v3.26.1
Dispositions & Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2026
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Consideration Received and Estimated Gain on Disposal The Company recognized an after-tax gain on sale of $372,240, which is included in net income from discontinued operations for the three and six months ended June 30, 2026.

($ in thousands)

As of

 

 

June 30, 2026

 

 Consideration

$

1,650,000

 

 Less: transaction expenses

 

25,023

 

 Net consideration

 

1,624,977

 

 Tiptree diluted ownership of Fortegra

 

69.0

%

 Fair value of consideration received

 

1,121,743

 

 Less: Basis in Fortegra

 

637,199

 

 Gain subject to tax

 

484,544

 

 Less: Tax on gain

 

112,304

 

 Estimated gain on disposal

$

372,240

 
Fortegra  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Revenues and Expenses and Cash Flows of Discontinued Operations

The following table presents details of Fortegra’s revenues and expenses of discontinued operations in the condensed consolidated statements of operations for the following periods:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums, net

 

$

252,085

 

 

$

381,941

 

 

$

627,130

 

 

$

745,378

 

Service and administrative fees

 

 

53,522

 

 

 

96,847

 

 

 

138,339

 

 

 

194,145

 

Ceding commissions

 

 

1,810

 

 

 

3,542

 

 

 

5,159

 

 

 

7,175

 

Net investment income

 

 

5,926

 

 

 

10,505

 

 

 

22,254

 

 

 

22,234

 

Net realized and unrealized gains (losses)

 

 

24,454

 

 

 

11,968

 

 

 

15,893

 

 

 

8,549

 

Other revenue

 

 

3,792

 

 

 

8,214

 

 

 

11,231

 

 

 

16,117

 

Total revenues

 

 

341,589

 

 

 

513,017

 

 

 

820,006

 

 

 

993,598

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Policy and contract benefits

 

 

136,736

 

 

 

226,472

 

 

 

332,834

 

 

 

435,785

 

Commissions expense

 

 

86,188

 

 

 

140,486

 

 

 

231,801

 

 

 

292,086

 

Employee compensation and benefits

 

 

38,898

 

 

 

37,711

 

 

 

76,541

 

 

 

74,146

 

Interest expense (1)

 

 

6,515

 

 

 

10,469

 

 

 

16,153

 

 

 

20,528

 

Depreciation and amortization expenses (2)

 

 

—

 

 

 

4,484

 

 

 

—

 

 

 

8,934

 

Other expenses (2)

 

 

19,496

 

 

 

28,461

 

 

 

59,127

 

 

 

60,320

 

Total expenses

 

 

287,833

 

 

 

448,083

 

 

 

716,456

 

 

 

891,799

 

Income (loss) before taxes

 

 

53,756

 

 

 

64,934

 

 

 

103,550

 

 

 

101,799

 

Gain (loss) on sale of discontinued operations

 

 

484,544

 

 

 

—

 

 

 

484,544

 

 

 

—

 

Income (loss) before taxes (including sale)

 

 

538,300

 

 

 

64,934

 

 

 

588,094

 

 

 

101,799

 

Less: provision (benefit) for income taxes (3)

 

 

131,677

 

 

 

23,582

 

 

 

152,229

 

 

 

37,640

 

Net income (loss) from discontinued operations

 

 

406,623

 

 

 

41,352

 

 

 

435,865

 

 

 

64,159

 

Less: net income (loss) attributable to non-controlling interests

 

 

10,416

 

 

 

12,144

 

 

 

19,146

 

 

 

19,477

 

Net income (loss) from discontinued operations after non-controlling interests

 

$

396,207

 

 

$

29,208

 

 

$

416,719

 

 

$

44,682

 
(1)
Due to a loan covenant on the Tiptree Holdings debt, repayment was required from the proceeds of the Sale. In accordance with ASC 205-20, Presentation of Financial Statements, expenses related to this debt have been classified within discontinued operations, for the six months ended June 30, 2026 and 2025 amounted to approximately $2,951 and $3,236, respectively. See Note (5) Debt, net for further details.
(2)
In accordance with ASC 360, Property, Plant and Equipment, the Company ceased recording depreciation and amortization on long-lived assets upon their classification as held for sale.
(3)
For the six months ended June 30, 2026 and 2025 deferred tax expense of $13,496 and $12,660, respectively, was associated with the book-to-tax basis difference in Tiptree’s investment in Fortegra. While the liability is a parent-level tax attribute, the expense relating to it is classified within discontinued operations in accordance with ASC 740-10-45-20, Income Taxes.

 

The following table represents a summary of cash flows related to discontinued operations included in the condensed consolidated statements of cash flows for the following periods:

 

 

Six Months Ended
June 30,

 

 

2026

 

 

2025

 

Net cash provided by (used in):

 

 

 

 

 

 

Operating activities

 

$

67,832

 

 

$

(1,079

)

Investing activities

 

 

666,451

 

 

 

73,753

 

Financing Activities

 

 

28,911

 

 

 

(5,822

)

Effect of exchange rate changes on cash

 

 

2,193

 

 

 

6,296

 

Net cash flows provided by (used in) discontinued operations

 

$

765,387

 

 

$

73,148

 
Reliance  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Revenues and Expenses and Cash Flows of Discontinued Operations

The following table presents details of Reliance’s revenues and expenses of discontinued operations in the condensed consolidated statements of operations for the following periods:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

 

$

2,744

 

 

$

10,132

 

 

$

13,026

 

 

$

19,642

 

Other revenue

 

 

2,795

 

 

 

6,100

 

 

 

8,417

 

 

 

11,769

 

Total revenues

 

 

5,539

 

 

 

16,232

 

 

 

21,443

 

 

 

31,411

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

3,231

 

 

 

9,827

 

 

 

12,449

 

 

 

19,143

 

Interest expense

 

 

226

 

 

 

392

 

 

 

518

 

 

 

694

 

Depreciation and amortization expenses (1)

 

 

—

 

 

 

79

 

 

 

—

 

 

 

153

 

Impairment expense (2)

 

 

175

 

 

 

—

 

 

 

(486

)

 

 

—

 

Other expenses (1)

 

 

2,871

 

 

 

5,696

 

 

 

8,051

 

 

 

11,393

 

Total expenses

 

 

6,503

 

 

 

15,994

 

 

 

20,532

 

 

 

31,383

 

Income (loss) before taxes

 

 

(964

)

 

 

238

 

 

 

911

 

 

 

28

 

Less: provision (benefit) for income taxes (3)

 

 

(439

)

 

 

41

 

 

 

563

 

 

 

(31

)

Net income (loss) from discontinued operations

 

$

(525

)

 

$

197

 

 

$

348

 

 

$

59

 
(1)
In accordance with ASC 360, Property, Plant and Equipment, the Company ceased recording depreciation and amortization on long-lived assets upon their classification as held for sale.
(2)
As part of the sale of mortgage segment, the Company recognized an impairment charge to reduce the carrying amount of the subsidiary’s assets to their estimated fair value, based on the consideration specified in the Reliance Purchase Agreement.
(3)
For the six months ended June 30, 2026 and 2025 deferred tax expense of $466 and $0, respectively, was associated with the book-to-tax basis difference in Tiptree’s investment in Reliance. While the liability is a parent-level tax attribute, the expense relating to it is classified within discontinued operations in accordance with ASC 740-10-45-20, Income Taxes.

 

The following table represents a summary of cash flows related to discontinued operations included in the condensed consolidated statements of cash flows for the following periods:

 

 

Six Months Ended
June 30,

 

 

 

2026

 

 

2025

 

Net cash provided by (used in):

 

 

 

 

 

 

Operating activities

 

$

(14,590

)

 

$

2,684

 

Investing activities

 

 

29,888

 

 

 

(737

)

Financing Activities

 

 

13,249

 

 

 

(4,340

)

Net cash flows provided by (used in) discontinued operations

 

$

28,547

 

 

$

(2,393

)