TIPTREE INC.

Previous wording

•Tiptree reported net income of $5.6 million for the three months ended March 31, 2025, 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. Return on average equity was 4.8%, compared to 8.6% in the three months ended March 31, 2024.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current wording

•Adjusted net income (before NCI) was $85.6 million, an increase of $11.2 million, or 15.0%, from the six months ended June 30, 2024. Adjusted return on average equity was 25.3%, as compared to 29.7% in the six months ended June 30, 2024.

Previous wording

•Fortegra’s total stockholders’ equity was $667.9 million as of March 31, 2025, compared to $625.5 million as of December 31, 2024, with the increase driven by growth in retained earnings and a decrease in the accumulated other comprehensive loss position.

Current 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.

Previous wording

•Mortgage loss before taxes was $0.2 million for the three months ended March 31, 2025, as compared to income of $0.8 million in the three months ended March 31, 2024, with the decrease driven by the negative fair value adjustments in mortgage servicing rights and lower origination volumes, partially offset by higher loan servicing fees.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current wording

Adjusted net income for the three months ended June 30, 2025 was $27.1 million, an increase of $2.7 million, or 11.1%, from the three months ended June 30, 2024, driven by growth in our insurance operations. For the three months ended June 30, 2025, adjusted return on average equity was 22.3%, as compared to 22.7% for the three months ended June 30, 2024.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

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 the premium finance product offering.

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 cash equivalents and premium finance product offerings.

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 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.

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 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.

Previous 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.

Current 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.

Previous 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.

Current wording

Interest Expense consists primarily of interest expense on corporate revolving debt, notes, preferred trust securities due June 15, 2037 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 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, 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.

Previous 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.

Current 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.

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. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee revenues to total revenues in accordance with GAAP.

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.

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. See “—Non-GAAP Reconciliations” for a reconciliation of underwriting and fee margin to total revenues in accordance with GAAP.

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.

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. See “—Non-GAAP Reconciliations” for a reconciliation of adjusted net income to net income in accordance with GAAP.

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.

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

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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current wording

(2) Commission expense in this table is presented net of ceding fees and ceding commissions of $14.4 million and $3.5 million, respectively, as of the three months ended June 30, 2025, and $15.0 million and $5.1 million, respectively, as of the three months ended June 30, 2024.

Previous 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.

Current wording

Underwriting and fee revenues were $469.6 million for the three months ended June 30, 2025 as compared to $495.2 million for the three months ended June 30, 2024. Total underwriting and fee revenues decreased $25.6 million, or 5.2%. The decrease in Insurance was $16.8 million, or 4.2%, driven by the impacts from the assumption of a block of business from an MGA partner in 2023. The decrease in Services was $8.8 million, or 9.2%, driven by decline in vehicle service contracts in U.S. and Europe.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous 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.

Current 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.

Previous wording

For the three months ended March 31, 2025, interest expense was $8.9 million as compared to $7.6 million for the three months ended March 31, 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 $1.2 million, or 16.3%, was primarily driven by was primarily driven by the issuance of the new debt.

Current 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.

Previous 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.

Current 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.

Previous wording

Return on average equity was 17.7% for the three months ended March 31, 2025, as compared to 22.3% for the three months ended March 31, 2024, with the decrease driven by slower revenue growth, partially offset by improvement of the combined ratio.

Current wording

Return on average equity was 23.5% for the six months ended June 30, 2025, as compared to 25.8% for the six months ended June 30, 2024, with the decrease driven by slower revenue growth, partially offset by improvement of the combined ratio.

Previous 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.

Current wording

For the six months ended June 30, 2025, adjusted net income and adjusted return on average equity were $85.6 million and 25.3%, respectively, as compared to $74.4 million and 29.7%, respectively, for the six months ended June 30, 2024. The improvement of adjusted net income was driven by the improved combined ratio, in addition to improvements in net investment income.

Previous wording

For the three months ended March 31, 2025, $209.1 million of loans were funded, compared to $210.4 million for the prior year period, a decrease of $1.3 million, or 0.6%. Gain on sale margins decreased to 4.8% for the three months ended March 31, 2025, as compared to 5.0% for the three months ended March 31, 2024.

Current wording

For the three months ended June 30, 2025, $244.5 million of loans were funded, compared to $226.9 million for 2024, an increase of $17.6 million, or 7.8%. Gain on sale margins remained consistent at 4.6% for the three months ended June 30, 2025 and 2024. For the six months ended June 30, 2025, $453.6 million of loans were funded, compared to $437.3 million for the prior year period, an increase of $16.3 million, or 3.7%. Gain on sale margins decreased to 4.7% for the six months ended June 30, 2025, as compared to 4.8% for the six months ended June 30, 2024.

Previous wording

Net realized and unrealized gains for the three months ended March 31, 2025 were $9.5 million, compared to $10.7 million in the prior year period, a decrease of $1.2 million or 10.8%. The primary driver of decreased gain on sale revenues for three months ended March 31, 2025 were lower origination volumes, and the negative fair value adjustment in mortgage servicing rights of $1.0 million in 2024 compared to a positive fair value adjustment of $1.2 million in the prior year period.

Current wording

Net realized and unrealized gains for the three months ended June 30, 2025 and 2024 were $10.1 million. Net realized and unrealized gains for the six months ended June 30, 2025 were $19.6 million, compared to $20.8 million in the prior year period, a decrease of $1.2 million or 5.6%. The primary driver of decreased gain on sale revenues for six months ended June 30, 2025 was the negative fair value adjustment in mortgage servicing rights of $0.8 million in 2024 compared to a positive fair value adjustment of $1.4 million in the prior year period.

Previous wording

Other revenue for the three months ended March 31, 2025 was $5.7 million, compared to $5.2 million in the prior year period, an increase of $0.4 million, or 8.5%. The increase was driven by higher loan servicing income and higher loan origination fees. As of March 31, 2025, the mortgage servicing asset was $41.3 million, a decrease from $42.6 million as of December 31, 2024.

Current wording

Other revenue for the three months ended June 30, 2025 was $6.1 million, compared to 5.7 million in the prior year period, an increase of $0.4 million, or 6%. Other revenue for the six months ended June 30, 2025 was $11.8 million, compared to $11.0 million in the prior year period, an increase of $0.8 million, or 7.2%. The increase was driven by higher loan servicing income and higher loan origination fees. As of June 30, 2025, the mortgage servicing asset was $41.4 million, a decrease from $42.6 million as of December 31, 2024.