TIPTREE INC.

Previous wording

The loss before taxes from Tiptree Capital - Other for the three months ended September 30, 2024 was $2.6 million, compared to the loss before taxes of $6.5 million in the prior year period. The change was primarily driven by the unrealized losses on Invesque in the prior year period. Income before taxes from Tiptree Capital - Other for the nine months ended September 30, 2024 was $0.6 million, compared to the loss before taxes of $3.6 million in the prior year period driven by realized investments gains on securities in the Company’s investment holdings in the first quarter of 2024, and decreased investment losses on Invesque in the nine months ended September 30, 2024.

Current wording

Our first quarter of 2025 highlights include:

Previous wording

•Adjusted net income of $72.8 million increased from $48.1 million in 2023, driven by growth in insurance operations. Adjusted return on average equity was 22.1%, as compared to 16.2% in 2023.

Current wording

•Adjusted net income of $23.3 million increased from $20.5 million in the three months ended March 31, 2024, driven by growth in insurance operations. Adjusted return on average equity was 20.0%, as compared to 19.5% in the three months ended March 31, 2024.

Previous wording

•Gross written premiums and premium equivalents were $2.2 billion for the nine months ended September 30, 2024, an increase of $192.6 million, or 9.5%, 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 $753.2 million for the three months ended March 31, 2025, an increase of $89.8 million, or 13.5%, from the prior year period as a result of growth in E&S insurance lines in the U.S. and Europe.

Previous wording

•Total revenues were $1.5 billion, an increase of $329.8 million, or 28.4%, from 2023, driven by premium growth in specialty E&S and admitted insurance lines in the U.S. and Europe.

Current wording

•Total revenues were $480.6 million, an increase of $1.8 million, or 0.4%, from the three months ended March 31, 2024, driven by premium growth in specialty E&S and admitted insurance lines in the U.S. and Europe.

Previous wording

•Combined ratio of 90.2%, driven by consistent underwriting performance and the scalability of Fortegra’s operating platform.

Current wording

•Combined ratio of 89.9%, driven by consistent underwriting performance and the scalability of Fortegra’s operating platform.

Previous wording

•Income before taxes of $135.3 million as compared to $85.6 million in 2023. Return on average equity was 25.1% in 2024 as compared to 22.9% in 2023, with the increases driven by growth in underwriting and fee revenues.

Current wording

•Income before taxes of $38.1 million as compared to $36.8 million in 2024, with the increase driven by growth in underwriting and fee revenues. Return on average equity was 17.7% in 2025 as compared to 22.3% in the three months ended March 31, 2024.

Previous wording

•Adjusted net income (before NCI) was $114.5 million, an increase of $31.4 million, or 37.8%, from 2023. Adjusted return on average equity was 28.8%, as compared to 30.3% in 2023.

Current wording

•Adjusted net income (before NCI) was $40.5 million, an increase of $6.3 million, or 18.6%, from the three months ended March 31, 2024. Adjusted return on average equity was 25.0%, as compared to 28.3% in the three months ended March 31, 2024.

Previous wording

Our results of operations are affected by a variety of factors including, but not limited to, general economic conditions and GDP growth, market liquidity and volatility, consumer confidence, U.S. demographics, employment and wage growth, business confidence and investment, inflation, interest rates and spreads, the impact of the regulatory environment, and the other factors set forth in Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Generally, our businesses are positively affected by a healthy U.S. consumer, stable to gradually rising interest rates, stable markets and business conditions, and global growth and trade flows. Conversely, rising unemployment, volatile markets, rapidly rising interest rates, inflation, changing regulatory requirements and slowing business conditions can have a material adverse effect on our results of operations or financial condition.

Current wording

Our results of operations are affected by a variety of factors including, but not limited to, general economic conditions and GDP growth, market liquidity and volatility, consumer confidence, U.S. demographics, employment and wage growth, business confidence and investment, inflation, interest rates and spreads, the impact of the regulatory environment, and the other factors set forth in Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Generally, our businesses are positively affected by a healthy U.S. consumer, stable to gradually rising interest rates, stable markets and business conditions, and global growth and trade flows. Conversely, rising unemployment, volatile markets, rapidly rising interest rates, inflation, changing regulatory requirements, economic uncertainty arising from the imposition of tariffs, and slowing business conditions can have a material adverse effect on our results of operations or financial condition.

Previous wording

The following is a summary of our condensed consolidated financial results for the three months ended September 30, 2024 and 2023. 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

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

For the three months ended September 30, 2024, the net income attributable to common stockholders was $11.9 million, compared to $2.2 million in the prior year period, driven by growth in Fortegra’s underwriting and fee income. For the nine months ended September 30, 2024, the net income attributable to common stockholders was $33.8 million, which increased $26.7 million, compared to the prior year period, driven by growth in Fortegra’s underwriting and fee income.

Current wording

For the three months ended March 31, 2025, the net income attributable to common stockholders was $5.6 million, compared to $9.1 million in the prior year period, driven by growth in Fortegra’s underwriting and fee income, which was more than offset by lower net realized and unrealized investments gains, and incremental interest expense on $74.8 million of outstanding borrowings at the holding company level.

Previous wording

Adjusted net income for the three months ended September 30, 2024 was $27.9 million, an increase of $10.0 million, or 55.9%, from the three months ended September 30, 2023, driven by growth in our insurance and mortgage operations. For the three months ended September 30, 2024, adjusted return on average equity was 24.8%, as compared to 17.9% for the three months ended September 30, 2023, driven by the increase in adjusted net income.

Current wording

Adjusted net income for the three months ended March 31, 2025 was $23.3 million, an increase of $2.8 million, or 13.6%, from the three months ended March 31, 2024, driven by growth in our insurance operations. For the three months ended March 31, 2025, adjusted return on average equity was 20.0%, as compared to 19.5% for the three months ended March 31, 2024, driven by the increase in adjusted net income.

Previous wording

Total stockholders’ equity was $656.2 million as of September 30, 2024 compared to $543.6 million as of September 30, 2023, with the increase driven by comprehensive income over the trailing four quarters, partially offset by net changes in non-controlling interests and preferred dividends paid at Fortegra. In the nine months ended September 30, 2024, Tiptree returned $6.6 million to stockholders through dividends paid.

Current wording

Total stockholders’ equity was $683.5 million as of March 31, 2025 compared to $598.6 million as of March 31, 2024, with the increase driven by comprehensive income over the trailing four quarters, partially offset by net changes in non-controlling interests and preferred dividends paid at Fortegra. In the three months ended March 31, 2025, Tiptree returned $2.3 million to stockholders through dividends paid.

Previous wording

Book value per share for the period ended September 30, 2024 was $12.56, an increase from book value per share of $10.78 as of September 30, 2023, driven by comprehensive income per share, partially offset by dividends paid of $0.23 per share, net changes in non-controlling interests and preferred dividends paid at Fortegra.

Current wording

Book value per share for the period ended March 31, 2025 was $12.63, an increase from book value per share of $11.55 as of March 31, 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

As of September 30, 2024, Fortegra was owned approximately 79.3% by Tiptree, 17.7% by Warburg and 3.0% 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, 2024 and 2023.

Current wording

As of March 31, 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 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 March 31, 2025 and 2024.

Previous wording

Ceding Commissions and Other Revenue consists of commissions earned on policies written on behalf of third-party insurance companies with no exposure to the insured risk and certain fees earned in conjunction with underwriting policies. Other revenue also includes the interest income earned on cash equivalents and premium finance product offerings.

Current wording

Ceding Commissions and Other Revenue consists of commissions earned on policies written on behalf of third-party insurance companies with no exposure to the insured risk and certain fees earned in conjunction with underwriting policies. Other revenue also includes the interest income earned on the premium finance product offering.

Previous wording

Net Investment Income represents earned investment income on our portfolio of invested assets. Our invested assets are primarily comprised of fixed maturity securities, and may also include cash and cash equivalents and equity securities. The principal factors that influence net investment income are the size of our investment portfolio, the yield on that portfolio and expense due to external investment managers. The insurance investment portfolio includes investments held in statutory insurance companies and in unregulated entities. The portfolios held in statutory insurance companies are subject to different regulatory considerations, including with respect to types of assets, concentration limits, affiliate transactions and the use of leverage.

Current wording

Net Investment Income represents earned investment income on our portfolio of invested assets. Our invested assets are primarily comprised of fixed maturity securities, and may also include cash and cash equivalents and equity securities. The principal factors that influence net investment income are the size of our investment portfolio, the yield on that portfolio and expenses due to external investment managers. The insurance investment portfolio includes investments held in statutory insurance companies and in unregulated entities. The portfolios held in statutory insurance companies are subject to different regulatory considerations, including with respect to types of assets, concentration limits, affiliate transactions and the use of leverage.

Previous wording

Commission Expenses reflect commissions paid to retail agents, third party administrators and managing general underwriters, net of ceding commissions received on business ceded under certain reinsurance contracts. Commission expenses are deferred and amortized to expense in proportion to the premium earned over the policy life. Commission expense is incurred on most product lines. The majority of commissions are retrospective commissions paid to agents, distributors and retailers selling the Company’s products, including credit insurance policies, warranty service contracts and motor club memberships. When claims increase, in most cases distribution partners bear the risk through a reduction in their retrospective commissions. Commission rates are, in many cases, set by state regulators, such as in credit and collateral protection programs and are also impacted by market conditions and the retention levels of distribution partners.

Current wording

Commission Expenses reflect commissions paid to retail agents, program administrators and managing general underwriters, net of ceding commissions received on business ceded under certain reinsurance contracts. Commission expenses are deferred and amortized to expense in proportion to the premium earned over the policy life. Commission expense is incurred on most product lines. The majority of commissions are retrospective commissions paid to agents, distributors and retailers selling the Company’s products, including credit insurance policies, warranty service contracts and motor club memberships. When claims increase, in most cases distribution partners bear the risk through a reduction in their retrospective commissions. Commission rates are, in many cases, set by state regulators, such as in credit and collateral protection programs and are also impacted by market conditions and the retention levels of distribution partners.

Previous wording

Interest Expense consists primarily of interest expense on corporate revolving debt, notes, preferred trust securities due June 15, 2037 (Preferred Trust Securities) and asset based debt for premium finance and warranty service contract financing, which is non-recourse to Fortegra.

Current wording

Interest Expense consists primarily of interest expense on corporate revolving debt, notes, preferred trust securities and asset based debt for premium finance and warranty service contract financing, which is non-recourse to Fortegra.

Previous wording

Gross written premiums and premium equivalents represent total gross written premiums from insurance policies and warranty service contracts issued, as well as premium finance volumes during a reporting period. They represent the volume of insurance policies written or assumed and warranty service contracts issued during a specific period of time without reduction for policy acquisition costs, reinsurance costs or other deductions. Gross written premiums is a volume measure commonly used in the insurance industry to compare sales performance by period. Premium equivalents are used to compare sales performance of warranty service and administrative contract volumes to gross written premiums. Similar to how management considers gross written premiums to be a relevant measure of volume, regardless of the impact of reinsurance on net earned premiums, management considers premium equivalents to be a relevant measure of contract volume, regardless of whether the Company retains the full obligation. Investors also use these measures to compare sales growth among comparable companies, while management uses these measures to evaluate the relative performance of various sales channels.

Current wording

Gross written premiums and premium equivalents represent total gross written premiums from insurance policies and warranty service contracts issued during a reporting period. They represent the volume of insurance policies written or assumed and warranty service contracts issued during a specific period of time without reduction for policy acquisition costs, reinsurance costs or other deductions. Gross written premiums is a volume measure commonly used in the insurance industry to compare sales performance by period. Premium equivalents are used to compare sales performance of warranty service and administrative contract volumes to gross written premiums. Similar to how management considers gross written premiums to be a relevant measure of volume, regardless of the impact of reinsurance on net earned premiums, management considers premium equivalents to be a relevant measure of contract volume, regardless of whether the Company retains the full obligation. Investors also use these measures to compare sales growth among comparable companies, while management uses these measures to evaluate the relative performance of various sales channels.

Previous wording

Underwriting and Fee Revenues and Underwriting and Fee Margin -In order to better explain to investors the underwriting performance of the Company’s programs and the respective retentions between the Company and its agents and reinsurance partners, we use the non-GAAP metrics – underwriting and fee revenues and underwriting and fee margin. We generally manage our exposure to the risks we underwrite using both reinsurance (e.g., quota share and excess of loss) and sliding scale commission agreements with our agents (e.g., commissions paid are adjusted based on the actual underlying losses incurred), which mitigates our risk. Generally, when losses are incurred, the risk which is retained by our agents and reinsurers is reflected in a reduction in commissions paid.

Current wording

In order to better explain to investors the underwriting performance of the Company’s programs and the respective retentions between the Company and its agents and reinsurance partners, we use the non-GAAP metrics – underwriting and fee revenues and underwriting and fee margin. We generally manage our exposure to the risks we underwrite using both reinsurance (e.g., quota share and excess of loss) and sliding scale commission agreements with our agents (e.g., commissions paid are adjusted based on the actual underlying losses incurred), which mitigates our risk. Generally, when losses are incurred, the risk which is retained by our agents and reinsurers is reflected in a reduction in commissions paid.

Previous wording

Underwriting and fee revenues represents earned premiums, net, service and administrative fees (excluding ceding fees) and other income (excluding cash and cash equivalent interest income). We reconcile underwriting and fee revenues as total revenues excluding net investment income, net realized gains (losses) and net unrealized gains (losses), ceding fees, ceding commissions and cash and cash equivalent interest income as reported in other income.

Current wording

Underwriting and fee revenues represents earned premiums, net, service and administrative fees (excluding ceding fees) and other income (excluding cash and cash equivalent interest income). We reconcile underwriting and fee revenues as total revenues excluding net investment income, net realized gains (losses) and net unrealized gains (losses), ceding fees, ceding commissions and cash and cash equivalent interest income as reported in other income. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee revenues to total revenues in accordance with GAAP.

Previous wording

Underwriting and fee margin represents income before taxes excluding net investment income, net realized gains (losses), net unrealized gains (losses), cash and cash equivalent interest income, employee compensation and benefits, other expenses, interest expense and depreciation and amortization. We deliver our products and services on a vertically integrated basis to our agents. As such, underwriting and fee margin exclude general and administrative expenses, interest income, depreciation and amortization and other corporate expenses, including income taxes, as these corporate expenses support our vertically integrated delivery model and are not specifically supporting any individual business line.

Current wording

Underwriting and fee margin represents income before taxes excluding net investment income, net realized gains (losses), net unrealized gains (losses), cash and cash equivalent interest income, employee compensation and benefits, other expenses, interest expense and depreciation and amortization. We deliver our products and services on a vertically integrated basis to our agents. As such, underwriting and fee margin exclude general and administrative expenses, interest income, depreciation and amortization and other corporate expenses, including income taxes, as these corporate expenses support our vertically integrated delivery model and are not specifically supporting any individual business line. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee margin to total revenues in accordance with GAAP.

Previous wording

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, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting.

Current wording

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, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting. See “—Non-GAAP Reconciliations” for a reconciliation of adjusted net income to net income in accordance with GAAP.

Previous wording

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.

Current wording

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. See “—Non-GAAP Reconciliations” for a reconciliation of adjusted return on average equity to return on average equity in accordance with GAAP.

Previous wording

(1)Net income was $35.1 million for the three months ended September 30, 2024 compared to $26.5 million for the three months ended September 30, 2023.

Current wording

(1)Net income was $28.4 million for the three months ended March 31, 2025 compared to $26.9 million for the three months ended March 31, 2024.

Previous wording

For the three months ended September 30, 2024, total revenues increased 18.2%, to $481.0 million, as compared to $406.8 million for the three months ended September 30, 2023. Earned premiums, net of $359.5 million increased $68.2 million, or 23.4%, driven by growth in E&S and specialty admitted insurance lines. Earned premiums assumed from other insurance companies were $129.5 million, or 36.0% of the total, compared to $78.6 million, or 27.0% of the total, in the prior year period. Included in the current period were earned premiums associated with the book-roll transaction with one of Fortegra’s MGA partners that was assumed in December 2023. 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 $95.4 million decreased by 4.8% driven primarily by a decline in vehicle service contract revenues in Europe. Ceding commissions of $3.7 million increased by $1.3 million, or 52.3%. Other revenues increased by $2.0 million, or 22.1%, driven by growth in interest income on cash equivalents and premium finance product offerings.

Current wording

For the three months ended March 31, 2025, total revenues increased 0.4%, to $480.6 million, as compared to $478.8 million for the three months ended March 31, 2024. Earned premiums, net of $363.4 million increased $16.1 million, or 4.6%, driven by growth in admitted and E&S commercial lines. Earned premiums assumed from other insurance companies were $141.1 million, or 38.8% of the total, compared to $141.3 million, or 40.7% 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 $97.3 million decreased by 11.9% driven by decrease in warranty and consumer goods service contract revenues in U.S. and Europe. Ceding commissions of $3.6 million increased by $0.9 million, or 32.4%. Other revenues decreased by $0.7 million, or 8.5%, driven by decrease in interest income on cash equivalents and premium finance product offerings.

Previous wording

For the three months ended September 30, 2024, 22.9% of revenues were derived from fees that were not solely dependent upon the underwriting performance of Fortegra’s insurance products, resulting in more diversified earnings. For the three months ended September 30, 2024, 81.2% of fee-based revenues were generated in non-regulated service companies, with the remainder in regulated insurance companies.

Current wording

For the three months ended March 31, 2025, 22.6% of revenues were derived from fees that were not solely dependent upon the underwriting performance of Fortegra’s insurance products, resulting in more diversified earnings. For the three months ended March 31, 2025, 79.5% of fee-based revenues were generated in non-regulated service companies, with the remainder in regulated insurance companies.

Previous wording

For the three months ended September 30, 2024, net investment income was $9.1 million as compared to $5.4 million in the prior year period, an increase of $3.7 million driven by increased yields on investments. Net realized and unrealized gains were $2.2 million, an improvement of $3.8 million, as compared to net realized and unrealized losses of $1.6 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, 2024 were $21.7 million, driven by the decrease in interest rates (interest rate yields and bonds prices are inversely related) and corresponding impact to the fair value of investments.

Current wording

For the three months ended March 31, 2025, net investment income was $11.7 million as compared to $6.8 million in the prior year period, an increase of $5.0 million driven by increased yields on investments. Net realized and unrealized losses were $3.4 million, compared to net realized and unrealized gains of $2.8 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 three months ended March 31, 2025 were $9.9 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 nine months ended September 30, 2024, net losses and loss adjustment expenses were $556.6 million, member benefit claims were $88.5 million and commission expense was $484.2 million, as compared to $354.5 million, $88.9 million, and $442.9 million respectively, for the nine months ended September 30, 2023. The increase in net losses and loss adjustment expenses of $202.1 million, or 57.0%, was driven by growth in U.S. and European Insurance lines and the shift in business mix toward commercial lines, which tend to have a higher loss ratios and lower commission ratios. During the nine months ended September 30, 2024, the Company experienced unfavorable prior year development of $0.6 million primarily as a result of higher-than-expected claims in its commercial lines of business. In the nine months ended September 30, 2023, the Company experienced unfavorable prior year development of $0.9 million primarily driven by higher-than-expected claim severity from business written by a small group of producers of our personal and commercial lines of business. The decrease in member benefit claims of $0.4 million, or 0.4%, was driven by declines in auto and consumer goods claim frequencies. Commission expense increased by $41.3 million, or 9.3%, in line with the growth in earned premiums, net and service and administrative fees, partially offset by impacts from sliding scale commission structures.

Current wording

For the three months ended March 31, 2025, net losses and loss adjustment expenses were $179.8 million, member benefit claims were $29.5 million and commission expense was $151.6 million, as compared to $175.4 million, $32.3 million, and $156.9 million respectively, for the three months ended March 31, 2024. The increase in net losses and loss adjustment expenses was $4.5 million, or 2.5%. During the three months ended March 31, 2025, the Company experienced favorable prior year development of $4.0 million primarily as a result of lower-than-expected claims in its commercial lines of business. In the three months ended March 31, 2024, the Company experienced unfavorable prior year development of $0.8 million primarily driven by higher-than-expected claim severity in our commercial lines of business, primarily driven by one partner. For the three months ended March 31, 2025 and 2024, net losses and adjustment expenses included $30.3 million and $1.1 million of net catastrophe losses, respectively, primarily related to the California wildfires for the 2025 period. The decrease in member benefit claims of $2.8 million, or 8.7%, was in line with decrease in service and administrative fees, and driven by moderating inflation on replacement costs and labor rates. Commission expense decreased by $5.3 million, or 3.4%, driven by impacts from sliding scale commission structures, partially offset by the growth in earned premiums.

Previous wording

For the three months ended September 30, 2024, employee compensation and benefits were $37.9 million and other expenses were $26.3 million, as compared to $31.0 million and $20.3 million, respectively, for the three months ended September 30, 2023. Employee compensation and benefits increased by $6.9 million, or 22.3%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses increased by $6.0 million, or 29.8%, driven by a change in fair value of the Fortegra Additional Warrant liability of $0.9 million, and increased marketing and information technology expenses.

Current wording

For the three months ended March 31, 2025, employee compensation and benefits were $36.4 million and other expenses were $31.8 million, as compared to $31.5 million and $33.2 million, respectively, for the three months ended March 31, 2024. Employee compensation and benefits increased by $5.0 million, or 15.9%, driven by investments in human capital associated with growth in E&S, admitted and services lines. Other expenses decreased by $1.3 million, or 4.0%, driven by a change in fair value of the Fortegra Additional Warrant liability of $2.0 million, in comparison to $4.2 million in three months ended March 31, 2024.

Previous wording

For the three months ended September 30, 2024, depreciation and amortization expense was $5.0 million, including $3.9 million of intangible amortization related to purchase accounting associated with acquisitions at Fortegra from 2019 to 2023, as compared to $5.8 million, including $4.9 million of intangible amortization from purchase accounting in 2023.

Current wording

For the three months ended March 31, 2025, depreciation and amortization expense was $4.5 million, including $3.3 million of intangible amortization related to purchase accounting associated with acquisitions of Fortegra in 2014 and additional services businesses from 2019 to 2023, as compared to $5.1 million, including $4.0 million of intangible amortization from purchase accounting in 2024.

Previous wording

(1) The total gross written premiums and premium equivalents of $776.8 million and $686.5 million for the three months ended September 30, 2024 and 2023, respectively, were comprised of gross written premiums of $573.0 million and $522.1 million, plus assumed premiums of $108.0 million and $75.8 million, plus gross service and administrative fee additions of $95.8 million and $88.7 million, respectively. See Note (7) Reinsurance Recoverable and Prepaid Reinsurance Premiums and Note (13) Revenue from Contracts with Customers within the respective periods for more information.

Current wording

(1) The total gross written premiums and premium equivalents of $753.2 million and $663.4 million for the three months ended March 31, 2025 and 2024, respectively, were comprised of gross written premiums of $538.7 million and $457.1 million, plus assumed premiums of $127.9 million and $112.7 million, plus gross service and administrative fee additions of $86.6 million and $93.6 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 September 30, 2024 were $776.8 million, representing an increase of $90.3 million, or 13.2%. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network and growing E&S insurance lines.

Current wording

Total gross written premiums and premium equivalents for the three months ended March 31, 2025 were $753.2 million, representing an increase of $89.8 million, or 13.5%. The increase was driven by a combination of factors including expanding Fortegra’s distribution partner network, and growing E&S insurance lines.

Previous wording

For the three months ended September 30, 2024, Insurance increased by $83.2 million, or 13.9%, driven by growth in commercial E&S lines, partially offset by a decline in personal credit and auto lines. For the three months ended September 30, 2024, Services increased by $7.1 million, or 8.0%, driven by growth in auto and consumer goods service contracts.

Current wording

For the three months ended March 31, 2025, Insurance increased by $96.8 million, or 17.0%, driven by growth in specialty commercial lines, including E&S business, partially offset by decline in the personal lines. For the three months ended March 31, 2025, Services decreased by $7.0 million, or 7.5%, driven by lower volume in consumer goods and vehicle service contracts.

Previous wording

Net written premiums for the three months ended September 30, 2024 were $389.3 million, representing an increase of $55.4 million, or 16.6%, consistent with growth in gross written premiums, and as a result of increased retention on Fortegra’s whole account quota share reinsurance arrangement. For the three months ended September 30, 2024, Net written premiums from commercial lines increased by $72.8 million, or 26.7%, driven by growth in E&S and specialty admitted business. For the three months ended September 30, 2024, net written premiums from personal lines decreased by $17.4 million, or 28.6%, driven by declines in personal credit and auto insurance lines. Net written premiums from property and short-tail lines represented $152.0 million, or 39.1%, of the total net written premiums for the three months ended September 30, 2024 compared to $73.9 million, or 22.1%, 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, 2024, the net loss to the Company in a 1-in-250 year catastrophe event represented approximately 2.4% 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 March 31, 2025 were $357.7 million, representing an increase of $39.5 million, or 12.4%, consistent with growth in gross written premiums. For the three months ended March 31, 2025, commercial lines increased by $45.0 million, or 16.1%, driven by growth in E&S and specialty admitted business. For the three months ended March 31, 2025, personal lines decreased by $5.5 million, or 14.1%, driven by declines in personal credit and auto insurance lines. Property and short-tail lines represented $129.5 million, or 36.2%, of the total net written premiums for the three months ended March 31, 2025 compared to $108.4 million, or 34.1%, 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 March 31, 2025, the net loss to the Company in a 1-in-250 year catastrophe event represented approximately 3.9% 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 90.2% for the nine months ended September 30, 2024, compared to 90.5% for the prior year period, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 77.4%, an increase of 0.8 percentage points from the prior year period, which consists of a loss ratio of 46.3%, compared to 40.3% in the prior year period, and an acquisition ratio of 31.1%, compared to 36.3% 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 partially offset by the decline in acquisition ratio as a result of swing rate commission structures. The operating expense ratio decreased 1.1 percentage points to 12.8%, as compared to 13.9% in the prior year period.

Current wording

The combined ratio was 89.9% for the three months ended March 31, 2025, compared to 90.3% for the prior year period, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. The underwriting ratio was 76.0%, a decrease of 1.5 percentage points from the prior year period, which consists of a loss ratio of 46.4%, compared to 46.3% in the prior year period, and an acquisition ratio of 29.6%, compared to 31.2% 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 swing rate commission structures. Additionally, for the three months ended March 31, 2025, the loss ratio included 6.7 percentage points related to net catastrophe losses as compared to 0.3 percentage points in the prior year period. The primary catastrophic events impacting 2025 were the California wildfires. The operating expense ratio increased 1.1 percentage points to 13.9%, as compared to 12.8% in the prior year period.

Previous wording

(2) Commission expense in this table is presented net of ceding fees and ceding commissions of $9.9 million and $3.7 million, respectively, as of the three months ended September 30, 2024, and $9.7 million and $2.4 million, respectively, as of the three months ended September 30, 2023.

Current wording

(2) Commission expense in this table is presented net of ceding fees and ceding commissions of $14.6 million and $3.6 million, respectively, as of the three months ended March 31, 2025, and $14.6 million and $2.7 million, respectively, as of the three months ended March 31, 2024.

Previous wording

Underwriting and fee revenues were $451.0 million for the three months ended September 30, 2024 as compared to $387.2 million for the three months ended September 30, 2023. Total underwriting and fee revenues increased $63.8 million, or 16.5%, driven by growth in Insurance lines. The increase in Insurance was $67.1 million, or 22.8%, driven by growth in E&S and specialty admitted insurance lines. The decrease in Services was $3.3 million, or 3.6%, driven by a decline in vehicle service contracts in Europe.

Current wording

Underwriting and fee revenues were $451.2 million for the three months ended March 31, 2025 as compared to $448.1 million for the three months ended March 31, 2024. Total underwriting and fee revenues increased $3.1 million, or 0.7%, driven by growth in Insurance. The increase in Insurance was $14.5 million, or 4.2%, driven by growth in commercial, E&S, and credit insurance lines. The decrease in Services was $11.4 million, or 11.6%, driven by decrease in vehicle service contracts and premium finance offerings.

Previous wording

Underwriting and fee margin was $107.1 million for the three months ended September 30, 2024 as compared to $91.7 million for the three months ended September 30, 2023. Total underwriting and fee margin increased $15.5 million, or 16.9%, driven by growth in Insurance. Insurance grew by $18.0 million, or 29.4%, driven by revenue growth in E&S and specialty admitted insurance lines. Services decreased by $2.5 million, or 8.2%, driven by decrease in vehicle service contracts in Europe.

Current wording

Underwriting and fee margin was $108.6 million for the three months ended March 31, 2025 as compared to $100.8 million for the three months ended March 31, 2024. Total underwriting and fee margin increased $7.7 million, or 7.7%, driven by growth in Insurance. Insurance grew by $14.9 million, or 21.4%, from growth in specialty E&S and admitted lines. Services decreased by $7.1 million, or 22.8%, primarily driven by decrease in vehicle service contracts and premium finance offerings.

Previous wording

Return on average equity was 25.1% for the nine months ended September 30, 2024, as compared to 22.9% for the nine months ended September 30, 2023. The increase in net income and annualized return on average equity was driven by revenue growth and improvement of the combined ratio, in addition to improvements in net realized and unrealized gains and losses.

Current wording

For the three months ended March 31, 2025, adjusted net income and adjusted return on average equity were $40.5 million and 25.0%, respectively, as compared to $34.1 million and 28.3%, respectively, for the three months ended March 31, 2024. The improvement of adjusted net income was driven by the growth in revenues and consistent combined ratio, in addition to improvements in net investment income.