Tiptree Announces Second Quarter 2025 Results

Tiptree Announces Second Quarter 2025 Results July 30, 2025 Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three and six months ended June 30, 2025. The Company commented, “Our team delivered strong second-quarter results, highlighted by a 22% annualized adjusted return on average equity. Fortegra’s momentum remained solid, with premiums up 17.0% and the combined ratio improving to 88.5%. We continue to identify high-quality underwriting opportunities across both property and casualty lines, as well as in our service offerings. Our $1.7 billion investment portfolio is contributing meaningfully, with growing investable assets and maturing positions driving steady improvement in book yield. These results highlight our disciplined approach to capital deployment and our strong return profile. We remain focused on building long-term shareholder value and are actively exploring ways to better reflect the intrinsic value of Tiptree’s businesses in our share price.” Three Months Ended June 30, Six Months Ended June 30, ($ in thousands, except per share information) 2025 2024 2025 2024 Total revenues $ 528,750 $ 546,673 $ 1,026,176 $ 1,044,894 Net income (loss) attributable to common stockholders $ 18,960 $ 12,851 $ 24,595 $ 21,901 Diluted earnings per share $ 0.37 $ 0.31 $ 0.53 $ 0.54 Cash dividends paid per common share $ 0.06 $ 0.06 $ 0.12 $ 0.12 Return on average equity 15.6 % 11.9 % 10.3 % 10.3 % Non-GAAP:(1) Adjusted net income $ 27,128 $ 24,422 $ 50,460 $ 44,955 Adjusted return on average equity 22.3 % 22.7 % 21.1 % 21.1 % (1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests. Second Quarter 2025 Summary Revenues of $528.8 million for the quarter and $1.03 billion for the year, a decrease of 3.3% and 1.8% from the respective prior year periods, driven by declines in net earned premiums and service and administrative fees, partially offset by higher net investment income and investment gains. Included in the prior year periods were earned premiums related to a one-time assumption of a block of premiums from an MGA partner in December 2023. When excluding the assumption of premiums in the prior year periods, revenues increased by 4.1% and 8.0%, for the comparative periods. Net income of $19.0 million compared to $12.9 million in Q2'24, and year-to-date net income of $24.6 million compared to $21.9 million in the prior year, with increases driven by growth in Fortegra’s underwriting and fee income, and higher investments gains, partially offset by incremental interest expense on borrowings at the holding company level. Adjusted net income of $27.1 million for the quarter and $50.5 million for the year, an increase of 11.1% and 12.2% from the respective prior year periods, driven by growth in our insurance business. Annualized adjusted return on average equity was 22.3% for the quarter, as compared to 22.7% in Q2'24. Declared a dividend of $0.06 per share to stockholders of record on August 18, 2025 with a payment date of August 25, 2025. Segment Financial Highlights - Second Quarter 2025 Insurance (The Fortegra Group): Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2025 2024 2025 2024 Gross written premiums and premium equivalents $ 907,624 $ 776,059 $ 1,660,799 $ 1,439,476 Net written premiums $ 428,806 $ 365,897 $ 786,495 $ 684,048 Total revenues $ 513,017 $ 529,942 $ 993,598 $ 1,008,698 Income before taxes $ 67,144 $ 51,250 $ 105,198 $ 88,061 Return on average equity 29.3 % 28.4 % 23.5 % 25.8 % Combined ratio 88.5 % 89.9 % 89.2 % 90.0 % Non-GAAP: (1) Adjusted net income (before NCI) $ 45,172 $ 40,316 $ 85,648 $ 74,449 Adjusted return on average equity 25.8 % 30.3 % 25.3 % 29.7 % (1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests. Record gross written premiums and premium equivalents of $907.6 million for the quarter, an increase of 17.0%, and $1.7 billion for the year, an increase of 15.4%, driven by growth in specialty E&S insurance lines. E&S premiums were $690.4 million for the year-to-date period, an increase of 23.8% from the prior year. Record net written premiums of $428.8 million for the quarter, an increase of 17.2%, and $786.5 million for the year, an increase of 15.0%, driven by growth in gross written premiums and stable premium retention levels. Revenues decreased 3.2% for the quarter and 1.5% for the year, driven by declines in net earned premiums, service and administrative fees, partially offset by higher net investment income. Included in the prior year periods were earned premiums related to a one-time assumption of a block of premiums from an MGA partner in December 2023. When excluding the assumption of premiums in the prior year periods, revenues increased by 4.5% and 8.8%, for the comparative periods. Combined ratio for the quarter of 88.5%, an improvement of 1.4% related to a reduction in the underwriting ratio. CAT losses for Q2’25 and Q2’24 were de minimis. Year-to-date combined ratio was 89.2%, an improvement of 0.8%. Included in the year-to-date combined ratio was 3.3% related to net catastrophe losses of $30.1 million primarily from the California wildfires as compared to 0.1% in 2024. Record income before taxes of $67.1 million for the quarter, an increase of 31.0%. Year-to-date income before taxes of $105.2 million, an increase of 19.5%. Annualized after-tax return on average equity for the year was 23.5%, compared to 25.8% in 2024. Record adjusted net income for the quarter of $45.2 million, up 12.0% from Q2'24. Year-to-date adjusted net income of $85.6 million, up 15.0%. Annualized adjusted return on average equity for the year was 25.3%, compared to 29.7% in 2024. Fortegra’s total stockholders’ equity was $730.9 million as of June 30, 2025, compared to $625.5 million as of December 31, 2024, an increase of 16.9%, driven by growth in retained earnings and a decrease in the accumulated other comprehensive loss position. Tiptree Capital: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2025 2024 2025 2024 Total revenues $ 15,733 $ 16,731 $ 32,578 $ 36,196 Income before taxes $ (3,067 ) $ 740 $ (3,093 ) $ 4,486 Return on average equity (9.3 )% 1.7 % (5.9 )% 4.6 % Non-GAAP: (1) Adjusted net income $ (392 ) $ 356 $ (229 ) $ 700 Adjusted return on average equity (1.1 )% 1.2 % (0.4 )% 1.0 % (1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests. Mortgage income before taxes was $0.2 million for the quarter, as compared to $0.5 million in Q2'24, and $28.0 thousand for the year, as compared to $1.3 million in 2024, driven by negative fair value adjustments in mortgage servicing rights, partially offset by higher loan servicing fees. Corporate: Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, interest expense, and public company and other expenses. For the quarter, corporate expenses were $11.4 million compared to $11.3 million in Q2'24, driven by increased interest expense. As of June 30, 2025, outstanding borrowings at the holding company were $74.6 million. Non-GAAP Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents 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, 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. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents. About Tiptree Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn. Forward-Looking Statements This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements. Tiptree Inc. Condensed Consolidated Balance Sheets (Unaudited) ($ in thousands, except share data) As of June 30, 2025 December 31, 2024 Assets: Investments: Available for sale securities, at fair value, net of allowance for credit losses $ 1,166,877 $ 1,107,929 Loans, at fair value 75,792 81,330 Equity securities 140,841 108,620 Other investments 57,088 53,084 Total investments 1,440,598 1,350,963 Cash and cash equivalents 383,828 320,067 Restricted cash 91,220 96,197 Notes and accounts receivable, net 893,474 799,131 Reinsurance recoverable 1,236,800 992,883 Prepaid reinsurance premiums 1,043,944 1,046,253 Deferred acquisition costs 573,178 565,872 Goodwill 207,696 206,706 Intangible assets, net 96,941 102,859 Other assets 180,213 213,858 Total assets $ 6,147,892 $ 5,694,789 Liabilities and Stockholders’ Equity Liabilities: Debt, net $ 493,029 $ 427,089 Unearned premiums 1,859,638 1,766,068 Policy liabilities and unpaid claims 1,503,493 1,298,081 Deferred revenue 667,563 695,772 Reinsurance payable 450,264 443,083 Other liabilities and accrued expenses 450,537 407,925 Total liabilities $ 5,424,524 $ 5,038,018 Stockholders’ Equity: Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding $ — $ — Common stock: $0.001 par value, 200,000,000 shares authorized, 37,496,977 and 37,255,838 shares issued and outstanding, respectively 37 37 Additional paid-in capital 395,637 389,693 Accumulated other comprehensive income (loss), net of tax (11,623 ) (27,750 ) Retained earnings 115,787 95,718 Total Tiptree Inc. stockholders’ equity 499,838 457,698 Non-controlling interests: Fortegra preferred interests 77,679 77,679 Common interests 145,851 121,394 Total non-controlling interests 223,530 199,073 Total stockholders’ equity 723,368 656,771 Total liabilities and stockholders’ equity $ 6,147,892 $ 5,694,789 Tiptree Inc. Condensed Consolidated Statements of Operations (Unaudited) ($ in thousands, except share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Earned premiums, net $ 381,941 $ 398,467 $ 745,378 $ 745,777 Service and administrative fees 96,847 105,847 194,145 216,334 Ceding commissions 3,542 5,065 7,175 7,809 Net investment income 10,505 6,381 22,234 13,139 Net realized and unrealized gains (losses) 20,644 12,578 27,475 28,202 Other revenue 15,271 18,335 29,769 33,633 Total revenues 528,750 546,673 1,026,176 1,044,894 Expenses: Policy and contract benefits 226,472 233,975 435,785 441,639 Commission expense 140,486 173,279 292,086 330,227 Employee compensation and benefits 54,523 49,917 109,607 99,103 Interest expense 10,862 8,015 21,222 16,305 Depreciation and amortization 4,924 5,291 9,805 10,859 Other expenses 38,771 35,550 79,609 76,416 Total expenses 476,038 506,027 948,114 974,549 Income (loss) before taxes 52,712 40,646 78,062 70,345 Less: provision (benefit) for income taxes 21,608 18,673 33,990 32,491 Net income (loss) 31,104 21,973 44,072 37,854 Less: net income (loss) attributable to non-controlling interests 12,144 9,122 19,477 15,953 Net income (loss) attributable to common stockholders $ 18,960 $ 12,851 $ 24,595 $ 21,901 Net income (loss) per common share: Basic earnings per share $ 0.50 $ 0.35 $ 0.65 $ 0.59 Diluted earnings per share $ 0.37 $ 0.31 $ 0.53 $ 0.54 Weighted average number of common shares: Basic 37,496,875 36,785,305 37,422,957 36,777,557 Diluted 38,617,998 37,752,682 38,534,212 37,766,573 Dividends declared per common share $ 0.06 $ 0.06 $ 0.12 $ 0.12 Tiptree Inc. Non-GAAP Reconciliations (Unaudited) Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity Adjusted net income is defined 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 is presented before the impacts of non-controlling interests. Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies. Three Months Ended June 30, 2025 Tiptree Capital ($ in thousands) Insurance Mortgage Other Corporate Total Income (loss) before taxes $ 67,144 $ 238 $ (3,305 ) $ (11,365 ) $ 52,712 Less: Income tax (benefit) expense (15,980 ) (40 ) (171 ) (5,417 ) (21,608 ) Less: Net realized and unrealized gains (losses)(1) (11,968 ) (216 ) 1,456 — (10,728 ) Plus: Intangibles amortization(2) 3,351 — — — 3,351 Plus: Stock-based compensation expense 775 — — 1,490 2,265 Plus: Non-recurring expenses (3) 789 — 1,350 — 2,139 Plus: Non-cash fair value adjustments (4) (1,426 ) — — — (1,426 ) Plus: Impact of tax deconsolidation of Fortegra(5) — — — 7,937 7,937 Less: Tax on adjustments (6) 2,487 35 261 (836 ) 1,947 Adjusted net income (before NCI) $ 45,172 $ 17 $ (409 ) $ (8,191 ) $ 36,589 Less: Impact of non-controlling interests (9,461 ) — — — (9,461 ) Adjusted net income $ 35,711 $ 17 $ (409 ) $ (8,191 ) $ 27,128 Adjusted net income (before NCI) $ 45,172 $ 17 $ (409 ) $ (8,191 ) $ 36,589 Average stockholders’ equity $ 699,428 $ 55,889 $ 85,281 $ (137,183 ) $ 703,415 Adjusted return on average equity(7) 25.8 % 0.1 % (1.9 )% NM% 20.8 % Three Months Ended June 30, 2024 Tiptree Capital ($ in thousands) Insurance Mortgage Other Corporate Total Income (loss) before taxes $ 51,250 $ 528 $ 212 $ (11,344 ) $ 40,646 Less: Income tax (benefit) expense (13,568 ) (113 ) (116 ) (4,876 ) (18,673 ) Less: Net realized and unrealized gains (losses)(1) (2,545 ) (289 ) 103 — (2,731 ) Plus: Intangibles amortization(2) 3,727 — — — 3,727 Plus: Stock-based compensation expense 1,022 — — 2,375 3,397 Plus: Non-recurring expenses (3) 166 — — — 166 Plus: Non-cash fair value adjustments (4) 861 — — — 861 Plus: Impact of tax deconsolidation of Fortegra(5) — — — 6,357 6,357 Less: Tax on adjustments (6) (597 ) 55 (24 ) (405 ) (971 ) Adjusted net income (before NCI) $ 40,316 $ 181 $ 175 $ (7,893 ) $ 32,779 Less: Impact of non-controlling interests (8,357 ) — — — (8,357 ) Adjusted net income $ 31,959 $ 181 $ 175 $ (7,893 ) $ 24,422 Adjusted net income (before NCI) $ 40,316 $ 181 $ 175 $ (7,893 ) $ 32,779 Average stockholders’ equity $ 531,447 $ 53,092 $ 66,580 $ (42,766 ) $ 608,353 Adjusted return on average equity(7) 30.3 % 1.4 % 1.1 % NM% 21.6 % Six Months Ended June 30, 2025 Tiptree Capital ($ in thousands) Insurance Mortgage Other Corporate Total Income (loss) before taxes $ 105,198 $ 28 $ (3,121 ) $ (24,043 ) $ 78,062 Less: Income tax (benefit) expense (25,484 ) 31 (329 ) (8,208 ) (33,990 ) Less: Net realized and unrealized gains (losses)(1) (8,549 ) 797 716 — (7,036 ) Plus: Intangibles amortization(2) 6,685 — — — 6,685 Plus: Stock-based compensation expense 3,098 — — 3,759 6,857 Plus: Non-recurring expenses (3) 4,206 — 1,350 — 5,556 Plus: Non-cash fair value adjustments (4) 593 — — — 593 Plus: Impact of tax deconsolidation of Fortegra(5) — — — 12,660 12,660 Less: Tax on adjustments (6) (99 ) (229 ) 528 (1,207 ) (1,007 ) Adjusted net income (before NCI) $ 85,648 $ 627 $ (856 ) $ (17,039 ) $ 68,380 Less: Impact of non-controlling interests (17,920 ) — — — (17,920 ) Adjusted net income $ 67,728 $ 627 $ (856 ) $ (17,039 ) $ 50,460 Adjusted net income (before NCI) $ 85,648 $ 627 $ (856 ) $ (17,039 ) $ 68,380 Average stockholders’ equity $ 678,209 $ 55,958 $ 58,523 $ (102,619 ) $ 690,071 Adjusted return on average equity(7) 25.3 % 2.2 % (2.9 )% NM% 19.8 % Six Months Ended June 30, 2024 Tiptree Capital ($ in thousands) Insurance Mortgage Other Corporate Total Income (loss) before taxes $ 88,061 $ 1,281 $ 3,205 $ (22,202 ) $ 70,345 Less: Income tax (benefit) expense (23,490 ) (276 ) (808 ) (7,917 ) (32,491 ) Less: Net realized and unrealized gains (losses)(1) (5,364 ) (1,449 ) (2,038 ) — (8,851 ) Plus: Intangibles amortization(2) 7,698 — — — 7,698 Plus: Stock-based compensation expense 1,804 — — 5,428 7,232 Plus: Non-recurring expenses (3) 3,336 — — — 3,336 Plus: Non-cash fair value adjustments (4) 5,072 — — — 5,072 Plus: Impact of tax deconsolidation of Fortegra(5) — — — 10,822 10,822 Less: Tax on adjustments (6) (2,668 ) 316 469 (892 ) (2,775 ) Adjusted net income (before NCI) $ 74,449 $ (128 ) $ 828 $ (14,761 ) $ 60,388 Less: Impact of non-controlling interests (15,433 ) — — — (15,433 ) Adjusted net income $ 59,016 $ (128 ) $ 828 $ (14,761 ) $ 44,955 Adjusted net income (before NCI) $ 74,449 $ (128 ) $ 828 $ (14,761 ) $ 60,388 Average stockholders’ equity $ 500,903 $ 52,798 $ 94,500 $ (50,884 ) $ 597,317 Adjusted return on average equity (7) 29.7 % (0.5 )% 1.8 % NM% 20.2 % Notes (1) Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights. (2) Specifically associated with acquisition purchase accounting. See Note (7) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended June 30, 2025. (3) For the three and six months ended June 30, 2025 and 2024, included in other expenses were expenses related to legal, banker, and other expenses including expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024. (4) For the three and six months ended June 30, 2025 and 2024, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability. (5) For the three and six months ended June 30, 2025 and 2024, included in the adjustment is an add-back of $7.9 million and $6.4 million, respectively, and $12.7 million and $10.8 million, related to deferred tax expense from the WP Transaction. (6) Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts. (7) Total Adjusted return on average equity after non-controlling interests was 22.3% and 22.7% for the three months ended June 30, 2025 and 2024, respectively, based on $27.1 million and 24.4 million of Adjusted net income over $486.8 million and $430.6 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 21.1% and 21.1% for the six months ended June 30, 2025 and 2024, respectively, based on $50.5 million and $45.0 million of Adjusted net income over $478.8 million and $426.7 million of average Tiptree Inc. stockholders’ equity. Source: Tiptree Inc.