Tiptree Announces Fourth Quarter 2024 Results

Rhea-AI Summary

Tiptree Inc. (NASDAQ:TIPT) reported strong financial results for Q4 2024, with revenues reaching $503.6 million, up 12.8% year-over-year. The company's net income increased to $19.6 million from $6.9 million in Q4'23, while adjusted net income grew 96.6% to $27.2 million.

For the full year 2024, revenues totaled $2.04 billion, representing a 23.9% increase from 2023. The company's insurance segment, Fortegra Group, demonstrated robust performance with gross written premiums and premium equivalents of $851.9 million for the quarter. The combined ratio improved to 89.5%, despite impacts from Hurricanes Helene and Milton.

The company declared a dividend of $0.06 per share, payable on March 17, 2025, to stockholders of record on March 10, 2025.

Positive

• Q4 revenue up 12.8% to $503.6M
• Net income increased 184% to $19.6M
• Adjusted net income up 96.6% to $27.2M
• Full-year revenue grew 23.9% to $2.04B
• Insurance premiums up 17.6% to $851.9M
• Combined ratio improved to 89.5%
• Annualized adjusted ROE increased to 23.7%

Negative

• Net written premiums decreased 4.9% in Q4
• 2.6% impact from catastrophe losses (Hurricanes Helene and Milton)
• Corporate expenses at $8.5M despite decrease

Insights

Financial Analyst

Tiptree Inc. delivered exceptional Q4 and full-year 2024 results, demonstrating robust growth across its insurance and mortgage operations. The company reported quarterly revenue of $503.6 million (up 12.8%) and full-year revenue of $2.04 billion (up 23.9%), driven primarily by expansion in specialty insurance lines.

The standout metric is Tiptree's adjusted net income, which nearly doubled to $27.2 million for Q4 (up 96.6%) and increased to $100.1 million for the full year (up 61.6%). This translated to an impressive 23.7% annualized adjusted return on average equity for the quarter and 22.9% for the year – significantly outperforming the previous year's returns.

Fortegra, Tiptree's insurance segment, continues to be the primary growth engine with gross written premiums and premium equivalents reaching $851.9 million for the quarter (up 17.6%) and $3.07 billion for the year (up 11.7%). Most impressively, Fortegra maintained a strong combined ratio of 89.5% despite absorbing 2.6% in catastrophe losses from Hurricanes Helene and Milton – demonstrating disciplined underwriting amid significant growth.

The mortgage segment executed a remarkable turnaround, posting income before taxes of $3.5 million for Q4 compared to a loss of $2.4 million in Q4'23. This improvement stemmed from higher origination volumes, increased loan servicing fees, and unrealized gains on mortgage servicing assets.

Fortegra's capital position strengthened considerably, with stockholders' equity increasing to $625.5 million from $452.6 million at year-end 2023, bolstered by a $40 million capital contribution from Tiptree, Warburg, and Fortegra directors. This enhanced capital base provides substantial capacity for continued premium growth while maintaining strong underwriting discipline.

Insurance Industry Expert

Fortegra's performance in Q4 and full-year 2024 demonstrates exceptional underwriting discipline amid significant growth. The 89.5% combined ratio for Q4 and 90.0% for the year stands well below the specialty insurance industry average of 94-96%, particularly impressive considering the 2.6% impact from Hurricanes Helene and Milton. This indicates superior risk selection and pricing capability even as the business rapidly expands.

The divergence between gross written premium growth (17.6% for Q4) and net written premium decline (-4.9%) reflects a strategic approach to risk management. Excluding the one-time premium assumption transaction from Q4'23, net written premiums actually increased by 41.1%, demonstrating Fortegra's ability to retain more premium while maintaining underwriting discipline.

Fortegra's focus on specialty E&S lines positions it advantageously in the current hardening market, where standard carriers are retreating from certain risks. This strategic positioning has enabled the 29.1% adjusted ROE – a figure that significantly outperforms the specialty insurance sector average of 10-15%.

The $40 million capital infusion from Tiptree, Warburg, and Fortegra directors is particularly telling. This investment signals strong confidence in Fortegra's growth trajectory and provides additional capacity to write premium while maintaining strong regulatory capital ratios. With stockholders' equity now at $625.5 million, Fortegra has substantially enhanced its platform for continued expansion.

The mention of potentially taking Fortegra public warrants attention. With its consistent underwriting performance, strong growth trajectory, and now bolstered capital position, Fortegra could command a premium valuation in public markets. Specialty insurers with combined ratios below 91% and double-digit growth typically trade at 1.5-2.0x book value, suggesting significant embedded value within Tiptree's current market capitalization.

Looking ahead, Fortegra's disciplined growth in specialty lines, particularly in E&S markets, positions it to continue capitalizing on market dislocations while maintaining its industry-leading underwriting performance.

GREENWICH, Conn.--(BUSINESS WIRE)-- Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three months and year ended December 31, 2024.

		Three Months Ended December 31,								Year Ended December 31,
($ in thousands, except per share information)			2024				2023				2024				2023
Total revenues		$	503,599			$	446,374			$	2,042,854			$	1,649,031
Net income (loss) attributable to common stockholders		$	19,553			$	6,871			$	53,367			$	13,951
Diluted earnings per share		$	0.47			$	0.15			$	1.30			$	0.33
Cash dividends paid per common share		$	0.31			$	0.05			$	0.49			$	0.20
Return on average equity			17.0	%			6.8	%			12.2	%			3.4	%
Non-GAAP: (1)
Adjusted net income		$	27,234			$	13,854			$	100,060			$	61,917
Adjusted return on average equity			23.7	%			13.6	%			22.9	%			15.2	%

(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.

Fourth Quarter 2024 Summary

• Revenues of $503.6 million for the quarter, an increase of 12.8% from Q4'23, driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues increased 13.0%.

• Net income of $19.6 million compared to a net income of $6.9 million in Q4'23, driven by growth in our insurance business and improvement in our mortgage operations.

• Adjusted net income of $27.2 million increased by 96.6% from $13.9 million in Q4'23, driven by growth in insurance revenues while maintaining a consistent combined ratio. Annualized adjusted return on average equity was 23.7% for the quarter, as compared to 13.6% in Q4'23.

• Declared a dividend of $0.06 per share to stockholders of record on March 10, 2025 with a payment date of March 17, 2025.

Year-to-date 2024 Summary

• Year-to-date revenues of $2.04 billion, an increase of 23.9% from 2023, driven by growth in specialty insurance lines, net investment income, investment gains, and mortgage revenues. Excluding investment gains and losses, revenues increased 22.4%.

• Net income of $53.4 million compared to net income of $14.0 million in 2023, driven by growth in our insurance business and improved mortgage operations.

• Adjusted net income of $100.1 million increased by 61.6% from $61.9 million in 2023. Adjusted return on average equity was 22.9% for the year, as compared to 15.2% in 2023.

Segment Financial Highlights - Fourth Quarter 2024

Insurance (The Fortegra Group):

		Three Months Ended December 31,								Year Ended December 31,
($ in thousands)			2024				2023				2024				2023
Gross written premiums and premium equivalents		$	851,876			$	724,124			$	3,068,199			$	2,747,854
Net written premiums		$	365,631			$	384,309			$	1,438,952			$	1,319,948
Total revenues		$	483,998			$	433,170			$	1,973,709			$	1,593,070
Income before taxes		$	47,888			$	44,232			$	183,158			$	129,816
Return on average equity			26.1	%			36.9	%			26.0	%			25.7	%
Combined ratio			89.5	%			89.8	%			90.0	%			90.3	%
Non-GAAP: (1)
Adjusted net income (before NCI)		$	42,540			$	32,604			$	157,031			$	115,705
Adjusted return on average equity			27.6	%			30.9	%			29.1	%			29.2	%

(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.

• Gross written premiums and premium equivalents of $851.9 million for the quarter, an increase of 17.6%, and $3.07 billion for the year, an increase of 11.7%, driven by growth in specialty E&S insurance lines.

• Net written premiums were $365.6 million for the quarter, a decrease of 4.9%, and $1.44 billion for the year, an increase of 9.0%. The increase for the year was consistent with the growth in gross written premiums and premium equivalents and increased retention on Fortegra’s whole account quota share reinsurance agreement. Net written premiums increased by 41.1% for the quarter, and 20.4% for the year, excluding the one-time assumption of premium from a book-roll transaction with one of Fortegra’s MGA partners in Q4'23.

• Revenues increased 11.7% for the quarter and 23.9% for the year driven by premium growth in specialty E&S and admitted lines. Excluding the impact of investment gains and losses, revenues increased by 13.2% for the quarter and 23.0% for the year.

• The combined ratio for the quarter was 89.5%, down 0.3 percentage points, reflecting the consistent underwriting performance and scalability of the Company’s operations. Year-to-date combined ratio was 90.0%, as compared to 90.3% in 2023. Included in the 2024 combined ratio was 2.6 percentage points related to net catastrophe losses as compared to 0.2 percentage points in 2023. The primary catastrophic events impacting 2024 were Hurricanes Helene and Milton.

• Income before taxes was $47.9 million for the quarter, an increase of 8.3%. Year-to-date income before taxes was $183.2 million, an increase of 41.1%. Annualized after-tax return on average equity for the year was 26.0%, compared to 25.7% in 2023.

• Adjusted net income for the quarter of $42.5 million, up 30.5% from Q4'23. Year-to-date adjusted net income of $157.0 million, up 35.7%. Annualized adjusted return on average equity for the year was 29.1%, compared to 29.2% in 2023.

• Fortegra’s total stockholders’ equity was $625.5 million as of December 31, 2024, compared to $452.6 million as of December 31, 2023, with the increase driven by net income and the aggregate capital contribution from Tiptree, Warburg and Fortegra directors of $40 million, partially offset by an increase in the accumulated other comprehensive loss position.

Tiptree Capital:

		Three Months Ended December 31,								Year Ended December 31,
($ in thousands)			2024				2023				2024				2023
Total revenues		$	19,601			$	13,204			$	69,146			$	55,961
Income before taxes		$	2,769			$	(2,058	)		$	4,562			$	(6,549	)
Return on average equity			8.3	%			(3.8	)%			2.2	%			(3.6	)%
Non-GAAP: (1)
Adjusted net income		$	(280	)		$	(407	)		$	1,820			$	(159	)
Adjusted return on average equity			(1.1	)%			(0.9	)%			1.3	%			(0.1	)%

(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.

• Tiptree Capital income before taxes was $2.8 million for the quarter, compared to a loss of $2.1 million in Q4'23, driven by improvement in our mortgage operations. For the year, income before taxes was $4.6 million, compared to a loss of $6.5 million in 2023, with the comparative improvement driven by improvement in our mortgage operations and a reduction of investment losses on Invesque.

• Mortgage income before taxes was $3.5 million for the quarter, as compared to a loss of $2.4 million in Q4'23, and an income of $4.7 million for the year, as compared to a loss of $3.3 million in 2023, driven by higher origination volumes and loan servicing fees, and unrealized gains on our mortgage servicing asset.

Corporate:

Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, and public company and other expenses. For the quarter, corporate expenses were $8.5 million compared to $12.1 million in Q4'23 driven by a decline in incentive compensation accruals.

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. Consolidated Balance Sheets ($ in thousands, except share data)
		As of
		December 31, 2024				December 31, 2023
Assets:
Investments:
Available for sale securities, at fair value, net of allowance for credit losses		$	1,107,929			$	802,609
Loans, at fair value			81,330				69,556
Equity securities			108,620				68,308
Other investments			53,084				111,088
Total investments			1,350,963				1,051,561
Cash and cash equivalents			320,067				468,711
Restricted cash			96,197				23,850
Notes and accounts receivable, net			799,131				684,608
Reinsurance recoverable			992,883				953,886
Prepaid reinsurance premiums			1,046,253				900,524
Deferred acquisition costs			565,872				565,746
Goodwill			206,706				206,155
Intangible assets, net			102,859				118,757
Other assets			213,858				165,515
Total assets		$	5,694,789			$	5,139,313
Liabilities and Stockholders’ Equity
Liabilities:
Debt, net		$	427,089			$	402,411
Unearned premiums			1,766,068				1,695,058
Policy liabilities and unpaid claims			1,298,081				844,848
Deferred revenue			695,772				673,085
Reinsurance payable			443,083				543,602
Other liabilities and accrued expenses			407,925				403,744
Total liabilities		$	5,038,018			$	4,562,748
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, 37,255,838 and 36,756,187 shares issued and outstanding, respectively			37				37
Additional paid-in capital			389,693				382,239
Accumulated other comprehensive income (loss), net of tax			(27,750	)			(26,073	)
Retained earnings			95,718				60,663
Total Tiptree Inc. stockholders’ equity			457,698				416,866
Non-controlling interests:
Fortegra preferred interests			77,679				77,679
Common interests			121,394				82,020
Total non-controlling interests			199,073				159,699
Total stockholders’ equity			656,771				576,565
Total liabilities and stockholders’ equity		$	5,694,789			$	5,139,313

Tiptree Inc. Consolidated Statements of Operations ($ in thousands, except share data)
		Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenues:
Earned premiums, net		$	366,657		$	301,416		$	1,471,930		$	1,127,834
Service and administrative fees			93,497			105,678			405,193			395,969
Ceding commissions			3,859			4,154			15,384			14,915
Net investment income			10,726			7,061			32,976			26,674
Net realized and unrealized gains (losses)			14,051			12,277			50,569			24,736
Other revenue			14,809			15,788			66,802			58,903
Total revenues			503,599			446,374			2,042,854			1,649,031
Expenses:
Policy and contract benefits			196,126			158,419			841,207			601,794
Commission expense			164,587			160,140			648,819			603,033
Employee compensation and benefits			52,917			48,231			204,355			179,075
Interest expense			8,329			7,467			32,248			27,692
Depreciation and amortization			5,399			5,991			21,653			23,466
Other expenses			34,046			36,061			145,253			130,918
Total expenses			461,404			416,309			1,893,535			1,565,978
Income (loss) before taxes			42,195			30,065			149,319			83,053
Less: provision (benefit) for income taxes			12,853			13,937			61,652			43,056
Net income (loss)			29,342			16,128			87,667			39,997
Less: net income (loss) attributable to non-controlling interests			9,789			9,257			34,300			26,046
Net income (loss) attributable to common stockholders		$	19,553		$	6,871		$	53,367		$	13,951
Net income (loss) per common share:
Basic earnings per share		$	0.52		$	0.19		$	1.44		$	0.38
Diluted earnings per share		$	0.47		$	0.15		$	1.30		$	0.33
Weighted average number of common shares:
Basic			37,189,433			36,755,768			36,872,706			36,693,204
Diluted			38,357,109			37,744,257			37,926,792			37,619,095
Dividends declared per common share		$	0.31		$	0.05		$	0.49		$	0.20

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 December 31, 2024
						Tiptree Capital
($ in thousands)		Insurance				Mortgage				Other				Corporate				Total
Income (loss) before taxes		$	47,888			$	3,533			$	(764	)		$	(8,463	)		$	42,194
Less: Income tax (benefit) expense			(7,656	)			(847	)			164				(4,514	)			(12,853	)
Less: Net realized and unrealized gains (losses) (1)			(914	)			(3,139	)			179				—				(3,874	)
Plus: Intangibles amortization (2)			3,856				—				—				—				3,856
Plus: Stock-based compensation expense			2,999				—				—				1,492				4,491
Plus: Non-recurring expenses (3)			—				—				—				—				—
Plus: Non-cash fair value adjustments (4)			1,418				—				—				—				1,418
Plus: Impact of tax deconsolidation of Fortegra(5)			—				—				—				6,766				6,766
Less: Tax on adjustments (6)			(5,051	)			753				(159	)			(1,416	)			(5,873	)
Adjusted net income (before NCI)		$	42,540			$	300			$	(580	)		$	(6,135	)		$	36,125
Less: Impact of non-controlling interests			(8,891	)			—				—				—				(8,891	)
Adjusted net income		$	33,649			$	300			$	(580	)		$	(6,135	)		$	27,234
Adjusted net income (before NCI)		$	42,540			$	300			$	(580	)		$	(6,135	)		$	36,125
Average stockholders’ equity		$	615,922			$	54,586			$	46,299			$	(60,322	)		$	656,485
Adjusted return on average equity (7)			27.6	%			2.2	%			(5.0	)%			NM	%			22.0	%
		Three Months Ended December 31, 2023
						Tiptree Capital
($ in thousands)		Insurance				Mortgage				Other				Corporate				Total
Income (loss) before taxes		$	44,232			$	(2,391	)		$	333			$	(12,109	)		$	30,065
Less: Income tax (benefit) expense			(5,288	)			606				(266	)			(8,989	)			(13,937	)
Less: Net realized and unrealized gains (losses) (1)			(6,395	)			2,794				(596	)			—				(4,197	)
Plus: Intangibles amortization (2)			4,252				—				—				—				4,252
Plus: Stock-based compensation expense			780				—				—				1,219				1,999
Plus: Non-recurring expenses (3)			348				—				—				—				348
Plus: Non-cash fair value adjustments (4)			842				—				—				—				842
Plus: Impact of tax deconsolidation of Fortegra (5)			—				—				—				8,891				8,891
Less: Tax on adjustments (6)			(6,167	)			(702	)			(185	)			(671	)			(7,725	)
Adjusted net income (before NCI)		$	32,604			$	307			$	(714	)		$	(11,659	)		$	20,538
Less: Impact of non-controlling interests			(6,684	)			—				—				—				(6,684	)
Adjusted net income		$	25,920			$	307			$	(714	)		$	(11,659	)		$	13,854
Adjusted net income (before NCI)		$	32,604			$	307			$	(714	)		$	(11,659	)		$	20,538
Average stockholders’ equity		$	422,327			$	53,188			$	128,827			$	(44,272	)		$	560,070
Adjusted return on average equity (7)			30.9	%			2.3	%			(2.2	)%			NM	%			14.7	%

		Year Ended December 31, 2024
						Tiptree Capital
($ in thousands)		Insurance				Mortgage				Other				Corporate				Total
Income (loss) before taxes		$	183,158			$	4,725			$	(163	)		$	(38,401	)		$	149,319
Less: Income tax (benefit) expense			(43,260	)			(1,091	)			(540	)			(16,761	)			(61,652	)
Less: Net realized and unrealized gains (losses) (1)			(8,496	)			(2,711	)			905				—				(10,302	)
Plus: Intangibles amortization (2)			15,413				—				—				—				15,413
Plus: Stock-based compensation expense			8,998				—				—				8,682				17,680
Plus: Non-recurring expenses (3)			3,455				—				—				—				3,455
Plus: Non-cash fair value adjustments (4)			7,436				—				—				—				7,436
Plus: Impact of tax deconsolidation of Fortegra (5)			—				—				—				23,495				23,495
Less: Tax on adjustments (6)			(9,673	)			608				87				(3,168	)			(12,146	)
Adjusted net income (before NCI)		$	157,031			$	1,531			$	289			$	(26,153	)		$	132,698
Less: Impact of non-controlling interests			(32,638	)			—				—				—				(32,638	)
Adjusted net income		$	124,393			$	1,531			$	289			$	(26,153	)		$	100,060
Adjusted net income (before NCI)		$	157,031			$	1,531			$	289			$	(26,153	)		$	132,698
Average stockholders’ equity		$	539,049			$	54,113			$	80,856			$	(57,350	)		$	616,668
Adjusted return on average equity (7)			29.1	%			2.8	%			0.4	%		NM		%			21.5	%
		Year Ended December 31, 2023
						Tiptree Capital
($ in thousands)		Insurance				Mortgage				Other				Corporate				Total
Income (loss) before taxes		$	129,816			$	(3,285	)		$	(3,264	)		$	(40,214	)		$	83,053
Less: Income tax (benefit) expense			(28,224	)			837				153				(15,822	)			(43,056	)
Less: Net realized and unrealized gains (losses) (1)			4,207				1,861				5,289				—				11,357
Plus: Intangibles amortization (2)			16,919				—				—				—				16,919
Plus: Stock-based compensation expense			2,018				—				—				6,251				8,269
Plus: Non-recurring expenses (3)			2,824				—				—				—				2,824
Plus: Non-cash fair value adjustments (4)			(1,769	)			—				—				—				(1,769	)
Plus: Impact of tax deconsolidation of Fortegra (5)			—				—				—				19,101				19,101
Less: Tax on adjustments (6)			(10,086	)			(495	)			(1,255	)			797				(11,039	)
Adjusted net income (before NCI)		$	115,705			$	(1,082	)		$	923			$	(29,887	)		$	85,659
Less: Impact of non-controlling interests			(23,742	)			—				—				—				(23,742	)
Adjusted net income		$	91,963			$	(1,082	)		$	923			$	(29,887	)		$	61,917
Adjusted net income (before NCI)		$	115,705			$	(1,082	)		$	923			$	(29,887	)		$	85,659
Average stockholders’ equity		$	395,661			$	53,520			$	100,325			$	5,564			$	555,070
Adjusted return on average equity (7)			29.2	%			(2.0	)%			0.9	%		NM		%			15.4	%

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 (9) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended December 31, 2024.
(3)		For the three months and year ended December 31, 2024 and 2023, included in other expenses were expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024 and acquisitions of services businesses in 2023.
(4)		For the three months and year ended December 31, 2024 and 2023, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability which are added-back to adjusted net income.
(5)		For the three months and year ended December 31, 2024 and 2023, included in the adjustment is an add-back of $6.8 million and $23.5 million, respectively, and $8.9 million and $19.1 million, respectively, 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 23.7% and 13.6% for the three months ended December 31, 2024 and 2023, respectively, based on $27.2 million and $13.9 million of Adjusted net income over $459.8 million and $406.5 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 22.9% and 15.2% for the year ended December 31, 2024 and 2023, respectively, based on $100.1 million and $61.9 million of Adjusted net income over $437.3 million and $407.1 million of average Tiptree Inc. stockholders’ equity.

 

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Investor Relations, 212-446-1400

ir@tiptreeinc.com

Source: Tiptree Inc.

FAQ

What was Tiptree's (TIPT) revenue growth in Q4 2024?

Tiptree's Q4 2024 revenues grew 12.8% to $503.6 million compared to Q4 2023.

How much did TIPT's net income increase in Q4 2024?

Net income increased to $19.6 million in Q4 2024, up from $6.9 million in Q4 2023.

What is TIPT's dividend payment for Q4 2024?

Tiptree declared a $0.06 per share dividend, payable March 17, 2025, to stockholders of record on March 10, 2025.

How did Fortegra Group perform in Q4 2024?

Fortegra's gross written premiums reached $851.9 million, up 17.6%, with a combined ratio of 89.5%, improving 0.3 percentage points.

What was TIPT's adjusted return on equity for 2024?

The adjusted return on average equity was 22.9% for the full year 2024, compared to 15.2% in 2023.