Operating Segment Data

Tiptree is a holding company that combines specialty insurance operations with investment management capabilities. We allocate our capital across our insurance operations and other investments. We classify our business into one reportable segment – Specialty Insurance. We refer to our non-insurance operations, assets and other investments, which is comprised of our non-reportable operating segments and other business activities, as Tiptree Capital. Corporate activities include holding company interest expense, employee compensation and benefits, and other expenses.

Our reportable segment’s income or loss is reported before income taxes, discontinued operations and non-controlling interests. Segment results incorporate the revenues and expenses of these subsidiaries since they commenced operations or were acquired. As of December 31, 2018, Mortgage and Asset Management, which previously were reportable segments, no longer met the quantitative threshold for disclosure. Those are now reported in Other, which we refer to as Tiptree Capital. Prior periods have been conformed to the current year presentation. Intercompany transactions are eliminated.

Descriptions of our reportable segment and of Tiptree Capital are as follows:

Specialty Insurance operations are conducted through Fortegra Financial Corporation (Fortegra), an insurance holding company. Fortegra underwrites and provides specialty insurance products, primarily in the United States, and is a leading provider of credit insurance and asset protection products. Fortegra’s range of products and services include credit protection insurance, warranty and service contract products, and other specialty insurance programs which underwrite niche personal and commercial lines of insurance. We also offer various other insurance related products and services throughout the U.S. through our non-regulated subsidiaries.

Tiptree Capital includes our asset management, mortgage and shipping operations, and other investments (including our Invesque shares).

The tables below present the components of revenue, expense, pre-tax income (loss), and assets for our reportable segment as well as Tiptree Capital for the following periods:



	Three Months Ended September 30,
	2019									2018
	Specialty insurance			Tiptree Capital			Total			Specialty insurance			Tiptree Capital			Total
Total revenue	$	160,050		$	29,135		$	189,185		$	148,640		$	24,028		$	172,668
Total expense	(151,652		)	(30,535		)	(182,187		)	(142,908		)	(23,008		)	(165,916		)
Corporate expense	—			—			(8,596		)	—			—			(7,890		)
Income (loss) before taxes from continuing operations	$	8,398		$	(1,400	)	$	(1,598	)	$	5,732		$	1,020		$	(1,138	)
Less: provision (benefit) for income taxes							(649		)							(611		)
Net income (loss) before non-controlling interests							$	(949	)							$	(527	)
Less: net income (loss) attributable to non-controlling interests							508									91
Net income (loss) attributable to Common Stockholders							$	(1,457	)							$	(618	)



	Nine Months Ended September 30,
	2019									2018
	Specialty Insurance			Tiptree Capital			Total			Specialty Insurance			Tiptree Capital			Total
Total revenue	$	469,027		$	95,133		$	564,160		$	412,749		$	60,700		$	473,449
Total expense	(440,581		)	(78,916		)	(519,497		)	(396,943		)	(61,857		)	(458,800		)
Corporate expense	—			—			(25,401		)	—			—			(21,253		)
Income (loss) before taxes from continuing operations	$	28,446		$	16,217		$	19,262		$	15,806		$	(1,157	)	$	(6,604	)
Less: provision (benefit) for income taxes							3,706									(1,478		)
Net income (loss) from discontinued operations							—									34,481
Net income (loss) before non-controlling interests							$	15,556								$	29,355
Less: net income (loss) attributable to non-controlling interests							1,342									5,587
Net income (loss) attributable to Common Stockholders							$	14,214								$	23,768

The following table presents sources of revenue from Tiptree Capital:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Net realized and unrealized gains (losses) ⁽¹⁾	$	17,650		$	13,345	$	56,917		$	35,036
Other investment income ⁽²⁾	12,626			7,701		31,781			18,798
Gain on sale of businesses ⁽³⁾	—			—		7,598			—
Management fee income	—			2,335		1,267			5,229
Other	(1,141		)	647		(2,430		)	1,637
Total revenue	$	29,135		$	24,028	$	95,133		$	60,700


⁽¹⁾	See Note (5) Investments for the components of Net realized and unrealized gains (losses) related to Tiptree Capital.


⁽²⁾	See Note (5) Investments for the components of Other investment income.


⁽³⁾	Related to the sale of Telos. See Note (3) Dispositions, Assets Held for Sale & Discontinued Operations.

The following table presents the reportable segment and Tiptree Capital assets for the following periods:



	As of September 30, 2019								As of December 31, 2018
	Specialty Insurance		Tiptree Capital		Corporate		Total		Specialty Insurance		Tiptree Capital		Corporate		Total
Total assets	$	1,622,452	$	405,828	$	28,213	$	2,056,493	$	1,514,084	$	318,420	$	32,414	$	1,864,918