Executive Summary

Q1 2025 revenue was $497.4M (-0.2% YoY), with Adjusted Net Income of $23.3M (+13.6% YoY) and Adjusted ROAE of 20.0%; diluted EPS was $0.13 as net realized/unrealized gains and higher holdco interest expense weighed on GAAP earnings .
Fortegra delivered 13.5% growth in gross written premiums and a combined ratio of 89.9% despite 6.7 pts of catastrophe losses from California wildfires, underscoring underwriting resilience; adjusted insurance ANI rose 18.6% to $40.5M .
Dividend declared at $0.06/share (record: May 12, pay: May 19), consistent with the regular cadence following the 2024 special distribution .
Shares fell roughly 7% on the day of the release per AP/Finviz snapshot, with investors focusing on GAAP EPS compression vs strong non-GAAP and underwriting trends .

What Went Well and What Went Wrong

What Went Well

Specialty insurance growth: Fortegra GWP and equivalents +13.5% to $753.2M; net written premiums +12.4% to $357.7M, driven by E&S expansion and admitted lines .
Underwriting resilience: Combined ratio improved to 89.9% despite cat losses; underwriting and fee margin rose YoY and insurance adjusted ANI up 18.6% to $40.5M .
Higher investment income: Net investment income increased to $11.7M; management highlighted adding high-quality bonds to lift book yield from 3.7% to 4.1% .

Quote from management: “We are extremely pleased with the strong first quarter results, headlined by a 20% adjusted return on average equity… we are finding attractive opportunities to add high-quality bonds that enhance our overall book yield…” .

What Went Wrong

GAAP earnings compressed: Net income to common fell to $5.6M (vs $9.1M in Q1’24) and diluted EPS to $0.13, impacted by lower realized/unrealized gains and higher holdco interest expense .
Service/administrative fees declined: Fees were $97.3M vs $110.5M in Q1’24, a headwind to reported revenue growth .
Mortgage softness: Mortgage posted a $0.2M pre-tax loss (vs +$0.8M in Q1’24) on lower originations and MSR fair value losses, partially offset by higher servicing fees .

Financial Results

Sequential Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$494.4	$503.6	$497.4
Net Income to Common ($USD Millions)	$11.9	$19.6	$5.6
Diluted EPS ($)	$0.29	$0.47	$0.13
Adjusted Net Income ($USD Millions)	$27.9	$27.2	$23.3
Adjusted ROAE (%)	24.8%	23.7%	20.0%

YoY Comparison (Q1 2024 vs Q1 2025)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$498.2	$497.4
Net Income to Common ($USD Millions)	$9.1	$5.6
Diluted EPS ($)	$0.22	$0.13
Adjusted Net Income ($USD Millions)	$20.5	$23.3
Adjusted ROAE (%)	19.5%	20.0%
Insurance Combined Ratio (%)	90.3%	89.9%

Segment Breakdown – Insurance (Fortegra)

Metric	Q3 2024	Q4 2024	Q1 2025
Gross Written Premiums & Equivalents ($USD Millions)	$776.8	$851.9	$753.2
Net Written Premiums ($USD Millions)	$389.3	$365.6	$357.7
Total Revenues ($USD Millions)	$481.0	$484.0	$480.6
Income Before Taxes ($USD Millions)	$47.2	$47.9	$38.1
Combined Ratio (%)	90.2%	89.5%	89.9%
Adjusted Net Income (before NCI) ($USD Millions)	$40.0	$42.5	$40.5

KPIs and Other Metrics

Metric	Period 1	Period 2
Insurance Underwriting & Fee Revenues ($USD Thousands)	Q1 2024: 448,083	Q1 2025: 451,231
Insurance Underwriting & Fee Margin ($USD Thousands)	Q1 2024: 100,834	Q1 2025: 108,558
Book Value per Share ($)	Mar 31, 2024: 11.55	Mar 31, 2025: 12.63
Net Investment Income ($USD Millions)	Q3 2024: 9.1	Q4 2024: 10.7
Net Investment Income ($USD Millions)	Q4 2024: 10.7	Q1 2025: 11.7
Service & Administrative Fees ($USD Millions)	Q3 2024: 95.4	Q1 2025: 97.3
Dividends Declared per Common Share ($)	Q4 2024: 0.31	Q1 2025: 0.06
Holding Company Debt ($USD Millions)	Dec 31, 2024: 427.1	Mar 31, 2025: 495.3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q2 2025	Regular $0.06 cadence in 2024 (plus $0.25 special in Dec 2024)	Declared $0.06 (Record: May 12; Pay: May 19)	Maintained baseline dividend post special
Fortegra IPO Plans	N/A	Previously discussed subject to market conditions	Reiterated forward-looking mention; no timing or size	No formal guidance
Revenue/Margins/Tax/OpEx	Q2 2025 and FY25	None	None	No formal guidance provided

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available on the company site or typical repositories at time of review; analysis below relies on press releases and investor materials .

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Underwriting profitability	CR 90.2% in Q3’24; 89.5% in Q4’24 as scalability supported margins	CR 89.9% despite 6.7 pts of cat losses; margin discipline maintained	Stable to improving
Catastrophe losses	2024 YTD cat losses added 2.6 pts to CR (hurricanes)	$30.3M cat losses (CA wildfires), 6.7 pts impact	Higher acute impact; resilient performance
Investment portfolio/yield	NII grew; fixed-income book yield rising	NII $11.7M; book yield improved to 4.1% from 3.7%	Improving
Specialty E&S growth	GWP/E up 13–18% Q3/Q4	GWP/E +13.5%; distribution/product expansion	Continuing growth
Mortgage operations	Q4’24 recovery: +$3.5M pre-tax; Q3’24 mixed	Pre-tax loss $0.2M on MSR FV losses and lower originations	Softening sequentially
Europe expansion (Fortegra)	UK license and new subsidiary; EU license (Dec/Jun)	Ongoing strategic buildout; not specifically updated in Q1 PR	Strategic progress continues

Management Commentary

“Headlined by a 20% adjusted return on average equity. Fortegra achieved 13.5% growth… combined ratio of 89.9%… Net investment income saw a substantial increase… add high-quality bonds that enhance our overall book yield…” — Tiptree Q1 2025 release .
“Pricing environment continues to be favorable for underwriting new business… committed to growing long-term shareholder value…” — Tiptree Q1 2025 release .
Corporate expenses up to $12.7M; holdco borrowings $74.8M as of March 31, 2025 — Q1 2025 release .

Q&A Highlights

A Q1 2025 earnings call transcript could not be located; no Q&A themes available. Company hosted calls and posted materials for prior quarters (e.g., Q2 2024 transcript is available), but Q1 2025 transcript was not posted in the investor resources page at time of review .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable; TIPT appears to have limited formal coverage, preventing precise beat/miss attribution relative to S&P consensus. Values retrieved from S&P Global.*
Actuals: Revenue $497.4M; Diluted EPS $0.13 .

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Revenue ($USD Millions)	N/A*	$497.4	N/A*
EPS ($)	N/A*	$0.13	N/A*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Fortegra’s underwriting engine remains the core value driver: growth in E&S and admitted lines, CR sub-90% even with elevated cat losses, and adjusted insurance ANI up 18.6% — supporting premium multiple narratives for specialty insurers .
GAAP-to-non-GAAP delta widened this quarter: lower realized/unrealized gains and higher interest expense compressed EPS, while adjusted metrics and underwriting KPIs improved — framing the debate around quality of earnings vs reported volatility .
Rising portfolio yield is a tailwind: book yield at 4.1% and higher NII provides an offset to market-driven investment gains variability and supports future earnings stability .
Capital and equity build: book value per share rose to $12.63; Fortegra equity increased to $667.9M, adding ballast for growth and potential corporate actions .
Mortgage remains a watchpoint: modest pre-tax loss on MSR FV and originations; monitor for stabilization as rates and housing activity evolve .
Dividend consistency post special distribution: $0.06 declared for Q2 timeline; supports shareholder return framework while balancing growth investments .
Near-term trading: stock’s negative reaction reflects focus on GAAP prints and cat impacts; medium-term thesis favors underwriting consistency, premium growth, and investment yield improvement, with optionality around Fortegra strategic actions when market conditions permit .

TIPTREE INC. (TIPT)·Q1 2025 Earnings Summary