TIPTREE INC.

Previous wording

•Tiptree reported net income of $24.6 million for the six months ended June 30, 2025, compared to $21.9 million in the prior year period, driven by growth in Fortegra’s underwriting and fee income, and higher net investment income, partially offset by incremental interest expense on $74.6 million of outstanding borrowings at the holding company level. Return on average equity was 10.3% for the six months ended June 30, 2025 and 2024.

Current wording

Tiptree reported net income of $31.0 million for the nine months ended September 30, 2025, compared to $33.8 million in the prior year period, with the decrease driven by deal-related expenses, increase in the Fortegra Additional Warrant liability, and incremental interest expense on $74.4 million of outstanding borrowings at the holding company level, partially offset by growth in Fortegra’s underwriting and fee income, and investment gains on equities. Return on average equity was 8.6% for the nine months ended September 30, 2025 as compared to 10.3% for the nine months ended September 30, 2024.

Previous wording

•Adjusted net income of $50.5 million increased from $45.0 million in the six months ended June 30, 2024, driven by growth in insurance operations. Adjusted return on average equity was 21.1% for the six months ended June 30, 2025 and 2024.

Current wording

Adjusted net income of $79.2 million increased from $72.8 million in the nine months ended September 30, 2024, driven by growth in insurance operations. Adjusted return on average equity was 21.9%, as compared to 22.1% in 2024.

Previous wording

•Gross written premiums and premium equivalents were $1,660.8 million for the six months ended June 30, 2025, an increase of $221.3 million, or 15.4%, from the prior year period as a result of growth in E&S insurance lines in the U.S. and Europe.

Current wording

Gross written premiums and premium equivalents were $2.5 billion for the nine months ended September 30, 2025, an increase of $304.2 million, or 13.7%, from the prior year period as a result of growth in E&S insurance lines in the U.S. and Europe.

Previous wording

•Net written premiums were $786.5 million for the six months ended June 30, 2025, an increase of 15.0% from the six months ended June 30, 2024, driven by growth in gross written premiums and stable premium retention levels.

Current wording

Net written premiums were $1.2 billion for the nine months ended September 30, 2025, an increase of 10.2% from the nine months ended September 30, 2024, driven by growth in gross written premiums and stable premium retention levels.

Previous wording

•Combined ratio of 89.2%, an improvement of 0.8 percentage points, driven by improvement in the underwriting ratio, partially offset by an increased expense ratio as we continue to invest in U.S. and European E&S markets.

Current wording

Combined ratio of 88.5%, an improvement of 1.7 percentage points, driven by improvement in the underwriting ratio, partially offset by an increased expense ratio as we continue to invest in U.S. and European E&S markets.

Previous wording

•Income before taxes of $105.2 million as compared to $88.1 million in the six months ended June 30, 2024, with the increase driven by improved insurance operations and higher investment gains. Return on average equity was 23.5% in 2025 as compared to 25.8% in the six months ended June 30, 2024.

Current wording

Income before taxes of $160.4 million as compared to $135.3 million in the nine months ended September 30, 2024, with the increase driven by improved insurance operations and higher investment gains. Return on average equity was 22.2% in 2025 as compared to 25.1% in the nine months ended September 30, 2024.

Previous wording

•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.

Current wording

Fortegra’s total stockholders’ equity was $776.2 million as of September 30, 2025, compared to $625.5 million as of December 31, 2024, an increase of 24.1%, driven by growth in retained earnings and a decrease in the accumulated other comprehensive loss position.

Previous wording

•Mortgage income before taxes was $28.0 thousand for the six months ended June 30, 2025, as compared to income of $1.3 million in the six months ended June 30, 2024, with the decrease primarily driven by negative fair value adjustments in mortgage servicing rights, partially offset by higher loan servicing fees.

Current wording

Mortgage income before taxes was $0.2 million for the nine months ended September 30, 2025, as compared to income of $1.2 million in the nine months ended September 30, 2024, with the decrease primarily driven by negative fair value adjustments in mortgage servicing rights, partially offset by higher loan servicing fees.

Previous wording

The following is a summary of our condensed consolidated financial results for the three and six months ended June 30, 2025 and 2024. In addition to GAAP results, management uses the Non-GAAP measures Adjusted net income, Adjusted return on average equity and book value per share 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.

Current wording

The following is a summary of our condensed consolidated financial results for the three and nine months ended September 30, 2025 and 2024. In addition to GAAP results, management uses the Non-GAAP measures Adjusted net income, Adjusted return on average equity and book value per share 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.

Previous wording

(1)On April 15, 2024, the Company sold its 16.98 million shares of Invesque for $0.6 million of proceeds resulting in a realized loss of $134.2 million.

Current wording

On April 15, 2024, the Company sold its 16.98 million shares of Invesque for $0.6 million of proceeds resulting in a realized loss of $134.2 million.

Previous wording

For the three months ended June 30, 2025, the net income attributable to common stockholders was $19.0 million, compared to $12.9 million in the prior year period. For the six months ended June 30, 2025, the net income attributable to common stockholders was $24.6 million, compared to a net income of $21.9 million in the prior year period. Increases in both periods were driven by growth in Fortegra’s underwriting and fee income, and higher investments gains, partially offset by incremental interest expense on $74.6 million of outstanding borrowings at the holding company level.

Current wording

For the three months ended September 30, 2025, the net income attributable to common stockholders was $6.4 million, compared to $11.9 million in the prior year period. For the nine months ended September 30, 2025, the net income attributable to common stockholders was $31.0 million, compared to a net income of $33.8 million in the prior year period. Decreases in both periods were driven by deal-related expenses, an increase in the Fortegra Additional Warrant liability, and incremental interest expense on $74.4 million of outstanding borrowings at the holding company level, partially offset by growth in Fortegra’s underwriting and fee income, and investment gains on equities.

Previous wording

Total stockholders’ equity was $723.4 million as of June 30, 2025 compared to $618.1 million as of June 30, 2024, with the increase driven by comprehensive income over the trailing four quarters, partially offset by net changes in non-controlling interests, preferred dividends paid at Fortegra and common dividends paid by Tiptree. In the six months ended June 30, 2025, Tiptree returned $4.5 million to stockholders through dividends paid.

Current wording

Total stockholders’ equity was $741.4 million as of September 30, 2025 compared to $656.2 million as of September 30, 2024, with the increase driven by comprehensive income over the trailing four quarters, partially offset by net changes in non-controlling interests, preferred dividends paid at Fortegra and common dividends paid by Tiptree. In the nine months ended September 30, 2025, Tiptree returned $6.8 million to stockholders through dividends paid.

Previous wording

Book value per share for the period ended June 30, 2025 was $13.33, a 12.4% increase from book value per share of $11.86 as of June 30, 2024, driven by comprehensive income per share, partially offset by dividends paid of $0.49 per share, net changes in non-controlling interests and preferred dividends paid at Fortegra.

Current wording

Book value per share for the period ended September 30, 2025 was $13.36, a 6.4% increase from book value per share of $12.56 as of September 30, 2024, driven by comprehensive income per share, partially offset by dividends paid of $0.49 per share, net changes in non-controlling interests and preferred dividends paid at Fortegra.

Previous wording

Our principal operating subsidiary, Fortegra, is a specialty insurance underwriter and service provider, which focuses on niche lines and fee-oriented services. The combination of specialty insurance underwriting, service contract products, and related service solutions delivered through a vertically integrated business model creates a blend of traditional underwriting revenues, investment income and unregulated fee revenues. The business is an agent-driven model, distributing products through independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers to deliver products that complement the consumer transaction.

Current wording

Fortegra is a specialty insurance underwriter and service provider, which focuses on niche lines and fee-oriented services. The combination of specialty insurance underwriting, service contract products, and related service solutions delivered through a vertically integrated business model creates a blend of traditional underwriting revenues, investment income and unregulated fee revenues. The business is an agent-driven model, distributing products through independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers to deliver products that complement the consumer transaction.

Previous wording

As of June 30, 2025, Fortegra was owned approximately 79.1% by Tiptree, 17.7% by Warburg and 3.2% by management and directors of Fortegra, before giving effect to the exercise of outstanding warrants and management options, and the conversion of outstanding preferred stock. The following tables and discussion present the Insurance segment results, including non-controlling interests, for the three months ended June 30, 2025 and 2024.

Current wording

As of September 30, 2025, Fortegra was owned approximately 78.9% by Tiptree, 17.6% by Warburg and 3.5% by management and directors of Fortegra, before giving effect to the exercise of outstanding warrants and management options, and the conversion of outstanding preferred stock. The following tables and discussion present the Insurance segment results, including non-controlling interests, for the three months ended September 30, 2025 and 2024.

Previous wording

See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee revenues, underwriting and fee margin, adjusted net income and adjusted return on average equity to their GAAP equivalents.

Current wording

See “—Non-GAAP Reconciliations” for a reconciliation of adjusted net income and adjusted return on average equity to their GAAP equivalents.

Previous wording

For the three months ended June 30, 2025, total revenues decreased 3.2%, to $513.0 million, as compared to $529.9 million for the three months ended June 30, 2024. Earned premiums, net of $381.9 million decreased $16.5 million, or 4.1%, driven by the impacts in 2024 from an assumption of a block of premiums from an MGA partner in December 2023. Excluding the assumption, the revenues increased 4.5% compared to three months ended June 30, 2024. Earned premiums assumed from other insurance companies were $156.2 million, or 40.9% of the total, compared to $159.8 million, or 40.1% of the total, in the prior year period. As it expands to new geographies and expands product offerings, the Company works to obtain necessary licenses and intends to write this business directly upon obtaining necessary licenses. The Company views direct written and assumed business as having similar characteristics. Service and administrative fees of $96.8 million decreased by 8.5% driven primarily by a decline in vehicle service contract revenues in U.S. and Europe. Ceding commissions of $3.5 million decreased by $1.5 million, or 30.1%. Other revenues decreased by $3.4 million, or 29.4%, driven by lower interest income on cash equivalents and premium finance product offerings.

Current wording

For the three months ended September 30, 2025, total revenues increased 8.6%, to $522.6 million, as compared to $481.0 million for the three months ended September 30, 2024. Earned premiums, net of $383.9 million increased $24.4 million, or 6.8%, driven by growth in specialty E&S and admitted insurance lines. Earned premiums assumed from other insurance companies were $135.8 million, or 35.4% of the total, compared to $129.5 million, or 36.0% of the total, in the prior year period. As it expands to new geographies and expands product offerings, the Company works to obtain necessary licenses and intends to write this business directly upon obtaining necessary licenses. The Company views direct written and assumed business as having similar characteristics. Service and administrative fees of $95.8 increased by 0.5% driven primarily by an increase in ceding fee income, partially offset by a decline in service fee income in the U.S. and Europe. Ceding commissions of $3.5 million decreased by $0.2 million, or 6.3%. Other revenues decreased by $3.8 million, or 34.5%, driven by lower interest income on cash equivalents and premium finance product offerings.

Previous wording

For the three months ended June 30, 2025, net investment income was $10.5 million as compared to $6.4 million in the prior year period, an increase of $4.1 million driven by increased yields on investments and increased allocation to fixed income securities compared to cash equivalents. Net realized and unrealized gains were $12.0 million, an improvement of $9.4 million, as compared to net realized and unrealized gains of $2.5 million in the prior year period, primarily driven by the change in fair value of certain equity and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the three months ended June 30, 2025 were $5.1 million, driven by positive fair value adjustments on U.S. Treasury securities and obligations of U.S. government authorities and agencies, corporate bonds and other investments.

Current wording

For the three months ended September 30, 2025, net investment income was $7.4 million as compared to $9.1 million in the prior year period, a decrease of $1.7 million driven by $5.7 million of incentive fees related to realized and unrealized gains on equities and alternatives securities, partially offset by increased yields on investments and increased allocation to fixed income securities compared to cash equivalents. Net realized and unrealized gains were $24.8 million, an improvement of $22.5 million, as compared to net realized and unrealized gains of $2.2 million in the prior year period, primarily driven by the change in fair value of certain equity and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the three months ended September 30, 2025 were $10.7 million, driven by positive fair value adjustments on U.S. Treasury securities and obligations of U.S. government authorities and agencies, corporate bonds and other investments.

Previous wording

For the three months ended June 30, 2025, net losses and loss adjustment expenses were $197.9 million, member benefit claims were $28.6 million and commission expense was $140.5 million, as compared to $205.3 million, $28.7 million, and $173.3 million, respectively, for the three months ended June 30, 2024. The decrease in net losses and loss adjustment expenses of $7.4 million, or 3.6%, was in line with the decrease in earned premiums, net, driven by the U.S. insurance lines. In addition, the Company experienced favorable prior year development of $4.3 million and $1.6 million, respectively, for the three months ended June 30, 2025 and 2024, driven by lower-than-expected claims in our commercial lines of business. For the three months ended June 30, 2025 and 2024, net catastrophe losses included in net losses and adjustment expenses were de minimis. The decrease in member benefit claims of $0.1 million, or 0.4%, was driven by the decrease in service and administrative fees, partially offset by higher replacement costs and labor rates on vehicle service contracts in the U.S. and Europe. Commission expenses decreased by $32.8 million, or 18.9%, driven by decline in earned premiums, net, and service and administrative fees, in addition to the impacts from sliding scale commissions on warranty contracts.

Current wording

For the three months ended September 30, 2025, net losses and loss adjustment expenses were $192.4 million, member benefit claims were $24.9 million and commission expense was $144.9 million, as compared to $175.9 million, $27.5 million, and $154.0 million, respectively, for the three months ended September 30, 2024. The increase in net losses and loss adjustment expenses of $16.5 million, or 9.4%, was in line with the increase in earned premiums, net, driven by the U.S. insurance lines. During three months ended September 30, 2025 and 2024, the Company experienced unfavorable prior year development of $1.2 million, and $1.4 million, respectively, driven by higher-than-expected claims in our commercial lines of business. The decrease in member benefit claims of $2.6 million, or 9.4%, was driven by the decrease in service fee income, partially offset by higher replacement costs and labor rates on vehicle service contracts in the U.S. and Europe. Commission expenses decreased by $9.1 million, or 5.9%, driven by a decrease in service fee income, in addition to the impacts from sliding scale commissions on warranty contracts.

Previous wording

For the three months ended June 30, 2025, employee compensation and benefits were $37.7 million and other expenses were $28.3 million, as compared to $31.6 million and $27.6 million, respectively, for the three months ended June 30, 2024. Employee compensation and benefits increased by $6.2 million, or 19.5%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses increased by $0.8 million, or 2.7%, driven by increased marketing and information technology expenses, partially offset by a decrease in fair value of the Fortegra Additional Warrant liability of $1.4 million.

Current wording

For the three months ended September 30, 2025, employee compensation and benefits were $41.7 million and other expenses were $50.3 million, as compared to $37.9 million and $26.3 million, respectively, for the three months ended September 30, 2024. Employee compensation and benefits increased by $3.9 million, or 10.2%, driven by investments in human capital associated with growth in E&S, admitted and services lines and increases in stock-based compensation. Other expenses increased by $24.0 million, or 91.1%, driven by an increase in fair value of the Fortegra Additional Warrant liability of $17.0 million. Included in other expenses were $3.7 million of deal-related expenses for the three months ended September 30, 2025, compared to $0.1 million of expenses in the prior year period.

Previous wording

For the three months ended June 30, 2025, interest expense was $8.4 million as compared to $7.5 million for the three months ended June 30, 2024. On November 7, 2024, Fortegra issued $150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064. The proceeds of the 2024 Notes were used to repay outstanding indebtedness under Fortegra’s credit agreement, for insurance company growth capital and general corporate purposes. The increase in interest expense of $0.9 million, or 12.3%, was primarily driven by the issuance of the new debt.

Current wording

For the three months ended September 30, 2025, interest expense was $8.3 million as compared to $7.2 million for the three months ended September 30, 2024. On November 7, 2024, Fortegra issued $150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064. The proceeds of the 2024 Notes were used to repay outstanding indebtedness under Fortegra’s credit agreement, for insurance company growth capital and general corporate purposes. The increase in interest expense of $1.1 million, or 15.2%, was primarily driven by the issuance of the new debt.

Previous wording

For the three months ended June 30, 2025, depreciation and amortization expense was $4.5 million, as compared to $4.8 million in 2024. Intangible amortization for the 2025 and 2024 periods is related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023.

Current wording

For the three months ended September 30, 2025, depreciation and amortization expense was $4.8 million, as compared to $5.0 million in 2024. Intangible amortization for the 2025 and 2024 periods is related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023.

Previous wording

(1) The total gross written premiums and premium equivalents of $907.6 million and $776.1 million for the three months ended June 30, 2025 and 2024, respectively, were comprised of gross written premiums of $689.5 million and $573.8 million, plus assumed premiums of $152.3 million and $107.9 million, plus gross service and administrative fee additions of $65.9 million and $94.4 million, respectively. See Note (6) Reinsurance Recoverable and Prepaid Reinsurance Premiums and Note (12) Revenue from Contracts with Customers within the respective periods for more information.

Current wording

The total gross written premiums and premium equivalents of $859.8 million and $776.8 million for the three months ended September 30, 2025 and 2024, respectively, were comprised of gross written premiums of $667.4 million and $573.0 million, plus assumed premiums of $129.7 million and $108.0 million, plus gross service and administrative fee additions of $62.6 million and $95.8 million, respectively. See Note (6) Reinsurance Recoverable and Prepaid Reinsurance Premiums and Note (12) Revenue from Contracts with Customers within the respective periods for more information.

Previous wording

Total gross written premiums and premium equivalents for the three months ended June 30, 2025 were $907.6 million, representing an increase of $131.6 million, or 17.0% as compared to the prior year period. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network and growing E&S insurance lines. E&S premiums were $396.0 million for the three months ended June 30, 2025 compared to $329.5 million in the prior year period, a 20.2% increase.

Current wording

Total gross written premiums and premium equivalents for the three months ended September 30, 2025 were $859.8 million, representing an increase of $82.9 million, or 10.7%, as compared to the prior year period. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network and growing E&S insurance lines. E&S premiums were $391.5 million for the three months ended September 30, 2025 compared to $312.1 million in the prior year period, a 25.5% increase.

Previous wording

For the three months ended June 30, 2025, Insurance increased by $160.0 million, or 23.5% as compared to the prior year period, driven by growth in property and short tail, general liability, contractual liability and European lines, partially offset by decline in professional liability and personal lines. For the three months ended June 30, 2025, Services decreased by $28.5 million, or 30.2%, driven by lower volume in consumer goods and vehicle service contracts.

Current wording

For the three months ended September 30, 2025, Insurance increased by $116.1 million, or 17.0% as compared to the prior year period, driven by growth across all the product lines, most notably in property and short tail, general liability, and European lines. For the three months ended September 30, 2025, Services decreased by $33.2 million, or 34.6%, driven by lower volume in consumer goods and vehicle service contracts.

Previous wording

Net written premiums for the three months ended June 30, 2025 were $428.8 million, representing an increase of $62.9 million, or 17.2% as compared to the prior year period, consistent with growth in gross written premiums. For the three months ended June 30, 2025, net written premiums from commercial lines increased by $69.2 million, or 21.2%, driven by growth in E&S and specialty admitted business. For the three months ended June 30, 2025, net written premiums from personal lines decreased by $6.3 million, or 16.1%, driven by declines in personal credit and auto insurance lines. Net written premiums from property and short-tail lines represented $166.5 million, or 38.8%, of the total net written premiums for the three months ended June 30, 2025 compared to $108.3 million, or 29.6%, for the prior year period. Property and short-tail net written premiums were diversified by geographic location, exposure and risk type with substantial reinsurance protection. As of June 30, 2025, the net loss to the Company in a 1-in-250 year catastrophe event represented approximately 4.1% of Fortegra’s stockholders’ equity. This reported loss includes the impact of incurred losses based on the estimated frequency and severity of potential events, reinstatements premiums, reinsurance recoveries and taxes.

Current wording

Net written premiums for the three months ended September 30, 2025 were $396.7 million, representing an increase of $7.4 million, or 1.9% as compared to the prior year period. For the three months ended September 30, 2025, net written premiums from commercial lines increased by $17.8 million, or 5.2%, driven by growth in E&S lines. For the three months ended September 30, 2025, net written premiums from personal lines decreased by $10.4 million, or 23.9%, driven by declines in personal credit and auto insurance lines. Net written premiums from property and short-tail lines represented $134.7 million, or 34.0%, of the total net written premiums for the three months ended September 30, 2025 compared to $152.0 million, or 39.1%, for the prior year period. Property and short-tail net written premiums were diversified by geographic location, exposure and risk type with substantial reinsurance protection. As of September 30, 2025, the net loss to the Company in a 1-in-250 year catastrophe event represented approximately 3.7% of Fortegra’s stockholders’ equity. This reported loss includes the impact of incurred losses based on the estimated frequency and severity of potential events, reinstatements premiums, reinsurance recoveries and taxes.

Previous wording

The combined ratio was 89.2% for the six months ended June 30, 2025, compared to 90.0% for the prior year period, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 75.1%, a decrease of 2.7 percentage points from the prior year period, which consists of a loss ratio of 47.3%, compared to 46.8% in the prior year period, and an acquisition ratio of 27.8%, compared to 31.0% in the prior year period. The increase in loss ratio was driven by changes in business mix towards commercial lines and increases in repair and labor costs on vehicle service contracts compared to prior year period, which was offset by the decline in acquisition ratio as a result of changes in business mix and impacts from swing rate commission structures. Additionally, for the six months ended June 30, 2025, the loss ratio included 3.3 percentage points related to net catastrophe losses as compared to 0.1 percentage points in the prior year period. The primary catastrophic events impacting 2025 were the California wildfires. The operating expense ratio increased 1.9 percentage points to 14.1%, as compared to 12.2% in the prior year period, driven by our continued investment in growing our E&S business.

Current wording

The combined ratio was 87.3% and 90.2% for the three months ended September 30, 2025 and 2024, respectively, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 73.3%, a decrease of 2.9 percentage points from the prior year period, which consists of a loss ratio of 46.4%, compared to 45.1% in the prior year period, and an acquisition ratio of 26.9%, compared to 31.1% in the prior year period. The increase in loss ratio was driven by changes in business mix towards commercial lines and increases in repair and labor costs on vehicle service contracts compared to prior year period, which was more than offset by the decline in acquisition ratio as a result of changes in business mix and swing rate commission structures. The operating expense ratio remained consistent at 14.0%.

Previous wording

Return on average equity was 29.3% for the three months ended June 30, 2025, as compared to 28.4% for the prior year period, with the increase driven by the improved combined ratio and higher investment gains compared to the prior year period.

Current wording

Return on average equity was 19.6% for the three months ended September 30, 2025, as compared to 24.3% for the prior year period, with the decrease driven by the higher average stockholders' equity, partially offset by improved combined ratio and higher investment gains.

Previous wording

For the three months ended June 30, 2025, adjusted net income and adjusted return on average equity were $45.2 million and 25.8%, respectively, as compared to $40.3 million and 29.7%, respectively, for the three months ended June 30, 2024.

Current wording

For the three months ended September 30, 2025, adjusted net income (before NCI) and adjusted return on average equity were $49.5 million and 26.3%, respectively, as compared to $40.0 million and 27.7%, respectively, for the three months ended September 30, 2024.

Previous wording

For the six months ended June 30, 2025, total revenues decreased 1.5%, to $993.6 million, as compared to $1,008.7 million for the six months ended June 30, 2024. Earned premiums, net of $745.4 million decreased $0.4 million, or 0.1%, driven by the impacts in 2024 from an assumption of a block of premiums from an MGA partner in December 2023. Excluding the assumption, the revenues increased 8.8% compared to six months ended June 30, 2024. Earned premiums assumed from other insurance companies were $297.3 million, or 39.9% of the total, compared to $301.1 million, or 40.4% of the total, in the prior year period. As it expands to new geographies and expands product offerings, the Company works to obtain necessary licenses and intends to write this business directly upon obtaining necessary licenses. The Company views direct written and assumed business as having similar characteristics. For the presented periods, earned premiums, net, did not include any significant regional geographic concentrations. Service and administrative fees of $194.1 million decreased by 10.3% driven by decrease in warranty and consumer goods service contract revenues in U.S. and Europe. Ceding commissions of $7.2 million decreased by $0.6 million, or 8.1%. Other revenues decreased by $4.2 million, or 20.5%, driven by decrease in interest income on cash equivalents and premium finance product offerings.

Current wording

For the nine months ended September 30, 2025, total revenues increased 1.8%, to $1.5 billion, as compared to $1.5 billion for the nine months ended September 30, 2024. Earned premiums, net of $1.1 billion increased $24.0 million, or 2.2%, driven by growth in specialty E&S and admitted insurance lines. Earned premiums assumed from other insurance companies were $433.1 million, or 38.4% of the total, compared to $430.6 million, or 39.0% of the total, in the prior year period. As it expands to new geographies and expands product offerings, the Company works to obtain necessary licenses and intends to write this business directly upon obtaining necessary licenses. The Company views direct written and assumed business as having similar characteristics. For the presented periods, earned premiums, net, did not include any significant regional geographic concentrations. Service and administrative fees of $290.0 million decreased by 7.0% driven by decrease in warranty and consumer goods service contract revenues in U.S. and Europe. Ceding commissions of $10.7 million decreased by $0.9 million, or 7.5%. Other revenues decreased by $8.0 million, or 25.5%, driven by decreases in interest income on cash equivalents and premium finance product offerings.

Previous wording

For the six months ended June 30, 2025, net investment income was $22.2 million as compared to $13.1 million in the prior year period, an increase of $9.1 million driven by increased yields on investments and increased allocation to fixed income securities compared to cash equivalents. Net realized and unrealized gains were $8.5 million, compared to net realized and unrealized gains of $5.4 million in the prior year period, primarily driven by the change in fair value of equity securities and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the six months ended June 30, 2025 were $15.1 million, driven by positive fair value adjustments on U.S. Treasury securities and obligations of U.S. government authorities and agencies, corporate bonds and other investments.

Current wording

For the nine months ended September 30, 2025, net investment income was $29.6 million as compared to $22.3 million in the prior year period, an increase of $7.4 million driven by increased yields on investments and increased allocation to fixed income securities compared to cash equivalents, partially offset by $5.7 million of incentive fees related to realized and unrealized gains on equities and alternatives securities. Net realized and unrealized gains were $33.3 million, compared to net realized and unrealized gains of $7.6 million in the prior year period, primarily driven by the change in fair value of equity securities and other investments carried at fair value. Unrealized gains on AFS securities impacting OCI for the nine months ended September 30, 2025 were $25.8 million, driven by positive fair value adjustments on U.S. Treasury securities and obligations of U.S. government authorities and agencies, corporate bonds and other investments.

Previous wording

For the six months ended June 30, 2025, net losses and loss adjustment expenses were $377.7 million, member benefit claims were $58.1 million and commission expense was $292.1 million, as compared to $380.6 million, $61.0 million, and $330.2 million respectively, for the six months ended June 30, 2024. The decrease in net losses and loss adjustment expenses was $2.9 million, or 0.8%. During the six months ended June 30, 2025 and 2024, the Company experienced favorable prior year development of $8.3 million and $0.8 million, respectively, primarily as a result of lower-than-expected claims in its commercial lines of business. For the six months ended June 30, 2025 and 2024, net losses and adjustment expenses included $30.1 million and $1.3 million of net catastrophe losses, respectively, primarily related to the California wildfires for the 2025 period. The decrease in member benefit claims of $2.9 million, or 4.8%, was in line with decrease in service and administrative fees, partially offset by higher replacement costs and labor rates. Commission expense decreased by $38.1 million, or 11.5%, driven by impacts from sliding scale commission structures.

Current wording

For the nine months ended September 30, 2025, net losses and loss adjustment expenses were $570.1 million, member benefit claims were $83.0 million and commission expense was $437.0 million, as compared to $556.6 million, $88.5 million, and $484.2 million, respectively, for the nine months ended September 30, 2024. The increase in net losses and loss adjustment expenses was $13.6 million, or 2.4%, was in line with the increase in earned premiums, net. During the nine months ended September 30, 2025 and 2024, the Company experienced favorable prior year development of $7.1 million and unfavorable prior year development of $0.6 million, respectively, primarily as a result of lower-than-expected claims in its commercial lines of business. The decrease in member benefit claims of $5.5 million, or 6.2%, was in line with decrease in service and administrative fees, partially offset by higher replacement costs and labor rates. Commission expense decreased by $47.2 million, or 9.8%, driven by impacts from sliding scale commission structures.

Previous wording

For the six months ended June 30, 2025, employee compensation and benefits were $74.1 million and other expenses were $60.2 million, as compared to $63.0 million and $60.7 million, respectively, for the six months ended June 30, 2024. Employee compensation and benefits increased by $11.1 million, or 17.7%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses decreased by $0.6 million, or 0.9%, driven by a change in fair value of the Fortegra Additional Warrant liability of $0.6 million, in comparison to $5.1 million in six months ended June 30, 2024. Included in other expenses were $4.2 million of deal-related expenses in the 2025 period, compared to $3.3 million of expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in February 2024.

Current wording

For the nine months ended September 30, 2025, employee compensation and benefits were $115.9 million and other expenses were $110.5 million, as compared to $100.9 million and $87.1 million, respectively, for the nine months ended September 30, 2024. Employee compensation and benefits increased by $15.0 million, or 14.9%, driven by investments in human capital associated with growth in E&S, admitted and services lines and increased stock-based compensation expense. Other expenses increased by $23.4 million, or 26.9%, driven by a change in fair value of the Fortegra Additional Warrant liability of $17.6 million, in comparison to $6.0 million in nine months ended September 30, 2024. Included in other expenses were $7.9 million of deal-related expenses in the 2025 period, compared to $3.5 million of expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in February 2024.

Previous wording

For the six months ended June 30, 2025, interest expense was $17.3 million as compared to $15.1 million for the six months ended June 30, 2024. On November 7, 2024, Fortegra issued 150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064. The proceeds of the 2024 Notes were used to repay outstanding indebtedness under Fortegra’s credit agreement, for insurance company growth capital and general corporate purposes. The increase in interest expense of $2.2 million, or 14.3%, was primarily driven by was primarily driven by the issuance of the new debt.

Current wording

For the nine months ended September 30, 2025, interest expense was $25.6 million as compared to $22.3 million for the nine months ended September 30, 2024. On November 7, 2024, Fortegra issued 150.0 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due November 2064. The proceeds of the 2024 Notes were used to repay outstanding indebtedness under Fortegra’s credit agreement, for insurance company growth capital and general corporate purposes. The increase in interest expense of $3.3 million, or 14.6%, was primarily driven by the issuance of the new debt.

Previous wording

For the six months ended June 30, 2025, depreciation and amortization expense was $8.9 million as compared to $9.9 million in 2024. Intangible amortization for the 2025 and 2024 periods is related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023.

Current wording

For the nine months ended September 30, 2025, depreciation and amortization expense was $13.8 million as compared to $14.9 million in 2024. Intangible amortization for the 2025 and 2024 periods is related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023.

Previous wording

The below table shows gross written premiums and premium equivalents by business mix for the six months ended June 30, 2025 and 2024:

Current wording

The below table shows gross written premiums and premium equivalents by business mix for the nine months ended September 30, 2025 and 2024:

Previous wording

(1) The total gross written premiums and premium equivalents of $1,660.8 million and $1,439.5 million for the six months ended June 30, 2025 and 2024, respectively, were comprised of gross written premiums of $1,228.2 million and $1,030.9 million, plus assumed premiums of $280.1 million and $220.7 million, plus gross service and administrative fee additions of $152.5 million and $187.9 million, respectively. See Note (6) Reinsurance Recoverable and Prepaid Reinsurance Premiums and Note (12) Revenue from Contracts with Customers within the respective periods for more information.

Current wording

The total gross written premiums and premium equivalents of $2,520.6 million and $2,216.3 million for the nine months ended September 30, 2025 and 2024, respectively, were comprised of gross written premiums of $1,895.6 million and $1,603.9 million, plus assumed premiums of $409.8 million and $328.7 million, plus gross service and administrative fee additions of $215.1 million and $283.7 million, respectively. See Note (6) Reinsurance Recoverable and Prepaid Reinsurance Premiums and Note (12) Revenue from Contracts with Customers within the respective periods for more information.

Previous wording

Total gross written premiums and premium equivalents for the six months ended June 30, 2025 were $1,660.8 million, representing an increase of $221.3 million, or 15.4% as compared to the prior year period. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network, and growing E&S insurance lines. E&S premiums were $690.4 million for the six months ended June 30, 2025 compared to $557.7 million in the prior year period, a 23.8% increase. For the six months ended June 30, 2025, Insurance increased by $256.8 million, or 20.5%, driven primarily by growth in property and short-tail, general liability and contractual liability, and European lines, partially offset by decline in professional liability and personal lines. For the six months ended June 30, 2025, Services decreased by $35.5 million, or 18.9%, driven by lower volume in consumer goods and vehicle service contracts.

Current wording

Total gross written premiums and premium equivalents for the nine months ended September 30, 2025 were $2.5 billion, representing an increase of $304.2 million, or 13.7%, as compared to the prior year period. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network, and growing E&S insurance lines. E&S premiums were $1.1 billion for the nine months ended September 30, 2025 compared to $869.8 million in the prior year period, a 24.4% increase. For the nine months ended September 30, 2025, Insurance increased by $372.9 million, or 19.3%, driven primarily by growth in property and short-tail, general liability and contractual liability, and European lines, partially offset by decline in professional liability and personal lines. For the nine months ended September 30, 2025, Services decreased by $68.6 million, or 24.2%, driven by lower volume in consumer goods and vehicle service contracts.

Previous wording

Net written premiums for the six months ended June 30, 2025 were $786.5 million, representing an increase of $102.4 million, or 15.0% as compared to the prior year period, consistent with growth in gross written premiums. For the six months ended June 30, 2025, commercial lines increased by $114.2 million, or 18.9%, driven by growth in E&S and specialty admitted business. For the six months ended June 30, 2025, personal lines decreased by $11.8 million, or 15.1%, driven by declines in personal credit and auto insurance lines. Property and short-tail lines represented $296.0 million, or 37.6%, of the total net written premiums for the six months ended June 30, 2025 compared to $216.9 million, or 31.7%, for the prior year period. Property and short-tail net written premiums were diversified by geographic location, exposure and risk type with substantial reinsurance protection.

Current wording

Net written premiums for the nine months ended September 30, 2025 were $1.2 billion, representing an increase of $109.8 million, or 10.2%, as compared to the prior year period, consistent with growth in gross written premiums. For the nine months ended September 30, 2025, commercial lines increased by $132.1 million, or 13.9%, driven by growth in E&S and specialty admitted business. For the nine months ended September 30, 2025, personal lines decreased by $22.2 million, or 18.2%, driven by declines in personal credit and auto insurance lines. Property and short-tail lines represented $430.7 million, or 36.4%, of the total net written premiums for the nine months ended September 30, 2025 compared to $368.8 million, or 34.4%, for the prior year period. Property and short-tail net written premiums were diversified by geographic location, exposure and risk type with substantial reinsurance protection.

Previous wording

The combined ratio was 88.5% and 89.9% for the three months ended June 30, 2025 and 2024, respectively, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 74.3%, a decrease of 3.9 percentage points from the prior year period, which consists of a loss ratio of 48.2%, compared to 47.3% in the prior year period, and an acquisition ratio of 26.1%, compared to 30.9% in the prior year period. The increase in loss ratio was driven by changes in business mix towards commercial lines and increases in repair and labor costs on vehicle service contracts compared to prior year period, which was more than offset by the decline in acquisition ratio as a result of changes in business mix and swing rate commission structures. Additionally, for the three months ended June 30, 2025 and 2024, net catastrophe losses included in the loss ratio were de minimis. The operating expense ratio increased 2.5 percentage points to 14.2%, as compared to 11.7% in the prior year period, driven by our continued investment in growing our E&S business.

Current wording

The combined ratio was 88.5% for the nine months ended September 30, 2025, compared to 90.2% for the prior year period, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 74.5%, a decrease of 2.9 percentage points from the prior year period, which consists of a loss ratio of 47.0%, compared to 46.3% in the prior year period, and an acquisition ratio of 27.5%, compared to 31.1% in the prior year period. The increase in loss ratio was driven by changes in business mix towards commercial lines and increases in repair and labor costs on vehicle service contracts compared to prior year period, which was offset by the decline in acquisition ratio as a result of changes in business mix and impacts from swing rate commission structures. The operating expense ratio increased 1.2 percentage points to 14.0%, as compared to 12.8% in the prior year period, driven by our continued investment in growing our E&S business.