREE INC.
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 98
---
Policy liabilities and unpaid claims balance as of June 30, $1,503,493 $1,087,203 The following schedule reconciles the total amount of losses incurred on short duration contracts per the table above to the amount of total losses incurred as presented in the condensed consolidated statements of operations, excluding the amount for member benefit claims:Three Months Ended June 30, Six Months EndedJune 30, 2025202420252024Short duration incurred$196,752 $204,522 $375,263 $379,835 Other lines incurred(10)162 (78)57 Unallocated loss adjustment expenses1,129 575 2,534 747 Total losses incurred$197,871 $205,259 $377,719 $380,639 During the six months ended June 30, 2025, the Company experienced favorable prior year development of $8,301, primarily driven by lower-than-expected losses in its commercial and personal property lines of business.During the six months ended June 30, 2024, the Company experienced favorable prior year development of $788, primarily driven by lower-than-expected claims paid development in our commercial lines of business.

F-37

Table of ContentsTIPTREE INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial StatementsJune 30, 2025(in thousands, except share data)

Management considers the prior year development for each of these years to be insignificant when considered in the context of our annual earned premiums, net as well as our net losses and loss adjustment expenses and member benefit claims expenses. We analyze our development on a quarterly basis and given the short duration nature of our products, favorable or adverse development emerges quickly and allows for timely reserve strengthening, if necessary, or modifications to our product pricing or offerings. The favorable prior year development of $8,301 in the six months ended June 30, 2025 represented 7.9% of our insurance business income before taxes of $105,198 and 1.3% of the opening net liability for losses and loss adjustment expenses of $658,210, as of January 1, 2025.The favorable prior year development of $788 in the six months ended June 30, 2024 represented 0.9% of our insurance business income before taxes of $88,061, and 0.2% of the opening net liability for losses and loss adjustment expenses of $393,455, as