Tiptree has announced its financial results for the first quarter of 2025, reporting a net income of $5.6 million, compared to Q1 2024’s $9.1 million, and revenues of $497.4 million, which saw a slight decrease of 0.2% from Q1 2024.
The company attributed the decrease in net income primarily to lower net realised and unrealised investments gains, and incremental interest expense on borrowings at the holding company level.
These factors more than offset the positive growth experienced within Tiptree’s insurance business, The Fortegra Group.
Revenues were driven by growth in Fortegra’s specialty insurance lines, which was offset by lower service and administrative revenues and lower net realised and unrealised gains compared to the prior year.
Excluding investment gains and losses, revenues increased 1.8%. Adjusted net income of $23.3 million increased by 13.6% from $20.5 million in Q1 2024, driven by growth in the company’s insurance business.
Fortegra’s gross written premiums and premium reached $753.2 million in the quarter, an increase of 13.5%, driven by growth in specialty E&S insurance lines.
Net written premiums also saw an increase of 12.4%, to $357.7 million in Q1 2025, consistent with the growth in gross written premiums and premium equivalents.
Revenues within the insurance segment increased 0.4% for the quarter driven by premium growth in specialty E&S and admitted lines. Excluding the impact of investment gains and losses, revenues increased by 1.7% for the quarter.
The combined ratio for Q1 2025 was 89.9%, an improvement of 0.4 percentage points, reflecting the consistent underwriting performance and scalability of the company’s operations.
This figure includes 6.7 percentage points related to net catastrophe losses of $30.3 million, which derived mainly from the California wildfires, a contrast to the 0.3 percentage points seen in Q1 2024.
Fortegra also saw income before taxes of $38.1 million for the quarter, an increase of 3.4%. Annualized after-tax return on average equity for the quarter was 17.7%, compared to 22.3% in Q1 2024.
Adjusted net income was up 18.6%, to $40.5 million. Annualised adjusted return on average equity for the quarter was 25.0%, compared to 28.3% in Q1 2024.
Tiptree commented: “We are extremely pleased with the strong first quarter results, headlined by a 20% adjusted return on average equity. Fortegra achieved 13.5% growth in premium and premium equivalents, while delivering a combined ratio of 89.9%, despite substantial industry-wide catastrophic losses during the quarter.
“Our pipeline of opportunities remains robust, and the pricing environment continues to be favourable for underwriting new business. Net investment income saw a substantial increase this quarter. As our portfolio expands and investments mature, we are finding attractive opportunities to add high-quality bonds that enhance our overall book yield and future earnings profile.”
“As always, we remain committed to growing long-term shareholder value and will continue to seek constructive ways to more fully reflect the intrinsic value of Tiptree’s businesses in our share price.”
