Members of Catalyst Hedge Investing had early access to this article. They have exclusive access to many other articles every month as well as an active chat board with regular updates on ideas and the best ideas portfolio.Tiptree (NASDAQ: TIPT ) reported another nice quarter on April 30th. Since this is all about Fortegra right now, I'll focus on the highlights there.He leads the investing group Catalyst Hedge Investing , in which he shares his best long and short ideas. He looks for investment ideas with ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly period ended March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-33549 Tiptree Inc. (Exact name of Registrant as Specified in Its Charter) Maryland 38-3754322 (State or Other Jurisdiction of I ...

Exhibit 99.1 The Company commented, "We are extremely pleased with the strong first quarter results, headlined by a 20% adjusted return on average equity. Fortegra achieved 13.5% growth in premium and premium equivalents, while delivering a combined ratio of 89.9%, despite substantial industry-wide catastrophic losses during the quarter. Our pipeline of opportunities remains robust, and the pricing environment continues to be favorable for underwriting new business. Net investment income saw a substantial i ...

Market and Economic Risks - The company operates in highly competitive markets, which could impede growth and negatively impact results[15] - Adverse economic factors, such as recession and inflation, could lead to fewer policy sales and increased claims, negatively impacting growth and profitability[188] - The performance of the insurance subsidiaries' investment portfolio is subject to various investment risks, including interest rate changes[150] - From 2022 to 2024, interest rates increased rapidly, significantly decreasing the value of fixed income securities held by the company[150] - The mortgage segment's performance is heavily influenced by the U.S. residential real estate market, which is affected by economic conditions like interest rates and unemployment[189] - The mortgage business is significantly impacted by interest rates, with a rapid series of interest rate increases from 2022 to 2024 resulting in lower revenue and profitability[217] - The majority of mortgage loan originations have historically been refinancing existing loans, which may decline as interest rates rise, reducing growth potential in the mortgage business[218] - The value of mortgage servicing rights (MSRs) is highly sensitive to interest rate changes, with values increasing when rates rise and decreasing when rates fall[219] - Changes in interest rates and market conditions could lead to increased marketing expenditures to maintain mortgage volume, impacting overall profitability[218] - Recent sharply rising interest rates have resulted in unrealized losses on certain investments, negatively impacting business results and increasing borrowing costs[237] Regulatory and Compliance Risks - The company is subject to extensive regulations, including the Gramm-Leach-Bliley Act and GDPR, which may increase compliance costs and limit business opportunities[273] - The company's insurance subsidiaries must comply with Statutory Accounting Principles (SAP), which are subject to constant review and may impact financial reporting[245] - Increasing regulatory focus on privacy and data protection could expose the company's subsidiaries to greater liability and compliance costs[268] - The evolving regulatory environment may complicate compliance efforts and increase operational risks for the company's subsidiaries[271] - The CFPB's increased regulatory scrutiny may raise compliance costs and affect the availability and cost of residential mortgage credit[279] - The company faces potential penalties for non-compliance with privacy laws, which could adversely affect its business and financial condition[270] - The insurance subsidiaries face risks related to compliance with guidelines, policies, and legal standards, which could lead to financial loss or reputational damage if controls are ineffective[281] - Increasing regulatory scrutiny and litigation in the financial services industry may materially and adversely affect the company due to potential judgments, settlements, and fines[282] - The company is involved in ongoing litigation, including a class action lawsuit alleging violations of the Consumer Protection Act, which could divert management's attention and incur significant expenses[283] - International operations expose the company to compliance risks associated with economic and trade sanctions, potentially leading to increased compliance costs and penalties[284] Operational and Strategic Risks - The company may need to raise additional capital in the future, but there is no assurance that such capital will be available on acceptable terms[15] - The company is investing in new lines of business and geographic markets, but faces substantial risks and uncertainties in achieving market acceptance and profitability[172] - The company's ability to grow its customer base depends on effective sales and marketing activities, which may be hindered by challenges in recruiting qualified personnel[180] - The insurance business relies on independent distributors for product sales, and loss of these relationships could materially impact sales and revenues[162] - The insurance subsidiaries have significantly expanded operations and anticipate further growth, requiring additional capital, systems development, and skilled personnel[173] - The company's ability to service its debt obligations is contingent on its financial condition and operating performance, which are influenced by external factors[195] - Insufficient cash flows could lead to liquidity problems, forcing the company to delay investments or alter its dividend policy[196] - The restrictive covenants in debt agreements may limit the company's operational flexibility and ability to pursue growth strategies[198] - The company's charter includes provisions that may delay or prevent takeovers, potentially affecting stockholder interests[256] - Analysts and investors may find it challenging to analyze the company due to its multiple lines of business, which could adversely impact stock price and capital raising efforts[260] Investment and Financial Risks - A portion of the company's assets are illiquid, creating uncertainty in valuing such assets[15] - The company's insurance subsidiaries' actual claims losses may exceed their reserves, requiring additional reserves[15] - Increased costs or unavailability of reinsurance could force the insurance subsidiaries to bear higher risks or reduce underwriting commitments, adversely affecting financial performance[168] - The inability of reinsurers to meet obligations could expose the insurance subsidiaries to credit risk, particularly during economic downturns, affecting overall financial health[170] - The fair value of certain investments and liabilities is based on management's estimates, which may cause operating results to fluctuate and may not reflect realizable values upon sale[242] - The company funds loans primarily through warehouse financing and may face challenges in obtaining sufficient capital to meet financing requirements as operations expand[226] - A decline in the fair value of leveraged assets could adversely affect financial condition, potentially requiring additional collateral or rapid liquidation of assets[234] - The company is exposed to credit risk from independent agents and program partners, which could affect its financial condition[204] - The insurance subsidiaries face risks related to brand reputation, which could adversely affect customer acquisition and retention, potentially leading to decreased revenue[190] - Negative publicity could result in a decline in customer visits to platforms and an increase in customer acquisition costs[191] Cybersecurity Risks - The company is exposed to risks related to cybersecurity attacks and information system failures[15] - Cybersecurity threats pose risks to business operations, potentially resulting in loss of critical information and damage to reputation, which could adversely affect financial condition and cash flows[157] - The use of AI and machine learning in decision-making processes presents risks, including model inaccuracies that could adversely impact pricing and loss estimations[177] Catastrophic and External Risks - Catastrophic events, such as natural disasters and pandemics, could significantly disrupt the company's operations and adversely affect financial results[246] - The exit of the United Kingdom from the European Union could adversely affect the company's business[15] - The exit of the UK from the EU (Brexit) poses risks related to regulatory changes and could adversely affect the company's European growth plans[202] - International operations expose the company to investment, political, and economic risks, including foreign currency exchange rate risk[175] - Consolidation in the financial services industry may lead to loss of significant distributors, impacting business operations and revenue generation[163] - Proposed industry developments may increase competition, negatively impacting premiums and underwriting results[204] - Emerging claim and coverage issues may adversely affect the business, potentially extending coverage beyond underwriting intent or increasing claims size[174] - The operation of dry bulk vessels and product tankers is subject to complex regulations, and violations could result in substantial fines and costs to the company[289]

Group 1 - Tiptree (NASDAQ: TIPT) reported Q4 earnings of $0.47 per share, significantly higher than $0.15 in the same quarter last year and $0.29 in Q3 [1] - The total net income for Tiptree increased to $1.30 for the year [1] Group 2 - The article highlights the expertise of Cashflow Hunter, who has over 25 years of market experience, including nearly 20 years as a hedge fund portfolio manager [2] - Cashflow Hunter has successfully predicted significant market events, such as the collapse of Silicon Valley Bank [2]

Financial Performance - Revenues for Q4 2024 were $503.6 million, a 12.8% increase from Q4 2023, driven by growth in specialty insurance lines[6]. - Net income for Q4 2024 was $19.6 million, compared to $6.9 million in Q4 2023, reflecting improvements in the insurance and mortgage operations[6]. - Adjusted net income for Q4 2024 was $27.2 million, a 96.6% increase from $13.9 million in Q4 2023, supported by growth in insurance revenues[6]. - Year-to-date revenues for 2024 reached $2.04 billion, a 23.9% increase from 2023, driven by specialty insurance lines and net investment income[6]. - Total revenues for the year ended December 31, 2024, increased to $2,042,854, up 24% from $1,649,031 in 2023[16]. - Net income attributable to common stockholders for the three months ended December 31, 2024, was $19,553, compared to $6,871 for the same period in 2023, representing an increase of 184%[16]. - Adjusted net income for the three months ended December 31, 2024, was $27,234, compared to $13,854 for the same period in 2023, reflecting a 96% increase[18]. - Tiptree Capital reported an adjusted net income of $100.1 million for the year ended December 31, 2024, compared to $61.9 million in 2023, representing a 61.5% increase[20]. - Income before taxes for Tiptree Capital increased to $149.3 million in 2024 from $83.1 million in 2023, reflecting an increase of 79.8%[20]. Premiums and Underwriting - Gross written premiums for Q4 2024 were $851.9 million, a 17.6% increase, and $3.07 billion for the year, an 11.7% increase[8]. - The combined ratio for Q4 2024 was 89.5%, down 0.3 percentage points from Q4 2023, indicating consistent underwriting performance[8]. - Earned premiums, net for the year ended December 31, 2024, were $1,471,930, a 30.4% increase from $1,127,834 in 2023[16]. - Tiptree Capital's insurance segment generated an income before taxes of $183.2 million in 2024, up from $129.8 million in 2023, marking an increase of 41.0%[20]. Assets and Liabilities - Total assets as of December 31, 2024, reached $5,694,789, a 10.8% increase from $5,139,313 as of December 31, 2023[15]. - Total liabilities as of December 31, 2024, were $5,038,018, up 10.4% from $4,562,748 in 2023[15]. - Average stockholders' equity rose to $616.7 million in 2024, compared to $555.1 million in 2023, indicating a growth of 11.1%[20]. Earnings and Returns - Basic earnings per share for the year ended December 31, 2024, increased to $1.44, compared to $0.38 in 2023, marking a 278.9% increase[16]. - Adjusted return on average equity for the three months ended December 31, 2024, was 22.0%, compared to 14.7% for the same period in 2023[18]. - The adjusted return on average equity for Tiptree Capital was 21.5% in 2024, up from 15.4% in 2023[20]. Cash and Investments - Cash and cash equivalents decreased to $320,067 as of December 31, 2024, down 31.8% from $468,711 in 2023[15]. - Total investments as of December 31, 2024, increased to $1,350,963, a 28.5% rise from $1,051,561 in 2023[15]. Dividends and Future Plans - The company declared a dividend of $0.06 per share to stockholders of record on March 10, 2025[6]. - Forward-looking statements indicate plans for Fortegra to potentially go public, subject to market conditions[13]. Losses and Amortization - The company incurred $10.3 million in net realized and unrealized losses in 2024, compared to $11.4 million in 2023, showing a decrease of 9.6%[20]. - The company recognized $15.4 million in intangibles amortization in 2024, slightly down from $16.9 million in 2023[20]. Segment Performance - The mortgage segment reported a loss before taxes of $4.7 million in 2024, an improvement from a loss of $3.3 million in 2023[20]. - Tiptree Capital's corporate segment reported a loss before taxes of $38.4 million in 2024, compared to a loss of $40.2 million in 2023, reflecting a reduction of 4.5%[20]. - The impact of non-controlling interests on adjusted net income was $32.6 million in 2024, compared to $23.7 million in 2023, indicating an increase of 37.5%[20].

Core Insights - Fortegra Group, Inc. has received approval to establish Fortegra Insurance Company UK, marking a significant expansion of its specialty insurance underwriting services in the UK market [1][2] - The establishment of the UK subsidiary is part of Fortegra's strategy to enhance its presence in Europe, building on previous successes in Belgium and the EU [4][5] Company Overview - Fortegra is recognized for its rigorous underwriting practices, advanced AI and data science applications, and commitment to consistent claims management, which positions it as a leader in the specialty insurance market [3] - The company has been underwriting risk management solutions for over 45 years and holds an A.M. Best Financial Strength Rating of A- (Excellent) [6]

Core Viewpoint - Fortegra Group, Inc. has successfully completed the issuance of $150 million in junior subordinated notes to support its growth and enhance its capital position, enabling the company to expand its specialty insurance offerings and manage risks effectively [1][2][3]. Group 1: Financial Details - The company issued $150 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due 2064, which are junior, subordinated, and unsecured obligations [1]. - The notes will be guaranteed on a junior subordinated basis by certain subsidiaries of Fortegra [1]. Group 2: Strategic Objectives - The financing will allow Fortegra to deepen partner relationships through tailored insurance solutions [2]. - It aims to enhance risk management capabilities to protect the interests of partners and policyholders [2]. - The company plans to boost profitability through targeted growth initiatives [2]. Group 3: Commitment to Value - Fortegra emphasizes its commitment to delivering long-term value to partners, policyholders, and shareholders while focusing on risk management and operational excellence [3]. - The company is well-positioned to capitalize on market opportunities [3]. Group 4: Company Background - Fortegra has over 45 years of experience in underwriting risk management solutions and holds an A.M. Best Financial Strength Rating of A- (Excellent) [4]. - The company offers a diverse set of admitted and excess and surplus lines insurance products and warranty solutions [4].

Financial Data and Key Metrics Changes - Year-to-date revenues increased by 28% compared to the prior year, with an adjusted return on equity of 22% [5] - Adjusted net income for the quarter was $27.9 million, representing a 56% increase, while consolidated net income rose to $11.9 million from $2.2 million in the prior year [9][10] - Book value per share increased by 18.6% from the prior year, driven by earnings growth and recovery of unrealized losses [10] Business Line Data and Key Metrics Changes - Fortegra's revenue grew by 28% and adjusted net income increased by 38%, primarily due to expansion in specialty insurance lines [5] - Gross written premiums and equivalents reached $2.2 billion, a 10% increase over 2023, with a combined ratio improving to 90% [6][12] - Reliance's mortgage origination volumes increased modestly, with profitability driven by fee income from retained servicing [8][16] Market Data and Key Metrics Changes - The investment portfolio ended the quarter at $1.5 billion, with a focus on high-quality liquid fixed income securities [7][13] - Net investment income for the nine months amounted to $37 million, a 35% increase over the prior year, with a book yield of 4.1% [13] Company Strategy and Development Direction - The company remains committed to growing long-term shareholder value and seeks to reflect the intrinsic value of its businesses in its share price [8] - Investments in technology and agent relationships are prioritized to enhance underwriting and claims management [15] - The focus on specialty P&C lines is expected to drive future growth, with a favorable pipeline of new opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for growth, citing strong performance and favorable market conditions [9][19] - The company anticipates improved origination volumes in the mortgage business as mortgage rates are expected to decline [17] Other Important Information - The effective tax rate was reported at 28%, with a GAAP tax rate of 44% for the quarter [10] - Fortegra's annualized adjusted return on equity was 28%, supported by profitable insurance underwriting and fee-based services [13] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [20]

Investor Presentation – Third Quarter 2024 October 2024 Financial Information for the three and nine months ended September 30, 2024 TiptreeInc. Disclaimers LIMITATIONS ON THE USE OF INFORMATION This presentation has been prepared by Tiptree Inc. and its consolidated subsidiaries ("Tiptree", "the Company" or "we") solely for informational purposes, and not for the purpose of updating any information or forecast with respect to Tiptree, its subsidiaries or any of its affiliates or any other purpose. Tiptree ...