v3.26.3
Dispositions and Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2026
Disposal Group, Including Discontinued Operations [Line Items]  
Schedule of Consideration Received and Estimated Gain on Disposal The Company recognized an after-tax gain on sale of $372,833, which is included in net income from discontinued operations for the nine months ended September 30, 2026.

($ in thousands)

As of

 

 

September 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

 

636,439

 

 Gain subject to tax

 

485,304

 

 Less: Tax on gain

 

112,471

 

 Gain on disposal

$

372,833

 
Fortegra  
Disposal Group, 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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Earned premiums, net

 

$

—

 

 

$

383,881

 

 

$

627,130

 

 

$

1,129,259

 

Service and administrative fees

 

 

—

 

 

 

95,821

 

 

 

138,339

 

 

 

289,966

 

Ceding commissions

 

 

—

 

 

 

3,483

 

 

 

5,159

 

 

 

10,658

 

Net investment income

 

 

—

 

 

 

7,397

 

 

 

22,254

 

 

 

29,631

 

Net realized and unrealized gains (losses)

 

 

—

 

 

 

24,761

 

 

 

15,893

 

 

 

33,310

 

Other revenue

 

 

—

 

 

 

7,273

 

 

 

11,231

 

 

 

23,390

 

Total revenues

 

 

—

 

 

 

522,616

 

 

 

820,006

 

 

 

1,516,214

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Policy and contract benefits

 

 

—

 

 

 

217,330

 

 

 

332,834

 

 

 

653,115

 

Commissions expense

 

 

—

 

 

 

144,919

 

 

 

231,801

 

 

 

437,005

 

Employee compensation and benefits

 

 

—

 

 

 

41,736

 

 

 

76,541

 

 

 

115,882

 

Interest expense (1)

 

 

—

 

 

 

10,344

 

 

 

16,153

 

 

 

30,872

 

Depreciation and amortization expenses (2)

 

 

—

 

 

 

4,824

 

 

 

—

 

 

 

13,758

 

Other expenses (2)

 

 

—

 

 

 

54,015

 

 

 

59,127

 

 

 

114,335

 

Total expenses

 

 

—

 

 

 

473,168

 

 

 

716,456

 

 

 

1,364,967

 

Income (loss) before taxes

 

 

—

 

 

 

49,448

 

 

 

103,550

 

 

 

151,247

 

Gain (loss) on sale of discontinued operations

 

 

760

 

 

 

—

 

 

 

485,304

 

 

 

—

 

Income (loss) before taxes (including sale)

 

 

760

 

 

 

49,448

 

 

 

588,854

 

 

 

151,247

 

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

 

 

167

 

 

 

24,222

 

 

 

152,396

 

 

 

61,862

 

Net income (loss) from discontinued operations

 

 

593

 

 

 

25,226

 

 

 

436,458

 

 

 

89,385

 

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

 

 

—

 

 

 

9,189

 

 

 

19,146

 

 

 

28,666

 

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

 

$

593

 

 

$

16,037

 

 

$

417,312

 

 

$

60,719

 
(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 nine months ended September 30, 2026 and 2025 amounted to approximately $2,951 and $5,319, 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 nine months ended September 30, 2026 and 2025 deferred tax expense of $13,496 and $18,000, 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 presents a summary of cash flows related to discontinued operations included in the condensed consolidated statements of cash flows for the following periods:

 

 

Nine Months Ended
September 30,

 

 

2026

 

 

2025

 

Net cash provided by (used in):

 

 

 

 

 

 

Operating activities

 

$

(117,173

)

 

$

157,054

 

Investing activities

 

 

666,451

 

 

 

(92,956

)

Financing Activities

 

 

28,911

 

 

 

(9,938

)

Effect of exchange rate changes on cash

 

 

2,193

 

 

 

4,770

 

Net cash flows provided by (used in) discontinued operations

 

$

580,382

 

 

$

58,930

 
Reliance  
Disposal Group, 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
September 30,

 

 

Nine Months Ended
September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

 

$

—

 

 

$

9,843

 

 

$

13,026

 

 

$

29,485

 

Other revenue

 

 

—

 

 

 

6,327

 

 

 

8,417

 

 

 

18,096

 

Total revenues

 

 

—

 

 

 

16,170

 

 

 

21,443

 

 

 

47,581

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

—

 

 

 

9,922

 

 

 

12,449

 

 

 

29,065

 

Interest expense

 

 

—

 

 

 

346

 

 

 

518

 

 

 

1,040

 

Depreciation and amortization expenses (1)

 

 

—

 

 

 

70

 

 

 

—

 

 

 

223

 

Impairment expense (2)

 

 

—

 

 

 

—

 

 

 

(486

)

 

 

—

 

Other expenses (1)

 

 

—

 

 

 

5,630

 

 

 

8,051

 

 

 

17,023

 

Total expenses

 

 

—

 

 

 

15,968

 

 

 

20,532

 

 

 

47,351

 

Income (loss) before taxes

 

 

—

 

 

 

202

 

 

 

911

 

 

 

230

 

Gain (loss) on sale of discontinued operations

 

 

(20

)

 

 

—

 

 

 

(20

)

 

 

—

 

Income (loss) before taxes (including sale)

 

 

(20

)

 

 

202

 

 

 

891

 

 

 

230

 

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

 

 

(5

)

 

 

314

 

 

 

558

 

 

 

283

 

Net income (loss) from discontinued operations

 

$

(15

)

 

$

(112

)

 

$

333

 

 

$

(53

)
(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 the 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 nine months ended September 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 presents a summary of cash flows related to discontinued operations included in the condensed consolidated statements of cash flows for the following periods:

 

 

Nine Months Ended
September 30,

 

 

 

2026

 

 

2025

 

Net cash provided by (used in):

 

 

 

 

 

 

Operating activities

 

$

(14,590

)

 

$

(8,438

)

Investing activities

 

 

31,216

 

 

 

(773

)

Financing Activities

 

 

13,249

 

 

 

9,962

 

Net cash flows provided by (used in) discontinued operations

 

$

29,875

 

 

$

751