EX-99.1 2 ex991er-12312024.htm EX-99.1
Exhibit 99.1
TIPTREE ANNOUNCES FOURTH QUARTER 2024 RESULTS
Greenwich, Connecticut - February 26, 2025 - Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three months and year ended December 31, 2024.

| Three Months Ended December 31, |  | Year Ended December 31, |  |
($ in thousands, except per share information) | 2024 |  | 2023 |  | 2024 |  | 2023 |  |
Total revenues | $ | 503,599 |  |  | $ | 446,374 |  |  | $ | 2,042,854 |  |  | $ | 1,649,031 |  |  |
Net income (loss) attributable to common stockholders | $ | 19,553 |  |  | $ | 6,871 |  |  | $ | 53,367 |  |  | $ | 13,951 |  |  |
Diluted earnings per share | $ | 0.47 |  |  | $ | 0.15 |  |  | $ | 1.30 |  |  | $ | 0.33 |  |  |
Cash dividends paid per common share | $ | 0.31 |  |  | $ | 0.05 |  |  | $ | 0.49 |  |  | $ | 0.20 |  |  |
Return on average equity | 17.0 | % |  | 6.8 | % |  | 12.2 | % |  | 3.4 | % |  |
Non-GAAP: (1) |  |  |  |  |  |  |  |  |
Adjusted net income | $ | 27,234 |  |  | $ | 13,854 |  |  | $ | 100,060 |  |  | $ | 61,917 |  |  |
Adjusted return on average equity | 23.7 | % |  | 13.6 | % |  | 22.9 | % |  | 15.2 | % |  |

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests.
Fourth Quarter 2024 Summary
•Revenues of $503.6 million for the quarter, an increase of 12.8% from Q4'23, driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues increased 13.0%.
•Net income of $19.6 million compared to a net income of $6.9 million in Q4'23, driven by growth in our insurance business and improvement in our mortgage operations.
•Adjusted net income of $27.2 million increased by 96.6% from $13.9 million in Q4'23, driven by growth in insurance revenues while maintaining a consistent combined ratio. Annualized adjusted return on average equity was 23.7% for the quarter, as compared to 13.6% in Q4'23.
•Declared a dividend of $0.06 per share to stockholders of record on March 10, 2025 with a payment date of March 17, 2025.
Year-to-date 2024 Summary
•Year-to-date revenues of $2.04 billion, an increase of 23.9% from 2023, driven by growth in specialty insurance lines, net investment income, investment gains, and mortgage revenues. Excluding investment gains and losses, revenues increased 22.4%.
•Net income of $53.4 million compared to net income of $14.0 million in 2023, driven by growth in our insurance business and improved mortgage operations.
•Adjusted net income of $100.1 million increased by 61.6% from $61.9 million in 2023. Adjusted return on average equity was 22.9% for the year, as compared to 15.2% in 2023.
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Segment Financial Highlights - Fourth Quarter 2024
Insurance (The Fortegra Group):

| Three Months Ended December 31, |  | Year Ended December 31, |
($ in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Gross written premiums and premium equivalents | $ | 851,876 |  |  | $ | 724,124 |  |  | $ | 3,068,199 |  |  | $ | 2,747,854 |  |
Net written premiums | $ | 365,631 |  |  | $ | 384,309 |  |  | $ | 1,438,952 |  |  | $ | 1,319,948 |  |
Total revenues | $ | 483,998 |  |  | $ | 433,170 |  |  | $ | 1,973,709 |  |  | $ | 1,593,070 |  |
Income before taxes | $ | 47,888 |  |  | $ | 44,232 |  |  | $ | 183,158 |  |  | $ | 129,816 |  |
Return on average equity | 26.1 | % |  | 36.9 | % |  | 26.0 | % |  | 25.7 | % |
Combined ratio | 89.5 | % |  | 89.8 | % |  | 90.0 | % |  | 90.3 | % |
Non-GAAP: (1) |  |  |  |  |  |  |  |
Adjusted net income (before NCI) | $ | 42,540 |  |  | $ | 32,604 |  |  | $ | 157,031 |  |  | $ | 115,705 |  |
Adjusted return on average equity | 27.6 | % |  | 30.9 | % |  | 29.1 | % |  | 29.2 | % |

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.
•Gross written premiums and premium equivalents of $851.9 million for the quarter, an increase of 17.6%, and $3.07 billion for the year, an increase of 11.7%, driven by growth in specialty E&S insurance lines.
•Net written premiums were $365.6 million for the quarter, a decrease of 4.9%, and $1.44 billion for the year, an increase of 9.0%. The increase for the year was consistent with the growth in gross written premiums and premium equivalents and increased retention on Fortegra’s whole account quota share reinsurance agreement. Net written premiums increased by 41.1% for the quarter, and 20.4% for the year, excluding the one-time assumption of premium from a book-roll transaction with one of Fortegra’s MGA partners in Q4'23.
•Revenues increased 11.7% for the quarter and 23.9% for the year driven by premium growth in specialty E&S and admitted lines. Excluding the impact of investment gains and losses, revenues increased by 13.2% for the quarter and 23.0% for the year.
•The combined ratio for the quarter was 89.5%, down 0.3 percentage points, reflecting the consistent underwriting performance and scalability of the Company’s operations. Year-to-date combined ratio was 90.0%, as compared to 90.3% in 2023. Included in the 2024 combined ratio was 2.6 percentage points related to net catastrophe losses as compared to 0.2 percentage points in 2023. The primary catastrophic events impacting 2024 were Hurricanes Helene and Milton.
•Income before taxes was $47.9 million for the quarter, an increase of 8.3%. Year-to-date income before taxes was $183.2 million, an increase of 41.1%. Annualized after-tax return on average equity for the year was 26.0%, compared to 25.7% in 2023.
•Adjusted net income for the quarter of $42.5 million, up 30.5% from Q4'23. Year-to-date adjusted net income of $157.0 million, up 35.7%. Annualized adjusted return on average equity for the year was 29.1%, compared to 29.2% in 2023.
•Fortegra’s total stockholders’ equity was $625.5 million as of December 31, 2024, compared to $452.6 million as of December 31, 2023, with the increase driven by net income and the aggregate capital contribution from Tiptree, Warburg and Fortegra directors of $40 million, partially offset by an increase in the accumulated other comprehensive loss position.
Tiptree Capital:
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| Three Months Ended December 31, |  | Year Ended December 31, |
($ in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023 |
Total revenues | $ | 19,601 |  |  | $ | 13,204 |  |  | $ | 69,146 |  |  | $ | 55,961 |  |
Income before taxes | $ | 2,769 |  |  | $ | (2,058) |  |  | $ | 4,562 |  |  | $ | (6,549) |  |
Return on average equity | 8.3 | % |  | (3.8) | % |  | 2.2 | % |  | (3.6) | % |
Non-GAAP: (1) |  |  |  |  |  |  |  |
Adjusted net income | $ | (280) |  |  | $ | (407) |  |  | $ | 1,820 |  |  | $ | (159) |  |
Adjusted return on average equity | (1.1) | % |  | (0.9) | % |  | 1.3 | % |  | (0.1) | % |

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests.
•Tiptree Capital income before taxes was $2.8 million for the quarter, compared to a loss of $2.1 million in Q4'23, driven by improvement in our mortgage operations. For the year, income before taxes was $4.6 million, compared to a loss of $6.5 million in 2023, with the comparative improvement driven by improvement in our mortgage operations and a reduction of investment losses on Invesque.
•Mortgage income before taxes was $3.5 million for the quarter, as compared to a loss of $2.4 million in Q4'23, and an income of $4.7 million for the year, as compared to a loss of $3.3 million in 2023, driven by higher origination volumes and loan servicing fees, and unrealized gains on our mortgage servicing asset.
Corporate:
Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, and public company and other expenses. For the quarter, corporate expenses were $8.5 million compared to $12.1 million in Q4'23 driven by a decline in incentive compensation accruals.
Non-GAAP
Management uses Adjusted net income and Adjusted return on average equity 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. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. 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, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.
About Tiptree
Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.
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Forward-Looking Statements
This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.
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Tiptree Inc.
Consolidated Balance Sheets
($ in thousands, except share data)

| As of
| December 31, 2024 |  | December 31, 2023
Assets: |  |  |
Investments: |  |  |
Available for sale securities, at fair value, net of allowance for credit losses | $ | 1,107,929 |  |  | $ | 802,609 |
Loans, at fair value | 81,330 |  |  | 69,556 |
Equity securities | 108,620 |  |  | 68,308 |
Other investments | 53,084 |  |  | 111,088 |
Total investments | 1,350,963 |  |  | 1,051,561 |
Cash and cash equivalents | 320,067 |  |  | 468,711 |
Restricted cash | 96,197 |  |  | 23,850 |
Notes and accounts receivable, net | 799,131 |  |  | 684,608 |
Reinsurance recoverable | 992,883 |  |  | 953,886 |
Prepaid reinsurance premiums | 1,046,253 |  |  | 900,524 |
Deferred acquisition costs | 565,872 |  |  | 565,746 |
Goodwill | 206,706 |  |  | 206,155 |
Intangible assets, net | 102,859 |  |  | 118,757 |
Other assets | 213,858 |  |  | 165,515 |
Total assets | $ | 5,694,789 |  |  | $ | 5,139,313 |
Liabilities and Stockholders’ Equity |  |  |
Liabilities: |  |  |
Debt, net | $ | 427,089 |  |  | $ | 402,411 |
Unearned premiums | 1,766,068 |  |  | 1,695,058 |
Policy liabilities and unpaid claims | 1,298,081 |  |  | 844,848 |
Deferred revenue | 695,772 |  |  | 673,085 |
Reinsurance payable | 443,083 |  |  | 543,602 |
Other liabilities and accrued expenses | 407,925 |  |  | 403,744 |
Total liabilities | $ | 5,038,018 |  |  | $ | 4,562,748 |
Stockholders’ Equity: |  |  |
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding | $ | — |  |  | $ | — |
Common stock: $0.001 par value, 200,000,000 shares authorized, 37,255,838 and 36,756,187 shares issued and outstanding, respectively | 37 |  |  | 37 |
Additional paid-in capital | 389,693 |  |  | 382,239 |
Accumulated other comprehensive income (loss), net of tax | (27,750) |  |  | (26,073) |
Retained earnings | 95,718 |  |  | 60,663 |
Total Tiptree Inc. stockholders’ equity | 457,698 |  |  | 416,866 |
Non-controlling interests: |  |  |
Fortegra preferred interests | 77,679 |  |  | 77,679 |
Common interests | 121,394 |  |  | 82,020 |
Total non-controlling interests | 199,073 |  |  | 159,699 |
Total stockholders’ equity | 656,771 |  |  | 576,565 |
Total liabilities and stockholders’ equity | $ | 5,694,789 |  |  | $ | 5,139,313 |

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Tiptree Inc.
Consolidated Statements of Operations
($ in thousands, except share data)

| Three Months Ended December 31, |  | Year Ended December 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Revenues: |  |  |  |  |  |  |
Earned premiums, net | $ | 366,657 |  |  | $ | 301,416 |  |  | $ | 1,471,930 |  |  | $ | 1,127,834 |
Service and administrative fees | 93,497 |  |  | 105,678 |  |  | 405,193 |  |  | 395,969 |
Ceding commissions | 3,859 |  |  | 4,154 |  |  | 15,384 |  |  | 14,915 |
Net investment income | 10,726 |  |  | 7,061 |  |  | 32,976 |  |  | 26,674 |
Net realized and unrealized gains (losses) | 14,051 |  |  | 12,277 |  |  | 50,569 |  |  | 24,736 |
Other revenue | 14,809 |  |  | 15,788 |  |  | 66,802 |  |  | 58,903 |
Total revenues | 503,599 |  |  | 446,374 |  |  | 2,042,854 |  |  | 1,649,031 |
Expenses: |  |  |  |  |  |  |
Policy and contract benefits | 196,126 |  |  | 158,419 |  |  | 841,207 |  |  | 601,794 |
Commission expense | 164,587 |  |  | 160,140 |  |  | 648,819 |  |  | 603,033 |
Employee compensation and benefits | 52,917 |  |  | 48,231 |  |  | 204,355 |  |  | 179,075 |
Interest expense | 8,329 |  |  | 7,467 |  |  | 32,248 |  |  | 27,692 |
Depreciation and amortization | 5,399 |  |  | 5,991 |  |  | 21,653 |  |  | 23,466 |
Other expenses | 34,046 |  |  | 36,061 |  |  | 145,253 |  |  | 130,918 |
Total expenses | 461,404 |  |  | 416,309 |  |  | 1,893,535 |  |  | 1,565,978 |
Income (loss) before taxes | 42,195 |  |  | 30,065 |  |  | 149,319 |  |  | 83,053 |
Less: provision (benefit) for income taxes | 12,853 |  |  | 13,937 |  |  | 61,652 |  |  | 43,056 |
Net income (loss) | 29,342 |  |  | 16,128 |  |  | 87,667 |  |  | 39,997 |
Less: net income (loss) attributable to non-controlling interests | 9,789 |  |  | 9,257 |  |  | 34,300 |  |  | 26,046 |
Net income (loss) attributable to common stockholders | $ | 19,553 |  |  | $ | 6,871 |  |  | $ | 53,367 |  |  | $ | 13,951 |
Net income (loss) per common share: |  |  |  |  |  |  |
Basic earnings per share | $ | 0.52 |  |  | $ | 0.19 |  |  | $ | 1.44 |  |  | $ | 0.38 |
Diluted earnings per share | $ | 0.47 |  |  | $ | 0.15 |  |  | $ | 1.30 |  |  | $ | 0.33 |
Weighted average number of common shares: |  |  |  |  |  |  |
Basic | 37,189,433 |  |  | 36,755,768 |  |  | 36,872,706 |  |  | 36,693,204 |
Diluted | 38,357,109 |  |  | 37,744,257 |  |  | 37,926,792 |  |  | 37,619,095 |
Dividends declared per common share | $ | 0.31 |  |  | $ | 0.05 |  |  | $ | 0.49 |  |  | $ | 0.20 |

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Tiptree Inc.
Non-GAAP Reconciliations (Unaudited)
Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity
Adjusted net income is defined as 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, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income is presented before the impacts of non-controlling interests. 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. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies.

| Three Months Ended December 31, 2024 |  |
|  |  | Tiptree Capital |  |  |  |  |  |
($ in thousands) | Insurance |  | Mortgage |  | Other |  | Corporate |  | Total |  |
Income (loss) before taxes | $ | 47,888 |  |  | $ | 3,533 |  |  | $ | (764) |  |  | $ | (8,463) |  | $ | 42,194 |  |  |
Less: Income tax (benefit) expense | (7,656) |  |  | (847) |  |  | 164 |  |  | (4,514) |  | (12,853) |  |  |
Less: Net realized and unrealized gains (losses) (1) | (914) |  |  | (3,139) |  |  | 179 |  |  | — |  | (3,874) |  |  |
Plus: Intangibles amortization (2) | 3,856 |  |  | — |  |  | — |  |  | — |  | 3,856 |  |  |
Plus: Stock-based compensation expense | 2,999 |  |  | — |  |  | — |  |  | 1,492 |  | 4,491 |  |  |
Plus: Non-recurring expenses (3) | — |  |  | — |  |  | — |  |  | — |  | — |  |  |
Plus: Non-cash fair value adjustments (4) | 1,418 |  |  | — |  |  | — |  |  | — |  | 1,418 |  |  |
Plus: Impact of tax deconsolidation of Fortegra(5) | — |  |  | — |  |  | — |  |  | 6,766 |  | 6,766 |  |  |
Less: Tax on adjustments (6) | (5,051) |  |  | 753 |  |  | (159) |  |  | (1,416) |  | (5,873) |  |  |
Adjusted net income (before NCI) | $ | 42,540 |  |  | $ | 300 |  |  | $ | (580) |  |  | $ | (6,135) |  | $ | 36,125 |  |  |
Less: Impact of non-controlling interests | (8,891) |  |  | — |  |  | — |  |  | — |  | (8,891) |  |  |
Adjusted net income | $ | 33,649 |  |  | $ | 300 |  |  | $ | (580) |  |  | $ | (6,135) |  | $ | 27,234 |  |  |
Adjusted net income (before NCI) | $ | 42,540 |  |  | $ | 300 |  |  | $ | (580) |  |  | $ | (6,135) |  | $ | 36,125 |  |  |
Average stockholders’ equity | $ | 615,922 |  |  | $ | 54,586 |  |  | $ | 46,299 |  |  | $ | (60,322) |  | $ | 656,485 |  |  |
Adjusted return on average equity (7) | 27.6 | % |  | 2.2 | % |  | (5.0) | % |  | NM% |  | 22.0 | % |  |
| Three Months Ended December 31, 2023 |  |
|  |  | Tiptree Capital |  |  |  |  |  |
($ in thousands) | Insurance |  | Mortgage |  | Other |  | Corporate |  | Total |  |
Income (loss) before taxes | $ | 44,232 |  |  | $ | (2,391) |  |  | $ | 333 |  |  | $ | (12,109) |  | $ | 30,065 |  |  |
Less: Income tax (benefit) expense | (5,288) |  |  | 606 |  |  | (266) |  |  | (8,989) |  | (13,937) |  |  |
Less: Net realized and unrealized gains (losses) (1) | (6,395) |  |  | 2,794 |  |  | (596) |  |  | — |  | (4,197) |  |  |
Plus: Intangibles amortization (2) | 4,252 |  |  | — |  |  | — |  |  | — |  | 4,252 |  |  |
Plus: Stock-based compensation expense | 780 |  |  | — |  |  | — |  |  | 1,219 |  | 1,999 |  |  |
Plus: Non-recurring expenses (3) | 348 |  |  | — |  |  | — |  |  | — |  | 348 |  |  |
Plus: Non-cash fair value adjustments (4) | 842 |  |  | — |  |  | — |  |  | — |  | 842 |  |  |
Plus: Impact of tax deconsolidation of Fortegra (5) | — |  |  | — |  |  | — |  |  | 8,891 |  | 8,891 |  |  |
Less: Tax on adjustments (6) | (6,167) |  |  | (702) |  |  | (185) |  |  | (671) |  | (7,725) |  |  |
Adjusted net income (before NCI) | $ | 32,604 |  |  | $ | 307 |  |  | $ | (714) |  |  | $ | (11,659) |  | $ | 20,538 |  |  |
Less: Impact of non-controlling interests | (6,684) |  |  | — |  |  | — |  |  | — |  | (6,684) |  |  |
Adjusted net income | $ | 25,920 |  |  | $ | 307 |  |  | $ | (714) |  |  | $ | (11,659) |  | $ | 13,854 |  |  |
Adjusted net income (before NCI) | $ | 32,604 |  |  | $ | 307 |  |  | $ | (714) |  |  | $ | (11,659) |  | $ | 20,538 |  |  |
Average stockholders’ equity | $ | 422,327 |  |  | $ | 53,188 |  |  | $ | 128,827 |  |  | $ | (44,272) |  | $ | 560,070 |  |  |
Adjusted return on average equity (7) | 30.9 | % |  | 2.3 | % |  | (2.2) | % |  | NM% |  | 14.7 | % |  |

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| Year Ended December 31, 2024
|  |  | Tiptree Capital |  |  |  |
($ in thousands) | Insurance |  | Mortgage |  | Other |  | Corporate |  | Total
Income (loss) before taxes | $ | 183,158 |  |  | $ | 4,725 |  |  | $ | (163) |  |  | $ | (38,401) |  |  | $ | 149,319 |
Less: Income tax (benefit) expense | (43,260) |  |  | (1,091) |  |  | (540) |  |  | (16,761) |  |  | (61,652) |
Less: Net realized and unrealized gains (losses) (1) | (8,496) |  |  | (2,711) |  |  | 905 |  |  | — |  |  | (10,302) |
Plus: Intangibles amortization (2) | 15,413 |  |  | — |  |  | — |  |  | — |  |  | 15,413 |
Plus: Stock-based compensation expense | 8,998 |  |  | — |  |  | — |  |  | 8,682 |  |  | 17,680 |
Plus: Non-recurring expenses (3) | 3,455 |  |  | — |  |  | — |  |  | — |  |  | 3,455 |
Plus: Non-cash fair value adjustments (4) | 7,436 |  |  | — |  |  | — |  |  | — |  |  | 7,436 |
Plus: Impact of tax deconsolidation of Fortegra (5) | — |  |  | — |  |  | — |  |  | 23,495 |  |  | 23,495 |
Less: Tax on adjustments (6) | (9,673) |  |  | 608 |  |  | 87 |  |  | (3,168) |  |  | (12,146) |
Adjusted net income (before NCI) | $ | 157,031 |  |  | $ | 1,531 |  |  | $ | 289 |  |  | $ | (26,153) |  |  | $ | 132,698 |
Less: Impact of non-controlling interests | (32,638) |  |  | — |  |  | — |  |  | — |  |  | (32,638) |
Adjusted net income | $ | 124,393 |  |  | $ | 1,531 |  |  | $ | 289 |  |  | $ | (26,153) |  |  | $ | 100,060 |
Adjusted net income (before NCI) | $ | 157,031 |  |  | $ | 1,531 |  |  | $ | 289 |  |  | $ | (26,153) |  |  | $ | 132,698 |
Average stockholders’ equity | $ | 539,049 |  |  | $ | 54,113 |  |  | $ | 80,856 |  |  | $ | (57,350) |  |  | $ | 616,668 |
Adjusted return on average equity (7) | 29.1 | % |  | 2.8 | % |  | 0.4 | % |  | NM% |  | 21.5 | %

| Year Ended December 31, 2023 |  |  |
|  |  | Tiptree Capital |  |  |  |  |  |  |
($ in thousands) | Insurance |  | Mortgage |  | Other |  | Corporate |  | Total |  |  |
Income (loss) before taxes | $ | 129,816 |  |  | $ | (3,285) |  |  | $ | (3,264) |  |  | $ | (40,214) |  | $ | 83,053 |  |  |  |
Less: Income tax (benefit) expense | (28,224) |  |  | 837 |  |  | 153 |  |  | (15,822) |  | (43,056) |  |  |  |
Less: Net realized and unrealized gains (losses) (1) | 4,207 |  |  | 1,861 |  |  | 5,289 |  |  | — |  | 11,357 |  |  |  |
Plus: Intangibles amortization (2) | 16,919 |  |  | — |  |  | — |  |  | — |  | 16,919 |  |  |  |
Plus: Stock-based compensation expense | 2,018 |  |  | — |  |  | — |  |  | 6,251 |  | 8,269 |  |  |  |
Plus: Non-recurring expenses (3) | 2,824 |  |  | — |  |  | — |  |  | — |  | 2,824 |  |  |  |
Plus: Non-cash fair value adjustments (4) | (1,769) |  |  | — |  |  | — |  |  | — |  | (1,769) |  |  |  |
Plus: Impact of tax deconsolidation of Fortegra (5) | — |  |  | — |  |  | — |  |  | 19,101 |  | 19,101 |  |  |  |
Less: Tax on adjustments (6) | (10,086) |  |  | (495) |  |  | (1,255) |  |  | 797 |  | (11,039) |  |  |  |
Adjusted net income (before NCI) | $ | 115,705 |  |  | $ | (1,082) |  |  | $ | 923 |  |  | $ | (29,887) |  | $ | 85,659 |  |  |  |
Less: Impact of non-controlling interests | (23,742) |  |  | — |  |  | — |  |  | — |  | (23,742) |  |  |  |
Adjusted net income | $ | 91,963 |  |  | $ | (1,082) |  |  | $ | 923 |  |  | $ | (29,887) |  | $ | 61,917 |  |  |  |
Adjusted net income (before NCI) | $ | 115,705 |  |  | $ | (1,082) |  |  | $ | 923 |  |  | $ | (29,887) |  | $ | 85,659 |  |  |  |
Average stockholders’ equity | $ | 395,661 |  |  | $ | 53,520 |  |  | $ | 100,325 |  |  | $ | 5,564 |  | $ | 555,070 |  |  |  |
Adjusted return on average equity (7) | 29.2 | % |  | (2.0) | % |  | 0.9 | % |  | NM% |  | 15.4 | % |  |  |

Notes
(1) | Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights.
(2) | Specifically associated with acquisition purchase accounting. See Note (9) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended December 31, 2024.
(3) | For the three months and year ended December 31, 2024 and 2023, included in other expenses were expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024 and acquisitions of services businesses in 2023.
(4) | For the three months and year ended December 31, 2024 and 2023, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability which are added-back to adjusted net income.
(5) | For the three months and year ended December 31, 2024 and 2023, included in the adjustment is an add-back of $6.8 million and $23.5 million, respectively, and $8.9 million and $19.1 million, respectively, related to deferred tax expense from the WP Transaction.
(6) | Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts.
(7) | Total Adjusted return on average equity after non-controlling interests was 23.7% and 13.6% for the three months ended December 31, 2024 and 2023, respectively, based on $27.2 million and $13.9 million of Adjusted net income over $459.8 million and $406.5 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 22.9% and 15.2% for the year ended December 31, 2024 and 2023, respectively, based on $100.1 million and $61.9 million of Adjusted net income over $437.3 million and $407.1 million of average Tiptree Inc. stockholders’ equity.

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