10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly period ended September 30, 2017

OR

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from            to            

Commission File Number: 001-33549

Tiptree Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland	38-3754322
(State or Other Jurisdiction of	(IRS Employer
Incorporation of Organization)	Identification No.)
780 Third Avenue, 21st Floor, New York, New York	10017
(Address of Principal Executive Offices)	(Zip Code)

(212) 446-1400

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    

Yes   x     No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨Accelerated filer x

Non-accelerated filer ¨Smaller reporting company ¨

Emerging growth company ¨

If an emerging company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)    Yes  ¨    No  x

As of November 3, 2017, there were 29,805,453 shares, par value $0.001, of the registrant’s Class A common stock outstanding (excluding 5,197,551 shares of Class A common stock held by a subsidiary of the registrant) and 8,049,029 shares, par value $0.001, of the registrant’s Class B common stock outstanding.

Tiptree Inc.

Quarterly Report on Form 10-Q

September 30, 2017

Table of Contents

ITEM	Page Number
PART I. Financial Information	F-1
Item 1. Financial Statements (Unaudited)	F-3
Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016	F-3
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016	F-4
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016	F-5
Condensed Consolidated Statement of Changes in Stockholders’ Equity for the period ended September 30, 2017 and 2016	F-6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016	F-8
Notes to Condensed Consolidated Financial Statements	F-10
(1) Organization	F-10
(2) Summary of Significant Accounting Policies	F-10
(3) Acquisitions	F-15
(4) Operating Segment Data	F-17
(5) Investments	F-20
(6) Notes and Accounts Receivable, net	F-25
(7) Reinsurance Receivable	F-26
(8) Goodwill and Intangible Assets, net	F-29
(9) Derivative Financial Instruments and Hedging	F-30
(10) Assets and Liabilities of Consolidated CLOs	F-33
(11) Debt, net	F-35
(12) Fair Value of Financial Instruments	F-36
(13) Liability for Unpaid Claims and Claim Adjustment Expenses	F-44
(14) Other Assets	F-45
(15) Other Liabilities and Accrued Expenses	F-45
(16) Other Income and Other Expenses	F-46
(17) Stockholders’ Equity	F-46
(18) Accumulated Other Comprehensive Income (Loss)	F-48
(19) Stock Based Compensation	F-48
(20) Related Party Transactions	F-51
(21) Income Taxes	F-52
(22) Commitments and Contingencies	F-52
(23) Earnings Per Share	F-53
(24) Subsequent Events	F-54
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	1
Item 3. Quantitative and Qualitative Disclosures About Market Risk	25
Item 4. Controls and Procedures	25
PART II. Other Information	25
Item 1. Legal Proceedings	25
Item 1A. Risk Factors	26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3. Defaults Upon Senior Securities	26
Item 4. Mine Safety Disclosures	26
Item 5. Other Information	26
Item 6. Exhibits, Financial Statement Schedules	26
Signatures	27

PART I. FINANCIAL INFORMATION

Forward-Looking Statements

Except for the historical information included and incorporated by reference in this Quarterly Report on Form 10-Q, the information included and incorporated by reference herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements provide our current expectations or forecasts of future events and are not statements of historical fact. These forward-looking statements include information about possible or assumed future events, including, among other things, discussion and analysis of our future financial condition, results of operations and our strategic plans and objectives. When we use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions, we intend to identify forward-looking statements.

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 forecasted 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 our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in our other public filings with the SEC.

The factors described herein 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 applicable law, we undertake no obligation to update any forward-looking statements.

Market and Industry Data

Certain market data and industry data included in this Quarterly Report on Form 10-Q were obtained from reports of governmental agencies and industry publications and surveys. We believe the data from third-party sources to be reliable based upon our management’s knowledge of the industry, but have not independently verified such data and as such, make no guarantees as to its accuracy, completeness or timeliness.

Note to Reader

In reading this Quarterly Report on Form 10-Q, references to:

“Administrative Services Agreement” means the Administrative Services Agreement between Operating Company (as assignee of TFP) and BackOffice Services Group, Inc., dated as of June 12, 2007 (terminated as of December 31, 2016).

“AUM” means assets under management.

“Care” means Care Investment Trust LLC.

“CLOs” means collateralized loan obligations.

“consolidated CLOs” means, for the 2017 period, Telos 6 and Telos 7 and for the 2016 period, Telos 5, Telos 6 and Telos 7.

“Contribution Transactions” means the closing on July 1, 2013 of the transactions pursuant to the Contribution Agreement by and between the Company, Operating Company and TFP, dated as of December 31, 2012.

“EBITDA” means earnings before interest, taxes, depreciation and amortization.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Fortress” means Fortress Credit Corp., as administrative agent, collateral agent and lead arranger, and affiliates of Fortress that are lenders under the Credit Agreement among the Company, Fortress and the lenders party thereto.

“Fortegra” means Fortegra Financial Corporation.

“GAAP” means U.S. generally accepted accounting principles.

“Luxury” means Luxury Mortgage Corp.

“Mariner” means Mariner Investment Group LLC.

“MFCA” means Muni Funding Company of America LLC.

“NPL” means nonperforming residential real estate mortgage loans.

“Operating Company” means Tiptree Operating Company, LLC.

“Reliance” means Reliance First Capital, LLC.

“REO” means real estate owned.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended.

“Siena” means Siena Capital Finance LLC.

F-1

“TAMCO” means Tiptree Asset Management Company, LLC.

“Telos” means Telos Asset Management LLC.

“Telos 1” means Telos CLO 2006-1, Ltd.

“Telos 2” means Telos CLO 2007-2, Ltd.

“Telos 3” means Telos CLO 2013-3, Ltd.

“Telos 4” means Telos CLO 2013-4, Ltd.

“Telos 5” means Telos CLO 2014-5, Ltd.

“Telos 6” means Telos CLO 2014-6, Ltd.

“Telos 7” means Telos CLO 2016-7, Ltd.

“TFP” means Tiptree Financial Partners, L.P.

“Tiptree”, the “Company”, “we”, “its”, “us” and “our” means, unless otherwise indicated by the context, Operating Company and its consolidated subsidiaries, together with the standalone net assets held by Tiptree Inc. (formerly known as Tiptree Financial Inc.)

“Tricadia” means Tricadia Holdings, L.P.

F-2

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

Item 1. Financial Statements (Unaudited)

	As of
	September 30, 2017			December 31, 2016
Assets
Investments:
Available for sale securities, at fair value	$	164,093		$	146,171
Loans, at fair value	323,122			373,089
Loans at amortized cost, net	150,596			113,838
Equity securities, trading, at fair value	28,106			48,612
Real estate, net	371,137			309,423
Other investments	27,191			25,467
Total investments	1,064,245			1,016,600
Cash and cash equivalents	111,751			63,010
Restricted cash	23,400			24,472
Notes and accounts receivable, net	178,726			157,500
Reinsurance receivables	333,023			296,234
Deferred acquisition costs	139,471			126,608
Goodwill and intangible assets, net	176,820			178,245
Other assets	48,544			37,886
Assets of consolidated CLOs	372,774			989,495
Total assets	$	2,448,754		$	2,890,050
Liabilities and Stockholders’ Equity
Liabilities
Debt, net	$	865,629		$	793,009
Unearned premiums	475,047			414,960
Policy liabilities and unpaid claims	110,928			103,391
Deferred revenue	53,930			52,254
Reinsurance payable	81,887			70,588
Other liabilities and accrued expenses	115,858			133,735
Liabilities of consolidated CLOs	354,337			931,969
Total liabilities	$	2,057,616		$	2,499,906
Commitments and contingencies (see Note 22)
Stockholders’ Equity
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding	$	—		$	—
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 35,003,004 and 34,983,616 shares issued and outstanding, respectively	35			35
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 8,049,029 and 8,049,029 shares issued and outstanding, respectively	8			8
Additional paid-in capital	296,476			297,391
Accumulated other comprehensive income (loss), net of tax	1,223			555
Retained earnings	28,913			37,974
Class A common stock held by subsidiaries, 5,209,523 and 6,596,000 shares, respectively	(34,664		)	(42,524		)
Class B common stock held by subsidiaries, 8,049,029 and 8,049,029 shares, respectively	(8		)	(8		)
Total Tiptree Inc. stockholders’ equity	291,983			293,431
Non-controlling interests (including $74,074 and $76,077 attributable to Tiptree Financial Partners, L.P., respectively)	99,155			96,713
Total stockholders’ equity	391,138			390,144
Total liabilities and stockholders’ equity	$	2,448,754		$	2,890,050

See accompanying notes to condensed consolidated financial statements.

F-3

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Revenues:
Earned premiums, net	$	96,073		$	47,609	$	272,781		$	138,516
Service and administrative fees	24,018			25,842		70,861			84,421
Ceding commissions	2,513			1,397		6,801			22,645
Net investment income	3,840			3,307		12,032			8,409
Net realized and unrealized gains (losses)	7,526			26,215		35,183			65,954
Rental and related revenue	19,170			15,371		54,819			43,389
Other income	11,379			12,419		33,820			31,725
Total revenues	164,519			132,160		486,297			395,059
Expenses:
Policy and contract benefits	31,570			25,881		94,364			72,436
Commission expense	63,066			24,032		176,405			91,906
Employee compensation and benefits	36,596			38,767		109,437			102,175
Interest expense	10,361			7,839		28,444			20,770
Depreciation and amortization	7,775			6,437		23,781			21,899
Other expenses	23,164			21,686		73,380			68,351
Total expenses	172,532			124,642		505,811			377,537
Results of consolidated CLOs:
Income attributable to consolidated CLOs	7,216			12,556		24,024			34,713
Expenses attributable to consolidated CLOs	4,633			8,524		14,631			24,664
Net income (loss) attributable to consolidated CLOs	2,583			4,032		9,393			10,049
Income (loss) before taxes	(5,430		)	11,550		(10,121		)	27,571
Less: provision (benefit) for income taxes	(2,052		)	3,712		(2,761		)	5,298
Net income (loss) before non-controlling interests	(3,378		)	7,838		(7,360		)	22,273
Less: net income (loss) attributable to non-controlling interests - Tiptree Financial Partners, L.P.	(595		)	1,362		(1,432		)	4,660
Less: net income (loss) attributable to non-controlling interests - Other	331			571		529			20
Net income (loss) attributable to Tiptree Inc. Class A common stockholders	$	(3,114	)	$	5,905	$	(6,457	)	$	17,593
Net income (loss) per Class A common share:
Basic earnings per share	$	(0.11	)	$	0.20	$	(0.22	)	$	0.53
Diluted earnings per share	$	(0.11	)	$	0.19	$	(0.22	)	$	0.53
Weighted average number of Class A common shares:
Basic	29,455,462			29,143,470		28,908,195			32,845,124
Diluted	29,455,462			37,230,650		28,908,195			32,912,516
Dividends declared per common share	$	0.030		$	0.025	$	0.090		$	0.075

See accompanying notes to condensed consolidated financial statements.

F-4

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss) before non-controlling interests	$	(3,378	)	$	7,838		$	(7,360	)	$	22,273
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during the period	355			(553		)	1,800			3,779
Related tax (expense) benefit	(124		)	198			(635		)	(1,331		)
Reclassification of (gains) losses included in net income	(394		)	(960		)	(367		)	(1,100		)
Related tax expense (benefit)	138			336			129			385
Unrealized gains (losses) on available-for-sale securities, net of tax	(25		)	(979		)	927			1,733
Interest rate swaps (cash flow hedges):
Unrealized gains (losses) on interest rate swaps	(33		)	156			(411		)	(515		)
Related tax (expense) benefit	19			(46		)	115			158
Reclassification of (gains) losses included in net income	(25		)	172			212			(56		)
Related tax expense (benefit)	8			(54		)	(69		)	30
Unrealized (losses) gains on interest rate swaps from cash flow hedges, net of tax	(31		)	228			(153		)	(383		)
Other comprehensive income (loss), net of tax	(56		)	(751		)	774			1,350
Comprehensive income (loss)	(3,434		)	7,087			(6,586		)	23,623
Less: Comprehensive income (loss) attributable to non-controlling interests - Tiptree Financial Partners, L.P.	(620		)	1,214			(1,278		)	4,897
Less: Comprehensive income (loss) attributable to non-controlling interests - Other	409			604			481			(9		)
Comprehensive income (loss) attributable to Tiptree Inc. Class A common stockholders	$	(3,223	)	$	5,269		$	(5,789	)	$	18,735

See accompanying notes to condensed consolidated financial statements.

F-5

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(in thousands, except shares)

	Number of Shares			Par Value				Additional paid in capital			Accumulated other comprehensive income (loss)			Retained earnings			Common Stock held by subsidiaries										Total stockholders’ equity to Tiptree Inc.			Non-controlling interests - Tiptree Financial Partners, L.P.			Non-controlling interests - Other			Total stockholders' equity
	Class A		Class B	Class A		Class B											Class A Shares		Class A Amount			Class B Shares		Class B Amount
Balance at December 31, 2015	34,899,833		8,049,029	$	35	$	8	$	297,063		$	(111	)	$	15,845		—		$	—		—		$	—		$	312,840		$	69,278		$	15,576		$	397,694
Stock-based compensation to directors and employees	189,896		—	—		—		1,810			—			—			—		—			—		—			1,810			—			—			1,810
Shares issued to settle contingent consideration	72,868		—	—		—		377						—			—		—			—		—			377			—			—			377
Other comprehensive income, net of tax	—		—	—		—		—			1,142			—			—		—			—		—			1,142			237			(29		)	1,350
Non-controlling interest contributions	—		—	—		—		—			—			—			—		—			—		—			—			—			6,163			6,163
Non-controlling interest distributions	—		—	—		—		—			—			—			—		—			—		—			—			(603		)	(1,456		)	(2,059		)
Shares purchased under stock purchase plan	(215,358	)	—	—		—		(1,230		)	—			—			—		—			—		—			(1,230		)	—			—			(1,230		)
Shares acquired by subsidiaries	—		—	—		—		—			—			—			(6,596,000	)	(42,524		)	(8,049,029	)	(8		)	(42,532		)	—			—			(42,532		)
Net changes in non-controlling interest	—		—	—		—		(746		)	—			—			—		—			—		—			(746		)	1,058			(335		)	(23		)
Dividends declared	—		—	—		—		—			—			(2,482		)	—		—			—		—			(2,482		)	—			—			(2,482		)
Net income	—		—	—		—		—			—			17,593			—		—			—		—			17,593			4,660			20			22,273
Balance at September 30, 2016	34,947,239		8,049,029	$	35	$	8	$	297,274		$	1,031		$	30,956		(6,596,000	)	$	(42,524	)	(8,049,029	)	$	(8	)	$	286,772		$	74,630		$	19,939		$	381,341

See accompanying notes to condensed consolidated financial statements.

F-6

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(in thousands, except shares)

	Number of Shares		Par Value				Additional paid in capital			Accumulated other comprehensive income (loss)		Retained earnings			Common Stock held by subsidiaries										Total stockholders’ equity to Tiptree Inc.			Non-controlling interests - Tiptree Financial Partners, L.P.			Non-controlling interests - Other			Total stockholders' equity
	Class A	Class B	Class A		Class B										Class A Shares		Class A Amount			Class B Shares		Class B Amount
Balance at December 31, 2016	34,983,616	8,049,029	$	35	$	8	$	297,391		$	555	$	37,974		(6,596,000	)	$	(42,524	)	(8,049,029	)	$	(8	)	$	293,431		$	76,077		$	20,636		$	390,144
Amortization of share-based incentive compensation	—	—	—		—		1,541			—		—			—		—			—		—			1,541			—			536			2,077
Vesting of share-based incentive compensation	19,388	—	—		—		(588		)	—		—			119,511		775			—		—			187			—						187
Shares issued to settle contingent consideration	—	—	—		—		(76		)	—		—			756,046		4,914			—		—			4,838			—			—			4,838
Issuance of common stock for cash upon exercise of stock options	—	—	—		—		(1,371		)	—		—			1,510,920		9,471			—		—			8,100			—			—			8,100
Other comprehensive income, net of tax	—	—	—		—		—			668		—			—		—			—		—			668			154			(48		)	774
Non-controlling interest contributions	—	—	—		—		—			—		—			—		—			—		—			—						2,464			2,464
Non-controlling interest distributions	—	—	—		—		—			—		—			—		—			—		—			—			(725		)	(1,676		)	(2,401		)
Shares acquired by subsidiaries	—	—	—		—		—			—		—			(1,000,000	)	(7,300		)	—		—			(7,300		)	—			—			(7,300		)
Net changes in non-controlling interest	—	—	—		—		(421		)	—		—			—		—			—		—			(421		)	—			2,640			2,219
Dividends declared	—	—	—		—		—			—		(2,604		)	—		—			—		—			(2,604		)	—			—			(2,604		)
Net income	—	—	—		—		—			—		(6,457		)	—		—			—		—			(6,457		)	(1,432		)	529			(7,360		)
Balance at September 30, 2017	35,003,004	8,049,029	$	35	$	8	$	296,476		$	1,223	$	28,913		(5,209,523	)	$	(34,664	)	(8,049,029	)	$	(8	)	$	291,983		$	74,074		$	25,081		$	391,138

See accompanying notes to condensed consolidated financial statements.

F-7

TIPTREE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Nine Months Ended September 30,
	2017			2016
Operating Activities:
Net income (loss) available to common stockholders	$	(6,457	)	$	17,593
Net income (loss) attributable to non-controlling interests - Tiptree Financial Partners, L.P.	(1,432		)	4,660
Net income (loss) attributable to non-controlling interests - Other	529			20
Net income (loss)	(7,360		)	22,273
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Net realized and unrealized (gains) losses	(35,183		)	(65,954		)
Net unrealized loss (gain) on interest rate swaps	(67		)	1,233
Change in fair value of contingent consideration	3,192			(262		)
Non cash compensation expense	4,275			1,696
Amortization/accretion of premiums and discounts	971			1,094
Depreciation and amortization expense	24,120			21,899
Provision for doubtful accounts	967			1,321
Amortization of deferred financing costs	2,178			1,326
Deferred tax expense (benefit)	(2,371		)	(327		)
Changes in operating assets and liabilities:
Mortgage loans originated for sale	(1,151,150		)	(1,258,931		)
Proceeds from the sale of mortgage loans originated for sale	1,205,868			1,259,091
(Increase) decrease in notes and accounts receivable	(26,262		)	(16,964		)
(Increase) decrease in reinsurance receivables	(33,312		)	(28,237		)
(Increase) decrease in deferred acquisition costs	(12,863		)	(2,292		)
(Increase) decrease in other assets	(8,205		)	(2,223		)
Increase (decrease) in unearned premiums	59,481			22,934
Increase (decrease) in policy liabilities and unpaid claims	4,666			21,250
Increase (decrease) in deferred revenue	1,267			(6,810		)
Increase (decrease) in reinsurance payable	11,299			(11,772		)
Increase (decrease) in other liabilities and accrued expenses	(14,297		)	12,499
Operating activities from consolidated CLOs	(2,684		)	(3,505		)
Net cash provided by (used in) operating activities	24,530			(30,661		)
Investing Activities:
Purchases of investments	(147,764		)	(178,599		)
Proceeds from sales and maturities of investments	201,754			159,773
(Increase) decrease in loans owned, at amortized cost, net	(37,166		)	(44,640		)
Purchases of real estate capital expenditures	(463		)	(4,372		)
Proceeds from the sale of real estate	11,396			2,526
Purchases of corporate fixed assets	(1,616		)	(991		)
Proceeds from the sale of subsidiaries (1)	4,846			—
Proceeds from notes receivable	40,273			25,193
Issuance of notes receivable	(35,109		)	(32,137		)
(Increase) decrease in restricted cash	1,072			(3,315		)
Business and asset acquisitions, net of cash and deposits	(75,489		)	(81,183		)
Investing activities from consolidated CLOs	224,107			(96,834		)
Net cash provided by (used in) investing activities	185,841			(254,579		)
Financing Activities:
Dividends paid	(2,604		)	(2,482		)
Non-controlling interest contributions	2,464			3,050
Non-controlling interest distributions	(1,657		)	(2,059		)
Payment of debt issuance costs	(1,738		)	(2,508		)

F-8

TIPTREE INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (continued)

(in thousands)

	Nine Months Ended September 30,
	2017			2016
Proceeds from borrowings and mortgage notes payable	1,297,203			1,477,446
Principal paydowns of borrowings and mortgage notes payable	(1,232,705		)	(1,368,585		)
Proceeds from the exercise of options for common stock	8,100			—
Repurchases of common stock	(7,300		)	(43,754		)
Financing activities from consolidated CLOs	(223,393		)	220,727
Net cash provided by (used in) financing activities	(161,630		)	281,835
Net increase (decrease) in cash and cash equivalents	48,741			(3,405		)
Cash and cash equivalents – beginning of period	63,010			69,400
Cash and cash equivalents – end of period	$	111,751		$	65,995
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Acquired real estate properties through, or in lieu of, foreclosure of the related loan	$	9,793		$	10,288
Real estate acquired through asset acquisition	$	8,178		$	—
Intangible assets related to in-place leases acquired through asset acquisition	$	2,049		$	—
Assets of consolidated CLOs deconsolidated due to sale and redemption	$	407,323		$	—
Liabilities of consolidated CLOs deconsolidated due to sale and redemption	$	389,333		$	—
Debt assumed through asset acquisition	$	7,586		$	—
Settlement of contingent consideration payable with Class A common stock	$	4,838		$	—

⁽¹⁾ Represents the final payment received for the sale of Philadelphia Financial Group in 2015.

See accompanying notes to condensed consolidated financial statements.

F-9

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(1) Organization

Tiptree Inc. (formally known as Tiptree Financial Inc., together with its consolidated subsidiaries, collectively, Tiptree or the Company, or we) is a Maryland Corporation that was incorporated on March 19, 2007. Tiptree is a diversified holding company with four reporting segments: specialty insurance, asset management, senior living and specialty finance. Tiptree’s Class A common stock is traded on the NASDAQ Capital Market under the symbol “TIPT”. Tiptree’s primary asset is its ownership of Tiptree Financial Partners, L.P. (TFP) an intermediate holding company through which Tiptree operates its businesses. Tiptree reports a non-controlling interest representing the economic interest in TFP held by other limited partners of TFP.

As of January 1, 2016, Tiptree directly owned approximately 81% of TFP. The remaining 19% is reported as non-controlling interest. All of Tiptree’s Class B common stock is owned by TFP and is accounted for as treasury stock. Tiptree’s Class B common stock has the same voting rights as the Class A common stock but no economic rights. The limited partners of TFP (other than Tiptree itself) have the ability to exchange TFP partnership units for Tiptree Class A common stock at a rate of 2.798 shares of Class A common stock per partnership unit equal to the number of shares of Class B common stock outstanding. For every share of Class A common stock exchanged in this manner, a share of Class B common stock is canceled. The percentage of TFP owned by Tiptree may increase in the future to the extent TFP’s limited partners exchange their limited partnership units of TFP for Class A common stock of Tiptree. Changes in Tiptree’s ownership of TFP, as a result of such exchanges, will be accounted for as equity transactions, which increase Tiptree’s ownership of TFP and reduce non-controlling interest in TFP without changing total stockholders’ equity of Tiptree.

(2) Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements of Tiptree have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and include the accounts of the Company and its subsidiaries. The condensed consolidated financial statements are presented in U.S. dollars, the main operating currency of the Company. The unaudited condensed consolidated financial statements presented herein should be read in conjunction with the annual audited financial statements included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2016. In the opinion of management, the accompanying unaudited interim financial information reflects all adjustments, including normal recurring adjustments necessary to present fairly the Company’s financial position, results of operations, comprehensive income and cash flows for each of the interim periods presented. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending on December 31, 2017.

As a result of changes in presentation made in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications had no effect on the reported results of operations. The primary difference in the presentation of the condensed consolidated financial statements from the prior year is the aggregation of investments on the condensed consolidated balance sheets and the summation of the net investment income of our specialty insurance business in the condensed consolidated statements of operations. The condensed consolidated cash flow statement has also been conformed to this new presentation. In addition certain immaterial balances have been combined in the condensed consolidated balance sheet and condensed consolidated statement of operations.

Tiptree consolidates those entities in which it has an investment of 50% or more of voting rights or has control over significant operating, financial and investing decisions of the entity as well as variable interest entities (VIEs) in which Tiptree is determined to be the primary beneficiary. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity risk for the entity to finance its activities without additional subordinated financial support from other parties.

A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Generally, Tiptree’s consolidated VIEs are entities which Tiptree is considered the primary beneficiary through its controlling financial interests.

F-10

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

Non-controlling interests on the condensed consolidated balance sheets represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Tiptree. Accounts and transactions between consolidated entities have been eliminated.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Management makes estimates and assumptions that include, but are not limited to, the determination of the following significant items:

• Fair value of financial assets and liabilities, including, but not limited to, securities, loans and derivatives

• Value of acquired assets and liabilities;

• Carrying value of goodwill and other intangibles, including estimated amortization period and useful lives;

• Reserves for unpaid losses and loss adjustment expenses, estimated future claims and losses, potential litigation and other claims;

• Valuation of contingent share issuances for compensation and purchase consideration, including estimates of number of shares and vesting schedules;

• Revenue recognition including, but not limited to, the timing and amount of insurance premiums, service, administration fees, and loan origination fees; and

• Other matters that affect the reported amounts and disclosure of contingencies in the condensed consolidated financial statements.

Although these and other estimates and assumptions are based on the best available estimates, actual results could differ materially from management’s estimates.

Business Combination Accounting

The Company accounts for business combinations by applying the acquisition method of accounting. The acquisition method requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at fair value as of the closing date of the acquisition. The net assets acquired may consist of tangible and intangible assets and the excess of purchase price over the fair value of identifiable net assets acquired, or goodwill. The determination of estimated useful lives and the allocation of the purchase price to the intangible assets requires significant judgment and affects the amount of future amortization and possible impairment charges. Contingent consideration, if any, is measured at fair value on the date of acquisition. The fair value of any contingent consideration liability is remeasured at each reporting date with any change recorded in other expense in the condensed consolidated statements of operations. Acquisition and transaction costs are expensed as incurred.

In certain instances, the Company may acquire less than 100% ownership of an entity, resulting in the recording of a non-controlling interest. The measurement of assets and liabilities acquired and non-controlling interest is initially established at a preliminary estimate of fair value, which may be adjusted during the measurement period, primarily due to the results of valuation studies applicable to the business combination.

Acquisitions that do not meet the criteria for the acquisition method of accounting are accounted for as acquisitions of assets.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels, from highest to lowest, are defined as follows:

•Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•Level 2 – Significant inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 2 inputs include quoted prices for similar instruments

F-11

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

in active markets, and inputs other than quoted prices that are observable for the asset or liability. The types of financial assets and liabilities carried at level 2 are valued based on one or more of the following:

a) Quoted prices for similar assets or liabilities in active markets;

b) Quoted prices for identical or similar assets or liabilities in nonactive markets;

c) Pricing models whose inputs are observable for substantially the full term of the asset or liability;

d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

•Level 3 – Significant inputs that are unobservable inputs for the asset or liability, including the Company’s own data and assumptions that are used in pricing the asset or liability.

Fair Value Option

In addition to the financial instruments the Company is required to measure at fair value, the Company has elected to make an irrevocable election to utilize fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in Net realized and unrealized gains (losses) within the condensed consolidated statements of operations. The decision to elect the fair value option is determined on an instrument-by-instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are reported separately in our condensed consolidated balance sheets from those instruments using another accounting method.

Recent Accounting Standards

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, Investments -Equity Method and Joint Ventures (Topic 323), which eliminates the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this Update eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those annual periods. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties that Are Under Common Control, which amends the consolidation guidance on how a reporting entity, that is the single decision maker of a VIE, evaluates whether it is the primary beneficiary of a VIE. This new guidance is effective for fiscal years beginning after December 15, 2016. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

F-12

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

Recently Issued Accounting Pronouncements, Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this standard affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On July 9, 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year. Reporting entities may choose to adopt the standard as of the original effective date. The deferral results in ASU 2014-09 being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which makes targeted improvements to the recognition, measurement, presentation and disclosure of certain financial instruments. ASU 2016-01 focuses primarily on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for certain financial instruments. Among its provisions for public business entities, ASU 2016-01 eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires the separate presentation in other comprehensive income of the change in fair value of a liability due to instrument-specific credit risk for a liability for which the reporting entity has elected the fair value option, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) and clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for a limited number of provisions. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarify the implementation guidance on principal versus net considerations. The effective date and transition requirements for this standard are the same as the effective date and transition requirements of ASU 2014-09. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The Update includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The Update seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements

F-13

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

at the March 3, 2016 EITF Meeting, which  rescinds SEC paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606,” and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity,” announced at the March 3, 2016 Emerging Issues Task Force (EITF) meeting.  The Company believes that that the adoption of this standard will not have a material impact on the Company’s condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides guidance on collectability, noncash consideration, and completed contracts at transition.  Additionally, the amendments in this Update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers.  The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including the adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which addresses classification and presentation of changes in restricted cash on the statement of cash flows.ASU 2016-18 requires an entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include in cash and cash equivalents amounts generally described as restricted cash and restricted cash equivalents. The ASU does not define restricted cash or restricted cash equivalents, but an entity will need to disclose the nature of the restrictions. ASU 2016-18 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 does not change the qualitative assessment; however, it removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Therefore, as the FASB notes in the ASU’s Basis for Conclusions, the goodwill of reporting units with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit indicate that goodwill is impaired. Entities will, however, be

F-14

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

required to disclose any reporting units with zero or negative carrying amounts and the respective amounts of goodwill allocated to those reporting units. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The ASU also adds guidance for partial sales of nonfinancial assets. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2017. The guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provided clarity as to what changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for the Company for interim and annual periods beginning after December 15, 2017, with early adoption permitted, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company will consider the impact that this standard may have on future stock-based payment award modifications should they occur.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the guidance on hedge accounting. The amendment will make more financial and nonfinancial hedging strategies eligible for hedge accounting and amend the presentation and disclosure requirements. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 can be adopted immediately in any interim or annual period. The mandatory effective date for calendar year-end public companies is January 1, 2019. The Company is currently evaluating the effect on its condensed consolidated financial statements.

(3) Acquisitions

Acquisitions during the nine months ended September 30, 2017

Senior Living

Managed Properties

During the nine months ended September 30, 2017, subsidiaries in our senior living business and their partners entered into agreements to acquire and operate two senior living communities for total consideration of $25,999, of which $7,000 was financed through mortgage debt issued in connection with one of the acquisitions, $4,096 was financed by contributions from partners of our subsidiaries and the remainder was paid with cash on hand. Affiliates of the partners provide management services to the communities under management contracts.

The Company provided an advance to the partners of our subsidiary at closing of one of these transactions for $1,036, which was part of their cash contribution for the property. Subsequent to the closing of this transaction, the property was financed with mortgage debt of $10,000. Our partner repaid the advance to the Company with proceeds from this financing, which was split based on the ownership of the property.

The primary reason for the Company’s acquisitions of the senior living communities are to expand its real estate operations. For the period from acquisition until September 30, 2017, revenue and the net loss for the two properties acquired were $4,398 and $1,941, respectively.

F-15

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for the transactions completed during the nine months ended September 30, 2017:

	2017 Acquisitions
	Senior living
Consideration:
Cash	$	25,999
Fair value of total consideration	$	25,999
Acquisition costs	$	288
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	717
Real estate, net	21,800
Intangible assets, net	3,850
Other assets	76
Liabilities:
Deferred revenue	(409		)
Other liabilities and accrued expenses	(35		)
Total identifiable net assets assumed	$	25,999

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.38	$	3,850

Supplemental pro forma results of operations have not been presented for the above 2017 business acquisitions as they are not material in relation to the Company’s reported results.

Acquisitions during the nine months ended September 30, 2016

Senior Living

Managed Properties

During the nine months ended September 30, 2016, subsidiaries in our senior living business and their partners entered into agreements to acquire and operate three senior living communities for total consideration of $84,605 (which includes deposits of $125 paid in the fourth quarter of 2015), of which $59,817 was financed through mortgage debt issued in connection with the acquisitions, $4,778 was financed by contributions from partners of our subsidiary, and the remainder was paid with cash on hand. Affiliates of the partners provide management services to the communities under management contracts.

The primary reason for the Company’s acquisition of the senior living communities is to expand its real estate operations. For the period from acquisition until September 30, 2016, revenue and the net loss for the three managed properties acquired were $7,247 and $1,899, respectively.

F-16

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for transactions completed during the nine months ended September 30, 2016:

	2016 Acquisitions
	Senior living
Consideration:
Cash	$	81,492
Non-cash non-controlling interests contributions	3,113
Fair value of total consideration	$	84,605
Acquisition costs	$	612
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	184
Real estate, net	77,787
Intangible assets, net	6,838
Other assets	248
Liabilities:
Deferred revenue	(290		)
Other liabilities and accrued expenses	(162		)
Total identifiable net assets assumed	$	84,605

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.61	$	6,838

Supplemental pro forma results of operations have not been presented for the above 2016 business acquisitions as they are not material in relation to the Company’s reported results.

(4) Operating Segment Data

The Company has four reportable operating segments, which are: (i) specialty insurance (formally known as insurance and insurance services), (ii) asset management, (iii) senior living (formally known as real estate), and (iv) specialty finance. The Company’s operating segments are organized in a manner that reflects how the chief operating decision maker (CODM) views these strategic business units.

Each reportable segment’s income (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.

In the fourth quarter of 2016, the Company made certain segment realignments in order to conform to the way the CODM internally evaluates segment performance. These realignments primarily consisted of the transfer of principal investments from corporate and other to the specialty insurance and asset management operating segments. As a result, corporate and other is no longer deemed to be an operating segment of the Company. For the three months ended September 30, 2016, $6,808 of pretax income (loss) previously reported in corporate and other was allocated $2,634 and $4,174 to the specialty insurance and asset management operating segments, respectively. For the three months ended September 30, 2016, inclusive of what was allocated to the asset management operating segment there was $3,312 of net income (loss) attributable to consolidated CLOs. For the

F-17

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

nine months ended September 30, 2016, $20,160 of pretax income (loss) previously reported in corporate and other was allocated $10,527 and $9,633 to the specialty insurance and asset management operating segments, respectively. For the nine months ended September 30, 2016, inclusive of what was allocated to the asset management operating segment there was $7,583 of net income (loss) attributable to consolidated CLOs. The Company has reclassified prior period amounts to provide visibility and comparability. This reclassification had no impact on the allocation of goodwill to reporting units. None of these changes impact the Company’s previously reported consolidated net income or earnings per share.

Descriptions of each of the reportable segments 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 diverse range of products and services include products such as mobile protection, extended warranty and service, debt protection and credit insurance and select niche personal and commercial lines insurance. The specialty insurance investment portfolio also includes results related to corporate loans held at fair value and non-performing residential mortgage loans due to the aforementioned segment realignment.

Asset Management operations are primarily conducted through Telos Asset Management LLC’s (Telos) management of CLOs. Telos is a subsidiary of Tiptree Asset Management Company, LLC (TAMCO), an SEC-registered investment advisor owned by the Company. Results include net income (loss) from consolidated CLOs.

Senior Living operations are conducted through Care Investment Trust LLC (Care) which has a geographically diverse portfolio of seniors housing properties including senior apartments, assisted living, independent living, memory care and skilled nursing facilities in the U.S.

Specialty Finance operations are conducted through Siena Capital Finance LLC (Siena) and the Company’s mortgage businesses, which consist of Luxury and Reliance. The Company’s mortgage origination business originated loans for sale to institutional investors, including GSEs and FHA/VA. Siena’s business consists of structuring asset-based loan facilities across diversified industries.

The tables below present the components of revenue, expense, pre-tax income (loss), and segment assets for each of the operating segments for the following periods:

	Three Months Ended September 30, 2017
	Specialty insurance			Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	118,714		$	1,448	$	19,583		$	24,976	$	(202	)	$	164,519
Total expense	121,059			1,058		21,118			22,381		6,916			172,532
Net income attributable to consolidated CLOs	—			2,583		—			—		—			2,583
Income (loss) before taxes	$	(2,345	)	$	2,973	$	(1,535	)	$	2,595	$	(7,118	)	$	(5,430	)
Less: provision (benefit) for income taxes														(2,052		)
Net income (loss) before non-controlling interests														$	(3,378	)
Less: net income (loss) attributable to non-controlling interests														(264		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders														$	(3,114	)

F-18

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

	Three Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	82,630	$	4,746	$	15,695		$	29,013	$	76		$	132,160
Total expense	71,971		2,303		16,168			24,832		9,368			124,642
Net income attributable to consolidated CLOs	—		4,032		—			—		—			4,032
Income (loss) before taxes	$	10,659	$	6,475	$	(473	)	$	4,181	$	(9,292	)	$	11,550
Less: provision (benefit) for income taxes													3,712
Net income (loss) before non-controlling interests													$	7,838
Less: net income (loss) attributable to non-controlling interests													1,933
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	5,905

⁽¹⁾ Reclassified to conform to current period presentation

	Nine Months Ended September 30, 2017
	Specialty insurance		Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	351,731	$	8,239	$	55,927		$	70,325	$	75		$	486,297
Total expense	350,007		4,549		61,286			67,696		22,273			505,811
Net income (loss) attributable to consolidated CLOs	—		9,393		—			—		—			9,393
Income (loss) before taxes	$	1,724	$	13,083	$	(5,359	)	$	2,629	$	(22,198	)	$	(10,121	)
Less: provision (benefit) for income taxes													(2,761		)
Net income (loss) before non-controlling interests													$	(7,360	)
Less: net income (loss) attributable to non-controlling interests													(903		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	(6,457	)

	Nine Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	268,743	$	10,754	$	44,204		$	67,790	$	3,568		$	395,059
Total expense	233,116		6,131		49,691			62,280		26,319			377,537
Net income (loss) attributable to consolidated CLOs	—		10,049		—			—		—			10,049
Income (loss) before taxes	$	35,627	$	14,672	$	(5,487	)	$	5,510	$	(22,751	)	$	27,571
Less: provision (benefit) for income taxes													5,298
Net income (loss) before non-controlling interests													$	22,273
Less: net income (loss) attributable to non-controlling interests													4,680
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	17,593

⁽¹⁾ Reclassified to conform to current period presentation

F-19

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the segment assets for the following periods:
	Segment Assets as of September 30, 2017
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,319,165	$	21,175	$	390,818	$	303,203	$	41,619	$	2,075,980
Assets of consolidated CLOs	—		372,774		—		—		—		372,774
Total assets											$	2,448,754
	Segment Assets as of December 31, 2016
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,268,152	$	17,427	$	323,169	$	271,795	$	20,012	$	1,900,555
Assets of consolidated CLOs	—		989,495		—		—		—		989,495
Total assets											$	2,890,050

⁽¹⁾ Reclassified to conform to current period presentation

(5) Investments

Available for Sale Securities, at fair value

All of the Company’s investments in available for sale securities as of September 30, 2017 and December 31, 2016 are held by subsidiaries in the specialty insurance business. The following tables present the Company's investments in available for sale securities:

	As of September 30, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	36,474	$	96	$	(216	)	$	36,354
Obligations of state and political subdivisions	47,542		415		(324		)	47,633
Corporate securities	53,589		447		(167		)	53,869
Asset backed securities	24,011		105		(16		)	24,100
Certificates of deposit	896		—		—			896
Equity securities	658		13		(9		)	662
Obligations of foreign governments	566		13		—			579
Total	$	163,736	$	1,089	$	(732	)	$	164,093
	As of December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	27,149	$	27	$	(377	)	$	26,799
Obligations of state and political subdivisions	57,425		107		(598		)	56,934
Corporate securities	58,769		204		(402		)	58,571
Asset backed securities	1,459		1		—			1,460
Certificates of deposit	895		—		—			895
Equity securities	818		3		(37		)	784
Obligations of foreign governments	733		3		(8		)	728
Total	$	147,248	$	345	$	(1,422	)	$	146,171

F-20

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following tables summarize the gross unrealized losses on available for sale securities in an unrealized loss position:

	As of September 30, 2017
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	25,152	$	(187	)	119	$	924	$	(29	)	5
Obligations of state and political subdivisions	9,936		(145		)	55	7,142		(179		)	34
Corporate securities	16,269		(61		)	164	4,479		(106		)	86
Asset-backed securities	1,294		(16		)	2	—		—			—
Equity securities	411		(7		)	3	19		(2		)	2
Obligations of foreign governments	—		—			—	—		—			—
Total	$	53,062	$	(416	)	343	$	12,564	$	(316	)	127
	As of December 31, 2016
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	20,979	$	(376	)	115	$	16	$	(1	)	5
Obligations of state and political subdivisions	41,639		(597		)	170	1,334		(1		)	3
Corporate securities	29,856		(400		)	279	253		(2		)	3
Asset-backed securities	706		—			1	—		—			—
Equity securities	736		(35		)	5	19		(2		)	2
Obligations of foreign governments	338		(8		)	4	—		—			—
Total	$	94,254	$	(1,416	)	574	$	1,622	$	(6	)	13

The Company does not intend to sell the investments that were in an unrealized loss position as of September 30, 2017, and management believes that it is more likely than not that the Company will be able to hold these securities until full recovery of their amortized cost basis for fixed maturity securities or cost for equity securities. The unrealized losses were attributable to changes in interest rates and not credit-related issues. As of September 30, 2017 and December 31, 2016, based on the Company's review, none of the fixed maturity or equity securities were deemed to be other-than-temporarily impaired based on the Company's analysis of the securities and its intent to hold the securities until recovery.

The amortized cost and fair values of investments in debt securities, by contractual maturity date, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Excluded from this table are equity securities since they have no contractual maturity.

	As of
	September 30, 2017				December 31, 2016
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	19,075	$	19,074	$	22,846	$	22,833
Due after one year through five years	68,918		69,207		66,063		65,841
Due after five years through ten years	45,447		45,375		49,036		48,381
Due after ten years	5,627		5,675		7,026		6,872
Asset backed securities	24,011		24,100		1,459		1,460
Total	$	163,078	$	163,431	$	146,430	$	145,387

F-21

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

Pursuant to certain reinsurance agreements and statutory licensing requirements, the Company has deposited invested assets in custody accounts or insurance department safekeeping accounts. The Company cannot remove invested assets from these accounts without prior approval of the contractual party or regulatory authority, as applicable. The following table presents the Company's restricted investments included in the Company's available for sale securities:

	As of
	September 30, 2017		December 31, 2016
Fair value of restricted investments for special deposits required by state insurance departments	$	9,939	$	10,111
Fair value of restricted investments in trust pursuant to reinsurance agreements	7,287		7,573
Total fair value of restricted investments	$	17,226	$	17,684

The following table presents additional information on the Company’s available for sale securities:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
Purchases of available for sale securities	$	45,250	$	12,799		$	79,907		$	22,477
Proceeds from maturities, calls and prepayments of available for sale securities	$	7,686	$	4,483		$	23,909		$	26,086
Gains (losses) realized on maturities, calls and prepayments of available for sale securities	$	—	$	(14	)	$	(5	)	$	83
Gross proceeds from sales of available for sale securities	$	21,167	$	35,069		$	39,493		$	45,928
Gains (losses) realized on sales of available for sale securities	$	395	$	974		$	372		$	1,016

Investment in Loans

The following tables present the Company’s investments in loans, measured at fair value:

	As of September 30, 2017							As of December 31, 2016
	Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB			Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB
Loans, at fair value
Corporate loans	$	162,512	$	162,582	$	(70	)	$	175,558	$	176,808	$	(1,250	)
Mortgage loans held for sale	114,461		110,803		3,658			121,439		118,162		3,277
Non-performing loans	44,980		62,237		(17,257		)	74,923		113,892		(38,969		)
Other loans receivable	1,169		1,169		—			1,169		1,169		—
Total loans, at fair value	$	323,122	$	336,791	$	(13,669	)	$	373,089	$	410,031	$	(36,942	)

The following table presents the Company’s investments in loans, measured at fair value pledged as collateral:

	As of
	September 30, 2017		December 31, 2016
Corporate loans	$	161,000	$	175,365
Mortgage loans held for sale	111,927		117,734
Non-performing loans	39,537		60,409
Total fair value of loans pledged as collateral	$	312,464	$	353,508

F-22

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

As of September 30, 2017, there are no mortgage loans held for sale 90 days or more past due. The unpaid principal balance and fair value of mortgage loans held for sale that are 90 days or more past due were $142 and $66, respectively, as of December 31, 2016.

The following table presents the Company’s investments in loans, measured at amortized cost:

	As of
	September 30, 2017		December 31, 2016
Loans at amortized cost, net
Asset backed loans and other loans, net	$	152,168	$	115,033
Less: Allowance for loan losses	1,572		1,195
Total loans at amortized cost, net	$	150,596	$	113,838
Net deferred loan origination fees included in asset backed loans	$	5,701	$	5,244

The following table presents additional information on the Company’s asset backed loans:

	As of
	September 30, 2017		December 31, 2016
Pledged as collateral	$	157,169	$	119,558
Loans receivable, net, attributable to a subsidiary in our specialty finance business	$	149,896	$	113,138

Our subsidiary structures asset-based loan facilities in the $1,000 to $25,000 range for small to mid-sized companies. Collateral for asset-backed loan receivables, as of September 30, 2017 and December 31, 2016, consisted primarily of inventory, equipment and accounts receivable. Management reviews collateral for these loans on at least a monthly basis or more frequently if a draw is requested and management has determined that no impairment existed as of September 30, 2017. As of September 30, 2017, there were no delinquencies in the portfolio and all loans were classified as performing.

Real Estate, net

The following table contains information regarding the Company’s investment in real estate as of the following periods:

	As of September 30, 2017
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	19,447	$	208,751	$	(16,283	)	$	211,915
Triple net lease properties	19,741		135,857		(9,455		)	146,143
Foreclosed residential real estate property	—		13,079		—			13,079
Total	$	39,188	$	357,687	$	(25,738	)	$	371,137
	As of December 31, 2016
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	16,347	$	189,463	$	(11,212	)	$	194,598
Triple net lease properties	13,778		94,291		(6,610		)	101,459
Foreclosed residential real estate property	—		13,366		—			13,366
Total	$	30,125	$	297,120	$	(17,822	)	$	309,423

For the nine months ended September 30, 2017, the Company acquired ten senior living facilities accounted for as asset acquisitions, with $47,654 of real estate acquired, and $8,297 of identifiable intangible assets related to in-place leases which will be amortized over a period ranging from approximately 7 to 12 years. These ten properties are in addition to the two acquisitions disclosed in Note—(3) Acquisitions, which were accounted for as business combinations.

F-23

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the depreciation expense related to the Company’s real estate investments for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense on real estate investments	$	2,873	$	1,974	$	7,916	$	5,581

Future Minimum Rental Revenue

The following table presents the future minimum rental revenue under the noncancelable terms of all operating leases related to our triple net lease properties, as of:

	September 30, 2017
Remainder of 2017	$	3,280
2018	13,248
2019	13,519
2020	13,797
2021	15,161
Thereafter	60,999
Total	$	120,004

The following table presents rental revenues from residential leases at the managed properties for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rental revenues from residential leases	$	14,274	$	12,685	$	42,005	$	35,231

Net Investment Income

Net investment income represents income primarily from the following sources:

• Interest income, and dividends related to available for sale securities, at fair value;

• Interest income related to loans, at fair value;

• Dividend income from equity securities, trading, at fair value;

• Rental and related revenue from real estate, net; and

• Earnings from other investments.

The following table presents the components of net investment income related to our specialty insurance business recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment income	2017		2016		2017		2016
Available for sale securities, at fair value	$	823	$	653	$	2,423	$	2,323
Loans, at fair value	2,698		1,971		8,330		4,981
Equity securities, trading, at fair value	459		969		1,912		1,933
Real estate, net	156		—		482		—
Other investments	73		73		277		224
Total investment income	4,209		3,666		13,424		9,461
Less: investment expenses	369		359		1,392		1,052
Net investment income	$	3,840	$	3,307	$	12,032	$	8,409

F-24

The following table presents the components of net realized and unrealized gains (losses) recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
Net realized and unrealized gains (losses)	2017			2016		2017			2016
Net realized gains (losses)	$	18,817		$	19,948	$	48,150		$	48,423
Net unrealized gains (losses)	(11,291		)	6,267		(12,967		)	17,531
Net realized and unrealized gains (losses)	$	7,526		$	26,215	$	35,183		$	65,954

The following table presents the net gain on the sale of mortgage loans and the cumulative net unrealized gains (losses) on equity securities, trading, at fair value recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net realized gain on sale of mortgage loans (1)	$	16,476		$	20,045	$	47,237		$	48,412
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date	$	(11,125	)	$	1,365	$	(21,183	)	$	6,386

⁽¹⁾ Related to the Company’s specialty finance business.

(6) Notes and Accounts Receivable, net

The following table summarizes the total notes and accounts receivable, net:

	As of
	September 30, 2017		December 31, 2016
Premium financing program (1)	$	15,403	$	20,615
Notes from affiliates of partner (2)	3,862		3,862
Other	45		298
Notes receivable, net	$	19,310	$	24,775
Accounts and premiums receivable, net	60,763		45,041
Retrospective commissions receivable	65,156		59,175
Other receivables	33,497		28,509
Total	$	178,726	$	157,500

(1) Related to the Company’s specialty insurance business.

(2) Related to the Company’s senior living business, which owns a 75% interest in a managed property. The remaining 25% interest is owned by our joint venture partner.

Notes Receivable, net

The Company has established an allowance for uncollectible amounts against its notes receivable of $1,528 and $1,444 as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017 and December 31, 2016, there were $1,848 and $2,188 in balances classified as 90 days plus past due, respectively.

Accounts and premiums receivable, net, Retrospective commissions receivable and Other receivables

Accounts and premiums receivable, net, retrospective commissions receivable and other receivables are primarily trade receivables from the specialty insurance business that are carried at their approximate fair value. The Company has established a valuation allowance against its accounts and premiums receivable of $319 and $225 as of September 30, 2017 and December 31, 2016, respectively.

F-25

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(7) Reinsurance Receivables

The following table presents the effect of reinsurance on premiums written and earned by our specialty insurance business for the following periods:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Premiums written:
Life insurance	$	18,375	$	9,587	$	525	$	9,313	5.6	%
Accident and health insurance	34,034		23,077		862		11,819		7.3	%
Property and liability insurance	149,414		56,380		4,844		97,878		4.9	%
Total premiums written	201,823		89,044		6,231		119,010		5.2	%
Premiums earned:
Life insurance	15,654		7,764		481		8,371		5.7	%
Accident and health insurance	28,347		19,511		814		9,650		8.4	%
Property and liability insurance	126,847		52,201		3,406		78,052		4.4	%
Total premiums earned	$	170,848	$	79,476	$	4,701	$	96,073	4.9	%
For the Three Months ended September 30, 2016
Premiums written:
Life insurance	$	18,246	$	9,668	$	674	$	9,252	7.3	%
Accident and health insurance	31,553		21,635		865		10,783		8.0	%
Property and liability insurance	126,230		94,095		3,842		35,977		10.7	%
Total premiums written	176,029		125,398		5,381		56,012		9.6	%
Premiums earned:
Life insurance	15,861		7,712		642		8,791		7.3	%
Accident and health insurance	28,391		20,093		830		9,128		9.1	%
Property and liability insurance	126,902		98,883		1,671		29,690		5.6	%
Total premiums earned	$	171,154	$	126,688	$	3,143	$	47,609	6.6	%
For the Nine Months ended September 30, 2017
Premiums written:
Life insurance	$	46,275	$	23,264	$	1,458	$	24,469	6.0	%
Accident and health insurance	87,242		57,911		2,355		31,686		7.4	%
Property and liability insurance	406,976		176,477		15,670		246,169		6.4	%
Total premiums written	540,493		257,652		19,483		302,324		6.4	%
Premiums earned:
Life insurance	45,995		22,685		1,473		24,783		5.9	%
Accident and health insurance	82,242		56,736		2,373		27,879		8.5	%
Property and liability insurance	357,448		148,402		11,073		220,119		5.0	%
Total premiums earned	$	485,685	$	227,823	$	14,919	$	272,781	5.5	%
For the Nine Months ended September 30, 2016
Premiums written:
Life insurance	$	49,018	$	25,267	$	1,971	$	25,722	7.7	%
Accident and health insurance	87,446		59,657		2,507		30,296		8.3	%
Property and liability insurance	389,157		302,945		10,146		96,358		10.5	%
Total premiums written	525,621		387,869		14,624		152,376		9.6	%
Premiums earned:
Life insurance	46,112		22,139		2,003		25,976		7.7	%
Accident and health insurance	84,994		60,134		2,465		27,325		9.0	%
Property and liability insurance	377,589		296,523		4,149		85,215		4.9	%
Total premiums earned	$	508,695	$	378,796	$	8,617	$	138,516	6.2	%

F-26

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the components of policy and contract benefits, including the effect of reinsurance on losses and loss adjustment expenses ("LAE") incurred:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Losses Incurred
Life insurance	$	8,003	$	4,573	$	178	$	3,608	4.9	%
Accident and health insurance	4,456		3,252		190		1,394		13.6	%
Property and liability insurance	48,783		26,571		544		22,756		2.4	%
Total losses incurred	61,242		34,396		912		27,758		3.3	%
	Member benefit claims (1)						3,812
	Total policy and contract benefits						$	31,570
For the Three Months ended September 30, 2016
Losses Incurred
Life insurance	$	8,550	$	4,647	$	378	$	4,281	8.8	%
Accident and health insurance	5,697		4,863		205		1,039		19.7	%
Property and liability insurance	61,431		47,469		632		14,594		4.3	%
Total losses incurred	75,678		56,979		1,215		19,914		6.1	%
	Member benefit claims (1)						5,967
	Total policy and contract benefits						$	25,881
For the Nine Months ended September 30, 2017
Losses Incurred
Life insurance	$	24,527	$	13,558	$	748	$	11,717	6.4	%
Accident and health insurance	13,200		10,815		662		3,047		21.7	%
Property and liability insurance	144,535		78,454		1,708		67,789		2.5	%
Total losses incurred	182,262		102,827		3,118		82,553		3.8	%
	Member benefit claims (1)						11,811
	Total policy and contract benefits						$	94,364
For the Nine Months ended September 30, 2016
Losses Incurred
Life insurance	$	24,962	$	12,957	$	1,061	$	13,066	8.1	%
Accident and health insurance	14,598		12,203		700		3,095		22.6	%
Property and liability insurance	166,586		128,542		897		38,941		2.3	%
Total losses incurred	206,146		153,702		2,658		55,102		4.8	%
	Member benefit claims (1)						17,334
	Total policy and contract benefits						$	72,436

(1) - Member benefit claims are not covered by reinsurance.

F-27

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the components of the reinsurance receivables:

	As of
	September 30, 2017		December 31, 2016
Prepaid reinsurance premiums:
Life (1)	$	64,223	$	64,621
Accident and health (1)	55,175		53,999
Property (2)	122,883		94,091
Total	242,281		212,711
Ceded claim reserves:
Life	3,015		2,929
Accident and health	9,819		10,435
Property	57,138		49,917
Total ceded claim reserves recoverable	69,972		63,281
Other reinsurance settlements recoverable	20,770		20,242
Reinsurance receivables	$	333,023	$	296,234

(1) Including policyholder account balances ceded.

(2) The December 31, 2016 amount includes a non-cash transaction, as part of a reinsurance contract cancellation that resulted in a reduction of $92,854 in reinsurance receivable, offset by an increase of $88,857 in assets and a decrease of $3,997 in liabilities.

The following table presents the aggregate amount included in reinsurance receivables that is comprised of the three largest receivable balances from unrelated reinsurers:

	As of
	September 30, 2017
Total of the three largest receivable balances from unrelated reinsurers	$	78,783

At September 30, 2017, the three unrelated reinsurers from whom our specialty insurance business has the largest receivable balances were: London Life Reinsurance Corporation (A. M. Best Rating: A rated); MFI Insurance Company, LTD (A. M. Best Rating: Not rated) and London Life International Reinsurance Corporation (A. M. Best Rating: Not rated). The related receivables of these reinsurers are collateralized by assets on hand, assets held in trust accounts and letters of credit. At September 30, 2017, the Company does not believe there is a risk of loss due to the concentration of credit risk in the reinsurance program given the collateralization.

F-28

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(8) Goodwill and Intangible Assets, net

The following table presents identifiable finite and indefinite-lived intangible assets, accumulated amortization, and goodwill by segment:

	As of September 30, 2017												As of December 31, 2016
	Specialty insurance			Senior living			Specialty finance			Total			Specialty insurance			Senior living			Specialty finance			Total
Customer relationships	$	50,500		$	—		$	—		$	50,500		$	50,500		$	—		$	—		$	50,500
Accumulated amortization	(10,215		)	—			—			(10,215		)	(4,614		)	—			—			(4,614		)
Trade names	6,500			—			800			7,300			6,500			—			800			7,300
Accumulated amortization	(2,018		)	—			(180		)	(2,198		)	(1,484		)	—			(120		)	(1,604		)
Software licensing	8,500			—			640			9,140			8,500			—			640			9,140
Accumulated amortization	(4,817		)	—			(206		)	(5,023		)	(3,542		)	—			(137		)	(3,679		)
Insurance policies and contracts acquired	36,500			—			—			36,500			36,500			—			—			36,500
Accumulated amortization	(35,234		)	—			—			(35,234		)	(34,184		)	—			—			(34,184		)
Insurance licensing agreements(1)	13,749			—			—			13,749			13,000			—			—			13,000
Leases in place	1,317			44,380			—			45,697			1,317			32,233			—			33,550
Accumulated amortization	(101		)	(26,062		)	—			(26,163		)	(18		)	(20,413		)	—			(20,431		)
Intangible assets, net	64,681			18,318			1,054			84,053			72,475			11,820			1,183			85,478
Goodwill	89,854			—			2,913			92,767			89,854			—			2,913			92,767
Total goodwill and intangible assets, net	$	154,535		$	18,318		$	3,967		$	176,820		$	162,329		$	11,820		$	4,096		$	178,245

⁽¹⁾ Represents intangible assets with an indefinite useful life. Impairment tests are performed at least annually on these assets.

Goodwill

The following table presents the activity in goodwill, by segment, and includes the adjustments made to the balance of goodwill to reflect the effect of the final valuation adjustments made for acquisitions, as well as the reduction to any goodwill attributable to discontinued operations or impairment related charges:

	Specialty insurance		Specialty finance		Total
Balance at December 31, 2016	$	89,854	$	2,913	$	92,767
Balance at September 30, 2017	$	89,854	$	2,913	$	92,767

The Company conducts annual impairment tests of its goodwill as of October 1. For the three and nine months ended September 30, 2017 and 2016, respectively, no impairment was recorded on the Company’s goodwill or intangibles.

Intangible Assets, net

The following table presents the activity, by segment, in finite and indefinite-lived other intangible assets and includes the adjustments made to the balance to reflect the effect of any final valuation adjustments made for acquisitions, as well as any reduction attributable to discontinued operations or impairment-related charges:

	Specialty insurance			Senior living			Specialty finance			Total
Balance at December 31, 2016	$	72,475		$	11,820		$	1,183		$	85,478
Intangible assets acquired in 2017	749			12,147			—			12,896
Less: amortization expense	(8,543		)	(5,649		)	(129		)	(14,321		)
Balance at September 30, 2017	$	64,681		$	18,318		$	1,054		$	84,053

F-29

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

During the nine months ended September 30, 2017 a subsidiary in our specialty insurance business acquired 100% of the outstanding stock of an insurance company, licensed in several states but having no operations and no net insurance exposures. The purpose of this transaction was to acquire additional licenses to expand the Company’s direct writing capabilities to New York and Wisconsin. The transaction was accounted for as an asset acquisition, resulting in $749 recorded as an indefinite life intangible asset for the cost attributed to the insurance licenses.

The following table presents the amortization expense on finite-lived intangible assets for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Amortization expense on intangible assets	$	4,359	$	3,702	$	14,321	$	14,246

The following table presents the amortization expense on finite-lived intangible assets for the next five years by segment:

	As of September 30, 2017
	Specialty insurance (VOBA)		Specialty insurance (other)		Senior living		Specialty finance		Total
Remainder of 2017	$	200	$	2,482	$	1,730	$	42	$	4,454
2018	465		9,187		3,086		171		12,909
2019	217		7,619		958		171		8,965
2020	123		5,137		958		171		6,389
2021	82		4,361		958		171		5,572
2022 and thereafter	179		20,880		10,628		328		32,015
Total	$	1,266	$	49,666	$	18,318	$	1,054	$	70,304

(9) Derivative Financial Instruments and Hedging

The Company utilizes derivative financial instruments as part of its overall investment and hedging activities. Derivative contracts are subject to additional risk that can result in a loss of all or part of an investment. The Company’s derivative activities are primarily classified by underlying credit risk and interest rate risk. In addition, the Company is also subject to additional counterparty risk should its counterparties fail to meet the contract terms. The derivative financial instruments are located within derivative assets at fair value and are reported in other investments. Derivative liabilities are reported within other liabilities and accrued expenses.

Derivatives, at fair value

Credit Derivatives

Credit derivatives are generally defined as over‑the‑counter contracts between a buyer and seller of protection against the risk of default on a set of obligations issued by a specified reference entity.

Credit Default Swap Indices (CDX) are credit derivatives that reference multiple names through underlying baskets or portfolios of single name credit default swaps. The Company enters into these contracts as both a buyer of protection and seller of protection to manage the credit risk exposure of its investment portfolio. At inception of the investment into theCDX position, the Company was required to deposit cash collateral for these positions equal to an initial 2.25% of the notional amount of the sold protection side subject to increase based on additional maintenance margin as a result of decreases in value. As of September 30, 2017, the required collateral balance was $6,668 posted by the Company to cover its liabilities as a seller of protection. As of September 30, 2017, there is a cash collateral balance of $1,632 held by the Company as collateral for the payments due to the Company as buyer of protection, which is netted against the overall investment position.

F-30

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

Interest Rate Lock Commitments

The Company enters into interest rate lock commitments (IRLCs) in connection with its mortgage banking activities to fund residential mortgage loans with certain terms at specified times in the future. IRLCs that relate to the origination of mortgage loans that will be classified as held-for-sale are considered derivative instruments under applicable accounting guidance. As such, these IRLCs are recorded at fair value with changes in fair value typically resulting in recognition of a gain when the Company enters into IRLCs. In estimating the fair value of an IRLC, the Company assigns a probability that the loan commitment will be exercised and the loan will be funded (“pull through”). The fair value of the commitments is derived from the fair value of related mortgage loans, net of estimated costs to complete. Outstanding IRLCs expose the Company to the risk that the price of the loans underlying the commitments might decline from inception of the rate lock to funding of the loan. To manage this risk, the Company utilizes forward delivery contracts and TBA mortgage backed securities to economically hedge the risk of potential changes in the value of the loans that would result from the commitments.

Forward Delivery Contracts

The Company enters into forward delivery contracts with investors to manage the interest rate risk associated with IRLCs and loans held for sale.

TBA Mortgage Backed Securities

The Company enters into to be announced (TBA) mortgage backed securities which facilitate hedging and funding by allowing the Company to prearrange prices for mortgages that are in the process of originating. The Company utilizes these hedging instruments for Agency (Fannie Mae and Freddie Mac) and FHA/VA (Ginnie Mae) eligible IRLCs and typically commit them to investors at prices higher than otherwise available.

Interest Rate Swaps

The Company is exposed to interest rate risk when there is an unfavorable change in the value of investments as a result of adverse movements in the market interest rates. The Company enters into interest rate swaps (IRS) to protect against such adverse movements in interest rates. The Company is required to post collateral for the benefit of the counterparty. This is included in other assets in the condensed consolidated balance sheets.

The Company uses interest rate swaps to hedge the variability of floating rate borrowings. Cash flow hedge accounting was applied to the floating rate borrowings in its specialty insurance business, and during the second quarter of 2016, the Company elected to apply cash flow hedge accounting to such transactions in its senior living business. 

The following table summarizes the gross notional and fair value amounts of derivatives (on a gross basis) categorized by underlying risk:

	As of September 30, 2017						As of December 31, 2016
	Notional values		Asset derivatives		Liability derivatives		Notional values		Asset derivatives		Liability derivatives
Credit risk:
Credit derivatives sold protection	$	295,973	$	18,409	$	—	$	297,612	$	28,731	$	—
Credit derivatives bought protection	294,767		—		3,742		298,173		—		14,501
Sub-total	590,740		18,409		3,742		595,785		28,731		14,501
Foreign currency risk:
Foreign currency forward contracts	—		—		—		965		—		3
Interest rate risk:
Interest rate lock commitments	276,776		6,537		—		203,815		4,872		—
Forward delivery contracts	61,094		49		—		66,731		—		84
TBA mortgage backed securities	253,750		284		283		249,750		1,678		269
Interest rate swaps	133,143		1,284		426		134,343		1,388		1,042
Sub-total	724,763		8,154		709		654,639		7,938		1,395
Total	$	1,315,503	$	26,563	$	4,451	$	1,251,389	$	36,669	$	15,899

F-31

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The Company nets the credit derivative assets and liabilities as these credit derivatives are subject to legally enforceable netting arrangements with the same party. The following table presents derivative instruments that are subject to offset by a master netting agreement:

	As of
	September 30, 2017			December 31, 2016
Derivatives subject to netting arrangements:
Credit default swap indices sold protection	$	18,409		$	28,731
Credit default swap indices bought protection	(3,742		)	(14,501		)
Gross assets recognized	14,667			14,230
Cash collateral	(1,632		)	(1,632		)
Net assets recognized (included in other investments)	$	13,035		$	12,598

Derivatives Designated as Cash Flow Hedging Instruments

A subsidiary in our specialty insurance business had an IRS with a counterparty, pursuant to which the subsidiary swapped the floating rate portion of its outstanding preferred trust securities to a fixed rate. This IRS was designated as a cash flow hedge and expired in June 2017.

Subsidiaries in our senior living business have IRSs with the same counterparty as the respective lenders, pursuant to which our subsidiary swapped the floating rate portion of its outstanding debt to a fixed rate. These IRSs are designated as cash flow hedges and expire between November 30, 2017 and August 1, 2023.

The following table presents the fair value and the related outstanding notional amounts of the Company's cash flow hedging derivative instruments and indicates where the Company records each amount in its condensed consolidated balance sheets:

		As of
	Balance Sheet Location	September 30, 2017		December 31, 2016
Derivatives designated as cash flow hedging instruments:
Notional value		$	133,143	$	134,343
Fair value of interest rate swaps	Other investments	$	1,284	$	1,388
Fair value of interest rate swaps	Other liabilities and accrued expenses	$	426	$	1,042
Unrealized gain (loss), net of tax, on the fair value of interest rate swaps	AOCI	$	1,606	$	1,759
Range of variable rates on interest rate swaps		1.23% to 1.24%		0.67% to 0.96%
Range of fixed rates on interest rate swaps		1.31% to 4.99%		1.31% to 4.99%

The following table presents the pretax impact of the cash flow hedging derivative instruments on the condensed consolidated financial statements for the following periods:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Gains (losses) recognized in AOCI on the derivative-effective portion	$	(33	)	$	156	$	(411	)	$	(515	)
(Gains) losses reclassified from AOCI into income-effective portion	$	(25	)	$	172	$	212		$	(56	)
Gains (losses) recognized in income on the derivative-ineffective portion	$	—		$	48	$	(2	)	$	(3	)

F-32

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the estimated amount to be reclassified to earnings from AOCI during the next 12 months. These net (gains) losses are reclassified into earnings through interest expense.

	As of
	September 30, 2017
Estimated (gains) losses to be reclassified to earnings from AOCI during the next 12 months	$	(199	)

(10) Assets and Liabilities of Consolidated CLOs

The CLOs are considered variable interest entities (VIE) and the Company consolidates entities when it is determined to be the primary beneficiary under current VIE accounting guidance.

On January 18, 2017, the Company sold its ownership in the subordinated notes of a CLO. As a result of the sale, the Company determined that it no longer had the controlling interest in such entity. The Company, therefore, deconsolidated its ownership in the subordinated notes of the CLO and is no longer reporting the assets and liabilities of the CLO in its condensed consolidated balance sheet as of September 30, 2017, or the revenue and expenses of the CLO in its condensed consolidated statement of operations for the three and nine months ended September 30, 2017.

On August 10, 2017, the Company’s ownership in the subordinated notes of a CLO was redeemed for cash as part of the complete liquidation of the CLO. The operations of the CLO were consolidated in the Company’s condensed consolidated financial statements through the redemption date.

The table below represents the assets and liabilities of the consolidated CLOs that are included in the Company’s condensed consolidated balance sheets as of the dates indicated:

	As of
	September 30, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	20,586	$	45,589
Loans, at fair value (1)	343,382		928,240
Other assets	8,806		15,666
Total assets of consolidated CLOs	$	372,774	$	989,495
Liabilities:
Debt	$	326,716	$	912,034
Other liabilities and accrued expenses	27,621		19,935
Total liabilities of consolidated CLOs	$	354,337	$	931,969
Net	$	18,437	$	57,526

(1) The unpaid principal balance for these loans is $352,958 and $952,225 and the difference between their fair value and UPB is $9,576 and $23,985 at September 30, 2017 and December 31, 2016, respectively.

The Company’s beneficial interests and maximum exposure to loss related to the consolidated CLOs are limited to (i) ownership in the subordinated notes and related participations in management fees of the CLOs and (ii) accrued management fees. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative results in the net amount of the CLOs shown above to be equivalent to the beneficial interests retained by the Company as illustrated in the below table:

Beneficial interests:	As of
	September 30, 2017		December 31, 2016
Subordinated notes and related participations in management fees	$	18,128	$	56,820
Accrued management fees	309		706
Total beneficial interests	$	18,437	$	57,526

F-33

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table represents revenue and expenses of the consolidated CLOs included in the Company’s condensed consolidated statements of operations for the periods indicated:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Income:
Net realized and unrealized gains (losses)	$	1,889	$	(1,422	)	$	3,457	$	(2,913	)
Interest income	5,327		13,978			20,567		37,626
Total revenue	7,216		12,556			24,024		34,713
Expenses:
Interest expense	4,580		8,267			13,629		22,667
Other expense	53		257			1,002		1,997
Total expense	4,633		8,524			14,631		24,664
Net income (loss) attributable to consolidated CLOs	$	2,583	$	4,032		$	9,393	$	10,049

As summarized in the table below, the application of the measurement alternative results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the CLOs which are eliminated upon consolidation:

Economic interests:	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Distributions received and realized and unrealized gains (losses) on the subordinated notes held by the Company, net	$	2,272	$	3,289	$	8,355	$	7,880
Management fee income	311		743		1,038		2,169
Total economic interests	$	2,583	$	4,032	$	9,393	$	10,049

F-34

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(11) Debt, net

The following table summarizes the balance of the Company’s debt obligations, net of discounts and deferred financing costs, excluding notes payable of consolidated CLOs (See Note—(10) Assets and Liabilities of Consolidated CLOs):

			Maximum borrowing capacity as of		As of
Debt Type	Stated maturity date	Stated interest rate or range of rates	September 30, 2017		September 30, 2017			December 31, 2016
Secured corporate credit agreements	September 2018 - December 2019	LIBOR + 2.50% to 6.50%	$	251,250	$	167,000		$	164,000
Asset based revolving financing (1) (2)	September 2018 - July 2022	LIBOR + 2.25% to 5.75%	365,000		261,163			250,557
Residential mortgage warehouse borrowings (3)	March 2018 - August 2018	LIBOR + 2.50% to 2.75%	171,000		95,729			101,402
Real estate commercial mortgage borrowings:
Fixed rate	August 2019 - July 2048	4.00% to 5.12%	99,283		97,433			82,133
Variable rate (LIBOR based)	October 2019 - January 2023	LIBOR + 2.05% to 6.95%	206,074		203,779			158,618
Subordinated debt	April 2020	12.50%	20,000		12,500			8,500
Preferred trust securities	June 2037	LIBOR + 4.10%	35,000		35,000			35,000
Preferred notes payable	January 2021	12.00%			1,386			1,232
Total debt, face value					873,990			801,442
Unamortized discount, net					(471		)	(382		)
Unamortized deferred financing costs					(7,890		)	(8,051		)
Total debt, net					$	865,629		$	793,009

(1) Asset based revolving financing is generally recourse only to specific assets and related cash flows.

(2) The weighted average coupon rate for asset based revolving financing was 3.89% and 3.53% at September 30, 2017 and December 31, 2016, respectively.

(3) The weighted average coupon rate for residential mortgage warehouse borrowings was 4.10% and 3.51% at September 30, 2017 and December 31, 2016, respectively. Includes debt having a maximum borrowing capacity of $171,000 with a stated interest rate of LIBOR + 2.50% to LIBOR +2.75% and a floor of 3.00%.

The table below presents the amount of interest expense the Company incurred on its debt for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest expense on debt	$	10,427	$	7,769	$	28,650	$	20,612

The following table presents the future maturities of the unpaid principal balance on the Company’s long-term debt as of:

	September 30, 2017
Remainder of 2017	$	8,689
2018	182,173
2019	267,685
2020	121,514
2021	21,899
Thereafter	272,030
Total	$	873,990

F-35

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following narrative is a summary of certain of the terms of our debt agreements for the periods ended September 30, 2017:

Asset Backed Revolving Financing

An asset backed revolving borrowing in our asset management business entered into an amendment that changed the stated interest from LIBOR plus 2.50%, to LIBOR plus 2.25%, and extended the maturity date from July 2021 to July 2022.

An asset backed revolving borrowing in our specialty finance business increased its maximum borrowing capacity from $125,000 to $150,000 as of September 30, 2017 and also changed its maturing date from October 2019 to October 2020.

An asset backed revolving borrowing in our specialty insurance business with a maximum borrowing capacity of $15,000 matured in April 2017. A new borrowing maturing in April 2019 with an interest rate of LIBOR plus 2.60% and a maximum borrowing capacity of $25,000 was used to pay off the matured borrowing.

Residential Mortgage Warehouse Borrowings

The maximum borrowing amount for three of the six warehouse lines of credit, through subsidiaries in our specialty finance business, decreased by $18,000, from $88,000 as of December 31, 2016 to $70,000 as of September 30, 2017.

The maturity dates for warehouse lines of credit through subsidiaries in our specialty finance business were extended during the nine months ended September 30, 2017. One borrowing extended its maturity from April 2017 to March 2018, one borrowing extended its maturity from June 2017 to March 2018, and two borrowings extended their maturity from June 2017 to June 2018.

Real Estate Commercial Mortgage Borrowings

On February 3, 2017, in connection with an acquisition in the senior living business, the Company along with our partners entered into a $10,000, five year mortgage borrowing, which includes 12 months of interest only payments. The loan carries a variable rate of LIBOR plus 3.75%. If on or after February 3, 2019 the facility has achieved certain occupancy and minimum debt service coverage ratio, then the interest rate will be reduced to a rate of LIBOR plus 2.75% as of such date. This note matures on February 1, 2022.

On February 9, 2017, in connection with assets acquired in the senior living business, a pre-existing Housing and Urban Development (HUD) loan was assumed by a subsidiary in our senior living business. The 35 year loan was originally dated June 1, 2013 for $8,072. The loan carries a fixed interest rate of 3.08% per annum, and matures on July 1, 2048. As of the acquisition date, this debt had a balance of $7,586. All terms of the note assumed remain consistent with the original note.

On April 18, 2017, in connection with an acquisition in the senior living business, the Company entered into a $7,000, five year mortgage borrowing. The loan carries a variable rate of LIBOR plus 3.00% and matures on May 1, 2022.

On May 31, 2017, in connection with an acquisition of seven skilled nursing facilities in the senior living business, the Company entered into a $28,800, three year mortgage borrowing. The loan carries a variable rate of LIBOR plus 6.95% and matures on May 31, 2020.

On June 14, 2017, in connection with an acquisition in the senior living business, the Company entered into a $9,150, five year mortgage borrowing. The loan carries a fixed interest rate of 4.60% and matures on July 1, 2022.

Covenant Compliance

As of September 30, 2017, the Company is in compliance with the representations and covenants for outstanding borrowings or has obtained waivers for any events of non-compliance.

(12) Fair Value of Financial Instruments

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs to the extent possible to measure a financial instrument’s fair value. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability, and are affected by the type of product, whether the product is traded on an active exchange or in the secondary market, as well as current market conditions. To the extent that valuation is based on models or inputs that are less

F-36

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is estimated by applying the hierarchy discussed in Note—(2) Summary of Significant Accounting Policies to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized within Level 3 of the fair value hierarchy.

The Company’s fair value measurement is based primarily on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable financial instruments. Sources of inputs to the market approach include third-party pricing services, independent broker quotations and pricing matrices. Management analyzes the third party valuation methodologies and its related inputs to perform assessments to determine the appropriate level within the fair value hierarchy and to assess reliability of values. Further, management has a process in place to review all changes in fair value that occurred during each measurement period. Any discrepancies or unusual observations are followed through to resolution through the source of the pricing as well as utilizing comparisons, if applicable, to alternate pricing sources. In addition, the Company utilizes an income approach to measure the fair value of NPLs, as discussed below.

The Company utilizes observable and unobservable inputs within its valuation methodologies. Observable inputs may include: benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. In addition, specific issuer information and other market data is used. Broker quotes are obtained from sources recognized to be market participants. Unobservable inputs may include: expected cash flow streams, default rates, supply and demand considerations and market volatility.

Available for Sale Securities

Available for sale securities are generally classified within either Level 1 or Level 2 of the fair value hierarchy and are based on prices provided by an independent pricing service and a third party investment manager who provide a single price or quote per security.

The following details the methods and assumptions used to estimate the fair value of each class of available for sale securities and the applicable level each security falls within the fair value hierarchy:

U.S Treasury Securities, Obligations of U.S. Government Authorities and Agencies, Obligations of State and Political Subdivisions, Corporate Securities, Asset-Backed Securities, and Obligations of Foreign Governments: Fair values were obtained from an independent pricing service and a third party investment manager. The prices provided by the independent pricing service are based on quoted market prices, when available, non-binding broker quotes, or matrix pricing and fall under Level 2 of the fair value hierarchy.

Certificates of Deposit: The estimated fair value of certificates of deposit approximate carrying value and fall under Level 1 of the fair value hierarchy.

Equity Securities: The fair values of publicly traded common and preferred stocks were obtained from market value quotations provided by an independent pricing service and fall under Level 1 of the fair value hierarchy. The fair values of non-publicly traded common and preferred stocks were based on prices obtained from an independent pricing service using unobservable inputs and fall under Level 3 of the fair value hierarchy.

Loans, at fair value

Corporate Loans (including those of consolidated CLOs): These loans are comprised of a diversified portfolio of middle market and broadly syndicated leveraged loans and are generally classified within either Level 2 or Level 3 in the fair value hierarchy. The Company has evaluated each loan’s respective liquidity and has additionally performed valuation benchmarking. The key characteristics which were evaluated as part of this determination were liquidity ratings, price changes to index benchmarks, depth of quotes, credit ratings and industry trends.

F-37

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

Mortgage Loans Held for Sale: Mortgage loans held for sale are generally classified as Level 2 in the fair value hierarchy and fair value is based upon forward sales contracts with third party investors, including estimated loan costs, and reserves. For non-performing mortgage loans held for sale, fair value is based upon estimated selling prices from third party investors of such types of loans.

Nonperforming Loans and REO: The Company determines the purchase price for NPLs at the time of acquisition and for each subsequent valuation by using a discounted cash flow valuation model and considering alternate loan resolution probabilities, including modification, liquidation, or conversion to REO. The significant unobservable inputs used in the fair value measurement of our NPLs are discount rates, loan resolution timeline, and the value of underlying properties. The fair values of NPLs which are making payments (generally based on a modification or a workout plan) are primarily based upon secondary market transaction prices, which are expressed as a percentage of unpaid principal balance (UPB). Observable inputs to the model include loan amounts, payment history, and property types. Our NPLs are on nonaccrual status at the time of purchase as it is probable that principal or interest is not fully collectible. NPLs are included in loans, at fair value and fall under Level 3 of the fair value hierarchy.

NPLs that have become REOs were measured at fair value on a non-recurring basis during the nine months ended September 30, 2017 and year ended December 31, 2016. The carrying value of REOs at September 30, 2017 and December 31, 2016 was $13,079 and $13,366, respectively. Upon conversion to REO, the fair value is estimated using broker price opinion (BPO). BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings, and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. REO is included in real estate, net.

Derivative Assets and Liabilities

Derivatives are comprised of credit default swaps (CDS), index credit default swaps (CDX), interest rate lock commitments (IRLC), to be announced mortgage backed securities (TBA) and interest rate swaps (IRS). The fair value of these instruments is based upon valuation pricing models, which represent the amount the Company would expect to receive or pay at the balance sheet date to exit the position. In general, the fair value of CDSs and CDXs are based on dealer quotes. Because significant inputs, other than unadjusted quoted prices in active markets are used to determine the dealer quotes, such as price volatility, the Company classifies them as Level 2 in the fair value hierarchy. The fair value of IRS is based upon either valuation pricing models, which represent the amount the Company would expect to pay at the balance sheet date if the contracts were exited, or by obtaining broker or counterparty quotes. Because there are observable inputs used to arrive at these prices, the Company has classified IRS within Level 2 of the fair value hierarchy. Our mortgage origination subsidiaries issue IRLCs to its customers, which are carried at estimated fair value on the Company’s condensed consolidated balance sheet. The estimated fair values of these commitments are generally calculated by reference to the value of the underlying loan associated with the IRLC net of costs to produce and an expected fall out assumption. The fair values of these commitments generally result in a Level 3 classification. Our mortgage origination subsidiaries manage their exposure by entering into forward delivery commitments with loan investors. For loans not locked with investors under a forward delivery commitment, the Company enters into hedge instruments, primarily TBAs, to protect against movements in interest rates. The fair values of TBA mortgage backed securities generally result in a Level 2 classification.

The following tables present the Company’s fair value hierarchies for financial assets and liabilities, including the balances associated with the consolidated CLOs, measured on a recurring basis:

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	615	$	—	$	47	$	662
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		36,354		—		36,354
Obligations of state and political subdivisions	—		47,633		—		47,633
Obligations of foreign governments	—		579		—		579
Certificates of deposit	896		—		—		896
Asset backed securities	—		24,100		—		24,100

F-38

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Corporate securities	—		53,869		—		53,869
Total available for sale securities	1,511		162,535		47		164,093
Loans, at fair value:
Corporate loans	—		33,427		129,085		162,512
Mortgage loans held for sale	—		114,461		—		114,461
Non-performing loans	—		—		44,980		44,980
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		147,888		175,234		323,122
Equity securities, trading, at fair value	28,106		—		—		28,106
Other investments:
Derivative assets:
Interest rate swaps	—		1,284		—		1,284
Forward delivery contracts	—		49		—		49
Interest rate lock commitments	—		—		6,537		6,537
TBA mortgage backed securities	—		284		—		284
Credit derivatives	—		13,035		—		13,035
Total derivative assets	—		14,652		6,537		21,189
CLOs	—		—		2,045		2,045
Debentures	—		3,957		—		3,957
Total other investments	—		18,609		8,582		27,191
Total financial instruments attributable to non-CLOs included in consolidated assets	29,617		329,032		183,863		542,512
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		132,623		210,759		343,382
Total financial instruments included in assets of consolidated CLOs	—		132,623		210,759		343,382
Total	$	29,617	$	461,655	$	394,622	$	885,894
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	426	$	—	$	426
TBA mortgage backed securities	—		283		—		283
Foreign currency forward contracts	—		—		—		—
Total derivative liabilities (included in other liabilities and accrued expenses)	—		709		—		709
Contingent consideration payable	—		—		52		52
Preferred notes payable	—		—		1,386		1,386
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		709		1,438		2,147
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		326,716		326,716
Total financial instruments included in liabilities of consolidated CLOs	—		—		326,716		326,716
Total	$	—	$	709	$	328,154	$	328,863

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	736	$	—	$	48	$	784

F-39

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		26,799		—		26,799
Obligations of state and political subdivisions	—		56,934		—		56,934
Obligations of foreign governments	—		728		—		728
Certificates of deposit	895		—		—		895
Asset backed securities	—		1,460		—		1,460
Corporate bonds	—		58,571		—		58,571
Total available for sale securities, at fair value	1,631		144,492		48		146,171
Loans, at fair value:
Corporate loans	—		46,352		129,206		175,558
Mortgage loans held for sale	—		121,439		—		121,439
Non-performing loans	—		—		74,923		74,923
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		167,791		205,298		373,089
Equity securities, trading, at fair value	48,612		—		—		48,612
Other investments:
Derivative assets:
Interest rate swaps	—		1,388		—		1,388
Interest rate lock commitments	—		—		4,872		4,872
TBA mortgage backed securities	—		1,678		—		1,678
Credit derivatives	—		12,598		—		12,598
Total derivative assets	—		15,664		4,872		20,536
CLOs	—		—		974		974
Debentures	—		3,957		—		3,957
Total other investments	—		19,621		5,846		25,467
Total financial instruments attributable to non-CLOs included in consolidated assets	50,243		331,904		211,192		593,339
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		342,370		585,870		928,240
Total financial instruments included in assets of consolidated CLOs	—		342,370		585,870		928,240
Total	$	50,243	$	674,274	$	797,062	$	1,521,579
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	1,042	$	—	$	1,042
Forward delivery contracts	—		84		—		84
TBA mortgage backed securities	—		269		—		269
Foreign currency forward contracts	—		3		—		3
Total derivative liabilities (included in other liabilities and accrued expenses)	—		1,398		—		1,398
Contingent consideration payable	—		—		1,852		1,852
Preferred notes payable	—		—		1,232		1,232
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		1,398		3,084		4,482
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		912,034		912,034
Total financial instruments included in liabilities of consolidated CLOs	—		—		912,034		912,034
Total	$	—	$	1,398	$	915,118	$	916,516

F-40

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table represents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:    

	Nine Months Ended September 30,
	2017						2016 (3)
	Non-CLO assets			CLO assets			Non-CLO assets			CLO assets
Balance at January 1,	$	211,192		$	585,870		$	239,944		$	520,892
Net realized gains (losses)	7,279			(1,667		)	4,450			402
Net unrealized gains (losses)	2,800			89			5,482			15,584
Origination of IRLC	54,468			—			38,554			—
Purchases	41,458			76,122			101,161			157,144
Sales (1)	(74,010		)	(193,205		)	(56,824		)	(72,612		)
Issuances	590			676			1,716			1,546
Transfer into Level 3 (2)	9,286			17,601			23,184			32,858
Transfer adjustments (out of) Level 3 (2)	(7,641		)	(23,427		)	(15,280		)	(66,215		)
Deconsolidation of CLO due to sale	1,342			(251,300		)	—			—
Conversion to real estate owned	(9,793		)	—			(10,288		)	—
Conversion to mortgage held for sale	(53,069		)	—			(36,378		)	—
Warehouse transfer to CLO	—			—			(104,098		)	104,098
Other	(39		)	—			—			—
Balance at September 30,	$	183,863		$	210,759		$	191,623		$	693,697
Changes in unrealized gains (losses) included in earnings related to assets still held at period end	$	4,790		$	(168	)	$	4,023		$	11,325

(1) Included within the CLO assets amount are sales related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

(2) All transfers are deemed to occur at end of period. Transfers between Level 2 and 3 were a result of subjecting third-party pricing on both CLO and Non-CLO assets to various liquidity, depth, bid-ask spread and benchmarking criteria as well as assessing the availability of observable inputs affecting their fair valuation.

(3) Items within the Level 3 rollforward have been restated to reflect assets purchased during a period as purchases rather than transfers. The presentation of gross origination of IRLC’s and gross conversion to mortgage held for sale have also been restated to show the break out from net realized and unrealized gains and losses, conversion to real estate owned, and transfers out of Level 3 assets. These changes have no impact on the total amount of Level 3 assets.

The following table represents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:

	Nine Months Ended September 30,
	2017						2016
	Non-CLO liabilities			CLO liabilities			Non-CLO liabilities			CLO liabilities
Balance at January 1,	$	3,084		$	912,034		$	2,498		$	683,827
Net unrealized (gains) losses	—			(3,071		)	(262		)	23,169
Issuances	—			—			—			222,303
Settlements (1)	(4,838		)	(155,194		)	(377		)	—
Dispositions	—			(49,010		)	—			(1,317		)
FV adjustment	3,192			—			—			—
Deconsolidation of CLO due to sale	—			(378,043		)	—			—
Balance at September 30,	$	1,438		$	326,716		$	1,859		$	927,982
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end	$	154		$	(6,119	)	$	(262	)	$	23,169

(1) Included within the CLO liabilities amount are settlements related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

F-41

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following is quantitative information about Level 3 significant unobservable inputs used in fair valuation.

	Fair Value as of						Actual or Range (Weighted average)
Assets(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Interest rate lock commitments	$	6,537	$	4,872	Internal model	Pull through rate	45% - 95%	45% - 95%
NPLs	44,980		74,923		Discounted cash flow	See table below (2)	See table below	See table below
Total	$	51,517	$	79,795

(1) Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

(2) Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics, such as location and value of underlying collateral, affect the loan resolution timeline. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value.

The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our NPLs. For NPLs that are not making payments, discount rate, loan resolution time-line, value of underlying properties, holdings costs and liquidation costs are the primary inputs used to measure fair value. For NPLs that are making payments, note rate and secondary market transaction prices/UPB are the primary inputs used to measure fair value.

	As of September 30, 2017			As of December 31, 2016
Unobservable inputs	High	Low	Average(1)	High	Low	Average(1)
Discount rate	30.0%	16.0%	23.2%	30.0%	16.0%	22.9%
Loan resolution time-line (Years)	2.59	0.48	1.26	2.3	0.5	1.2
Value of underlying properties	$2,400	$40	$307	$1,800	$32	$234
Holding costs	22.0%	5.5%	7.7%	24.1%	5.4%	8.3%
Liquidation costs	20.8%	8.1%	9.4%	25.0%	8.5%	9.6%
Note rate	6.0%	3.0%	5.2%	6.0%	3.0%	4.8%
Secondary market transaction prices/UPB	88.5%	75.5%	85.2%	88.5%	75.5%	83.7%

(1) Weighted based on value of underlying properties (excluding the value of underlying properties line item).

	Fair Value as of						Actual or Range (Weighted average)
Liabilities(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Contingent consideration payable - Reliance (2)	$	—	$	1,800	Cash Flow model (3)	Forecast EBITDA	$1,000 - $8,000	$951 - $6,005
						Book value growth rate	N/A	5.0%
						Asset volatility	N/A	1.4% - 23.7%
Contingent consideration payable - Luxury	52		52		Cash Flow model	Projected cash available for distribution	$1,059 - $1,316	$1,059 - $1,316
Preferred notes payable	1,386		1,232		Cash Flow model	Discount rate	12.0%	12.0%
Total	$	1,438	$	3,084

(1) Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

(2) Settled in Q3 2017 with Class A common shares. See Note—(17) Stockholders’ Equity.

(3) Monte Carlo simulation is run, as needed.

F-42

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value and their respective levels within the fair value hierarchy:

	As of September 30, 2017					As of December 31, 2016
	Level within fair value hierarchy	Fair value		Carrying value		Level within fair value hierarchy	Fair value		Carrying value
Assets:
Notes and accounts receivable, net	2	$	19,310	$	19,310	2	$	28,293	$	28,732
Total assets		$	19,310	$	19,310		$	28,293	$	28,732
Liabilities:
Debt, net	3	$	876,444	$	872,133	3	$	798,806	$	799,828
Total liabilities		$	876,444	$	872,133		$	798,806	$	799,828

Notes and Accounts Receivable: To the extent that carrying amounts differ from fair value, fair value is determined based on contractual cash flows discounted at market rates for similar credits. Categorized as Level 2 of the fair value hierarchy.

Debt: The carrying value represents the total debt balance at face value excluding the unamortized discount. The fair value of notes payable is determined based on contractual cash flows discounted at market rates for mortgage notes payable and either dealer quotes or contractual cash flows discounted at market rates for other notes payable. Categorized as Level 3 of the fair value hierarchy.

Additionally, the following financial assets and liabilities on the condensed consolidated balance sheets are not carried at fair value, but whose carrying amounts approximate their fair value:

Loans Owned, at Amortized Cost: The fair value of loans owned, at amortized cost approximates its carrying value because the interest rates on the loans are based on a variable market interest rate. Categorized as Level 3 of the fair value hierarchy.

Cash and Cash Equivalents: The carrying amounts of cash and cash equivalents are carried at cost which approximates fair value. Categorized as Level 1 of the fair value hierarchy.

Accounts and Premiums Receivable, net, retrospective commissions receivable and other receivables: The carrying amounts approximate fair value since no interest rate is charged on these short duration assets. Categorized as Level 2 of the fair value hierarchy. See Note—(6) Notes and Accounts Receivable, net.

Due from Brokers, Dealers, and Trustees and Due to Brokers, Dealers and Trustees: The carrying amounts are included in other assets and other liabilities and accrued expenses and approximate their fair value due to their short‑term nature. Categorized as Level 2 of the fair value hierarchy.

F-43

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(13) Liability for Unpaid Claims and Claim Adjustment Expenses

Roll forward of Claim Liability

The following table presents the activity in the net liability for unpaid losses and allocated loss adjustment expenses of short-duration contracts for the following periods:

	Nine Months Ended September 30,
	2017			2016
Policy liabilities and unpaid claims balance as of January 1	$	103,391		$	80,663
Less : liabilities of policy-holder accounts balances, gross	(17,417		)	(19,037		)
Less : non-insurance warranty benefit claim liabilities	(91		)	(116		)
Gross liabilities for unpaid losses and loss adjustment expenses	85,883			61,510
Less : reinsurance recoverable on unpaid losses - short duration	(63,112		)	(42,341		)
Less : other lines, gross	(208		)	(163		)
Net balance as of January 1, short duration	22,563			19,006
Incurred (short duration) related to:
Current year	78,174			55,461
Prior years	2,958			(1,987		)
Total incurred	81,132			53,474
Paid (short duration) related to:
Current year	57,875			34,822
Prior years	20,600			13,992
Total paid	78,475			48,814
Net balance as of September 30, short duration	25,220			23,666
Plus : reinsurance recoverable on unpaid losses - short duration	69,813			60,236
Plus : other lines, gross	193			164
Gross liabilities for unpaid losses and loss adjustment expenses	95,226			84,066
Plus : liabilities of policy-holder accounts balances, gross	15,652			17,766
Plus : non-insurance warranty benefit claim liabilities	50			80
Policy liabilities and unpaid claims balance as of September 30,	$	110,928		$	101,912

The following schedule reconciles the total on short duration contracts per the table above to the amount of total losses incurred as presented in the condensed consolidated statement of operations, excluding the amount for member benefit claims:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total incurred	$	27,236	$	19,247	$	81,132	$	53,474
Other lines incurred	81		44		78		74
Unallocated loss adjustment expense	441		623		1,343		1,554
Total losses incurred	$	27,758	$	19,914	$	82,553	$	55,102

For the nine months ended September 30, 2017, the Company’s specialty insurance business experienced an increase in prior year case development of $2,958. This included $1,772 in non-standard auto and $1,852 in warranty. This development was partially offset by favorable development in its credit lines of business. The warranty and credit lines of business are primarily in retrospective commission arrangements that minimally impact the operating income of the Company.

F-44

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

For the nine months ended September 30, 2016, the Company’s specialty insurance business experienced a decrease in prior year case development of $1,987. This decrease was due to the favorable development in credit lines of business. This development was partially offset by increased case development of $1,644 in non-standard auto and $1,328 in warranty. The warranty and credit lines of business are primarily in retrospective commission arrangements that minimally impacts the operating income of the Company.

(14) Other Assets

The following table presents the components of other assets as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Due from brokers	$	1,505	$	2,027
Furniture, fixtures and equipment, net	5,669		5,936
Prepaid expenses	9,441		5,020
Accrued interest receivable	3,154		2,052
Management fee receivable	4,375		4,308
Other fee receivable	5,159		5,022
Income tax receivable	4,140		4,842
Other	15,101		8,679
Total other assets	$	48,544	$	37,886

The following table presents the depreciation expense related to furniture, fixtures and equipment for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense related to furniture, fixtures and equipment	$	656	$	667	$	1,883	$	1,978

(15) Other Liabilities and Accrued Expenses

The following table presents the components of other liabilities and accrued expenses as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Accounts payable and accrued expenses	$	46,544	$	67,837
Deferred tax liabilities, net	30,789		32,296
Due to brokers	7,733		8,457
Commissions payable	11,007		7,466
Accrued interest payable	2,127		1,729
Derivative liabilities, at fair value	709		1,398
Other liabilities	16,949		14,552
Total other liabilities and accrued expenses	$	115,858	$	133,735

F-45

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(16) Other Income and Other Expenses

The following table presents the components of other income as reported in the condensed consolidated statement of operations, primarily comprised of interest income and loan fee income related to both loans at fair value and loans at amortized costs, net in our specialty finance business, and management fees from our asset management business:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest income	$	5,254	$	4,215	$	14,439	$	13,455
Loan fee income	3,201		3,915		9,451		9,296
Management fee income	1,541		3,839		6,578		7,497
Other	1,383		450		3,352		1,477
Total other income	$	11,379	$	12,419	$	33,820	$	31,725

The following table presents the components of other expenses as reported in the condensed consolidated statement of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Professional fees	$	4,506	$	5,283	$	13,980	$	17,581
Acquisition and transaction costs	25		248		302		631
General and administrative	4,015		3,178		11,552		10,788
Premium taxes	2,810		1,637		8,840		5,480
Mortgage origination expenses	2,406		2,308		6,728		5,944
Property operating expenses	2,635		1,854		7,798		5,439
Rent and related	2,992		3,091		8,998		9,189
Other	3,775		4,087		15,182		13,299
Total other expense	$	23,164	$	21,686	$	73,380	$	68,351

(17) Stockholders’ Equity

All shares of our Class A common stock have equal rights as to earnings, assets, dividends and voting. Shares of Class B common stock have the voting rights as the Class A common stock but no economic rights (including no right to receive dividends or other distributions upon liquidation, dissolution or otherwise). Distributions may be paid to holders of Class A common stock when duly authorized by our board of directors and declared out of legally available assets.

TFP owns a warrant to purchase 652,500 shares of Class A common stock at $11.33 per share which is immediately exercisable and expires on September 30, 2018. Such an exercise would be accounted for as treasury stock held at TFP and would have no impact on Tiptree’s financial statements.

On June 5, 2017, in settlement of an option, TFP delivered 1,510,920 shares of the Company’s Class A common stock to Tricadia for total consideration of approximately $8,100.

On June 21, 2017, a subsidiary of Tiptree purchased 1,000,000 shares of Class A common stock of Tiptree for aggregate consideration of $7,300. The shares acquired are accounted for as treasury shares and therefore are not outstanding for accounting or voting purposes.

On August 10, 2017, the Company settled a contingent consideration payable related to the acquisition of Reliance in 2015 with 756,046 shares of Class A common stock.

F-46

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The Company declared cash dividends per share for the following periods presented below:

	Dividends per share for
	Nine Months Ended September 30,
	2017		2016
First Quarter	$	0.030	$	0.025
Second Quarter	0.030		0.025
Third Quarter	0.030		0.025
Total cash dividends declared	$	0.090	$	0.075

Statutory Reporting and Insurance Company Subsidiaries Dividend Restrictions

The Company's insurance company subsidiaries may pay dividends to the Company, subject to statutory restrictions. Payments in excess of statutory restrictions (extraordinary dividends) to the Company are permitted only with prior approval of the insurance department of the applicable state of domicile. The Company eliminated all dividends from its subsidiaries in the condensed consolidated financial statements. For the three and nine months ended September 30, 2017 and 2016, respectively, the Company’s insurance company subsidiaries did not pay any ordinary or extraordinary dividends.

The following table presents the combined statutory capital and surplus of the Company's insurance company subsidiaries, the required minimum statutory capital and surplus, as required by the laws of the states in which they are domiciled, and the combined amount available for ordinary dividends of the Company's insurance company subsidiaries for the following periods:

	As of
	September 30, 2017		December 31, 2016
Combined statutory capital and surplus of the Company's insurance company subsidiaries	$	108,666	$	100,920
Required minimum statutory capital and surplus	$	19,200	$	17,200
Amount available for ordinary dividends of the Company's insurance company subsidiaries	$	9,425	$	9,049

At September 30, 2017, the maximum amount of dividends that our regulated insurance company subsidiaries could pay under applicable laws and regulations without regulatory approval was approximately $9,425. The Company may seek regulatory approval to pay dividends in excess of this permitted amount, but there can be no assurance that the Company would receive regulatory approval if sought.

Under the National Association of Insurance Commissioners (NAIC) Risk-Based Capital Act of 1995, a company's Risk-Based Capital (RBC) is calculated by applying certain risk factors to various asset, claim and reserve items. If a company's adjusted surplus falls below calculated RBC thresholds, regulatory intervention or oversight is required. The Company's insurance company subsidiaries' RBC levels, as calculated in accordance with the NAIC’s RBC instructions, exceeded all RBC thresholds as of September 30, 2017.

The following table presents the net income of the Company’s statutory insurance companies for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income of statutory insurance companies	$	391	$	4,199	$	6,745	$	10,326

F-47

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(18) Accumulated Other Comprehensive Income (Loss)

The following table presents the activity in accumulated other comprehensive income (loss) (AOCI), net of tax, for the following periods:

	Unrealized gains (losses) on									Amount attributable to noncontrolling interests
	Available for sale securities			Interest rate swaps			Total AOCI			TFP			Other			Total AOCI to Tiptree Inc.
Balance at December 31, 2015	$	(222	)	$	111		$	(111	)	$	—		$	—		$	(111	)
Other comprehensive income (losses) before reclassifications	2,448			(357		)	2,091			(237		)	29			1,883
Amounts reclassified from AOCI	(715		)	(26		)	(741		)	—			—			(741		)
Period change	1,733			(383		)	1,350			(237		)	29			1,142
Balance at September 30, 2016	$	1,511		$	(272	)	$	1,239		$	(237	)	$	29		$	1,031
Balance at December 31, 2016	$	(700	)	$	1,759		$	1,059		$	(128	)	$	(376	)	$	555
Other comprehensive income (losses) before reclassifications	1,165			(296		)	869			(154		)	48			763
Amounts reclassified from AOCI	(238		)	143			(95		)	—			—			(95		)
Period change	927			(153		)	774			(154		)	48			668
Balance at September 30, 2017	$	227		$	1,606		$	1,833		$	(282	)	$	(328	)	$	1,223

The following table presents the reclassification adjustments out of AOCI included in net income and the impacted line items on the condensed consolidated statement of operations for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in Condensed Consolidated Statement of Operations
Components of AOCI	2017			2016			2017			2016
Unrealized gains (losses) on available for sale securities	$	394		$	960		$	367		$	1,100		Net realized and unrealized gains (losses)
Related tax (expense) benefit	(138		)	(336		)	(129		)	(385		)	Provision for income tax
Net of tax	$	256		$	624		$	238		$	715
Unrealized gains (losses) on interest rate swaps	$	25		$	(172	)	$	(212	)	$	56		Interest expense
Related tax (expense) benefit	(8		)	54			69			(30		)	Provision for income tax
Net of tax	$	17		$	(118	)	$	(143	)	$	26

(19) Stock Based Compensation

Equity Plans

2007 Manager Equity Plan

The Care Investment Trust Inc. Manager Equity Plan (Manager Plan) was adopted in June 2007. On June 6, 2017, the 134,629 remaining shares of Class A common stock available for issuance under the Manager Plan was rolled into the 2017 Equity Plan and the Manager Plan was simultaneously terminated.

2013 Omnibus Incentive Plan

The Tiptree 2013 Omnibus Incentive Plan (2013 Equity Plan) was adopted on August 8, 2013. On June 6, 2017, the 7,359 remaining shares of Class A common stock available for issuance under the 2013 Equity Plan was rolled into the 2017 Equity Plan and the 2013 Equity Plan was simultaneously terminated.

F-48

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

2017 Omnibus Incentive Plan

The Company adopted the Tiptree 2017 Omnibus Incentive Plan (2017 Equity Plan) on June 6, 2017, which permits the grant of stock units, stock, and stock options up to a maximum of 6,100,000 shares of Class A common stock. The general purpose of the 2017 Equity Plan is to attract, motivate and retain selected employees and directors for the Company and its subsidiaries, to provide them with incentives and rewards for performance and to better align their interests with the interests of the Company’s stockholders. Unless otherwise extended, the 2017 Equity Plan terminates automatically on the 10th anniversary of its adoption.

The table below summarizes changes to the issuances under the Company’s 2013 and 2017 Equity Plan for the periods indicated:

2013 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	961,650
Shares granted	(954,291	)
Shares rolled into 2017 Equity Plan	(7,359	)
Available for issuance as of September 30, 2017	—
2017 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	—
Available from 2017 Equity Plan	6,100,000
Shares granted	(71,016	)
Available for issuance as of September 30, 2017	6,028,984

(1) Excludes shares granted under the Company’s subsidiary incentive plans that are exchangeable for Tiptree Class A common stock.

Restricted Stock Units (RSUs)

Generally, the Tiptree RSUs shall vest and become nonforfeitable with respect to one-third of Tiptree shares granted on each of the first, second and third anniversaries of the date of the grant, and expensed using the straight-line method over the requisite service period.

The following table summarizes changes to the issuances of Class A common stock and RSUs under the 2017 Equity Plan for the periods indicated:

	Number of shares issuable		Weighted average grant date fair value
Unvested units as of December 31, 2016	299,817		$	6.27
Granted (1)	454,680		6.60
Vested	(155,615	)	6.42
Unvested units as of September 30, 2017	598,882		$	6.48

(1) Includes grants of 27,192 shares of Class A common stock to directors.

The Company values RSUs at their grant-date fair value as measured by Tiptree’s common stock price. Included in vested shares for 2017 are 16,716 shares surrendered to pay taxes on behalf of the employees with shares vesting. During the nine months ended September 30, 2017, the Company granted 427,488 RSUs to employees of the Company. 142,175 shares vest ratably over a period of three years that began in February 2017 and the remaining 285,313 shares will cliff vest in February 2020.

Subsidiary Incentive Plans

Certain of Tiptree’s subsidiaries have established RSU programs under which they are authorized to issue RSUs or their equivalents, representing equity of such subsidiaries to certain of their employees. Such awards are accounted for as equity. These RSUs are subject to performance-vesting criteria based on the performance of the subsidiary (performance vesting RSUs) and time-vesting subject to continued employment (time vesting RSUs). Following the service period, such vested RSUs may be exchanged at fair market value, at the option of the holder, for Tiptree Class A common stock under the 2017 Equity Plan.

F-49

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The Company has the option, but not the obligation to settle the exchange right in shares or cash.

The following table summarizes changes to the issuances of subsidiary RSU’s under the subsidiary incentive plans for the periods indicated:

	Grant date fair value of equity shares issuable
Unvested balance as of December 31, 2016	$	8,089
Vested	(2,436		)
Grant value adjustment (1)	(210		)
Unvested balance as of September 30, 2017 (2)	$	5,443

(1) Due to the approval of the 2017 Equity Plan, Tiptree changed the classification of the subsidiary RSU’s during the three months ended September 30, 2017 from liability to equity awards, because the Company expects to settle these awards in stock.

(2) The unvested balance translates to 1,093,139 shares of Class A common stock if converted as of September 30, 2017.

Stock Options

Option awards have been granted to the Executive Committee with an exercise price equal to the fair market value of our common stock on the date of grant; those option awards have a 10-year term and are subject the recipient’s continuous service, a market requirement, and generally vest over five years beginning on the 3^rd anniversary of the grant date. Options granted during the year ended December 31, 2016 contained a market requirement that, at any time during the option term, the 20-day volume weighted average stock price must exceed the December 31, 2015 book value per share. Options granted in 2017 contained a market requirement that, at any time during the option term, the 20-day volume weighted average stock price plus the sum of actual cash dividends paid must exceed the December 31, 2016 as exchanged book value per share. The market requirement may be met any time before the option expires and it only needs to be met once for the option to remain exercisable for the remainder of its term. If the service condition is met, the full amount of the compensation expense will be recognized over the appropriate vesting period whether the market requirement is met or not.

The fair value option grants are estimated on the date of grant using a Black-Scholes-Merton option pricing formula embedded within a Monte Carlo model used to simulate the future stock prices of the Company, which assumes that the market requirement is achieved. Historical volatility was computed based on historical daily returns of the Company’s stock between the grant date and July 1, 2013, the date of the business combination through which Tiptree became a public company. The valuation is done under a risk-neutral framework using the 10-year zero-coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve on the grant date. The current quarterly dividend rates in effect as of the date of the grant are used to calculate a spot dividend yield as of the date of grant for use in the model.

The following table presents the assumptions used to estimate the fair values of the stock options granted for the following period:

Valuation Input	Nine Months Ended September 30, 2017
	Assumption		Average
Historical volatility	47.20	%	N/A
Risk-free rate	2.44	%	N/A
Dividend yield	1.80	%	N/A
Expected term (years)			6.5

F-50

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents the Company's stock option activity for the current period:

	Options outstanding	Weighted average exercise price (in dollars per stock option)		Weighted average grant date value (in dollars per stock option)		Options exercisable
Balance, December 31, 2016	251,237	$	5.69	$	2.62	—
Granted	570,627	6.65		2.91		—
Balance, September 30, 2017	821,864	$	6.36	$	2.82	—
Weighted average remaining contractual term at September 30, 2017 (in years)	9.1

Stock-based Compensation Expense

The following table presents the total time-based and performance-based stock-based compensation expense and the related income tax benefit recognized on the condensed consolidated statements of operations:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Employee compensation and benefits	$	1,135		$	633		$	4,275		$	1,597
Professional fees (1)	—			35			—			99
Income tax benefit	(401		)	(236		)	(1,509		)	(599		)
Net stock-based compensation expense	$	734		$	432		$	2,766		$	1,097

(1) Professional fees consist of the value of restricted stock units and options granted to persons providing services to the Company.

Additional information on total non-vested stock-based compensation is as follows:

	As of
	September 30, 2017
	Stock options		Restricted stock awards and RSUs
Unrecognized compensation cost related to non-vested awards	$	1,798	$	9,176
Weighted - average recognition period (in years)	3.1		1.8

(20) Related Party Transactions

On June 30, 2012, TAMCO, TFP and Tricadia Holdings LP (Tricadia) entered into the Transition Services Agreement (TSA) in connection with the internalization of the management of Tiptree which was assigned to the Company in connection with the Contribution Transactions. Pursuant to the TSA, Tricadia provides the Company with the services of its Executive Chairman and office space and in 2016, information technology services. Payments to Tricadia for the services of our Executive Chairman are included in employee compensation and benefits.

TFP and Back Office Services Group, Inc. (BOSG) entered into an administrative services agreement on June 12, 2007 (Administrative Services Agreement), which was assigned to Tiptree on July 1, 2013 in connection with the Contribution Transactions, under which BOSG provided certain back office, administrative and accounting services to the Company and its subsidiaries. BOSG is an affiliate of Mariner Investment Group (Mariner). As of June 30, 2016, the Company has concluded that Mariner no longer meets the definition of a related party. This agreement was terminated on December 31, 2016.

Payments under the TSA and Administrative Services Agreement in the three and nine months ended September 30, 2017 and 2016 were not material.

F-51

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

(21) Income Taxes

The following table represents the income tax expense (benefit):

	Three Months Ended September 30,									Nine Months Ended September 30,
	2017					2016				2017					2016
Income tax expense (benefit)	$	(2,052			)	$	3,712			$	(2,761			)	$	5,298
Effective tax rate (ETR)	37.8		%	(1)		32.3		%	(1)	27.3		%	(2)		19.2		%	(3)

⁽¹⁾ Bears a customary relationship to the federal statutory income tax rate.

⁽²⁾ Lower than the federal statutory income tax rate, primarily due a change in fair value of a contingent consideration liability, an increase in a valuation allowance on net operating losses, and various other discrete items. The ETR for the nine months ended September 30, 2017 excluding the effect of discrete items was 28.1%, which is lower than the federal statutory income tax rate, primarily due to a state tax benefit and the effect of non-controlling interests at certain subsidiaries.

⁽³⁾ Lower than the federal statutory income tax rate primarily due to $4,044 of discrete tax benefits for the period, primarily related to the tax restructuring that resulted in a consolidated corporate tax group effective January 1, 2016.

(22) Commitments and Contingencies

Contractual Obligations

The table below summarizes the Company’s contractual obligations by period that payments are due:

	As of September 30, 2017
	Less than one year		1-3 years		3-5 years		More than 5 years		Total
Operating lease obligations (1)	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969
Total	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969

(1) Minimum rental obligations for Tiptree, Care, Siena, Luxury, Reliance and Fortegra office leases.

The following table presents rent expense for the Company’s office leases recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rent expense for office leases	$	1,745	$	1,630	$	5,230	$	4,820

In August 2017, Tiptree entered into a lease for office space. The terms of the lease are $2,322 per annum for five years starting on the one year anniversary of the commencement date. Upon the six year anniversary of the commencement date, the lease escalates to $2,520 per annum for five years. The expected commencement date is July 1, 2018.

In addition, Tiptree’s subsidiary Siena issues standby letters of credit for credit enhancements that are required by its borrower’s respective businesses. As of September 30, 2017, there was $400 outstanding relating to these letters of credit.

Litigation

The Company is a defendant in Mullins v. Southern Financial Life Insurance Co., which was filed in February 2006, in the Pike Circuit Court, in the Commonwealth of Kentucky. A class was certified in June 2010. At issue is the duration or term of coverage under certain disability and life credit insurance policies. The action alleges violations of the Consumer Protection Act and certain insurance statutes, as well as common law fraud and seeks compensatory and punitive damages, attorney fees and interest. To date, the court has not awarded sanctions in connection with Plaintiffs’ April 2012 Motion for Sanctions. In January 2015,

F-52

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

the trial court issued an Order denying Fortegra’s motion to decertify the class, which was upheld on appeal. Following a February 2017 hearing, the court denied Fortegra’s Motion for Summary Judgment as to certain disability insurance policies but has not yet ruled on such motion with respect to the life insurance policies at issue.  In June, a new Special Master was appointed. No trial or hearings are currently scheduled.

The Company considers such litigation customary in the insurance industry. In management's opinion, based on information available at this time, the ultimate resolution of such litigation, which it is vigorously defending, should not be materially adverse to the financial position of the Company. It should be noted that large punitive damage awards, bearing little relation to actual damages sustained by plaintiffs, have been awarded in certain states against other companies in the credit insurance business. At this time, the Company cannot estimate a range of loss that is reasonably possible.

The Company and its subsidiaries are parties to other legal proceedings in the ordinary course of business. Although Tiptree’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company does not believe that these proceedings, either individually or in the aggregate, are likely to have a material adverse effect on the Company’s financial position.

(23) Earnings Per Share

The Company calculates basic net income per Class A common share based on the weighted average number of Class A common shares outstanding (inclusive of vested restricted share units). The unvested restricted share units have the non-forfeitable right to participate in dividends declared and paid on the Company’s common stock on an as vested basis and are therefore considered a participating security. The Company calculates basic earnings per share using the “two-class” method, and for the three and nine months ended September 30, 2017 and September 30, 2016, the income available to common stockholders was allocated to the unvested restricted stock units.

Diluted net income per Class A common shares for the period includes the effect of potential equity of subsidiaries as well as potential Class A common stock, if dilutive. For the three months and nine months ended September 30, 2017, the assumed exercise of all dilutive instruments were anti-dilutive and, therefore, were not included in the diluted net income per Class A common share calculation.

F-53

TIPTREE INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

September 30, 2017

(in thousands, except share data)

The following table presents a reconciliation of basic and diluted net income per common share for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	(3,378	)	$	7,838		$	(7,360	)	$	22,273
Less:
Net income (loss) attributable to non-controlling interests	(264		)	1,933			(903		)	4,680
Net income allocated to participating securities	—			60			—			148
Net income (loss) attributable to Tiptree Inc. Class A common shares - basic	$	(3,114	)	$	5,845		$	(6,457	)	$	17,445
Effect of Dilutive Securities:
Securities of subsidiaries	—			(50		)	—			(148		)
Adjustments to income relating to exchangeable interests, net of tax	—			1,362			—			—
Net income (loss) attributable to Tiptree Inc. Class A common shares - diluted	$	(3,114	)	$	7,157		$	(6,457	)	$	17,297
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - basic	29,455,462			29,143,470			28,908,195			32,845,124
Weighted average number of incremental shares of Tiptree Inc. Class A common stock issuable from exchangeable interests and contingent considerations	—			8,087,180			—			67,392
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - diluted	29,455,462			37,230,650			28,908,195			32,912,516
Basic:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.20		$	(0.22	)	$	0.53
Diluted:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.19		$	(0.22	)	$	0.53

(24) Subsequent Events

On November 2, 2017, the Company’s board of directors declared a quarterly cash dividend of $0.03 per share to Class A stockholders with a record date of November 20, 2017, and a payment date of November 27, 2017.

On October 16, 2017, Fortegra completed a private placement offering of $125,000 of 8.50% Fixed Rate Resetting Junior Subordinated Notes due 2057 (the “Notes”). Substantially all of the net proceeds from the Notes were used to repay Fortegra’s existing credit facility, which was terminated thereafter. The Notes, which are issued under an indenture, are the unsecured obligations of Fortegra and rank in right of payment and upon liquidation, junior to all of Fortegra’s current and future senior indebtedness. The Notes are not obligations of or guaranteed by any of Fortegra’s subsidiaries or any other Tiptree entities. So long as no event of default has occurred and is continuing, Fortegra may defer all or part of the interest payments on the Notes on one or more occasions for up to five consecutive years per deferral period. The indenture governing the Notes contains customary affirmative and negative covenants and events of default.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our Management’s Discussion and Analysis of Financial Conditions and Results of Operations is presented in this section as follows:

• Overview

• Results of Operations

• Non-GAAP Reconciliations

• Liquidity and Capital Resources

• Critical Accounting Policies and Estimates

• Off-Balance Sheet Arrangements

OVERVIEW

Tiptree is a holding company focused on enhancing shareholder value by generating consistent and growing earnings at our operating companies. Our strategy employs a differentiated model, where we combine a specialty insurance underwriting platform with our broader asset management and capital allocation capabilities, which we believe distinguishes us from many other insurance companies. When considering capital allocation decisions, we take a diversified approach, looking across sectors, geographies and asset classes, all with a longer-term horizon for our businesses and investments. We evaluate our performance primarily by the comparison of our shareholder’s long-term total return on capital, as measured by Adjusted EBITDA and growth in book value per share plus dividends paid.

We currently have four reporting segments: specialty insurance, asset management, senior living, and specialty finance. Corporate and other primarily contains corporate expenses not allocated to the operating businesses. See Note—(4) Operating Segment Data, in the notes to the accompanying condensed consolidated financial statements for detailed information regarding our segments. Since different factors affect the financial condition and results of operation of each segment, the following discussion is presented on both a consolidated and segment basis.

Our results of operations are affected by a variety of factors including, but not limited to, general economic conditions and GDP growth, market liquidity and volatility, consumer confidence, U.S. demographics, employment and wage growth, business confidence and investment, inflation, interest rates and spreads, the impact of the regulatory environment, and the other factors set forth in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Generally, our businesses are positively affected by a healthy U.S. consumer, stable to gradually rising interest rates, stable markets and business conditions and the aging U.S. population. Conversely, rising unemployment, volatile markets, rapidly rising interest rates and slowing business conditions can have a material adverse effect on our results of operations or financial condition.

Our specialty insurance results primarily depend on the appropriateness of our pricing, underwriting, risk retention and the accuracy of our methodology for the establishment of reserves for future policyholder benefits and claims, the returns on and values of invested assets, and our ability to estimate policy and contract renewals and run-off. While our insurance operations have historically maintained a high percentage of fees to total revenue and a relatively stable combined ratio which support steady earnings, our initiatives to change our business mix along with economic factors could generate different results than we have historically seen. In our senior living operations, occupancy levels and operational costs could impact margins.  While the aging demographics of the U.S. population generally favor seniors housing in the long term, in the short term,  imbalances in the supply and demand for available units could dampen occupancy levels and competition for qualified employees could increase payroll costs. In our asset management segment, improving business conditions and growing corporate loan demand, especially from small to medium sized businesses has generally supported growth in AUM. Slowing economic growth and/or economic uncertainty could reduce business investment and loan demand, slowing the growth in AUM and associated fees. Risk retention rules mandated by Dodd-Frank has also impacted our formation of new CLOs, while pressure to reduce management fees in more recent CLOs has slowed management fee growth.

Our profitability is affected by net investment income and realized and unrealized gains and losses. Our invested assets are held principally in fixed maturity securities, equity securities, loans, CLOs, credit investment funds, and senior living related assets. Many of our investments are held at fair value. Changes in fair value of this latter category are reported quarterly as unrealized gains or losses in revenues and can be impacted by changes in interest rates, credit risk, or market risk, including specific company or industry factors. Credit risk can impact our financial results in a number of ways, including the performance of our corporate loans, mortgage loans, holdings in CLO subordinated notes and other investments. When credit markets are performing well, loans held in our CLOs and credit fund investments may prepay, subjecting those investments to reinvestment risk. In deteriorating credit environments, default risk can impact the performance of our investments, as well as flowing through income as unrealized losses. Disruption in the credit markets can also impact our ability to raise third party funds to invest and grow our asset management fees. Our equity holdings are relatively concentrated. General equity market trends, along with company and industry specific factors can impact the fair value of our holdings and can result in unrealized gains and losses affecting our results.

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Our business is also impacted in various ways by changes in interest rates. In addition to the impact interest rates can have on the fair value of the assets, interest rates can also impact the volume and revenues in our specialty finance business. In addition, most of our subsidiaries use debt financing to fund their business activities, much of which is floating rate debt, and the majority of which have LIBOR floors, LIBOR floors can result in a reduction in net interest margins in a declining interest rate environment, if earnings on our assets do not have similar floors or are based on different benchmarks than LIBOR, such as treasury rates or the prime rate. Certain of our subsidiaries have also entered into interest rate swap agreements to fix all or a portion of their interest rate exposure which are currently designated as hedging relationships for accounting purposes.

All interim financial information included in the Management’s Discussion and Analysis of Financial Conditions and Results of Operations are unaudited.

RESULTS OF OPERATIONS

The following is a summary of consolidated financial results for the three and nine months ended September 30, 2017 and 2016. Management uses Adjusted EBITDA, on a consolidated and segment basis, and book value per share, as exchanged, as measurements of operating performance which are non-GAAP measures. Management believes the use of Adjusted EBITDA provides supplemental information useful to investors as it is frequently used by the financial community to analyze financial performance, and to analyze a company’s ability to service its debt and to facilitate comparison among companies. Adjusted EBITDA is also used in determining incentive compensation for the Company’s executive officers. Adjusted EBITDA is not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. Book value per share, as exchanged assumes full exchange of the limited partners units of TFP for Tiptree Class A common stock. Management believes the use of this financial measure provides supplemental information useful to investors as it is frequently used by the financial community to analyze company growth on a relative per share basis.

Summary Consolidated Statements of Operations

($ in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
GAAP:	2017			2016		2017			2016
Total revenues	$	164,519		$	132,160	$	486,297		$	395,059
Net income before non-controlling interests	(3,378		)	7,838		(7,360		)	22,273
Net income attributable to Tiptree Inc. Class A common stockholders	(3,114		)	5,905		(6,457		)	17,593
Diluted earnings per share	(0.11		)	0.19		(0.22		)	0.53
Cash dividends paid per common share	0.03			0.025		0.09			0.075
Non-GAAP:(1)
Adjusted EBITDA	$	4,776		$	20,128	$	23,333		$	52,882
Book Value per share, as exchanged	9.67			9.93		9.67			9.93

(1) For further information relating to the Company’s Adjusted EBITDA and book value per share, as exchanged, including a reconciliation to GAAP financials, see “—Non-GAAP Reconciliations.”

Consolidated Results of Operations

Revenues

For the three months ended September 30, 2017, the Company reported revenues of $164.5 million, an increase of $32.4 million, or 24.5%, from the three months ended September 30, 2016. For the nine months ended September 30, 2017, revenues were $486.3 million, an increase of $91.2 million, or 23.1%, from the nine months ended September 30, 2016. The primary drivers of the increase in revenues for the three and nine months were growth in earned premiums and net investment income in our specialty insurance segment, increases in rental income attributable to acquisitions of seniors housing properties and improved specialty finance originations margins, partially offset by reduced service and administrative fees, ceding commissions, and unrealized losses, as compared to prior period gains, in our specialty insurance segment investment portfolio.

Net Income before non-controlling interests

For the three months ended September 30, 2017, the Company incurred a net loss of $3.4 million compared to net income of $7.8 million in the 2016 period. The primary drivers of the decline were the unrealized losses in our specialty insurance investment portfolio in the three months ended September 30, 2017 compared to unrealized gains in the 2016 period, run-off in our older vintage CLOs

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resulting in reduced management fees, and reduced CLO distributions as the Company reduced its investments over the last twelve months.

For the nine months ended September 30, 2017, the Company incurred a net loss of $7.4 million compared to net income of $22.3 million in the 2016 period, a decrease of $29.6 million. The decline was primarily a result of the unrealized losses in our specialty insurance investment portfolio in the nine months ended September 30, 2017, compared to unrealized gains in the prior period, combined with increased stock-based compensation expense in the specialty insurance segment and an increase in the fair value of the contingent earn-out liability associated with our Reliance acquisition. These drivers were partially offset by reduced losses in our senior living and improved operating results in our specialty finance segments, excluding the impact of the Reliance earn-out. Additionally, the tax provision has increased year-over-year as a result of a $4.0 million tax benefit in the three months ended March 31, 2016 which was driven by the tax reorganization effective January 1, 2016. A discussion of the changes in revenues, expenses and net income is presented below and in more detail in our segment analysis.

The following table highlights certain non-cash, key drivers impacting our results for the three and nine months ended September 30, 2017 and 2016. We believe highlighting these significant, non-cash items provides useful additional information to investors. As we mentioned above, our investments are focused on a longer term investment horizon. In addition, our equity securities holdings are relatively concentrated, and are carried at fair value and marked to market through the current reporting period. As a result, we expect our earnings relating to these securities to be relatively volatile between periods in contrast to our fixed income securities, which are marked to market through AOCI, which is more consistent with the treatment used by other insurance companies. In order for investors to be able to compare the returns of both types of investments, and to the portfolio performance of other insurance companies, we are highlighting the impact attributable to the unrealized and realized gains (losses) on equity securities in the table below.

We have also highlighted the impact of stock based compensation on the two periods below. Since a significant portion of our stock based compensation is performance based, and vests over multiple years, we believe that providing this information separately to investors allows them to evaluate the alignment of non-cash compensation to management, both at the holding company and at certain of our subsidiaries, with our overall performance trends.

In connection with our acquisition of Reliance, a portion of the purchase price was contingent on Reliance’s performance in the three years post acquisition, payable in Tiptree stock to the sellers. That contingent purchase price is carried as a liability on our balance sheet and is re-valued in each period. Increases or decreases in each period flow through the income statement, and are not deductible for tax purposes. Given Reliance’s performance over the latest performance measurement period, the contingent earn-out liability has increased, with the incremental value treated as an added expense in our financial statements for the nine months ended September 30, 2017.

Lastly, depreciation and amortization has increased, primarily as a result of additional acquisitions at Care, partially offset by the reduction in VOBA at Fortegra. Because we carry our real estate assets at original cost, and our strategy at Care is to purchase properties that require actions to improve their performance, we believe that highlighting the impact depreciation and amortization have on Tiptree’s overall results period over period, and on the carrying value of our real estate assets, is useful additional information for investors.

Key Non-Cash Drivers of Pre-tax Income and Adjusted EBITDA

($ in thousands)	Three Months Ended September 30,									Nine Months Ended September 30,
	2017			2016			Variance			2017			2016			Variance
Unrealized & realized gains (losses) on equity securities	$	(11,125	)	$	1,365		$	(12,490	)	$	(21,183	)	$	10,787		$	(31,970	)
Stock-based compensation	(1,135		)	(633		)	(502		)	(4,275		)	(1,597		)	(2,678		)
Reliance contingent earn-out liability (1)	422			—			422			(3,039		)	—			(3,039		)
Depreciation and amortization (1)	(7,775		)	(6,437		)	(1,338		)	(23,781		)	(21,899		)	(1,882		)

(1) Added back to Adjusted EBITDA. For a reconciliation of Adjusted EBITDA to GAAP financials, see “—Non-GAAP Reconciliations.”

Net Income (Loss) Available to Class A Common Stockholders

For the three months ended September 30, 2017, net loss available to Class A common stockholders was $3.1 million, a decrease of $9.0 million from the prior year period. For the nine months ended September 30, 2017, net income available to Class A common stockholders was $6.5 million, a decrease of $24.1 million from the prior year period. The key drivers of net income available to Class A common stockholders were the same factors which impacted the net income before non-controlling interests.

Adjusted EBITDA

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Total Adjusted EBITDA for the three months ended September 30, 2017 was $4.8 million compared to $20.1 million for the 2016 period, a decrease of $15.3 million, or 76.0%. Total Adjusted EBITDA for the nine months ended September 30, 2017 was $23.3 million compared to $52.9 million for the 2016 period, a decrease of $29.5 million, or 55.8%. The key drivers of the change in Adjusted EBITDA were the same as those which impacted our net income, excluding the increase in the Reliance earn-out and the year-over-year change in the tax provision. See “— Non-GAAP Reconciliations” for a reconciliation to GAAP net income.

Book Value per share, as exchanged

As exchanged book value per share for the period ended September 30, 2017 was $9.67, down from $9.93 as of September 30, 2016. The key drivers of the year-over-year impact were increases from trailing twelve month diluted earnings per share and re-purchases of 1.0 million shares at an average 28% discount to book value. Those increases were more than offset by cumulative dividends paid of $0.115, officer and director compensation share issuances over the last twelve months and the exercise of the Tricadia Option in June 2017 resulting in 1.5 million shares being issued at $5.36 per share. Given the strike price of the option, the impact was a $0.19 reduction to book value per share.

Results by Segment

Effective December 31, 2016, Tiptree realigned the principal investments formerly reported in the corporate and other segment into their new reportable segments to align with the Company’s operating strategy. The table below reflects the credit and equity investments contributed to our insurance subsidiary in the specialty insurance segment and the CLO subordinated notes and related warehouse income in the asset management segment for the three and nine months ended September 30, 2017 and 2016.

Pre-tax Income by Segment

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Specialty insurance	$	(2,345	)	$	10,659		$	1,724		$	35,627
Asset management	2,973			6,475			13,083			14,672
Senior living	(1,535		)	(473		)	(5,359		)	(5,487		)
Specialty finance	2,595			4,181			2,629			5,510
Corporate and other	(7,118		)	(9,292		)	(22,198		)	(22,751		)
Pre-tax income	$	(5,430	)	$	11,550		$	(10,121	)	$	27,571

Adjusted EBITDA by Segment - Non-GAAP ⁽¹⁾ 

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Specialty insurance	$	2,318		$	14,220		$	15,566		$	45,556
Asset management	2,973			6,475			13,083			14,672
Senior living	2,859			2,869			8,293			7,194
Specialty finance	2,382			4,479			6,288			6,327
Corporate and other	(5,756		)	(7,915		)	(19,897		)	(20,867		)
Adjusted EBITDA	$	4,776		$	20,128		$	23,333		$	52,882

(1) For further information relating to the Company’s Adjusted EBITDA, including a reconciliation of the Company’s segments’ Adjusted EBITDA to GAAP pre-tax income, see “—Non-GAAP Reconciliations.”

Specialty Insurance

Fortegra is a specialty insurance company that offers asset protection products through niche commercial and personal lines of insurance. We also offer administration and fronting services for our self-insured clients who own captive producer owned reinsurance companies (“PORCs”).

Our specialty insurance business generates income from insurance underwriting operations and an investment portfolio. Insurance underwriting operations revenues are primarily generated from net premiums, service and administrative fees and ceding commissions. We measure insurance underwriting operations performance by as adjusted underwriting margin, combined ratio and Adjusted

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EBITDA. The investment portfolio income consists of investment income, gains and losses and is measured by net portfolio income which is the equivalent of Adjusted EBITDA.

Operating Results

($ in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Revenues:
Net earned premiums	$	96,073		$	47,609	$	272,781		$	138,516
Service and administrative fees	24,018			25,842		70,861			84,421
Ceding commissions	2,513			1,397		6,801			22,645
Net investment income	3,840			3,307		12,032			8,409
Net realized and unrealized gains (losses)	(8,554		)	3,745		(13,618		)	12,767
Other income	824			730		2,874			1,985
Total revenues	$	118,714		$	82,630	$	351,731		$	268,743
Expenses:
Policy and contract benefits	31,570			25,881		94,364			72,436
Commission expense	63,066			24,032		176,405			91,906
Employee compensation and benefits	10,073			9,180		30,800			28,065
Interest expense	3,499			2,322		10,534			6,018
Depreciation and amortization expenses	3,134			3,032		9,625			10,414
Other expenses	9,717			7,524		28,279			24,277
Total expenses	$	121,059		$	71,971	$	350,007		$	233,116
Pre-tax income (loss)	$	(2,345	)	$	10,659	$	1,724		$	35,627

Results

Our specialty insurance segment is currently expanding product lines in an effort to increase the duration of our products and increase investable assets. As part of this process, the business is investing in products and people to grow warranty and program products, while maintaining a leading position in the credit protection space. That, combined with the earnings performance of the investment portfolio, are key drivers in comparing 2017 versus 2016 results. The combination of unearned premiums and deferred revenue on the balance sheet are key indicators of volume growth and contract duration extension which over the trailing twelve months has increased by 12.7% from $469.3 million as of September 30, 2016 to $529.0 million as of September 30, 2017.

In the fourth quarter of 2016, our captive reinsurance subsidiary replaced a third party as reinsurer of certain credit protection products, thus avoiding reinsurance costs and gaining additional investment flexibility. This transaction was consistent with our strategy to grow underwriting and investment profits at our specialty insurance subsidiaries. As a result, several income statement line items increased for the three and nine months ended September 30, 2017 when compared to prior periods including earned premiums, commission expense and policy and contract benefits, partially offset by the decline in ceding commissions.

The application of push-down accounting to the acquisition of Fortegra resulted in purchase price accounting adjustments (Value of Business Acquired or “VOBA”) whereby deferred service and administrative fees and costs associated with deferred commission expense on acquired contracts were recognized differently from those related to newly originated contracts. For the nine months ended September 30, 2017 and 2016, the VOBA impacts on pre-tax income were modest at $1.0 million and $1.5 million, respectively. Where significant to the period over period comparisons of revenue and expense, VOBA impacts are discussed separately below.

For the three months ended September 30, 2017, the specialty insurance segment incurred a pre-tax loss of $2.3 million, a decrease of $13.0 million over the prior year operating results. The primary drivers of the decline in results were associated with our investment portfolio including a period-over-period reduction in net realized and unrealized gains and losses of $12.3 million, increases in interest expense of $1.2 million primarily associated with asset-based interest expense in the investment portfolio, partially offset by increases in net investment income of $0.5 million. From insurance operations, underwriting margins were up $3.1 million compared to prior year partially offset by increases in employee payroll and compensation of $0.9 million and increases in other expenses of $2.2 million related to premium tax related to the growth in written premiums.

Pre-tax income was $1.7 million for the nine months ended September 30, 2017, a decrease of $33.9 million, or 95.2%, over the prior year operating results. The primary drivers of the decline in results were associated with our investment portfolio including period-over-period reductions in net realized and unrealized gains and losses of $26.4 million, increases in interest expense of $4.5 million primarily associated with asset-based interest expense in the investment portfolio, partially offset by increases in net investment

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income of $3.6 million. Insurance operations results were down versus prior year driven primarily by increases in stock-based compensation expense of $2.7 million and increased other expenses of $4.0 million primarily related to premium tax, which was partially offset by increased underwriting margin of $2.4 million.

Revenues

Revenues are generated by the sale of the following insurance products: credit protection, warranty, programs, services and other. Credit protection products include credit life, credit disability, credit property, involuntary unemployment, and accidental death and dismemberment. Warranty products include mobile device protection, furniture and appliance service contracts and auto service contracts. Programs are primarily personal and commercial lines and other property-casualty products. Earned premiums associated with these products are recognized over the life of these contracts. Services and other revenues principally represent investment income, unrealized and realized gains and losses, fees for insurance sales and business process outsourcing services, and interest for premium financing, and also include the impact to fee income, ceding commissions, and commissions expense from the purchase accounting effect of VOBA related to the insurance contracts.

Total revenues were $118.7 million for the three months ended September 30, 2017, up $36.1 million, or 43.7%, over the prior year period. The increase was primarily driven by an increase in earned premiums of $48.5 million, or 101.8%, which were partially offset by decreases in service and administrative fees of $1.8 million, or 7.1%, and ceding commissions of $1.1 million. For the nine months ended September 30, 2017, total revenues were $351.7 million, up $83.0 million, or 30.9%, over the prior year period. The increase was primarily driven by an increase in earned premiums of $134.3 million, or 96.9%, and other income of $0.9 million, which were partially offset by decreases in service and administrative fees of $13.6 million, or 16.1%, and ceding commissions of $15.8 million. For both periods, the increase in earned premiums was driven by growth in our credit protection and warranty products with the primary driver being our captive reinsurance subsidiary replacing a third party as reinsurer of certain credit protection products. Ceding commissions declines are consistent with this strategy to retain a higher portion of written business which results in less revenues from experience refunds. Service and administrative fees are lower year-over-year primarily from a reduction in fee-related revenues on our mobile protection and roadside assistance products.

The revenues on the investment portfolio, including net investment income and realized and unrealized gains, were a loss of $4.7 million for the three months ended September 30, 2017 compared to income of $7.1 million in the 2016 period, a decrease of $11.8 million. For the nine months ended September 30, 2017, revenues on the investment portfolio, including net investment income and realized and unrealized gains, were a loss of $1.6 million compared to $21.2 million of income in the 2016 period, a decrease of $22.8 million. See “—Specialty Insurance Investment Portfolio” for further discussion of the investment results.

Expenses

Total expenses include policy and contract benefits, commissions expense and operating expenses. For the three months ended September 30, 2017, total expenses were $121.1 million compared to $72.0 million in the 2016 period. For the nine months ended September 30, 2017, total expenses were $350.0 million compared to $233.1 million in the 2016 period. The primary drivers of the increase were policy and contract benefits and commission expense as net written premiums increased over the 2016 period.

There are two types of expenses for claims payments under insurance and warranty service contracts which are included in policy and contract benefits: member benefit claims and net losses and loss adjustment expenses. Member benefit claims represent the costs of services and replacement devices incurred in car club and warranty protection service contracts. Net losses and loss adjustment expenses represent actual insurance claims paid, changes in unpaid claim reserves, net of amounts ceded, and the costs of administering claims for credit life and other insurance lines, such as non-standard auto. Incurred claims are impacted by loss frequency, which is a measure of the number of claims per unit of insured exposure, and loss severity, which is based on the average size of claims. Factors affecting loss frequency and loss severity include changes in claims reporting patterns, claims settlement patterns, judicial decisions, economic conditions, morbidity patterns and the attitudes of claimants towards settlements. For the three months ended September 30, 2017, policy and contract benefits were $31.6 million, up $5.7 million from the prior year. For the nine months ended September 30, 2017, policy and contract benefits were $94.4 million, up $21.9 million from the prior year primarily as a result of increased retention in our credit protection and program products.

Commission expense is incurred on most product lines, the majority of which are retrospective commissions paid to distributors and retailers selling our products, including credit insurance policies, motor club memberships, mobile device protection and warranty service contracts. Credit insurance commission rates are, in many cases, set by state regulators and are also impacted by market conditions and retention levels. Total commission expense for three months ended September 30, 2017 was $63.1 million compared to $24.0 million in 2016. Total commission expense for nine months ended September 30, 2017 was $176.4 million compared to $91.9 million in 2016. The primary drivers of the increase were the commission expense associated with the higher retention rate on our credit protection products along with VOBA purchase accounting impacts.

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Operating expenses are composed of employee compensation and benefits, interest expense, depreciation and amortization expenses and other expenses. For the three months ended September 30, 2017, operating expenses were $26.4 million compared to $22.1 million in the 2016 period. For the nine months ended September 30, 2017, operating expenses were $79.2 million compared to $68.8 million in the 2016 period. The increases for the three and nine months were driven primarily by increased stock-based compensation, increased premium taxes as written premiums grow, and increased interest expense on asset based borrowings within the insurance investment portfolio. For the nine months ended September 30, 2017 total employee compensation and benefits were $30.8 million, up $2.7 million from 2016 primarily as a result of increased stock based compensation expense. Interest expense of $10.5 million in nine months ended September 30, 2017 increased by $4.5 million versus the prior year, primarily from increased asset based borrowings on certain investments within the investment portfolio. Other expenses for the nine months ended September 30, 2017 were $28.3 million, up $4.0 million from 2016 primarily as a result of increased premium taxes as written and earned premiums grew. Depreciation and amortization expense was lower year-over-year as a result of the decline in VOBA purchase accounting impact from the amortization of the fair value attributed to the insurance policies and contracts acquired, which was $0.2 million for the nine months ended September 30, 2017 versus $3.0 million for the prior year period. This was partially offset by amortization of other intangibles including customer relationships and trade names.

Insurance Operating Ratios

We use the combined ratio as an insurance operating metric to evaluate our underwriting performance, both overall and relative to peers. Expressed as a percentage, it represents the relationship of policy and contract benefits, commission expense (net of ceding commissions), employee compensation and benefits, and other expenses to net earned premiums, service and administrative fees, and other income. Investors use this ratio to evaluate our ability to profitably underwrite the risks we assume over time and manage our operating costs. A combined ratio less than 100% indicates an underwriting profit, while a combined ratio greater than 100% reflects an underwriting loss. Since VOBA purchase accounting adjustments impact revenues and expenses related to acquired contracts differently from newly originated, we also show the combined ratio on an as adjusted basis, eliminating the accounting effects of VOBA. Management believes showing an as adjusted combined ratio provides useful information to investors to compare period-over-period operating results. Following is a summary of these performance metrics for the three and nine months ended September 30, 2017 and 2016.

Operating Ratios

	Three Months Ended September 30,				Nine Months Ended September 30,
Insurance operating ratios:	2017		2016		2017		2016
Combined ratio	92.6	%	87.9	%	93.2	%	86.3	%
As adjusted Combined ratio - Non-GAAP (1)	92.8	%	89.4	%	93.6	%	88.5	%

(1) For further information relating to the Company’s as adjusted combined ratio, including a reconciliation to GAAP financials, see “—Non-GAAP Reconciliations.”

The as adjusted combined ratios were 92.8% and 93.6% for the three and nine months ended September 30, 2017, compared to 89.4% and 88.5% for the corresponding prior year periods. The increases across both the three and nine months were driven primarily by the higher retention impacting underwriting margins and higher premium tax, combined with the increased stock based compensation mentioned above. These factors caused the combined ratio to deteriorate modestly in the nine month period.

Key Operating Metrics and Non-GAAP Operating Results

Adjusted EBITDA

Adjusted EBITDA was $2.3 millionand$15.6 million for the three and nine months ended September 30, 2017, compared to $14.2 million and $45.6 million for the comparable prior year periods. Net portfolio income from the investment portfolio was a loss of $6.4 million and $6.7 million for the three and nine months ended September 30, 2017, compared to income of $6.4 million and $19.5 million in the respective prior year periods. Adjusted EBITDA from insurance underwriting operations was $8.7 million and $22.3 million for the three and nine months ended September 30, 2017 compared to $7.9 million and $26.1 million for the respective prior year periods. The increase for the three months and decrease for the nine months were driven by the same factors discussed above under “Results.” See “—Non-GAAP Reconciliations” for a reconciliation to GAAP pre-tax income.

Gross & Net Written Premiums

Gross written premiums represents total premiums from insurance policies and warranty service contracts that we write during a reporting period based on the effective date of the individual policy. Net written premiums are gross written premiums less that portion of premiums that we cede to third party reinsurers or the PORCs under reinsurance agreements. The amount ceded to each reinsurer

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is based on the contractual formula contained in the individual reinsurance agreements. Net earned premiums are the earned portion of our net written premiums. We earn insurance premiums on a pro-rata basis over the term of the policy. At the end of each reporting period, premiums written that are not earned are classified as unearned premiums, which are earned in subsequent periods over the remaining term of the policy.

Product Underwriting Margin - Non-GAAP

The following tables present product specific revenue and expenses within the specialty insurance segment for the three and nine months ended September 30, 2017 and 2016. As mentioned above, we generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective commission agreements with our partners (e.g., commissions paid adjust based on the actual underlying losses incurred), which manage and mitigate our risk. Period-over-period comparisons of revenues are often impacted by the PORCs and distribution partners choice as to whether to retain risk, specifically with respect to the relationship between service and administration expenses and ceding commissions, both components of revenue, and the offsetting policy and contract benefits and commissions paid to our partners and reinsurers. Generally, when losses are incurred, the risk which is retained by our partners and reinsurers is reflected in a reduction in commissions paid. In order to better explain to investors the net financial impact of the risk retained by the Company of the insurance contracts written and the impact on profitability, we use the Non-GAAP metric - As Adjusted Underwriting Margin. For the same reasons that we adjust our combined ratio for the effects of purchase accounting, VOBA impacts can also mask the actual relationship between revenues earned and the offsetting reductions in commissions paid, and thus the period-over-period net financial impact of the risk retained by the Company. As such, we believe that presenting underwriting margin provides useful information to investors and aligns more closely to how management measures the underwriting performance of the business.

Written Premium Metrics and As Adjusted Underwriting Margin - Non-GAAP

	Three Months Ended September 30,
($ in thousands)	Credit Protection				Warranty					Programs				Services and Other					Insurance Total
	2017		2016		2017		2016			2017		2016		2017		2016			2017		2016
Gross written premiums	$	149,115	$	132,111	$	25,530	$	16,618		$	34,512	$	32,674	$	11	$	8		$	209,168	$	181,411
Net written premiums	96,375		30,987		17,217		13,142			5,418		11,884		—		—			119,010		56,013
As Adjusted Revenues:
Net earned premiums	$	78,951	$	29,173	$	10,900	$	9,139		$	6,222	$	9,297	$	—	$	—		$	96,073	$	47,609
Service and administrative fees	10,434		10,865		9,409		11,788			2,721		2,504		1,690		1,819			24,254		26,976
Ceding commissions	2,523		1,465		—		1			—		—		—		—			2,523		1,466
Other income	135		71		—		(22		)	—		5		689		676			824		730
Less product specific expenses:
Policy and contract benefits	14,420		7,918		11,694		10,099			5,456		7,900		—		(36		)	31,570		25,881
Commission expense	59,949		18,386		2,287		5,979			1,178		1,611		190		176			63,604		26,152
As Adjusted underwriting margin (1)	$	17,674	$	15,270	$	6,328	$	4,828		$	2,309	$	2,295	$	2,189	$	2,355		$	28,500	$	24,748

Total gross written premiums for the three months ended September 30, 2017 were $209.2 million, an increase of $27.8 million, or 15.3%, from the prior year period. The amount of business retained was 56.9%, up from 30.9% in the prior year period as the Company retained more risk in 2017 than 2016. Total net premiums written were $119.0 million, up $63.0 million over prior year, or 112.5%. Credit protection net premiums written for the three months ended September 30, 2017 were $96.4 million, higher than the prior year period by $65.4 million. The increase in retention and net written premiums was consistent with the Company’s strategy and was largely driven by our captive reinsurer retaining credit protection products as discussed above. Warranty product net written premiums were $17.2 million, up $4.1 million and program products were $5.4 million, down $6.5 million from prior year period, primarily driven by the run-off of certain non-standard auto programs.

As adjusted underwriting margin for the three months ended September 30, 2017 was $28.5 million, up from $24.7 million in 2016. Credit protection increased by $2.4 million primarily from increased product retention over 2016. Warranty increased by $1.5 million driven by increased policies written for furniture, appliances and auto products. The amount of warranty product ceded year-over-year increased as we enter new products and continue to build our underwriting performance and relationships with distributors. Programs written premiums declined as we continue to run-off non-core specialty programs that did not meet underwriting performance standards. We believe there are additional opportunities to expand our warranty and programs insurance business model to other niche products and markets.

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	Nine Months Ended September 30,
($ in thousands)	Credit Protection				Warranty				Programs				Services and Other				Insurance Total
	2017		2016		2017		2016		2017		2016		2017		2016		2017		2016
Gross written premiums	371,123		364,842		83,075		44,078		106,348		131,306		23		21		560,569		540,247
Net written premiums	238,658		90,212		44,641		35,045		19,025		27,120		—		—		302,324		152,377
As Adjusted Revenues:
Net earned premiums	$	221,080	$	88,192	$	31,525	$	27,394	$	20,176	$	22,930	$	—	$	—	$	272,781	$	138,516
Service and administrative fees	31,204		33,975		27,330		41,093		8,108		8,577		4,961		5,752		71,603		89,397
Ceding commissions	6,847		23,018		—		2		—		—		—		1		6,847		23,021
Other income	338		199		—		64		—		5		2,536		1,717		2,874		1,985
Less product specific expenses:
Policy and contract benefits	44,226		21,727		32,406		30,529		17,548		20,172		184		8		94,364		72,436
Commission expense	165,990		76,707		7,919		20,280		3,747		4,036		641		377		178,297		101,400
As Adjusted underwriting margin (1)	$	49,253	$	46,950	$	18,530	$	17,744	$	6,989	$	7,304	$	6,672	$	7,085	$	81,444	$	79,083

(1) For further information relating to the Company’s adjusted underwriting margin, including a reconciliation to GAAP financials, see “—Non-GAAP Reconciliations.”

Total gross written premiums for the nine months ended September 30, 2017 were $560.6 million, which represented an increase of $20.3 million, or 3.8%, from the prior year period. The amount of business retained was 53.9%, up from 28.2% in the prior year period. Total net premiums written for the nine months ended September 30, 2017 were $302.3 million, up $149.9 million, or 98.4%. Credit protection net premiums written for the nine months ended September 30, 2017 were $238.7 million, higher than the prior year period by $148.4 million. For the nine months ended September 30, 2017, warranty product net written premiums were $44.6 million, up $9.6 million from 2016 and program products were $19.0 million, down $8.1 million from the 2016 period. The factors that drove the variances were the same for the three and nine months.

As adjusted underwriting margin for the nine months ended September 30, 2017 was $81.4 million, up from $79.1 million in 2016. Credit protection as adjusted underwriting margin was $49.3 million, an increase from 2016 results by $2.3 million, or 4.9%. As adjusted underwriting margin for warranty products was $18.5 million for 2017, up $0.8 million, or 4.4%, from 2016. The effects experienced in previous periods from our mobile protection products has slowed, and was more than offset by growth in furniture, appliances, and auto warranty business. Programs as adjusted underwriting margin for 2017 was $7.0 million, down 4.3% from 2016, as certain non-standard auto programs were exited over the last year. We believe our warranty service contracts and light commercial programs provide opportunity for growth through expanded product offerings, new clients and geographic expansion. Services and other contributed $6.7 million in 2017, down $0.4 million from 2016 as certain business processing services are in run-off.

Policy and contract benefits, which include net losses, loss adjustments and member benefit claims, were $94.4 million for the nine months ended September 30, 2017, up $21.9 million period-over-period. The increase in net losses over the prior year period was a function of growth in earned premiums, including the contract assumptions mentioned above, partially offset by lower claims in mobile devices consistent with the decline in written premiums.

Commission expense, excluding the impacts of VOBA, was $178.3 million for the nine months ended September 30, 2017, up $76.9 million, driven primarily by the increase in retention of credit insurance products, partially offset by declines in commissions related to the mobile protection and other warranty products.

Specialty Insurance Investment Portfolio

The investment portfolio consists of assets contributed by Tiptree, cash generated from operations, and from written premiums. The investment portfolio of our regulated insurance companies, captive reinsurance company and warranty business are subject to different regulatory considerations, including with respect to types of assets, concentration limits, affiliate transactions and the use of leverage. Our investment strategy is designed to achieve attractive risk-adjusted returns over the entire investment horizon across select asset classes, sectors and geographies while maintaining adequate liquidity to meet our claims payment obligations. As such, volatility from realized and unrealized gains and losses may impact period-over-period performance.

In managing our investment portfolio we analyze net investments and net portfolio income, which are non-GAAP measures. Our presentation of net investments equals total investments plus cash and cash equivalents minus asset based financing related to certain investments. Our presentation of net portfolio income equals net investment income plus realized and unrealized gains and losses and minus interest expense associated with asset based financing of investments. Net investments and net portfolio income are used to calculate average annualized yield, which is one of the measures management uses to analyze the profitability of our investment portfolio. Management believes this information on a cumulative basis is useful since it allows investors to evaluate the performance of our investment portfolio based on the capital at risk and on a non-consolidated basis. Our calculation of net investments and net

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portfolio income may differ from similarly titled non-GAAP financial measures used by other companies. Net investments and net portfolio income are not measures of financial performance or liquidity under GAAP and should not be considered a substitute for total investments or net investment income. See “—Non-GAAP Reconciliations” for a reconciliation to GAAP total investments and investment income.

Specialty Insurance Investment Portfolio - Non-GAAP

($ in thousands)							As of September 30,
							2017			2016
Cash and cash equivalents (1)							$	60,199		$	4,402
Available for sale securities, at fair value							164,093			137,195
Equity securities, trading, at fair value							28,106			44,670
Loans, at fair value (2)							84,493			101,383
Real estate, net							23,106			10,233
Other investments							3,956			4,012
Net investments							$	363,953		$	301,895
(1) Cash and cash equivalents, plus restricted cash, net of due from/due to brokers on consolidated loan funds, see “—Non-GAAP Reconciliations”, for a reconciliation to GAAP financials.
(2) Loans, at fair value, net of asset based debt, see “—Non-GAAP Reconciliations”, for a reconciliation to GAAP financials.
Specialty Insurance Net Investment Portfolio Income - Non-GAAP
($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net investment income	$	3,840		$	3,307		$	12,032		$	8,409
Realized gains (losses)	1,462			1,056			6,425			4,187
Unrealized gains (losses)	(10,016		)	2,689			(20,042		)	8,580
Interest expense	(1,678		)	(697		)	(5,143		)	(1,708		)
Net portfolio income	$	(6,392	)	$	6,355		$	(6,728	)	$	19,468
Average Annualized Yield % (1)	(7.2		)%	8.3		%	(3.7		)%	8.5		%

(1) Average Annualized Yield % represents the ratio of annualized net investment income, realized and unrealized gains (losses) less investment portfolio interest expense to the average of the prior two quarters total investments less investment portfolio debt plus cash, but does not reflect the cumulative return on the portfolio.

Net investments of $364.0 million have grown 20.6% from September 30, 2016 through a combination of internal growth, increased retention of premiums written, and assets contributed by the Company to further capitalize Fortegra.

Our net investment income includes interest, dividends and rental income, net of investment expenses, on our invested assets. We report net realized gains and losses on our investments separately from our net investment income. Net realized gains occur when we sell our investment securities for more than their costs or amortized costs, as applicable. Net realized losses occur when we sell our investment securities for less than their costs or amortized costs, as applicable, or we write down the investment securities as a result of other-than-temporary impairment. We report net unrealized gains (losses) on securities classified as available-for-sale separately within accumulated other comprehensive income on our balance sheet. For loans, at fair value, and equity securities classified as trading securities, we report unrealized gains (losses) within net realized gains (losses) on investment on the condensed consolidated statement of income. The treatment of loans at fair value, primarily related to our credit asset investments and non-performing loans, and equity securities, is currently different from most other insurance companies.

For the three months ended September 30, 2017, the net investment portfolio loss was $6.4 million compared to $6.4 million of income in the comparable 2016 period. The decline was driven by $10.0 million of unrealized losses in the 2017 period compared to $2.7 million of unrealized gains in the 2016 period of which $11.1 million of unrealized losses were attributable to fair market valuations on publicly traded equity positions. This decline was partially offset by increases in net investment income of $0.5 million as the loans, equities and real estate continue to yield positive interest, dividend and rental income, along with increases in realized gains of $0.4 million primarily from gains on sales of our non-performing residential loans.

For the nine months ended September 30, 2017, the net investment portfolio loss was $6.7 million compared to $19.5 million of income in the comparable 2016 period. The average annualized yield for the nine months declined from 8.5% in 2016 to (3.7)% in 2017 as a result of year to date unrealized losses of $20.0 million compared to unrealized gains of $8.6 million in 2016. For the nine month period, fair market valuation on equities resulted in $21.2 million of unrealized losses. In addition, interest expense increased by $3.4 million as a result of increased borrowings on credit asset investments and non-performing loans. Those factors were partially offset by increases in net investment income of $3.6 million, as interest and dividend payments improved year-over-year, and realized

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gains improved by $2.2 million, from gains on sales of our non-performing residential loans.

Asset Management

The Company’s asset management segment earns revenues from CLOs under management, including management fees, distributions and realized and unrealized gains on the Company’s holdings of CLO subordinated notes. Also included in the segment are the management fees, investment earnings and costs associated with our legacy tax-exempt securities business, CLO warehouse facilities and our credit hedging strategies. As of September 30, 2017, total fee earning AUM was $1.6 billion, which was down from $1.9 billion as of September 30, 2016 as the run-off in our older CLOs have not been replaced with new AUM. Total investment in CLO subordinated notes and management fee participation rights, at fair market value, as of September 30, 2017 was $20.2 million, down from $52.4 million as of September 30, 2016. In January 2017, the Company sold its investment in Telos 5 for consideration of $15.9 million which resulted in deconsolidation for the 2017 period. In August 2017, the Company liquidated Telos 7 for $21.9 million which resulted in deconsolidation of the assets and liabilities. Many of the Telos 7 assets were sold to a refinanced Telos 3. For risk retention purposes, we purchased a vertical tranche of Telos 3 in the insurance investment portfolio.

Operating Results

($ in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
Revenues:
Net realized and unrealized gains (losses)	$	(349	)	$	695	$	839	$	226
Management fee income	1,541			3,839		6,578		7,497
Other income	256			212		822		3,031
Total revenue	$	1,448		$	4,746	$	8,239	$	10,754
Expenses:
Employee compensation and benefits	889			2,267		3,953		4,861
Interest expense	5			—		7		746
Other expenses	164			36		589		524
Total expenses	$	1,058		$	2,303	$	4,549	$	6,131
Net income attributable to consolidated CLOs	2,583			4,032		9,393		10,049
Pre-tax income (loss)	$	2,973		$	6,475	$	13,083	$	14,672

Results

For the three months ended September 30, 2017, pre-tax income was $3.0 million, down from $6.5 million in the prior year period. This decline was driven by reduced income from consolidated CLOs, primarily related to reductions in distributions on the subordinated notes as a result of sales and liquidation, and reduced management and incentive fees from our older vintage CLOs. This was partially offset by favorable realized gains on the liquidation of Telos 7 (which is embedded in the net income attributable to consolidated CLOs) and reduced incentive compensation expense.

Pre-tax income was $13.1 million for the nine months ended September 30, 2017 compared to $14.7 million for the 2016 period, a decrease of $1.6 million primarily driven by declining management fees on older vintage CLOs and reduced subordinated note distributions as our investments declined. Expenses for the 2017 period were $4.5 million compared to $6.1 million for the 2016 period, primarily driven by decreases in interest expense associated with the Telos 7 warehouse and decreases in employee incentive compensation as management and incentive fees decreased period-over-period. Net income attributable to consolidated CLOs was down $0.7 million primarily due to reductions in subordinated note distributions, partially offset by favorable fair value marks on our CLO subordinated notes in the 2017 period as compared to the 2016 period.

Operating Results - Non-GAAP

As Adjusted Revenues

Asset management as adjusted revenues include revenues from CLOs, legacy tax-exempt securities business, CLO warehouse facilities and our credit hedging strategies. The Company earns revenues from CLOs under management, whether consolidated or deconsolidated, which include fees earned for managing the CLOs, distributions received from the Company’s holdings of subordinated notes issued by the CLOs and realized and unrealized gains and losses from the Company’s holdings of subordinated notes. The revenue associated with the management fees and distributions earned and gains and losses on the subordinated notes attributable to the consolidated CLOs are reported as “net income (loss) attributable to the consolidated CLOs” in the Company’s financial statements.

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The table below shows the Company’s share of the results attributable to the CLOs which were consolidated, on a deconsolidated basis. This presentation is a non-GAAP measure. Management believes this information is helpful for period-over-period comparative purposes as certain of our CLOs were consolidated for only some of the periods presented below. In addition, the Non-GAAP presentation allows investors the ability to calculate management fees as a percent of AUM, a common measure used by investors to evaluate asset managers, and which is one of the performance measures upon which management is compensated. While consolidation versus deconsolidation impacts the presentation of revenues, it does not impact expenses or pre-tax income. See “—Non-GAAP Reconciliations” for a reconciliation to GAAP revenues.

As Adjusted Revenues ⁽¹⁾ 

($ in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
As Adjusted Revenues:
Management fees	$	1,852	$	4,582		$	7,616	$	9,666
Distributions	2,168		4,368			6,560		11,058
Realized and unrealized gains (losses)	11		(339		)	3,443		(2,824		)
Other income	—		167			13		2,903
Total as adjusted revenues	$	4,031	$	8,778		$	17,632	$	20,803

(1) For further information relating to the Asset Management as adjusted revenues, including a reconciliation to GAAP revenues, see “Non-GAAP Reconciliations”.

Fee earning AUM has declined as older CLO vintages run-off, which has resulted in reduced base management fees. Incentive fees have decreased as performance fees within the Telos 1 and 2 CLOs run-off. Our investments in subordinated notes of the CLOs have also declined, which resulted in lower distributions period-over-period. Realized and unrealized gains were favorable as a result of the gain on sale of Telos 5 and Telos 7, and unrealized mark to market gains on our remaining CLO subordinated notes and other investments for year to date 2017 as compared to an unrealized loss in the 2016 period. Other income includes legacy tax-exempt securities, CLO warehouse facilities and our credit hedging strategies which declined year-over-year as those products were in place in the 2016 period and not in the 2017 period.

For the three months ended September 30, 2017, as adjusted revenues were $4.0 million compared to $8.8 million for the same period in 2016. The decrease was driven primarily by reductions in base management and incentive fees of $2.7 million, and lower distributions of $2.2 million and other income of $0.2 million, partially offset by improved realized and unrealized gains on CLO subordinated notes and other investments of $0.4 million.

For the nine months ended September 30, 2017, as adjusted revenues were $17.6 million compared to $20.8 million for the same period in 2016. The decrease was driven primarily by reductions in base management and incentive fees of $2.1 million, and lower distributions of $4.5 million and other income of $2.9 million, partially offset by favorable realized and unrealized gains on CLO subordinated notes and other investments of $6.3 million.

Adjusted EBITDA

Adjusted EBITDA was $3.0 millionand$13.1 million for the three and nine months ended September 30, 2017, respectively, compared to $6.5 million and $14.7 million for the comparable prior year periods. The decrease for both the quarter and for the year to date was driven by the same factors discussed above under “Results.” See “—Non-GAAP Reconciliations” for a reconciliation to GAAP pre-tax income.

Senior Living

We operate our senior living segment through Care which is focused on investing in seniors housing properties including senior apartments, independent living, assisted living, memory care and to a lesser extent, skilled nursing facilities. As of September 30, 2017, Care’s portfolio consists of 40 properties across 10 states primarily in the Mid-Atlantic and Southern United States comprised of 22 Triple Net Lease (“NNN”) Properties and 18 Managed Properties. Additionally, Care manages one property within our specialty insurance investment portfolio on behalf of Fortegra.

In Triple Net Lease Properties, we own between 90-100% of the real estate and enter into a long term lease with an operator who is typically responsible for bearing operating costs, including maintenance, utilities, taxes, insurance, repairs and capital improvements. The operations of the Triple Net Lease Properties are not consolidated since we do not manage or own the underlying operations. For Triple Net Lease Properties’ operations, we recognize primarily rental income from the lease since substantially all expenses are passed through to the tenant. In Managed Properties, we generally own between 65-90% of both the real estate and the operations with affiliates of the management company owning the remainder. We therefore consolidate all of the assets, liabilities,

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income and expense of the Managed Properties operations in segment reporting. For the three and nine months ended September 30, 2017 and 2016, operating results include amounts attributable to non-controlling interests related to our Managed Properties.

Operating Results

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues:
Net realized and unrealized gains (losses)	$	—		$	51		$	—		$	—
Rental and related revenue	19,170			15,371			54,819			43,389
Other income	413			273			1,108			815
Total revenue	$	19,583		$	15,695		$	55,927		$	44,204
Expenses:
Employee compensation and benefits	7,723			6,270			22,499			17,661
Interest expense	3,609			2,271			9,309			6,220
Depreciation and amortization expenses	4,369			3,094			13,350			10,634
Other expenses	5,417			4,533			16,128			15,176
Total expenses	$	21,118		$	16,168		$	61,286		$	49,691
Pre-tax income (loss)	$	(1,535	)	$	(473	)	$	(5,359	)	$	(5,487	)

Results

In 2017, twelve properties were acquired (two Managed Properties and ten Triple Net Lease Properties) for an aggregate purchase price of $80.7 million, bringing our total purchase price of the 40 properties to $407.6 million, excluding transaction costs. Ten of those properties were acquired in the second quarter of 2017. For the three months ended September 30, 2017, our senior living segment incurred a pre-tax loss of $1.5 million compared with a pre-tax loss of $0.5 million for the same period in 2016. For the nine months ended September 30, 2017, we incurred a pre-tax loss of $5.4 million compared with a pre-tax loss of $5.5 million for the same period in 2016. The properties acquired in the last twelve months have generated higher rental and related revenue year-over-year, however the higher revenues have been offset by additional expenses as a consequence of the acquisition of these properties. For the three months ended September 30, 2017, the additional operating costs, interest expense, and depreciation and amortization outpaced the incremental revenues from the acquired properties. For the nine months ended September 30, 2017, the primary driver of the lower loss compared to 2016 was an unrealized expense of $1.4 million related to interest rate swaps in the first quarter of 2016.

Revenues

Revenues were $19.6 million for the three months ended September 30, 2017, compared with $15.7 million for the 2016 period, an increase of $3.9 million, or 24.8%. The increase in rental and related revenue was primarily due to the fourteen properties acquired over the last twelve months (three Managed Properties, eleven Triple Net Leases). For the nine months ended September 30, 2017, revenues were $55.9 million compared with $44.2 million for the 2016 period, an increase of $11.7 million, or 26.5%. The increase in rental and related revenue was primarily due to the facilities acquired since the first quarter of 2016, including twelve properties acquired in 2017 and four properties acquired in 2016. The three and nine month revenues increases as a result of acquisitions were partially offset by declining rental and related income resulting from reduced occupancy levels in 2016 at properties undergoing renovations and capital upgrades. These upgrades were completed in the first quarter of 2017, but occupancy and rental income has not yet recovered to stabilized levels.

Expenses

Expenses are comprised of interest expenses on borrowings, payroll expenses (including employees of the managers at each of Care’s Managed Properties), professional fees, depreciation and amortization of properties and leases acquired and other expenses.

Expenses for the three months ended September 30, 2017 were $21.1 million, compared with $16.2 million for 2016, an increase of $5.0 million, or 30.6%. The primary increases period-over-period primarily related to acquired properties and include property operating expenses of $2.1 million (including employee compensation and benefits and other expenses at the managed properties), interest expense of $1.3 million, depreciation and amortization expenses of $1.3 million, and payroll and other costs of $0.2 million. The increase in property operating expenses was primarily attributable to consolidation of the expenses of the three Managed Properties acquired in the last twelve months.

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Expenses for the nine months ended September 30, 2017 were $61.3 million, compared with $49.7 million for 2016, an increase of $11.6 million, or 23.3%. The primary increases period-over-period include property operating expenses of $7.0 million (including employee compensation and benefits and other expenses at the managed properties), interest expense of $3.1 million and depreciation and amortization expenses of $2.7 million. The increase in property operating expenses was primarily attributable to consolidation of the expenses of the two Managed Properties acquired in the first quarter of 2016 and the three Managed Properties acquired in the last fifteen months.

The Company is party to interest rate swaps in order to hedge interest rate exposure associated with its real estate holdings. These instruments swap fixed to floating rate cash streams in order to maintain the economics on the mortgage debt. As a result of movements in interest rates in the three months ended March 31, 2016, an unrealized loss was recorded in other expenses for $1.4 million for swaps that had not been previously designated as hedging relationships, which is an offsetting factor in the year-over-year increase in other expenses.

Operating Results - Non-GAAP

Segment NOI

In addition to Adjusted EBITDA, we also evaluate performance of our senior living segment based on net operating income (“NOI”), which is a non-GAAP measure. NOI is a common non-GAAP measure in the real estate industry used to evaluate property level operations. We consider NOI an important supplemental measure to evaluate the operating performance of our senior living segment because it allows investors, analysts and our management to assess our unlevered property-level operating results and to compare our operating results between periods and to the operating results of other senior living companies on a consistent basis. Agreements with our operators are structured such that they are incentivized to grow NOI, and it is a significant component in determining the compensation paid to Care’s management team. We define NOI as rental and related revenue less property operating expense. Property operating expenses and resident fees and services are not relevant to Triple Net Lease Properties since we do not manage the underlying operations and substantially all expenses are passed through to the tenant. Our calculation of NOI may differ from similarly titled non-GAAP financial measures used by other companies. NOI is not a measure of financial performance or liquidity under GAAP and should not be considered a substitute for pre-tax income.

Product NOI - Non-GAAP ⁽¹⁾ 

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Triple Net Leases	$	3,371		$	1,844		$	8,218		$	5,533
Managed Properties	4,071			3,927			12,024			10,256
Segment NOI	$	7,442		$	5,771		$	20,242		$	15,789
Managed Property NOI Margin % (2)	25.8		%	29.0		%	25.8		%	27.1		%

(1) For further information relating to the Senior Living NOI, including a reconciliation to GAAP pre-tax income, see “—Non-GAAP Reconciliations.”

(2) NOI Margin % is the relationship between Managed Property segment NOI and Rental and related revenue.

NOI was $7.4 million for the three months ended September 30, 2017, compared with $5.8 million in the prior year period, an increase of $1.7 million, or 29.0%. For the nine months ended September 30, 2017, NOI was $20.2 million, compared with $15.8 million in the prior year period, an increase of $4.5 million, or 28.2%. The primary drivers of improvement in NOI in both periods was an increase in rental revenue from newly acquired properties partially offset by the associated increase in property operating expenses. Several of our recent acquisitions included properties that the Company and its operating partners are enhancing through renovation projects and other capital upgrades in an effort to grow revenue and to allow them to operate more efficiently. As indicated in the table above, NOI margins on Managed Properties declined from 29.0% to 25.8% for the three months year-over-year and 27.1% to 25.8% for the nine months year-over-year. This decline was a result of dampened revenues as occupancy declined during these periods of renovation and capital upgrades, with the resulting ramp up of leasing revenues post-upgrade not yet completed. As the more recently acquired facilities ramp up and stabilize, we expect our results to reflect additional NOI margin improvements.

Adjusted EBITDA

Adjusted EBITDA was $2.9 million and $8.3 million for the three and nine months ended September 30, 2017, respectively, compared to $2.9 million and $7.2 million in the three and nine months ended September 30, 2016, driven primarily by increases in NOI partially offset by increased interest expense on new acquisitions. See “—Non-GAAP Reconciliations” for a reconciliation to GAAP pre-tax income.

14

Specialty Finance

The specialty finance segment is comprised of our mortgage origination business, including, Reliance, which is 100% owned by us and Reliance management, and Luxury, which is 67.5% owned by us, and the lending operations of Siena, a commercial asset-based finance company, which is 62% owned by us.

Operating Results

($ in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Revenues:
Net realized and unrealized gains (losses)	$	16,700	$	21,682	$	48,029	$	49,499
Other income	8,276		7,331		22,296		18,291
Total revenue	$	24,976	$	29,013	$	70,325	$	67,790
Expenses:
Employee compensation and benefits	14,631		16,865		42,434		41,801
Interest expense	1,949		1,932		4,743		4,352
Depreciation and amortization expenses	209		248		620		665
Other expenses	5,592		5,787		19,899		15,462
Total expenses	$	22,381	$	24,832	$	67,696	$	62,280
Pre-tax income (loss)	$	2,595	$	4,181	$	2,629	$	5,510

Results

For the three months ended September 30, 2017, the specialty finance segment contributed pre-tax income of $2.6 million compared with pre-tax income of $4.2 million for the comparable 2016 period. For the nine months ended September 30, 2017, pre-tax income was $2.6 million compared with $5.5 million for the comparable 2016 period. Expenses decreased by $2.5 million for the three months ended September 30, 2017 as result of lower mortgage production volumes which impacted employee compensation and benefits. In the nine months ended September 30, 2017, expenses increased by $5.4 million driven primarily by the $3.0 million increase in fair value of the contingent earn-out liability in connection with our acquisition of Reliance, which in turn was driven by their improved performance. In addition, since the contingent earn-out is payable in Tiptree stock, its fair value increases as Tiptree’s stock price improves. This was partially offset by improved underlying performance driven by increased net revenue margins on mortgage originations volume and higher earning assets in the commercial lending businesses.

Revenues

Revenues are comprised of gain on sale of mortgages originated and sold to investors, gains and losses on the mortgage pipeline of interest rate lock commitments and mortgage loans held for sale and their associated hedges, and net interest income and fees associated with our commercial asset-based lending products and the mortgage origination business.

Revenues decreased from $29.0 million in three months ended September 30, 2016 to $25.0 million in the comparable 2017 period. Mortgage origination volume declined 23.8% from $565.8 million for the three months ended September 30, 2016 to $431.2 million for three months ended September 30, 2017, which was partially offset by 31.2 basis points improvement in net revenue margins year-over-year. Commercial lending grew with average earning assets of $138.7 million in the three months ended September 30, 2017, compared with $90.6 million in the three months ended September 30, 2016, an increase of 53.1%.

Revenues increased from $67.8 million in nine months ended September 30, 2016 to $70.3 million in the 2017 period, primarily driven by higher margins on relatively stable mortgage volume and increased commercial lending originations volume. Mortgage origination volume declined 10.9% from $1.3 billion for the nine months ended September 30, 2016 to $1.2 billion for nine months ended September 30, 2017 which was more than offset by 53.1 basis points improvement in net revenue margins year-over-year. This was primarily a result of the change in product mix towards higher margin government and agency products. In addition, commercial asset-based lending grew with average earning assets of $117.1 million in the nine months ended September 30, 2017, compared with $72.8 million in the prior year period, an increase of 60.9%. The improvement in commercial asset-based lending was driven by increased loan originations and higher utilization rates of facilities by borrowers which increased interest income and loan fees, reported in other income.

15

Expenses

Lower revenues were offset by lower expenses, which decreased from $24.8 million for the three months ended September 30, 2016 to $22.4 million for three months ended September 30, 2017. Higher revenues in the nine months ended September 30, 2017 were offset by higher expenses which increased from $62.3 million for the nine months ended September 30, 2016 to $67.7 million in the comparable period in 2017. Expenses are composed of payroll and employee commissions, interest expense, professional fees, fair value changes to the contingent earn-out liability in connection with our acquisition of Reliance and other expenses. In addition to the Reliance earn-out increase, expenses were higher in the nine month 2017 period from higher payroll and employee commissions as underlying business performance improved.

Operating Results - Non GAAP

Adjusted EBITDA

Adjusted EBITDA was $2.4 millionand$6.3 million for the three and nine months ended September 30, 2017, respectively, compared to $4.5 million and $6.3 million for the comparable prior year periods. The decrease in the three month period was driven by the same factors discussed above under “Results”, combined with the add-back of the change in fair value for earn-out liability at Reliance in each respective period. See “—Non-GAAP Reconciliations” for a reconciliation to GAAP pre-tax income.

Corporate and Other

Corporate and other incorporates revenues from non-core legacy principal investments and expenses including interest expense on the holding company credit facility and employee compensation and benefits, and other expenses.

Operating Results

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues:
Net realized and unrealized gains (losses)	$	(271	)	$	42		$	(67	)	$	3,462
Other income	69			34			142			106
Total revenue	$	(202	)	$	76		$	75		$	3,568
Expenses:
Employee compensation and benefits	3,280			4,185			9,751			9,787
Interest expense	1,299			1,314			3,851			3,434
Depreciation and amortization expenses	63			63			186			186
Other expenses	2,274			3,806			8,485			12,912
Total expenses	$	6,916		$	9,368		$	22,273		$	26,319
Pre-tax income (loss)	$	(7,118	)	$	(9,292	)	$	(22,198	)	$	(22,751	)

Results

For the three months ended September 30, 2017, the Company recorded a loss of $7.1 million compared with a loss of $9.3 million for the 2016 period, an increase in pre-tax income of $2.2 million. For the nine months ended September 30, 2017, the Company recorded a loss of $22.2 million compared with a loss of $22.8 million for the 2016 period, a lower pre-tax loss of $0.6 million. The key drivers of year-over-year improvement in the nine month period were decreases in total corporate expenses of $4.0 million primarily related to reduced professional fees, partially offset by $3.5 million of reduced revenues in the 2016 period from realized gains on the sale of certain legacy principal investments which did not repeat in 2017.

Expenses include holding company interest expense, employee compensation and benefits, and other expenses. Corporate employee compensation and benefits expense includes the expense of management, legal and accounting staff. Other expenses primarily consisted of audit and professional fees, insurance, office rent and other related expenses.

Employee compensation and benefits were $3.3 million in the three months ended September 30, 2017, compared to $4.2 million for the 2016 period. For the nine months ended September 30, 2017, employee compensation and benefits were $9.8 million compared to $9.8 million in the nine months ended September 30, 2016, as corporate staff increased from our efforts to improve our reporting and controls infrastructure, which was offset by lower accrued incentive compensation.

16

Interest expense was $1.3 million in the three months ended September 30, 2017, compared to $1.3 million in the 2016 period. Interest expense was $3.9 million in the nine months ended September 30, 2017, compared to $3.4 million in the nine months ended September 30, 2016. The increase in interest expense for the nine months was related to increased borrowings on the Fortress credit facility year-over-year.

Other expenses were $2.3 million in the three months ended September 30, 2017 as compared to $3.8 million in the 2016 period. For the nine months ended September 30, 2017, other expenses were $8.5 million as compared to $12.9 million in 2016. The year-over-year decrease of $4.4 million in the nine months was driven by reduced audit fee accruals and external consulting spend as a result of our improved reporting and controls infrastructure. Included within the year-to-date 2017 results were approximately $1.0 million of expenses primarily related to the delayed filing of the first quarter Form 10-Q.

Operating Results - Non-GAAP

Adjusted EBITDA

Adjusted EBITDA was a loss of $5.8 million and $19.9 million for the three and nine months ended September 30, 2017, respectively, compared to a loss of $7.9 million and $20.9 million in the comparable prior year periods. The improvement in Adjusted EBITDA for the three and nine month periods were driven by the same factors that impacted pre-tax income. See “—Non-GAAP Reconciliations” for a reconciliation to GAAP pre-tax income.

Provision for income taxes

The total income tax benefit of $2.8 million and expense of $5.3 million for the nine months ended September 30, 2017 and 2016, respectively, is reflected as a component of net income. Below is a table that breaks down the components of the Company’s effective tax rate (“ETR”).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
Impact of state tax and permanent items	3.8		(2.2	)	4.0		(0.9	)
Impact of non-controlling interests	(0.7	)	(1.2	)	2.9		(0.6	)
Impact of restructuring	—		—		—		(14.7	)
Impact of Reliance contingent liability valuation	4.5		—		(10.5	)	—
Impact of other discrete	(4.8	)	0.7		(4.1	)	0.4
ETR	37.8	%	32.3	%	27.3	%	19.2	%

For the three months ended September 30, 2017, the Company’s ETR was equal to 37.8%, which does bear a customary relationship to the federal statutory income tax rate. For the three months ended September 30, 2016, the Company’s ETR was equal to 32.3%, which does bear a customary relationship to the federal statutory income tax rate.

For the nine months ended September 30, 2017, the Company’s ETR was equal to 27.3% which is lower than the federal statutory income tax rate, primarily due a change in fair value of a contingent consideration liability, an increase in a valuation allowance on net operating losses, and various other discrete items. The ETR for the nine months ended September 30, 2017 excluding the effect of discrete items was 28.1%, which is lower than the federal statutory income tax rate, primarily due to a state tax benefit and the effect of non-controlling interests at certain subsidiaries. For the nine months ended September 30, 2016, the Company’s ETR was equal to approximately 19.2%, which is lower than the federal statutory income tax rate primarily due to the impact of tax restructuring to create the consolidated group.

Balance Sheet Information - as of September 30, 2017 compared to the year ended December 31, 2016

Tiptree’s total assets were $2.4 billion as of September 30, 2017, compared to $2.9 billion as of December 31, 2016. The $441.2 million decrease in assets is primarily attributable to decreases in assets of consolidated CLOs, due to the deconsolidation of two CLOs during the nine months ended September 30, 2017 as a result of selling the subordinated notes. Additionally, loans at fair value and equity securities decreased, partially offset by increases in real estate from acquisitions in our senior living segment, notes and accounts receivable and reinsurance receivable in our specialty insurance segment. In addition, the combination of unearned premiums and deferred revenues increased as a result of growth in written premiums and extending contract durations in the insurance business.

Total stockholders’ equity of Tiptree was $292.0 million as of September 30, 2017 compared to $293.4 million as of December 31, 2016, primarily driven by the losses in the period, partially offset by the net increase in equity outstanding as a result of the Tricadia

17

Option, net of the share re-purchase. As of September 30, 2017 there were 29,793,481 shares of Tiptree Class A common stock outstanding, net of Treasury shares held at a subsidiary, as compared to 28,387,616 as of December 31, 2016, presented on the same basis.

NON-GAAP RECONCILIATIONS

EBITDA and Adjusted EBITDA

The Company defines EBITDA as GAAP net income of the Company adjusted to add consolidated interest expense, consolidated income taxes and consolidated depreciation and amortization expense as presented in its financial statements and Adjusted EBITDA as EBITDA adjusted to (i) subtract interest expense on asset-specific debt incurred in the ordinary course of its subsidiaries’ business operations, (ii) adjust for the effect of purchase accounting, (iii) add back significant acquisition related costs, (iv) adjust for significant relocation costs and (v) any significant one-time expenses.

($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss) available to Class A common stockholders	$	(3,114	)	$	5,905		$	(6,457	)	$	17,593
Add: net (loss) income attributable to noncontrolling interests	(264		)	1,933			(903		)	4,680
Income (loss)	$	(3,378	)	$	7,838		$	(7,360	)	$	22,273
Consolidated interest expense	10,361			7,839			28,444			20,770
Consolidated income taxes	(2,052		)	3,712			(2,761		)	5,298
Consolidated depreciation and amortization expense	7,775			6,437			23,781			21,899
EBITDA	$	12,706		$	25,826		$	42,104		$	70,240
Consolidated non-corporate and non-acquisition related interest expense(1)	(7,340		)	(4,989		)	(19,510		)	(13,223		)
Effects of Purchase Accounting (2)	(306		)	(957		)	(1,205		)	(4,446		)
Non-cash fair value adjustments (3)	(309		)	—			3,378			1,416
Significant acquisition expenses (4)	25			248			302			631
Separation expense adjustments (5)	—			—			(1,736		)	(1,736		)
Adjusted EBITDA of the Company	$	4,776		$	20,128		$	23,333		$	52,882

(1)	The consolidated non-corporate and non-acquisition related interest expense is subtracted from EBITDA to arrive at Adjusted EBITDA. This includes interest expense associated with asset-specific debt at subsidiaries in the specialty insurance, asset management, senior living and specialty finance segments.
(2)	Following the purchase accounting adjustments, current period expenses associated with deferred costs were more favorably stated and current period income associated with deferred revenues were less favorably stated. Thus, the purchase accounting effect related to Fortegra increased EBITDA above what the historical basis of accounting would have generated. The impact of this purchase accounting adjustments have been reversed to reflect an adjusted EBITDA without such purchase accounting effect. The impact for the three months ended September 30, 2017 and 2016 was an effective increase to pre-tax earnings of $307 thousand and $408 thousand, respectively.
(3)	For our senior living segment, Adjusted EBITDA excludes the impact of the change of fair value of interest rate swaps hedging the debt at the property level. For Reliance, within our specialty finance segment, Adjusted EBITDA excludes the impact of changes in contingent earn-outs. For our specialty insurance segment, depreciation and amortization on senior living real estate that is within net investment income is added back to Adjusted EBITDA.
(4)	Acquisition costs include legal, taxes, banker fees and other costs associated with senior living acquisitions in 2017 and 2016.
(5)	Consists of payments pursuant to a separation agreement, dated as of November 10, 2015.

Segment EBITDA and Adjusted EBITDA

The tables below present EBITDA and Adjusted EBITDA by our four reporting segments specialty insurance, asset management, senior living and specialty finance. Corporate and other contains corporate expenses no allocated to the operating business.

	Three Months Ended September 30,
($ in thousands)	Specialty insurance						Asset management					Senior living						Specialty finance						Corporate and other						Total
	2017			2016			2017			2016		2017			2016			2017			2016			2017			2016			2017			2016
Pre-tax income/(loss)	$	(2,345	)	$	10,659		$	2,973		$	6,475	$	(1,535	)	$	(473	)	$	2,595		$	4,181		$	(7,118	)	$	(9,292	)	$	(5,430	)	$	11,550
Add back:
Interest expense	3,499			2,322			5			—		3,609			2,271			1,949			1,932			1,299			1,314			10,361			7,839
Depreciation and amortization expenses	3,134			3,032			—			—		4,369			3,094			209			248			63			63			7,775			6,437
Segment EBITDA	$	4,288		$	16,013		$	2,978		$	6,475	$	6,443		$	4,892		$	4,753		$	6,361		$	(5,756	)	$	(7,915	)	$	12,706		$	25,826
EBITDA adjustments:
Asset-specific debt interest	(1,777		)	(836		)	(5		)	—		(3,609		)	(2,271		)	(1,949		)	(1,882		)	—			—			(7,340		)	(4,989		)
Effects of purchase accounting	(306		)	(957		)	—			—		—			—			—			—			—			—			(306		)	(957		)
Non-cash fair value adjustments	113			—			—			—		—			—			(422		)	—			—			—			(309		)	—
Significant acquisition expenses	—			—			—			—		25			248			—			—			—			—			25			248
Separation expenses	—			—			—			—		—			—			—			—			—			—			—			—
Segment Adjusted EBITDA	$	2,318		$	14,220		$	2,973		$	6,475	$	2,859		$	2,869		$	2,382		$	4,479		$	(5,756	)	$	(7,915	)	$	4,776		$	20,128

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	Nine Months Ended September 30,
($ in thousands)	Specialty insurance						Asset management						Senior living						Specialty finance						Corporate and other						Total
	2017			2016			2017			2016			2017			2016			2017			2016			2017			2016			2017			2016
Pre-tax income/(loss)	$	1,724		$	35,627		$	13,083		$	14,672		$	(5,359	)	$	(5,487	)	$	2,629		$	5,510		$	(22,198	)	$	(22,751	)	$	(10,121	)	$	27,571
Add back:
Interest expense	10,534			6,018			7			746			9,309			6,220			4,743			4,352			3,851			3,434			28,444			20,770
Depreciation and amortization expenses	9,625			10,414			—			—			13,350			10,634			620			665			186			186			23,781			21,899
Segment EBITDA	$	21,883		$	52,059		$	13,090		$	15,418		$	17,300		$	11,367		$	7,992		$	10,527		$	(18,161	)	$	(19,131	)	$	42,104		$	70,240
EBITDA adjustments:
Asset-specific debt interest	(5,451		)	(2,057		)	(7		)	(746		)	(9,309		)	(6,220		)	(4,743		)	(4,200		)	—			—			(19,510		)	(13,223		)
Effects of purchase accounting	(1,205		)	(4,446		)	—			—			—			—			—			—			—			—			(1,205		)	(4,446		)
Non-cash fair value adjustments	339			—			—			—			—			1,416			3,039			—			—			—			3,378			1,416
Significant acquisition expenses	—			—			—			—			302			631			—			—			—			—			302			631
Separation expenses	—			—			—			—			—			—			—			—			(1,736		)	(1,736		)	(1,736		)	(1,736		)
Segment Adjusted EBITDA	$	15,566		$	45,556		$	13,083		$	14,672		$	8,293		$	7,194		$	6,288		$	6,327		$	(19,897	)	$	(20,867	)	$	23,333		$	52,882

Book Value per share, as exchanged - Non-GAAP

Book value per share, as exchanged assumes full exchange of the limited partners units of TFP for Tiptree Class A common stock. Management believes the use of this financial measure provides supplemental information useful to investors as book value is frequently used by the financial community to analyze company growth on a relative per share basis. The following table provides a reconciliation between total stockholders’ equity and total shares outstanding, net of treasury shares, as of September 30, 2017 and September 30, 2016.

($ in thousands, except per share information)	Nine Months Ended September 30,
	2017		2016
Total stockholders’ equity	$	391,138	$	381,341
Less non-controlling interest - other	25,081		19,939
Total stockholders’ equity, net of non-controlling interests - other	$	366,057	$	361,402
Total Class A shares outstanding (1)	29,793		28,351
Total Class B shares outstanding	8,049		8,049
Total shares outstanding	37,842		36,400
Book value per share, as exchanged	$	9.67	$	9.93

(1) As of September 30, 2017, excludes 5,209,523 shares of Class A common stock held by a consolidated subsidiary of the Company. See Note 23—Earnings per Share, for further discussion of potential dilution from warrants

Specialty Insurance - As Adjusted Underwriting Margin - Non-GAAP

Underwriting margin is a measure of the underwriting profitability of our specialty insurance segment. It represents net earned premiums, service and administrative fees, ceding commissions and other income less policy and contract benefits and commission expense. We use the combined ratio as an insurance operating metric to evaluate our underwriting performance, both overall and relative to peers. Expressed as a percentage, it represents the relationship of policy and contract benefits, commission expense (net of ceding commissions), employee compensation and benefits, and other expenses to net earned premiums, service and administrative fees, and other income. The following table provides a reconciliation between as adjusted underwriting margin and pre-tax income for the following periods:

19

	Three Months Ended September 30,
($ in thousands)	GAAP						Non-GAAP adjustments						Non-GAAP - As Adjusted
Revenues:	2017			2016			2017			2016			2017			2016
Net earned premiums	$	96,073		$	47,609		$	—		$	—		$	96,073		$	47,609
Service and administrative fees	24,018			25,842			236			1,134			24,254			26,976
Ceding commissions	2,513			1,397			10			69			2,523			1,466
Other income	824			730			—			—			824			730
Less underwriting expenses:
Policy and contract benefits	31,570			25,881			—			—			31,570			25,881
Commission expense	63,066			24,032			538			2,120			63,604			26,152
Underwriting Margin - Non-GAAP	$	28,792		$	25,665		$	(292	)	$	(917	)	$	28,500		$	24,748
Less operating expenses:
Employee compensation and benefits	10,073			9,180			—			—			10,073			9,180
Other expenses	9,717			7,524			31			40			9,748			7,564
Combined Ratio	92.6		%	87.9		%	—		%	—		%	92.8		%	89.4		%
Plus investment revenues:
Net investment income	3,840			3,307			—			—			3,840			3,307
Net realized and unrealized gains	(8,554		)	3,745			—			—			(8,554		)	3,745
Less other expenses:
Interest expense	3,499			2,322			—			—			3,499			2,322
Depreciation and amortization expenses	3,134			3,032			(16		)	(549		)	3,118			2,483
Pre-tax income (loss)	$	(2,345	)	$	10,659		$	(307	)	$	(408	)	$	(2,652	)	$	10,251

	Nine Months Ended September 30,
($ in thousands)	GAAP						Non-GAAP adjustments						Non-GAAP - As Adjusted
Revenues:	2017			2016			2017			2016			2017			2016
Net earned premiums	$	272,781		$	138,516		$	—		$	—		$	272,781		$	138,516
Service and administrative fees	70,861			84,421			742			4,976			71,603			89,397
Ceding commissions	6,801			22,645			46			376			6,847			23,021
Other income	2,874			1,985			—			—			2,874			1,985
Less underwriting expenses:
Policy and contract benefits	94,364			72,436			—			—			94,364			72,436
Commission expense	176,405			91,906			1,892			9,494			178,297			101,400
Underwriting Margin - Non-GAAP	$	82,548		$	83,225		$	(1,104	)	$	(4,142	)	$	81,444		$	79,083
Less operating expenses:
Employee compensation and benefits	30,800			28,065			—			—			30,800			28,065
Other expenses	28,279			24,277			120			304			28,399			24,581
Combined Ratio	93.2		%	86.3		%	—			—			93.6		%	88.5		%
Plus investment revenues:
Net investment income	12,032			8,409			—			—			12,032			8,409
Net realized and unrealized gains	(13,618		)	12,767			—			—			(13,618		)	12,767
Less other expenses:
Interest expense	10,534			6,018			—			—			10,534			6,018
Depreciation and amortization expenses	9,625			10,414			(182		)	(2,977		)	9,443			7,437
Pre-tax income (loss)	$	1,724		$	35,627		$	(1,042	)	$	(1,469	)	$	682		$	34,158

Specialty Insurance Investment Portfolio - Non-GAAP

The following table provides a reconciliation between segment total investments and net investments for the following periods:

($ in thousands)	As of September 30,
	2017			2016
Total Investments	$	426,753		$	398,505
Investment portfolio debt (1)	(122,999		)	(101,012		)
Cash and cash equivalents	62,790			16,555
Restricted cash (2)	3,637			6,683
Receivable due from brokers (3)	1,505			—
Liability due to brokers (3)	(7,733		)	(18,836		)
Net investments - Non-GAAP	$	363,953		$	301,895

(1) Consists of asset-based financing on loans, at fair value including certain credit investments and NPLs, net of deferred financing costs, see Note 11 - Debt, net for further details.

(2) Restricted cash available to invest within certain credit investment funds which are consolidated under GAAP.

(3) Receivable due from and Liability due to brokers for unsettled trades within certain credit investment funds which are consolidated under GAAP.

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Senior Living Product NOI - Non-GAAP

The following table provides a reconciliation between segment NOI and pre-tax income (loss) for the following periods:

($ in thousands)	Three Months Ended September 30, 2017								Three Months Ended September 30, 2016								Nine Months Ended September 30, 2017								Nine Months Ended September 30, 2016
	NNN Operations		Managed Properties			Senior Living Total			NNN Operations		Managed Properties			Senior Living Total			NNN Operations		Managed Properties			Senior Living Total			NNN Operations		Managed Properties			Senior Living Total
Rental and related revenue	$	3,371	$	15,799		$	19,170		$	1,844	$	13,526		$	15,370		$	8,218	$	46,600		$	54,818		$	5,533	$	37,856		$	43,389
Less: Property operating expenses	—		11,728			11,728			—		9,599			9,599			—		34,576			34,576			—		27,600			27,600
Segment NOI	$	3,371	$	4,071		$	7,442		$	1,844	$	3,927		$	5,771		$	8,218	$	12,024		$	20,242		$	5,533	$	10,256		$	15,789
Segment NOI Margin % (1)			25.8		%						29.0		%						25.8		%						27.1		%
Other income						$	414							$	324							$	1,109							$	815
Less: Expenses
Interest expense						3,609								2,271								9,309								6,220
Payroll and employee commissions						790								617								2,323								1,900
Depreciation and amortization						4,369								3,095								13,350								10,635
Other expenses						623								583								1,728								3,335
Pre-tax income (loss)						$	(1,535	)						$	(471	)						$	(5,359	)						$	(5,486	)

(1) NOI Margin % is the relationship between segment NOI and rental and related revenue.

Asset Management As Adjusted Revenues

The following table provides a reconciliation between asset management segment revenues and non-GAAP, as adjusted revenues for the following periods:

	Three Months Ended September 30,
($ in thousands)	GAAP					Non-GAAP adjustments						Non-GAAP - As Adjusted
Revenues:	2017			2016		2017			2016			2017		2016
Management fee income	$	1,541		$	3,839	$	311		$	743		$	1,852	$	4,582
Distributions	—			—		2,168			4,368			2,168		4,368
Net realized and unrealized gains (losses)	(349		)	695		360			(1,034		)	11		(339		)
Other income	256			212		(256		)	(45		)	—		167
Total revenues	$	1,448		$	4,746	$	2,583		$	4,032		$	4,031	$	8,778

	Nine Months Ended September 30,
($ in thousands)	GAAP				Non-GAAP adjustments						Non-GAAP - As Adjusted
Revenues:	2017		2016		2017			2016			2017		2016
Management fee income	$	6,578	$	7,497	$	1,038		$	2,169		$	7,616	$	9,666
Distributions	—		—		6,560			11,058			6,560		11,058
Net realized and unrealized gains (losses)	839		226		2,604			(3,050		)	3,443		(2,824		)
Other income	822		3,031		(809		)	(128		)	13		2,903
Total revenues	$	8,239	$	10,754	$	9,393		$	10,049		$	17,632	$	20,803

LIQUIDITY AND CAPITAL RESOURCES

Our principal sources of liquidity are our holdings of unrestricted cash, cash equivalents and other liquid investments and distributions from operating subsidiaries, including subordinated notes of CLOs, income from our investment portfolio and sales of assets and investments. We intend to use our cash resources to continue to grow our businesses. We may seek additional sources of cash to fund acquisitions or investments. These additional sources of cash may take the form of debt or equity and may be at the parent, subsidiary or asset level. We are a holding company and our liquidity needs are primarily for interest payments on the Fortress credit facility, compensation, professional fees, office rent and insurance costs.

Our subsidiaries’ ability to generate sufficient net income and cash flows to make cash distributions will be subject to numerous business and other factors, including restrictions contained in our subsidiaries’ financing agreements, regulatory restrictions, availability of sufficient funds at such subsidiaries, general economic and business conditions, tax considerations, strategic plans, financial results and other factors such as target capital ratios and ratio levels anticipated by rating agencies to maintain or improve current ratings. We expect our cash and cash equivalents and distributions from operating subsidiaries and our subsidiaries’ access to financing to be adequate to fund our operations for at least the next 12 months.

As of September 30, 2017, we had cash and cash equivalents, excluding restricted cash, of $111.8 million, compared to $63.0 million at December 31, 2016, an increase of $48.7 million.

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Our approach to debt is generally to use non-recourse (other than customary carveouts, including fraud and environmental liability), asset specific debt where possible that is amortized by cash flows from the underlying business or assets financed. Our mortgage businesses rely on short term uncommitted sources of financing as a part of their normal course of operations.  To date, we have been able to obtain and renew uncommitted warehouse credit facilities. If we were not able to obtain financing, then we may need to draw on other sources of liquidity to fund our mortgage business. See Note—(11) Debt, net for additional information regarding our mortgage warehouse borrowings.

For purposes of determining enterprise value and Adjusted EBITDA, we consider secured corporate credit agreements and preferred trust securities, which we refer to as corporate debt, as corporate financing and associated interest expense is added back. The below table outlines this amount by debt outstanding and interest expense by segment.

Corporate Debt

($ in thousands)	Debt outstanding as of September 30,				Interest expense for the three months ended September 30,				Interest expense for the nine months ended September 30,
	2017		2016		2017		2016		2017		2016
Specialty insurance	$	145,000	$	145,850	$	1,721	$	1,516	$	5,082	$	3,961
Corporate and other	57,000		59,000		1,258		1,209		3,810		3,329
Total	$	202,000	$	204,850	$	2,979	$	2,725	$	8,892	$	7,290

Our intermediate holding company has a credit facility with Fortress to provide working capital. Loans under the Fortress credit agreement bear interest at LIBOR (with a minimum LIBOR rate of 1.25%), plus a margin of 6.50% per annum. We are required to make quarterly principal payments of $0.5 million, subject to adjustment based on the Net Leverage Ratio (as defined in the Fortress credit agreement) at the end of each fiscal quarter. The outstanding debt under the Fortress credit agreement was $57.0 million as of September 30, 2017 compared to $58.5 million as of December 31, 2016. All remaining principal, and any unpaid interest, under the Fortress credit agreement is payable on maturity at September 18, 2018. We intend to extend or refinance the Fortress credit agreement but we may not be able to do so on terms satisfactory to us. If we are unable to extend or refinance, we expect to use available cash, asset sales and/or distributions from our operating subsidiaries to make the required payments.

On October 16, 2017, Fortegra completed an offering of $125 million Junior Subordinated Notes due 2057. Substantially all of the net proceeds from the Notes were used to repay Fortegra’s existing credit facility, which was terminated. We believe these funds will reposition Fortegra’s balance sheet, strengthen the Company’s positioning with industry rating agencies, and generate a source of long term capital. See Note—(11) Debt, net for additional information of our debt and that of our subsidiaries.

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Consolidated Comparison of Cash Flows

Summary Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2017 and September 30, 2016

($ in thousands)	Nine Months Ended September 30,
	2017			2016
Net cash (used in) provided by:
Operating activities
Operating activities - (excluding VIEs)	$	27,214		$	(27,156	)
Operating activities - VIEs	(2,684		)	(3,505		)
Total cash provided by (used in) operating activities	24,530			(30,661		)
Investing activities
Investing activities - (excluding VIEs)	(38,266		)	(157,745		)
Investing activities - VIEs	224,107			(96,834		)
Total cash provided by (used in) investing activities	185,841			(254,579		)
Financing activities
Financing activities - (excluding VIEs)	61,763			61,108
Financing activities - VIEs	(223,393		)	220,727
Total cash provided by (used in) financing activities	(161,630		)	281,835
Net increase (decrease) in cash	$	48,741		$	(3,405	)

Nine Months Ended September 30, 2017

Operating Activities

Cash provided by operating activities (excluding VIEs) was $27.2 million for the nine months ended September 30, 2017. The primary sources of cash from operating activities included mortgage sales outpacing originations in our specialty finance segment and, increases in unearned premiums, reinsurance payable and policy liabilities in our specialty insurance segment. The primary uses of cash from operating activities including increases in reinsurance receivables, notes and account receivable and decreases in accrued expenses in our specialty insurance segment.

Cash used in operating activities - VIEs was $2.7 million for the nine months ended September 30, 2017.

Investing Activities

Cash used in investing activities (excluding VIEs) was $38.3 million for the nine months ended September 30, 2017. The primary uses of cash from investing activities were investments in senior living real estate properties in our senior living business. The primary sources of cash from investing activities were proceeds from sales and maturities of investments exceeding purchases of investments, specifically the sale of NPLs and corporate loans.

Cash provided by investing activities - VIEs was $224.1 million for the nine months ended September 30, 2017. The primary drivers of the cash from investing activities - VIEs were sales of investments and loan prepayments in Telos 7.

Financing Activities

Cash provided by financing activities (excluding VIEs) was $61.8 million for the nine months ended September 30, 2017. The primary sources of cash from financing activities were new borrowings in our senior living segment to fund our investments in real estate, new borrowings exceeding principal paydowns on debt facilities in our specialty finance segments, and origination of new borrowings in our specialty insurance segment.

Cash used in financing activities - VIEs was $223.4 million for the nine months ended September 30, 2017 driven primarily by principal payments on debt in Telos 7.

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Nine Months Ended September 30, 2016

Operating Activities

Cash used in operating activities (excluding VIEs) was $27.2 million for the nine months ended September 30, 2016. The primary uses of cash from operating activities included increases in notes and accounts receivable and decreases in deferred revenue and reinsurance payables in our specialty insurance business. The primary sources of cash from operating activities included mortgage sales outpacing originations and increases in unearned premiums and policy liabilities in our specialty insurance business.

Cash used in operating activities - VIEs was $3.5 million for the nine months ended September 30, 2016. The primary uses of cash from operating activities - VIEs were due to the increases in accrued interest receivable on loans.

Investing Activities

Cash used in investing activities (excluding VIEs) was $157.7 million for the nine months ended September 30, 2016. The primary uses of cash from investing activities included investments in NPLs and other investments, investments in real estate properties in our senior living business and increase in loans in our specialty finance business.

Cash used in investing activities - VIEs was $96.8 million for the nine months ended September 30, 2016. The primary driver of the cash used in investing activities - VIEs was the purchase of loans in Telos 7 during the ramp up period as it converted from a warehouse to a CLO during the second quarter of 2016.

Financing Activities

Cash used in financing activities (excluding VIEs) was $61.1 million for the nine months ended September 30, 2016. The primary drivers of the cash used included paydown of the Telos 7 warehouse debt and repurchases of common stock. The sources of cash were from borrowings in our senior living business to fund its investments in real estate, borrowings in our specialty finance business to fund loan growth, increase in debt in our specialty insurance business for working capital, and an increase in borrowings in our specialty insurance business to grow our corporate loan portfolio and fund additional investments in NPLs.

Cash provided by financing activities - VIEs was $220.7 million for the nine months ended September 30, 2016 driven primarily by the senior notes issued upon the conversion of Telos 7 from a warehouse to a CLO.

Contractual Obligations

The table below summarizes Tiptree’s consolidated contractual obligations by period for payments that are due as of September 30, 2017:

($ in thousands)	Less than 1 year		1-3 years		3-5 years		More than 5 years		Total
Notes payable CLOs (1)	$	—	$	—	$	—	$	334,900	$	334,900
Credit agreement/Revolving line of credit	101,173		178,164		247,247		—		526,584
Mortgage notes payable and related interest (2)	18,073		125,181		118,774		97,513		359,541
Trust Preferred Securities	—		—		—		35,000		35,000
Operating lease obligations (3)	4,946		14,070		7,981		11,972		38,969
Total	$	124,192	$	317,415	$	374,002	$	479,385	$	1,294,994

(1) Non-recourse CLO notes payable principal is payable at stated maturity, 2027 for Telos 6.

(2) See Note —(11) Debt, net, in the accompanying consolidated financial statements for additional information.

(3) Minimum rental obligation for Tiptree, Care, MFCA, Siena, Reliance, Luxury and Fortegra office leases. The total rent expense for the Company for the nine months ended September 30, 2017 and 2016 was $5.2 million and $4.8 million, respectively.

Critical Accounting Policies and Estimates

The preparation of our financial statements in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Actual results could differ materially from those estimates. There have been no material changes to the critical accounting policies and estimates as discussed in our 2016 Annual Report on Form 10-K.

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Recently Adopted and Issued Accounting Standards

For a discussion of recently adopted and issued accounting standards see the section “Recent Accounting Standards” in Note—(2) Summary of Significant Accounting Policies of the notes to the accompanying consolidated financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

In the normal course of business, we enter into various off-balance sheet arrangements including entering into derivative financial instruments and hedging transactions, operating leases and sponsoring and owning interests in consolidated and non-consolidated variable interest entities.

Further disclosure on our off-balance sheet arrangements as of September 30, 2017 is presented in the “Notes to Consolidated Financial Statements” in “Part I. Item 1. Financial Statements (Unaudited)” of this filing as follows:

• Note —(9) Derivative Financial Instruments and Hedging

• Note —(10) Assets and Liabilities of Consolidated CLOs

• Note —(22) Commitments and Contingencies

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our 2016 Annual Report on Form 10-K described our Quantitative and Qualitative Disclosures About Market Risk. There were no material changes to the assumptions or risks during the nine months ended September 30, 2017.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act) as of the end of the period covered by this report. The Company’s disclosure controls and procedures are designed to provide reasonable assurance that information is recorded, processed, summarized and reported accurately and on a timely basis. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d- 15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Tiptree’s Fortegra subsidiary is a defendant in Mullins v. Southern Financial Life Insurance Co., which was filed in February 2006, in the Pike Circuit Court, in the Commonwealth of Kentucky. A class was certified in June 2010. At issue is the duration or term of coverage under certain disability and life credit insurance policies. The action alleges violations of the Consumer Protection Act and certain insurance statutes, as well as common law fraud and seeks compensatory and punitive damages, attorney fees and interest. To date, the court has not awarded sanctions in connection with Plaintiffs’ April 2012 Motion for Sanctions. In January 2015, the trial court issued an Order denying Fortegra’s motion to decertify the class, which was upheld on appeal. Following a February 2017 hearing, the court denied Fortegra’s Motion for Summary Judgment as to certain disability insurance policies but has not yet ruled on such motion with respect to the life insurance policies at issue. In June 2017, a new Special Master was appointed. No trial or hearings are currently scheduled.

In management’s opinion, based on information available at this time, the ultimate resolution of such litigation, which it is vigorously defending, should not be materially adverse to the financial position of Tiptree. It should be noted that large punitive damage awards,

25

bearing little relation to actual damages sustained by plaintiffs, have been awarded in certain states against other companies in the credit insurance business. At this time, the Company cannot reasonably estimate a range of loss.

Tiptree and its subsidiaries are parties to other legal proceedings in the ordinary course of business. Although Tiptree’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, Tiptree does not believe that these proceedings, either individually or in the aggregate, are likely to have a material adverse effect on Tiptree’s financial position or results of operations.

Item 1A. Risk Factors

For information regarding factors that could affect our Company, results of operations and financial condition, see the risk factors discussed under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. There have been no material change in those risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On August 10, 2017, Tiptree issued 756,046 shares of Class A common stock as additional earn-out consideration pursuant to the Securities Purchase Agreement, dated as of November 24, 2014, among Tiptree and certain of its subsidiaries and the former equity holders of Reliance First Capital, LLC.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits, Financial Statement Schedules

The following documents are filed as a part of this Form 10-Q:
Financial Statements (Unaudited):
Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016	F-3
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016	F-4
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016	F-5
Condensed Consolidated Statement of Changes in Stockholders’ Equity for the period ended September 30, 2017 and 2016	F-6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016	F-8
Notes to Condensed Consolidated Financial Statements	F-10
Exhibits:
The Exhibits listed in the Index of Exhibits, which appears immediately following the signature page, is incorporated herein by reference and is filed as part of this Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Tiptree Inc. has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

		Tiptree Inc.
Date:	November 6, 2017	By:/s/ Michael Barnes
		Michael Barnes
		Executive Chairman
Date:	November 6, 2017	By:/s/ Jonathan Ilany
		Jonathan Ilany
		Chief Executive Officer
Date:	November 6, 2017	By:/s/ Sandra Bell
		Sandra Bell
		Chief Financial Officer

27

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification of Executive Chairman pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.3	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Executive Chairman pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.3	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*

* Attached as Exhibit 101 to this Quarterly Report on Form 10-Q are the following materials, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets for September 30, 2017 and December 31, 2016, (ii) the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016, (iv) the Condensed Consolidated Statements of Changes in Stockholders’ Equity for the period ended September 30, 2017, (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 and (vi) the Notes to the Condensed Consolidated Financial Statements.

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Michael Barnes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Tiptree Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 6, 2017	/s/ Michael Barnes
		Michael Barnes
		Executive Chairman

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Jonathan Ilany, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Tiptree Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 6, 2017	/s/ Jonathan Ilany
		Jonathan Ilany
		Chief Executive Officer

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

I, Sandra Bell, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Tiptree Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 6, 2017	/s/ Sandra Bell
		Sandra Bell
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification Pursuant to Section 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Tiptree Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Barnes, the Executive Chairman of the Company, certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that;

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael Barnes

Michael Barnes

Executive Chairman

Date: November 6, 2017

EX-32.2

EXHIBIT 32.2

Certification Pursuant to Section 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Tiptree Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jonathan Ilany, the Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that;

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jonathan Ilany

Jonathan Ilany

Chief Executive Officer

Date: November 6, 2017

EX-32.3

EXHIBIT 32.3

Certification Pursuant to Section 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Tiptree Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sandra Bell, the Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that;

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Sandra Bell

Sandra Bell

Chief Financial Officer

Date: November 6, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Entity Registrant Name	Tiptree Inc.
Entity Central Index Key	0001393726
Current Fiscal Year End Date	--12-31
Document Period End Date	Sep. 30, 2017
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Common Stock - Class A
Entity Common Stock, Shares Outstanding		35,003,004
Common Stock - Class B
Entity Common Stock, Shares Outstanding		8,049,029

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Available for sale securities, at fair value	$ 164,093	$ 146,171
Loans, at fair value	323,122	373,089
Loans at amortized cost, net	150,596	113,838
Equity securities, trading, at fair value	28,106	48,612
Real estate, net	371,137	309,423
Other Investments	27,191	25,467
Total investments	1,064,245	1,016,600
Cash and cash equivalents	111,751	63,010
Restricted cash	23,400	24,472
Notes and accounts receivable, net	178,726	157,500
Reinsurance receivables	333,023	296,234
Deferred acquisition costs	139,471	126,608
Goodwill and intangible assets, net	176,820	178,245
Other assets	48,544	37,886
Assets of consolidated CLOs	372,774	989,495
Total assets	2,448,754	2,890,050
Liabilities
Debt, net	865,629	793,009
Unearned premiums	475,047	414,960
Policy liabilities and unpaid claims	110,928	103,391
Deferred revenue	53,930	52,254
Reinsurance payable	81,887	70,588
Other liabilities and accrued expenses	115,858	133,735
Liabilities of consolidated CLOs	354,337	931,969
Total liabilities	2,057,616	2,499,906
Commitments and contingencies (see Note 22)
Stockholders’ Equity
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding	0	0
Additional paid-in capital	296,476	297,391
Accumulated other comprehensive income (loss), net of tax	1,223	555
Retained earnings	28,913	37,974
Total Tiptree Inc. stockholders’ equity	291,983	293,431
Non-controlling interests (including $74,074 and $76,077 attributable to Tiptree Financial Partners, L.P., respectively)	99,155	96,713
Total stockholders’ equity	391,138	390,144
Total liabilities and stockholders’ equity	2,448,754	2,890,050
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 35,003,004 and 34,983,616 shares issued and outstanding, respectively
Stockholders’ Equity
Common stock	35	35
Class A and B Common stock held by subsidiaries	(34,664)	(42,524)
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 8,049,029 and 8,049,029 shares issued and outstanding, respectively
Stockholders’ Equity
Common stock	8	8
Class A and B Common stock held by subsidiaries	(8)	(8)
Accumulated other comprehensive income (loss)
Stockholders’ Equity
Accumulated other comprehensive income (loss), net of tax	1,833	1,059
Total stockholders’ equity	$ 1,223	$ 555

XML

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Non-controlling interests (including $74,074 and $76,077 attributable to Tiptree Financial Partners, L.P., respectively)	$ 391,138	$ 390,144
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 35,003,004 and 34,983,616 shares issued and outstanding, respectively
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	35,003,004	34,983,616
Common stock, shares outstanding	35,003,004	34,983,616
Treasury stock, shares	5,209,523	6,596,000
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 8,049,029 and 8,049,029 shares issued and outstanding, respectively
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	8,049,029	8,049,029
Common stock, shares outstanding	8,049,029	8,049,029
Treasury stock, shares	8,049,029	8,049,029
Noncontrolling interest | Tiptree Financial Partners, L.P.
Non-controlling interests (including $74,074 and $76,077 attributable to Tiptree Financial Partners, L.P., respectively)	$ 74,074	$ 76,077

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Earned premiums, net	$ 96,073	$ 47,609	$ 272,781	$ 138,516
Service and administrative fees	24,018	25,842	70,861	84,421
Ceding commissions	2,513	1,397	6,801	22,645
Net investment income	3,840	3,307	12,032	8,409
Net realized and unrealized gains (losses)	7,526	26,215	35,183	65,954
Rental and related revenue	19,170	15,371	54,819	43,389
Other income	11,379	12,419	33,820	31,725
Total revenues	164,519	132,160	486,297	395,059
Expenses:
Policy and contract benefits	31,570	25,881	94,364	72,436
Commission expense	63,066	24,032	176,405	91,906
Employee compensation and benefits	36,596	38,767	109,437	102,175
Interest expense	10,361	7,839	28,444	20,770
Depreciation and amortization	7,775	6,437	23,781	21,899
Other expenses	23,164	21,686	73,380	68,351
Total expenses	172,532	124,642	505,811	377,537
Income attributable to consolidated CLOs	7,216	12,556	24,024	34,713
Expenses attributable to consolidated CLOs	4,633	8,524	14,631	24,664
Net income (loss) attributable to consolidated CLOs	2,583	4,032	9,393	10,049
Income (loss) before taxes	(5,430)	11,550	(10,121)	27,571
Less: provision (benefit) for income taxes	(2,052)	3,712	(2,761)	5,298
Income (loss)	(3,378)	7,838	(7,360)	22,273
Net Income (Loss) Attributable to Parent [Abstract]
Net income (loss) before non-controlling interests	(3,378)	7,838	(7,360)	22,273
Net income (loss) attributable to Tiptree Inc. Class A common stockholders	(3,114)	5,905	(6,457)	17,593
Noncontrolling interest
Net Income (Loss) Attributable to Parent [Abstract]
Less: net (loss) income attributable to non-controlling interests	(264)	1,933	(903)	4,680
Tiptree Financial Partners, L.P. | Noncontrolling interest
Net Income (Loss) Attributable to Parent [Abstract]
Net income (loss) before non-controlling interests			(1,432)	4,660
Less: net (loss) income attributable to non-controlling interests	(595)	1,362	(1,432)	4,660
Noncontrolling interests - other | Noncontrolling interest
Net Income (Loss) Attributable to Parent [Abstract]
Net income (loss) before non-controlling interests			529	20
Less: net (loss) income attributable to non-controlling interests	$ 331	$ 571	$ 529	$ 20
Common Stock - Class A
Basic:
Basic earnings per share	$ (0.11)	$ 0.20	$ (0.22)	$ 0.53
Diluted:
Diluted earnings per share	$ (0.11)	$ 0.19	$ (0.22)	$ 0.53
Weighted average number of Class A common shares:
Basic	29,455,462	29,143,470	28,908,195	32,845,124
Diluted	29,455,462	37,230,650	28,908,195	32,912,516
Dividends declared per share	$ 0.030	$ 0.025	$ 0.090	$ 0.075

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other comprehensive income (loss), net of tax:
Net income (loss) before non-controlling interests	$ (3,378)	$ 7,838	$ (7,360)	$ 22,273
Unrealized gains (losses) on available-for-sale securities:
Unrealized holding gains (losses) arising during the period	355	(553)	1,800	3,779
Related tax (expense) benefit	(124)	198	(635)	(1,331)
Reclassification of (gains) losses included in net income	(394)	(960)	(367)	(1,100)
Related tax expense (benefit)	138	336	129	385
Unrealized gains (losses) on available-for-sale securities, net of tax	(25)	(979)	927	1,733
Interest rate swaps (cash flow hedges):
Unrealized gains (losses) on interest rate swaps	(33)	156	(411)	(515)
Related tax (expense) benefit	19	(46)	115	158
Reclassification of (gains) losses included in net income	(25)	172	212	(56)
Related tax expense (benefit)	8	(54)	(69)	30
Unrealized (losses) gains on interest rate swaps from cash flow hedges, net of tax	(31)	228	(153)	(383)
Other comprehensive income (loss), net of tax	(56)	(751)	774	1,350
Comprehensive income (loss)	(3,434)	7,087	(6,586)	23,623
Comprehensive income (loss) attributable to Tiptree Inc. Class A common stockholders	(3,223)	5,269	(5,789)	18,735
Tiptree Financial Partners, L.P. | Noncontrolling interest
Other comprehensive income (loss), net of tax:
Net income (loss) before non-controlling interests			(1,432)	4,660
Interest rate swaps (cash flow hedges):
Less: comprehensive (loss) income attributable to non-controlling interests	(620)	1,214	(1,278)	4,897
Noncontrolling interests - other | Noncontrolling interest
Other comprehensive income (loss), net of tax:
Net income (loss) before non-controlling interests			529	20
Interest rate swaps (cash flow hedges):
Less: comprehensive (loss) income attributable to non-controlling interests	$ 409	$ 604	$ 481	$ (9)

XML

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock Common Stock - Class A	Common stock Common Stock - Class B	Additional paid-in capital	Accumulated other comprehensive income (loss)	Retained earnings	Total stockholders’ equity to Tiptree Inc.	Treasury Stock Common Stock - Class A	Treasury Stock Common Stock - Class B	Tiptree Financial Partners, L.P. Noncontrolling interest	Noncontrolling interests - other Noncontrolling interest
Capital, beginning of period at Dec. 31, 2015	$ 397,694	$ 35	$ 8	$ 297,063	$ (111)	$ 15,845		$ 0	$ 0	$ 69,278	$ 15,576
Capital, beginning of period, shares at Dec. 31, 2015		(34,899,833)	(8,049,029)					0	0
Total stockholders’ equity to Tiptree Financial Inc. at Dec. 31, 2015	312,840
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Value, Acquisitions	377			377			$ 377
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		189,896
Stock Granted, Value, Share-based Compensation, Net of Forfeitures	1,810			1,810			1,810
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent					1,142		1,142
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest										237	(29)
Other Comprehensive Income (Loss), Net of Tax	1,350				1,350
Non-controlling interest contributions	6,163										6,163
Non-controlling interest distributions	(2,059)									(603)	(1,456)
Net changes in non-controlling interest	(23)			(746)			(746)			1,058	(335)
Dividends declared	(2,482)					(2,482)	(2,482)
Net income (loss) before non-controlling interests	22,273					17,593	17,593			4,660	20
Capital, end of period at Sep. 30, 2016	381,341	$ 35	$ 8	297,274	1,031	30,956		$ (42,524)	$ (8)	74,630	19,939
Capital, end of period, shares at Sep. 30, 2016		(34,947,239)	(8,049,029)					(6,596,000)	(8,049,029)
Total stockholders’ equity to Tiptree Financial Inc. at Sep. 30, 2016							286,772
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Acquisitions		72,868
Stock Repurchased and Retired During Period, Shares		(215,358)
Stock Repurchased and Retired During Period, Value				(1,230)			(1,230)
Stock Repurchased During Period, Value	(1,230)
Treasury Stock, Shares, Acquired								(6,596,000)	(8,049,029)
Treasury Stock, Value, Acquired, Cost Method	(42,532)						(42,532)	$ (42,524)	$ (8)
Capital, beginning of period at Dec. 31, 2016	390,144	$ 35	$ 8	297,391	555	37,974		$ (42,524)	$ (8)	76,077	20,636
Capital, beginning of period, shares at Dec. 31, 2016		(34,983,616)	(8,049,029)					(6,596,000)	(8,049,029)
Total stockholders’ equity to Tiptree Financial Inc. at Dec. 31, 2016	293,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	2,077			1,541			1,541				536
Stock Issued During Period, Value, Acquisitions	4,838			(76)			4,838	$ 4,914
Stock Issued During Period, Shares, Share-based Compensation, Gross								1,510,920
Stock Issued During Period, Value, Stock Options Exercised	8,100			(1,371)			8,100	$ 9,471
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		19,388						119,511
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	187			(588)			187	$ 775
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent					668		668
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest										154	(48)
Other Comprehensive Income (Loss), Net of Tax	774				774
Non-controlling interest contributions	2,464										2,464
Non-controlling interest distributions	(2,401)									(725)	(1,676)
Net changes in non-controlling interest	2,219			(421)			(421)				2,640
Dividends declared	(2,604)					(2,604)	(2,604)
Net income (loss) before non-controlling interests	(7,360)					(6,457)	(6,457)			(1,432)	529
Capital, end of period at Sep. 30, 2017	391,138	$ 35	$ 8	$ 296,476	$ 1,223	$ 28,913		$ (34,664)	$ (8)	$ 74,074	$ 25,081
Capital, end of period, shares at Sep. 30, 2017		(35,003,004)	(8,049,029)					(5,209,523)	(8,049,029)
Total stockholders’ equity to Tiptree Financial Inc. at Sep. 30, 2017	291,983						291,983
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Acquisitions		0						756,046
Treasury Stock, Shares, Acquired								(1,000,000)
Treasury Stock, Value, Acquired, Cost Method	$ (7,300)						$ (7,300)	$ (7,300)

XML

Consolidated Statements of Cash Flow - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017		Sep. 30, 2016
Operating Activities:
Net income (loss) available to common stockholders		$ (6,457)		$ 17,593
Net income (loss)		(7,360)		22,273
Net realized and unrealized gains (losses)		35,183		65,954
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Net unrealized loss (gain) on interest rate swaps		(67)		1,233
Change in fair value of contingent consideration		3,192		(262)
Impairment of goodwill		0		0
Non cash compensation expense		4,275		1,696
Accretion (Amortization) of Discounts and Premiums, Investments		971		1,094
Depreciation and amortization expense		24,120		21,899
Provision for doubtful accounts		967		1,321
Amortization of deferred financing costs		2,178		1,326
(Gain) loss on sale of loans held for sale	[1]	(47,237)		(48,412)
Deferred tax expense (benefit)		(2,371)		(327)
Mortgage loans originated for sale		(1,151,150)		(1,258,931)
Proceeds from the sale of mortgage loans originated for sale		1,205,868		1,259,091
(Increase) decrease in notes and accounts receivable		(26,262)		(16,964)
(Increase) decrease in reinsurance receivables		(33,312)		(28,237)
(Increase) decrease in deferred acquisition costs		(12,863)		(2,292)
(Increase) decrease in other assets		(8,205)		(2,223)
Increase (decrease) in unearned premiums		59,481		22,934
Increase (decrease) in policy liabilities and unpaid claims		4,666		21,250
Increase (decrease) in deferred revenue		1,267		(6,810)
Increase (Decrease) in Reinsurance Payables		11,299		(11,772)
Increase (decrease) in other liabilities and accrued expenses		(14,297)		12,499
Operating activities from consolidated CLOs		(2,684)		(3,505)
Net cash provided by (used in) operating activities		24,530		(30,661)
Investing Activities:
Purchases of investments		(147,764)		(178,599)
Proceeds from sales and maturities of investments		201,754		159,773
(Increase) decrease in loans owned, at amortized cost, net		(37,166)		(44,640)
Purchases of real estate capital expenditures		(463)		(4,372)
Proceeds from Sale of Real Estate Held-for-investment		11,396		2,526
Purchases of corporate fixed assets		(1,616)		(991)
Proceeds from Divestiture of Interest in Consolidated Subsidiaries		4,846	[2]	0
Proceeds from notes receivable		40,273		25,193
Issuance of notes receivable		(35,109)		(32,137)
(Increase) decrease in restricted cash		1,072		(3,315)
Business and asset acquisitions, net of cash and deposits		(75,489)		(81,183)
Investing activities from consolidated CLOs		224,107		(96,834)
Net cash provided by (used in) investing activities		185,841		(254,579)
Financing Activities:
Dividends paid		(2,604)		(2,482)
Non-controlling interest contributions		2,464		3,050
Non-controlling interest distributions		(1,657)		(2,059)
Payment of debt issuance costs		(1,738)		(2,508)
Proceeds from borrowings and mortgage notes payable		1,297,203		1,477,446
Principal paydowns of borrowings and mortgage notes payable		(1,232,705)		(1,368,585)
Proceeds from the exercise of options for common stock		8,100		0
Repurchase of common stock		(7,300)		(43,754)
Financing activities from CLOs		(223,393)		220,727
Net cash provided by financing activities		(161,630)		281,835
Net increase in cash		48,741		(3,405)
Cash and cash equivalents – unrestricted – beginning of period - continuing operations		63,010		69,400
Cash and cash equivalents of continuing operations – unrestricted – end of period		111,751		65,995
Noncash investing and financing activities:
Noncash or Part Noncash Acquisition, Debt Assumed		7,586		0
Acquired real estate properties through, or in lieu of, foreclosure of the related loan		9,793		10,288
Noncash or Part Noncash Acquisition, Real Estate Acquired		8,178		0
Finite-lived Intangible Assets Acquired		2,049		0
Asses Divested from Deconsolidation		407,323		0
Liabilities Divested from Deconsolidation		389,333		0
Contingent Consideration at Fair Value Recognized		4,838		0
Noncontrolling interest
Operating Activities:
Net income (loss) attributable to noncontrolling interests		(903)		4,680
Tiptree Financial Partners, L.P. | Noncontrolling interest
Operating Activities:
Net income (loss) attributable to noncontrolling interests		(1,432)		4,660
Net income (loss)		(1,432)		4,660
Noncontrolling interests - other | Noncontrolling interest
Operating Activities:
Net income (loss) attributable to noncontrolling interests		529		20
Net income (loss)		$ 529		$ 20

[1] Related to the Company’s specialty finance business.

[2] Represents the final payment received for the sale of Philadelphia Financial Group in 2015.

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Organization

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Organization

Tiptree Inc. (formally known as Tiptree Financial Inc., together with its consolidated subsidiaries, collectively, Tiptree or the Company, or we) is a Maryland Corporation that was incorporated on March 19, 2007. Tiptree is a diversified holding company with four reporting segments: specialty insurance, asset management, senior living and specialty finance. Tiptree’s Class A common stock is traded on the NASDAQ Capital Market under the symbol “TIPT”. Tiptree’s primary asset is its ownership of Tiptree Financial Partners, L.P. (TFP) an intermediate holding company through which Tiptree operates its businesses. Tiptree reports a non-controlling interest representing the economic interest in TFP held by other limited partners of TFP.

As of January 1, 2016, Tiptree directly owned approximately 81% of TFP. The remaining 19% is reported as non-controlling interest. All of Tiptree’s Class B common stock is owned by TFP and is accounted for as treasury stock. Tiptree’s Class B common stock has the same voting rights as the Class A common stock but no economic rights. The limited partners of TFP (other than Tiptree itself) have the ability to exchange TFP partnership units for Tiptree Class A common stock at a rate of 2.798 shares of Class A common stock per partnership unit equal to the number of shares of Class B common stock outstanding. For every share of Class A common stock exchanged in this manner, a share of Class B common stock is canceled. The percentage of TFP owned by Tiptree may increase in the future to the extent TFP’s limited partners exchange their limited partnership units of TFP for Class A common stock of Tiptree. Changes in Tiptree’s ownership of TFP, as a result of such exchanges, will be accounted for as equity transactions, which increase Tiptree’s ownership of TFP and reduce non-controlling interest in TFP without changing total stockholders’ equity of Tiptree.

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Summary of Significant Accounting Policies - Quarter (Notes)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements of Tiptree have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and include the accounts of the Company and its subsidiaries. The condensed consolidated financial statements are presented in U.S. dollars, the main operating currency of the Company. The unaudited condensed consolidated financial statements presented herein should be read in conjunction with the annual audited financial statements included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2016. In the opinion of management, the accompanying unaudited interim financial information reflects all adjustments, including normal recurring adjustments necessary to present fairly the Company’s financial position, results of operations, comprehensive income and cash flows for each of the interim periods presented. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending on December 31, 2017.

As a result of changes in presentation made in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications had no effect on the reported results of operations. The primary difference in the presentation of the condensed consolidated financial statements from the prior year is the aggregation of investments on the condensed consolidated balance sheets and the summation of the net investment income of our specialty insurance business in the condensed consolidated statements of operations. The condensed consolidated cash flow statement has also been conformed to this new presentation. In addition certain immaterial balances have been combined in the condensed consolidated balance sheet and condensed consolidated statement of operations.

Tiptree consolidates those entities in which it has an investment of 50% or more of voting rights or has control over significant operating, financial and investing decisions of the entity as well as variable interest entities (VIEs) in which Tiptree is determined to be the primary beneficiary. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity risk for the entity to finance its activities without additional subordinated financial support from other parties.

A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Generally, Tiptree’s consolidated VIEs are entities which Tiptree is considered the primary beneficiary through its controlling financial interests.

Non-controlling interests on the condensed consolidated balance sheets represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Tiptree. Accounts and transactions between consolidated entities have been eliminated.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Management makes estimates and assumptions that include, but are not limited to, the determination of the following significant items:

• Fair value of financial assets and liabilities, including, but not limited to, securities, loans and derivatives

• Value of acquired assets and liabilities;

• Carrying value of goodwill and other intangibles, including estimated amortization period and useful lives;

• Reserves for unpaid losses and loss adjustment expenses, estimated future claims and losses, potential litigation and other claims;

• Valuation of contingent share issuances for compensation and purchase consideration, including estimates of number of shares and vesting schedules;

• Revenue recognition including, but not limited to, the timing and amount of insurance premiums, service, administration fees, and loan origination fees; and

• Other matters that affect the reported amounts and disclosure of contingencies in the condensed consolidated financial statements.

Although these and other estimates and assumptions are based on the best available estimates, actual results could differ materially from management’s estimates.

Business Combination Accounting

The Company accounts for business combinations by applying the acquisition method of accounting. The acquisition method requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at fair value as of the closing date of the acquisition. The net assets acquired may consist of tangible and intangible assets and the excess of purchase price over the fair value of identifiable net assets acquired, or goodwill. The determination of estimated useful lives and the allocation of the purchase price to the intangible assets requires significant judgment and affects the amount of future amortization and possible impairment charges. Contingent consideration, if any, is measured at fair value on the date of acquisition. The fair value of any contingent consideration liability is remeasured at each reporting date with any change recorded in other expense in the condensed consolidated statements of operations. Acquisition and transaction costs are expensed as incurred.

In certain instances, the Company may acquire less than 100% ownership of an entity, resulting in the recording of a non-controlling interest. The measurement of assets and liabilities acquired and non-controlling interest is initially established at a preliminary estimate of fair value, which may be adjusted during the measurement period, primarily due to the results of valuation studies applicable to the business combination.

Acquisitions that do not meet the criteria for the acquisition method of accounting are accounted for as acquisitions of assets.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels, from highest to lowest, are defined as follows:

•Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•Level 2 – Significant inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. The types of financial assets and liabilities carried at level 2 are valued based on one or more of the following:

a) Quoted prices for similar assets or liabilities in active markets;

b) Quoted prices for identical or similar assets or liabilities in nonactive markets;

c) Pricing models whose inputs are observable for substantially the full term of the asset or liability;

d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

•Level 3 – Significant inputs that are unobservable inputs for the asset or liability, including the Company’s own data and assumptions that are used in pricing the asset or liability.

Fair Value Option

In addition to the financial instruments the Company is required to measure at fair value, the Company has elected to make an irrevocable election to utilize fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in Net realized and unrealized gains (losses) within the condensed consolidated statements of operations. The decision to elect the fair value option is determined on an instrument-by-instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are reported separately in our condensed consolidated balance sheets from those instruments using another accounting method.

Recent Accounting Standards

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, Investments -Equity Method and Joint Ventures (Topic 323), which eliminates the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this Update eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those annual periods. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties that Are Under Common Control, which amends the consolidation guidance on how a reporting entity, that is the single decision maker of a VIE, evaluates whether it is the primary beneficiary of a VIE. This new guidance is effective for fiscal years beginning after December 15, 2016. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements, Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this standard affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On July 9, 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year. Reporting entities may choose to adopt the standard as of the original effective date. The deferral results in ASU 2014-09 being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which makes targeted improvements to the recognition, measurement, presentation and disclosure of certain financial instruments. ASU 2016-01 focuses primarily on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for certain financial instruments. Among its provisions for public business entities, ASU 2016-01 eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires the separate presentation in other comprehensive income of the change in fair value of a liability due to instrument-specific credit risk for a liability for which the reporting entity has elected the fair value option, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) and clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for a limited number of provisions. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarify the implementation guidance on principal versus net considerations. The effective date and transition requirements for this standard are the same as the effective date and transition requirements of ASU 2014-09. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The Update includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The Update seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which  rescinds SEC paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606,” and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity,” announced at the March 3, 2016 Emerging Issues Task Force (EITF) meeting.  The Company believes that that the adoption of this standard will not have a material impact on the Company’s condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides guidance on collectability, noncash consideration, and completed contracts at transition.  Additionally, the amendments in this Update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers.  The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including the adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which addresses classification and presentation of changes in restricted cash on the statement of cash flows.ASU 2016-18 requires an entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include in cash and cash equivalents amounts generally described as restricted cash and restricted cash equivalents. The ASU does not define restricted cash or restricted cash equivalents, but an entity will need to disclose the nature of the restrictions. ASU 2016-18 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 does not change the qualitative assessment; however, it removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Therefore, as the FASB notes in the ASU’s Basis for Conclusions, the goodwill of reporting units with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit indicate that goodwill is impaired. Entities will, however, be required to disclose any reporting units with zero or negative carrying amounts and the respective amounts of goodwill allocated to those reporting units. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The ASU also adds guidance for partial sales of nonfinancial assets. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2017. The guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provided clarity as to what changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for the Company for interim and annual periods beginning after December 15, 2017, with early adoption permitted, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company will consider the impact that this standard may have on future stock-based payment award modifications should they occur.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the guidance on hedge accounting. The amendment will make more financial and nonfinancial hedging strategies eligible for hedge accounting and amend the presentation and disclosure requirements. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 can be adopted immediately in any interim or annual period. The mandatory effective date for calendar year-end public companies is January 1, 2019. The Company is currently evaluating the effect on its condensed consolidated financial statements.

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Acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions

Acquisitions

Acquisitions during the nine months ended September 30, 2017

Senior Living

Managed Properties

During the nine months ended September 30, 2017, subsidiaries in our senior living business and their partners entered into agreements to acquire and operate two senior living communities for total consideration of $25,999, of which $7,000 was financed through mortgage debt issued in connection with one of the acquisitions, $4,096 was financed by contributions from partners of our subsidiaries and the remainder was paid with cash on hand. Affiliates of the partners provide management services to the communities under management contracts.

The Company provided an advance to the partners of our subsidiary at closing of one of these transactions for $1,036, which was part of their cash contribution for the property. Subsequent to the closing of this transaction, the property was financed with mortgage debt of $10,000. Our partner repaid the advance to the Company with proceeds from this financing, which was split based on the ownership of the property.

The primary reason for the Company’s acquisitions of the senior living communities are to expand its real estate operations. For the period from acquisition until September 30, 2017, revenue and the net loss for the two properties acquired were $4,398 and $1,941, respectively.

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for the transactions completed during the nine months ended September 30, 2017:

	2017 Acquisitions
	Senior living
Consideration:
Cash	$	25,999
Fair value of total consideration	$	25,999
Acquisition costs	$	288
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	717
Real estate, net	21,800
Intangible assets, net	3,850
Other assets	76
Liabilities:
Deferred revenue	(409		)
Other liabilities and accrued expenses	(35		)
Total identifiable net assets assumed	$	25,999

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.38	$	3,850

Supplemental pro forma results of operations have not been presented for the above 2017 business acquisitions as they are not material in relation to the Company’s reported results.

Acquisitions during the nine months ended September 30, 2016

Senior Living

Managed Properties

During the nine months ended September 30, 2016, subsidiaries in our senior living business and their partners entered into agreements to acquire and operate three senior living communities for total consideration of $84,605 (which includes deposits of $125 paid in the fourth quarter of 2015), of which $59,817 was financed through mortgage debt issued in connection with the acquisitions, $4,778 was financed by contributions from partners of our subsidiary, and the remainder was paid with cash on hand. Affiliates of the partners provide management services to the communities under management contracts.

The primary reason for the Company’s acquisition of the senior living communities is to expand its real estate operations. For the period from acquisition until September 30, 2016, revenue and the net loss for the three managed properties acquired were $7,247 and $1,899, respectively.

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for transactions completed during the nine months ended September 30, 2016:

	2016 Acquisitions
	Senior living
Consideration:
Cash	$	81,492
Non-cash non-controlling interests contributions	3,113
Fair value of total consideration	$	84,605
Acquisition costs	$	612
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	184
Real estate, net	77,787
Intangible assets, net	6,838
Other assets	248
Liabilities:
Deferred revenue	(290		)
Other liabilities and accrued expenses	(162		)
Total identifiable net assets assumed	$	84,605

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.61	$	6,838

Supplemental pro forma results of operations have not been presented for the above 2016 business acquisitions as they are not material in relation to the Company’s reported results.

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Operating Segment Data

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Operating Segment Data

Operating Segment Data

The Company has four reportable operating segments, which are: (i) specialty insurance (formally known as insurance and insurance services), (ii) asset management, (iii) senior living (formally known as real estate), and (iv) specialty finance. The Company’s operating segments are organized in a manner that reflects how the chief operating decision maker (CODM) views these strategic business units.

Each reportable segment’s income (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.

In the fourth quarter of 2016, the Company made certain segment realignments in order to conform to the way the CODM internally evaluates segment performance. These realignments primarily consisted of the transfer of principal investments from corporate and other to the specialty insurance and asset management operating segments. As a result, corporate and other is no longer deemed to be an operating segment of the Company. For the three months ended September 30, 2016, $6,808 of pretax income (loss) previously reported in corporate and other was allocated $2,634 and $4,174 to the specialty insurance and asset management operating segments, respectively. For the three months ended September 30, 2016, inclusive of what was allocated to the asset management operating segment there was $3,312 of net income (loss) attributable to consolidated CLOs. For the nine months ended September 30, 2016, $20,160 of pretax income (loss) previously reported in corporate and other was allocated $10,527 and $9,633 to the specialty insurance and asset management operating segments, respectively. For the nine months ended September 30, 2016, inclusive of what was allocated to the asset management operating segment there was $7,583 of net income (loss) attributable to consolidated CLOs. The Company has reclassified prior period amounts to provide visibility and comparability. This reclassification had no impact on the allocation of goodwill to reporting units. None of these changes impact the Company’s previously reported consolidated net income or earnings per share.

Descriptions of each of the reportable segments 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 diverse range of products and services include products such as mobile protection, extended warranty and service, debt protection and credit insurance and select niche personal and commercial lines insurance. The specialty insurance investment portfolio also includes results related to corporate loans held at fair value and non-performing residential mortgage loans due to the aforementioned segment realignment.

Asset Management operations are primarily conducted through Telos Asset Management LLC’s (Telos) management of CLOs. Telos is a subsidiary of Tiptree Asset Management Company, LLC (TAMCO), an SEC-registered investment advisor owned by the Company. Results include net income (loss) from consolidated CLOs.

Senior Living operations are conducted through Care Investment Trust LLC (Care) which has a geographically diverse portfolio of seniors housing properties including senior apartments, assisted living, independent living, memory care and skilled nursing facilities in the U.S.

Specialty Finance operations are conducted through Siena Capital Finance LLC (Siena) and the Company’s mortgage businesses, which consist of Luxury and Reliance. The Company’s mortgage origination business originated loans for sale to institutional investors, including GSEs and FHA/VA. Siena’s business consists of structuring asset-based loan facilities across diversified industries.

The tables below present the components of revenue, expense, pre-tax income (loss), and segment assets for each of the operating segments for the following periods:

	Three Months Ended September 30, 2017
	Specialty insurance			Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	118,714		$	1,448	$	19,583		$	24,976	$	(202	)	$	164,519
Total expense	121,059			1,058		21,118			22,381		6,916			172,532
Net income attributable to consolidated CLOs	—			2,583		—			—		—			2,583
Income (loss) before taxes	$	(2,345	)	$	2,973	$	(1,535	)	$	2,595	$	(7,118	)	$	(5,430	)
Less: provision (benefit) for income taxes														(2,052		)
Net income (loss) before non-controlling interests														$	(3,378	)
Less: net income (loss) attributable to non-controlling interests														(264		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders														$	(3,114	)

	Three Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	82,630	$	4,746	$	15,695		$	29,013	$	76		$	132,160
Total expense	71,971		2,303		16,168			24,832		9,368			124,642
Net income attributable to consolidated CLOs	—		4,032		—			—		—			4,032
Income (loss) before taxes	$	10,659	$	6,475	$	(473	)	$	4,181	$	(9,292	)	$	11,550
Less: provision (benefit) for income taxes													3,712
Net income (loss) before non-controlling interests													$	7,838
Less: net income (loss) attributable to non-controlling interests													1,933
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	5,905

⁽¹⁾ Reclassified to conform to current period presentation

	Nine Months Ended September 30, 2017
	Specialty insurance		Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	351,731	$	8,239	$	55,927		$	70,325	$	75		$	486,297
Total expense	350,007		4,549		61,286			67,696		22,273			505,811
Net income (loss) attributable to consolidated CLOs	—		9,393		—			—		—			9,393
Income (loss) before taxes	$	1,724	$	13,083	$	(5,359	)	$	2,629	$	(22,198	)	$	(10,121	)
Less: provision (benefit) for income taxes													(2,761		)
Net income (loss) before non-controlling interests													$	(7,360	)
Less: net income (loss) attributable to non-controlling interests													(903		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	(6,457	)

	Nine Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	268,743	$	10,754	$	44,204		$	67,790	$	3,568		$	395,059
Total expense	233,116		6,131		49,691			62,280		26,319			377,537
Net income (loss) attributable to consolidated CLOs	—		10,049		—			—		—			10,049
Income (loss) before taxes	$	35,627	$	14,672	$	(5,487	)	$	5,510	$	(22,751	)	$	27,571
Less: provision (benefit) for income taxes													5,298
Net income (loss) before non-controlling interests													$	22,273
Less: net income (loss) attributable to non-controlling interests													4,680
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	17,593

⁽¹⁾ Reclassified to conform to current period presentation

The following table presents the segment assets for the following periods:
	Segment Assets as of September 30, 2017
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,319,165	$	21,175	$	390,818	$	303,203	$	41,619	$	2,075,980
Assets of consolidated CLOs	—		372,774		—		—		—		372,774
Total assets											$	2,448,754
	Segment Assets as of December 31, 2016
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,268,152	$	17,427	$	323,169	$	271,795	$	20,012	$	1,900,555
Assets of consolidated CLOs	—		989,495		—		—		—		989,495
Total assets											$	2,890,050

⁽¹⁾ Reclassified to conform to current period presentation

XML

Available for Sale Securities, at fair value

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investments in Available for Sale Securities

Investments

Available for Sale Securities, at fair value

All of the Company’s investments in available for sale securities as of September 30, 2017 and December 31, 2016 are held by subsidiaries in the specialty insurance business. The following tables present the Company's investments in available for sale securities:

	As of September 30, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	36,474	$	96	$	(216	)	$	36,354
Obligations of state and political subdivisions	47,542		415		(324		)	47,633
Corporate securities	53,589		447		(167		)	53,869
Asset backed securities	24,011		105		(16		)	24,100
Certificates of deposit	896		—		—			896
Equity securities	658		13		(9		)	662
Obligations of foreign governments	566		13		—			579
Total	$	163,736	$	1,089	$	(732	)	$	164,093
	As of December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	27,149	$	27	$	(377	)	$	26,799
Obligations of state and political subdivisions	57,425		107		(598		)	56,934
Corporate securities	58,769		204		(402		)	58,571
Asset backed securities	1,459		1		—			1,460
Certificates of deposit	895		—		—			895
Equity securities	818		3		(37		)	784
Obligations of foreign governments	733		3		(8		)	728
Total	$	147,248	$	345	$	(1,422	)	$	146,171

The following tables summarize the gross unrealized losses on available for sale securities in an unrealized loss position:

	As of September 30, 2017
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	25,152	$	(187	)	119	$	924	$	(29	)	5
Obligations of state and political subdivisions	9,936		(145		)	55	7,142		(179		)	34
Corporate securities	16,269		(61		)	164	4,479		(106		)	86
Asset-backed securities	1,294		(16		)	2	—		—			—
Equity securities	411		(7		)	3	19		(2		)	2
Obligations of foreign governments	—		—			—	—		—			—
Total	$	53,062	$	(416	)	343	$	12,564	$	(316	)	127
	As of December 31, 2016
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	20,979	$	(376	)	115	$	16	$	(1	)	5
Obligations of state and political subdivisions	41,639		(597		)	170	1,334		(1		)	3
Corporate securities	29,856		(400		)	279	253		(2		)	3
Asset-backed securities	706		—			1	—		—			—
Equity securities	736		(35		)	5	19		(2		)	2
Obligations of foreign governments	338		(8		)	4	—		—			—
Total	$	94,254	$	(1,416	)	574	$	1,622	$	(6	)	13

The Company does not intend to sell the investments that were in an unrealized loss position as of September 30, 2017, and management believes that it is more likely than not that the Company will be able to hold these securities until full recovery of their amortized cost basis for fixed maturity securities or cost for equity securities. The unrealized losses were attributable to changes in interest rates and not credit-related issues. As of September 30, 2017 and December 31, 2016, based on the Company's review, none of the fixed maturity or equity securities were deemed to be other-than-temporarily impaired based on the Company's analysis of the securities and its intent to hold the securities until recovery.

The amortized cost and fair values of investments in debt securities, by contractual maturity date, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Excluded from this table are equity securities since they have no contractual maturity.

	As of
	September 30, 2017				December 31, 2016
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	19,075	$	19,074	$	22,846	$	22,833
Due after one year through five years	68,918		69,207		66,063		65,841
Due after five years through ten years	45,447		45,375		49,036		48,381
Due after ten years	5,627		5,675		7,026		6,872
Asset backed securities	24,011		24,100		1,459		1,460
Total	$	163,078	$	163,431	$	146,430	$	145,387

Pursuant to certain reinsurance agreements and statutory licensing requirements, the Company has deposited invested assets in custody accounts or insurance department safekeeping accounts. The Company cannot remove invested assets from these accounts without prior approval of the contractual party or regulatory authority, as applicable. The following table presents the Company's restricted investments included in the Company's available for sale securities:

	As of
	September 30, 2017		December 31, 2016
Fair value of restricted investments for special deposits required by state insurance departments	$	9,939	$	10,111
Fair value of restricted investments in trust pursuant to reinsurance agreements	7,287		7,573
Total fair value of restricted investments	$	17,226	$	17,684

The following table presents additional information on the Company’s available for sale securities:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
Purchases of available for sale securities	$	45,250	$	12,799		$	79,907		$	22,477
Proceeds from maturities, calls and prepayments of available for sale securities	$	7,686	$	4,483		$	23,909		$	26,086
Gains (losses) realized on maturities, calls and prepayments of available for sale securities	$	—	$	(14	)	$	(5	)	$	83
Gross proceeds from sales of available for sale securities	$	21,167	$	35,069		$	39,493		$	45,928
Gains (losses) realized on sales of available for sale securities	$	395	$	974		$	372		$	1,016

Net Investment Income

Net investment income represents income primarily from the following sources:

• Interest income, and dividends related to available for sale securities, at fair value;

• Interest income related to loans, at fair value;

• Dividend income from equity securities, trading, at fair value;

• Rental and related revenue from real estate, net; and

• Earnings from other investments.

The following table presents the components of net investment income related to our specialty insurance business recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment income	2017		2016		2017		2016
Available for sale securities, at fair value	$	823	$	653	$	2,423	$	2,323
Loans, at fair value	2,698		1,971		8,330		4,981
Equity securities, trading, at fair value	459		969		1,912		1,933
Real estate, net	156		—		482		—
Other investments	73		73		277		224
Total investment income	4,209		3,666		13,424		9,461
Less: investment expenses	369		359		1,392		1,052
Net investment income	$	3,840	$	3,307	$	12,032	$	8,409

The following table presents the components of net realized and unrealized gains (losses) recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
Net realized and unrealized gains (losses)	2017			2016		2017			2016
Net realized gains (losses)	$	18,817		$	19,948	$	48,150		$	48,423
Net unrealized gains (losses)	(11,291		)	6,267		(12,967		)	17,531
Net realized and unrealized gains (losses)	$	7,526		$	26,215	$	35,183		$	65,954

The following table presents the net gain on the sale of mortgage loans and the cumulative net unrealized gains (losses) on equity securities, trading, at fair value recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net realized gain on sale of mortgage loans (1)	$	16,476		$	20,045	$	47,237		$	48,412
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date	$	(11,125	)	$	1,365	$	(21,183	)	$	6,386

⁽¹⁾ Related to the Company’s specialty finance business.

XML

Investment in Loans

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Investment in Loans

Investment in Loans

The following tables present the Company’s investments in loans, measured at fair value:

	As of September 30, 2017							As of December 31, 2016
	Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB			Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB
Loans, at fair value
Corporate loans	$	162,512	$	162,582	$	(70	)	$	175,558	$	176,808	$	(1,250	)
Mortgage loans held for sale	114,461		110,803		3,658			121,439		118,162		3,277
Non-performing loans	44,980		62,237		(17,257		)	74,923		113,892		(38,969		)
Other loans receivable	1,169		1,169		—			1,169		1,169		—
Total loans, at fair value	$	323,122	$	336,791	$	(13,669	)	$	373,089	$	410,031	$	(36,942	)

The following table presents the Company’s investments in loans, measured at fair value pledged as collateral:

	As of
	September 30, 2017		December 31, 2016
Corporate loans	$	161,000	$	175,365
Mortgage loans held for sale	111,927		117,734
Non-performing loans	39,537		60,409
Total fair value of loans pledged as collateral	$	312,464	$	353,508

As of September 30, 2017, there are no mortgage loans held for sale 90 days or more past due. The unpaid principal balance and fair value of mortgage loans held for sale that are 90 days or more past due were $142 and $66, respectively, as of December 31, 2016.

The following table presents the Company’s investments in loans, measured at amortized cost:

	As of
	September 30, 2017		December 31, 2016
Loans at amortized cost, net
Asset backed loans and other loans, net	$	152,168	$	115,033
Less: Allowance for loan losses	1,572		1,195
Total loans at amortized cost, net	$	150,596	$	113,838
Net deferred loan origination fees included in asset backed loans	$	5,701	$	5,244

The following table presents additional information on the Company’s asset backed loans:

	As of
	September 30, 2017		December 31, 2016
Pledged as collateral	$	157,169	$	119,558
Loans receivable, net, attributable to a subsidiary in our specialty finance business	$	149,896	$	113,138

Our subsidiary structures asset-based loan facilities in the $1,000 to $25,000 range for small to mid-sized companies. Collateral for asset-backed loan receivables, as of September 30, 2017 and December 31, 2016, consisted primarily of inventory, equipment and accounts receivable. Management reviews collateral for these loans on at least a monthly basis or more frequently if a draw is requested and management has determined that no impairment existed as of September 30, 2017. As of September 30, 2017, there were no delinquencies in the portfolio and all loans were classified as performing.

XML

Real Estate

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

Real Estate Investments, Net

Real Estate, net

The following table contains information regarding the Company’s investment in real estate as of the following periods:

	As of September 30, 2017
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	19,447	$	208,751	$	(16,283	)	$	211,915
Triple net lease properties	19,741		135,857		(9,455		)	146,143
Foreclosed residential real estate property	—		13,079		—			13,079
Total	$	39,188	$	357,687	$	(25,738	)	$	371,137
	As of December 31, 2016
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	16,347	$	189,463	$	(11,212	)	$	194,598
Triple net lease properties	13,778		94,291		(6,610		)	101,459
Foreclosed residential real estate property	—		13,366		—			13,366
Total	$	30,125	$	297,120	$	(17,822	)	$	309,423

For the nine months ended September 30, 2017, the Company acquired ten senior living facilities accounted for as asset acquisitions, with $47,654 of real estate acquired, and $8,297 of identifiable intangible assets related to in-place leases which will be amortized over a period ranging from approximately 7 to 12 years. These ten properties are in addition to the two acquisitions disclosed in Note—(3) Acquisitions, which were accounted for as business combinations.

The following table presents the depreciation expense related to the Company’s real estate investments for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense on real estate investments	$	2,873	$	1,974	$	7,916	$	5,581

Future Minimum Rental Revenue

The following table presents the future minimum rental revenue under the noncancelable terms of all operating leases related to our triple net lease properties, as of:

	September 30, 2017
Remainder of 2017	$	3,280
2018	13,248
2019	13,519
2020	13,797
2021	15,161
Thereafter	60,999
Total	$	120,004

The following table presents rental revenues from residential leases at the managed properties for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rental revenues from residential leases	$	14,274	$	12,685	$	42,005	$	35,231

XML

Net Investment Income (Notes)

9 Months Ended

Sep. 30, 2017

Income Statement [Abstract]

Net Investment Income [Text Block]

Investments

Available for Sale Securities, at fair value

All of the Company’s investments in available for sale securities as of September 30, 2017 and December 31, 2016 are held by subsidiaries in the specialty insurance business. The following tables present the Company's investments in available for sale securities:

	As of September 30, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	36,474	$	96	$	(216	)	$	36,354
Obligations of state and political subdivisions	47,542		415		(324		)	47,633
Corporate securities	53,589		447		(167		)	53,869
Asset backed securities	24,011		105		(16		)	24,100
Certificates of deposit	896		—		—			896
Equity securities	658		13		(9		)	662
Obligations of foreign governments	566		13		—			579
Total	$	163,736	$	1,089	$	(732	)	$	164,093
	As of December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	27,149	$	27	$	(377	)	$	26,799
Obligations of state and political subdivisions	57,425		107		(598		)	56,934
Corporate securities	58,769		204		(402		)	58,571
Asset backed securities	1,459		1		—			1,460
Certificates of deposit	895		—		—			895
Equity securities	818		3		(37		)	784
Obligations of foreign governments	733		3		(8		)	728
Total	$	147,248	$	345	$	(1,422	)	$	146,171

The following tables summarize the gross unrealized losses on available for sale securities in an unrealized loss position:

	As of September 30, 2017
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	25,152	$	(187	)	119	$	924	$	(29	)	5
Obligations of state and political subdivisions	9,936		(145		)	55	7,142		(179		)	34
Corporate securities	16,269		(61		)	164	4,479		(106		)	86
Asset-backed securities	1,294		(16		)	2	—		—			—
Equity securities	411		(7		)	3	19		(2		)	2
Obligations of foreign governments	—		—			—	—		—			—
Total	$	53,062	$	(416	)	343	$	12,564	$	(316	)	127
	As of December 31, 2016
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	20,979	$	(376	)	115	$	16	$	(1	)	5
Obligations of state and political subdivisions	41,639		(597		)	170	1,334		(1		)	3
Corporate securities	29,856		(400		)	279	253		(2		)	3
Asset-backed securities	706		—			1	—		—			—
Equity securities	736		(35		)	5	19		(2		)	2
Obligations of foreign governments	338		(8		)	4	—		—			—
Total	$	94,254	$	(1,416	)	574	$	1,622	$	(6	)	13

The Company does not intend to sell the investments that were in an unrealized loss position as of September 30, 2017, and management believes that it is more likely than not that the Company will be able to hold these securities until full recovery of their amortized cost basis for fixed maturity securities or cost for equity securities. The unrealized losses were attributable to changes in interest rates and not credit-related issues. As of September 30, 2017 and December 31, 2016, based on the Company's review, none of the fixed maturity or equity securities were deemed to be other-than-temporarily impaired based on the Company's analysis of the securities and its intent to hold the securities until recovery.

The amortized cost and fair values of investments in debt securities, by contractual maturity date, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Excluded from this table are equity securities since they have no contractual maturity.

	As of
	September 30, 2017				December 31, 2016
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	19,075	$	19,074	$	22,846	$	22,833
Due after one year through five years	68,918		69,207		66,063		65,841
Due after five years through ten years	45,447		45,375		49,036		48,381
Due after ten years	5,627		5,675		7,026		6,872
Asset backed securities	24,011		24,100		1,459		1,460
Total	$	163,078	$	163,431	$	146,430	$	145,387

Pursuant to certain reinsurance agreements and statutory licensing requirements, the Company has deposited invested assets in custody accounts or insurance department safekeeping accounts. The Company cannot remove invested assets from these accounts without prior approval of the contractual party or regulatory authority, as applicable. The following table presents the Company's restricted investments included in the Company's available for sale securities:

	As of
	September 30, 2017		December 31, 2016
Fair value of restricted investments for special deposits required by state insurance departments	$	9,939	$	10,111
Fair value of restricted investments in trust pursuant to reinsurance agreements	7,287		7,573
Total fair value of restricted investments	$	17,226	$	17,684

The following table presents additional information on the Company’s available for sale securities:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
Purchases of available for sale securities	$	45,250	$	12,799		$	79,907		$	22,477
Proceeds from maturities, calls and prepayments of available for sale securities	$	7,686	$	4,483		$	23,909		$	26,086
Gains (losses) realized on maturities, calls and prepayments of available for sale securities	$	—	$	(14	)	$	(5	)	$	83
Gross proceeds from sales of available for sale securities	$	21,167	$	35,069		$	39,493		$	45,928
Gains (losses) realized on sales of available for sale securities	$	395	$	974		$	372		$	1,016

Net Investment Income

Net investment income represents income primarily from the following sources:

• Interest income, and dividends related to available for sale securities, at fair value;

• Interest income related to loans, at fair value;

• Dividend income from equity securities, trading, at fair value;

• Rental and related revenue from real estate, net; and

• Earnings from other investments.

The following table presents the components of net investment income related to our specialty insurance business recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment income	2017		2016		2017		2016
Available for sale securities, at fair value	$	823	$	653	$	2,423	$	2,323
Loans, at fair value	2,698		1,971		8,330		4,981
Equity securities, trading, at fair value	459		969		1,912		1,933
Real estate, net	156		—		482		—
Other investments	73		73		277		224
Total investment income	4,209		3,666		13,424		9,461
Less: investment expenses	369		359		1,392		1,052
Net investment income	$	3,840	$	3,307	$	12,032	$	8,409

The following table presents the components of net realized and unrealized gains (losses) recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
Net realized and unrealized gains (losses)	2017			2016		2017			2016
Net realized gains (losses)	$	18,817		$	19,948	$	48,150		$	48,423
Net unrealized gains (losses)	(11,291		)	6,267		(12,967		)	17,531
Net realized and unrealized gains (losses)	$	7,526		$	26,215	$	35,183		$	65,954

The following table presents the net gain on the sale of mortgage loans and the cumulative net unrealized gains (losses) on equity securities, trading, at fair value recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net realized gain on sale of mortgage loans (1)	$	16,476		$	20,045	$	47,237		$	48,412
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date	$	(11,125	)	$	1,365	$	(21,183	)	$	6,386

⁽¹⁾ Related to the Company’s specialty finance business.

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Notes Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Notes and Accounts Receivable, net

The following table summarizes the total notes and accounts receivable, net:

	As of
	September 30, 2017		December 31, 2016
Premium financing program (1)	$	15,403	$	20,615
Notes from affiliates of partner (2)	3,862		3,862
Other	45		298
Notes receivable, net	$	19,310	$	24,775
Accounts and premiums receivable, net	60,763		45,041
Retrospective commissions receivable	65,156		59,175
Other receivables	33,497		28,509
Total	$	178,726	$	157,500

(1) Related to the Company’s specialty insurance business.

(2) Related to the Company’s senior living business, which owns a 75% interest in a managed property. The remaining 25% interest is owned by our joint venture partner.

Notes Receivable, net

The Company has established an allowance for uncollectible amounts against its notes receivable of $1,528 and $1,444 as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017 and December 31, 2016, there were $1,848 and $2,188 in balances classified as 90 days plus past due, respectively.

Accounts and premiums receivable, net, Retrospective commissions receivable and Other receivables

Accounts and premiums receivable, net, retrospective commissions receivable and other receivables are primarily trade receivables from the specialty insurance business that are carried at their approximate fair value. The Company has established a valuation allowance against its accounts and premiums receivable of $319 and $225 as of September 30, 2017 and December 31, 2016, respectively.

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Reinsurance

9 Months Ended

Sep. 30, 2017

Reinsurance Disclosures [Abstract]

Reinsurance [Text Block]

Reinsurance Receivables

The following table presents the effect of reinsurance on premiums written and earned by our specialty insurance business for the following periods:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Premiums written:
Life insurance	$	18,375	$	9,587	$	525	$	9,313	5.6	%
Accident and health insurance	34,034		23,077		862		11,819		7.3	%
Property and liability insurance	149,414		56,380		4,844		97,878		4.9	%
Total premiums written	201,823		89,044		6,231		119,010		5.2	%
Premiums earned:
Life insurance	15,654		7,764		481		8,371		5.7	%
Accident and health insurance	28,347		19,511		814		9,650		8.4	%
Property and liability insurance	126,847		52,201		3,406		78,052		4.4	%
Total premiums earned	$	170,848	$	79,476	$	4,701	$	96,073	4.9	%
For the Three Months ended September 30, 2016
Premiums written:
Life insurance	$	18,246	$	9,668	$	674	$	9,252	7.3	%
Accident and health insurance	31,553		21,635		865		10,783		8.0	%
Property and liability insurance	126,230		94,095		3,842		35,977		10.7	%
Total premiums written	176,029		125,398		5,381		56,012		9.6	%
Premiums earned:
Life insurance	15,861		7,712		642		8,791		7.3	%
Accident and health insurance	28,391		20,093		830		9,128		9.1	%
Property and liability insurance	126,902		98,883		1,671		29,690		5.6	%
Total premiums earned	$	171,154	$	126,688	$	3,143	$	47,609	6.6	%
For the Nine Months ended September 30, 2017
Premiums written:
Life insurance	$	46,275	$	23,264	$	1,458	$	24,469	6.0	%
Accident and health insurance	87,242		57,911		2,355		31,686		7.4	%
Property and liability insurance	406,976		176,477		15,670		246,169		6.4	%
Total premiums written	540,493		257,652		19,483		302,324		6.4	%
Premiums earned:
Life insurance	45,995		22,685		1,473		24,783		5.9	%
Accident and health insurance	82,242		56,736		2,373		27,879		8.5	%
Property and liability insurance	357,448		148,402		11,073		220,119		5.0	%
Total premiums earned	$	485,685	$	227,823	$	14,919	$	272,781	5.5	%
For the Nine Months ended September 30, 2016
Premiums written:
Life insurance	$	49,018	$	25,267	$	1,971	$	25,722	7.7	%
Accident and health insurance	87,446		59,657		2,507		30,296		8.3	%
Property and liability insurance	389,157		302,945		10,146		96,358		10.5	%
Total premiums written	525,621		387,869		14,624		152,376		9.6	%
Premiums earned:
Life insurance	46,112		22,139		2,003		25,976		7.7	%
Accident and health insurance	84,994		60,134		2,465		27,325		9.0	%
Property and liability insurance	377,589		296,523		4,149		85,215		4.9	%
Total premiums earned	$	508,695	$	378,796	$	8,617	$	138,516	6.2	%

The following table presents the components of policy and contract benefits, including the effect of reinsurance on losses and loss adjustment expenses ("LAE") incurred:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Losses Incurred
Life insurance	$	8,003	$	4,573	$	178	$	3,608	4.9	%
Accident and health insurance	4,456		3,252		190		1,394		13.6	%
Property and liability insurance	48,783		26,571		544		22,756		2.4	%
Total losses incurred	61,242		34,396		912		27,758		3.3	%
	Member benefit claims (1)						3,812
	Total policy and contract benefits						$	31,570
For the Three Months ended September 30, 2016
Losses Incurred
Life insurance	$	8,550	$	4,647	$	378	$	4,281	8.8	%
Accident and health insurance	5,697		4,863		205		1,039		19.7	%
Property and liability insurance	61,431		47,469		632		14,594		4.3	%
Total losses incurred	75,678		56,979		1,215		19,914		6.1	%
	Member benefit claims (1)						5,967
	Total policy and contract benefits						$	25,881
For the Nine Months ended September 30, 2017
Losses Incurred
Life insurance	$	24,527	$	13,558	$	748	$	11,717	6.4	%
Accident and health insurance	13,200		10,815		662		3,047		21.7	%
Property and liability insurance	144,535		78,454		1,708		67,789		2.5	%
Total losses incurred	182,262		102,827		3,118		82,553		3.8	%
	Member benefit claims (1)						11,811
	Total policy and contract benefits						$	94,364
For the Nine Months ended September 30, 2016
Losses Incurred
Life insurance	$	24,962	$	12,957	$	1,061	$	13,066	8.1	%
Accident and health insurance	14,598		12,203		700		3,095		22.6	%
Property and liability insurance	166,586		128,542		897		38,941		2.3	%
Total losses incurred	206,146		153,702		2,658		55,102		4.8	%
	Member benefit claims (1)						17,334
	Total policy and contract benefits						$	72,436

(1) - Member benefit claims are not covered by reinsurance.

The following table presents the components of the reinsurance receivables:

	As of
	September 30, 2017		December 31, 2016
Prepaid reinsurance premiums:
Life (1)	$	64,223	$	64,621
Accident and health (1)	55,175		53,999
Property (2)	122,883		94,091
Total	242,281		212,711
Ceded claim reserves:
Life	3,015		2,929
Accident and health	9,819		10,435
Property	57,138		49,917
Total ceded claim reserves recoverable	69,972		63,281
Other reinsurance settlements recoverable	20,770		20,242
Reinsurance receivables	$	333,023	$	296,234

(1) Including policyholder account balances ceded.

(2) The December 31, 2016 amount includes a non-cash transaction, as part of a reinsurance contract cancellation that resulted in a reduction of $92,854 in reinsurance receivable, offset by an increase of $88,857 in assets and a decrease of $3,997 in liabilities.

The following table presents the aggregate amount included in reinsurance receivables that is comprised of the three largest receivable balances from unrelated reinsurers:

	As of
	September 30, 2017
Total of the three largest receivable balances from unrelated reinsurers	$	78,783

At September 30, 2017, the three unrelated reinsurers from whom our specialty insurance business has the largest receivable balances were: London Life Reinsurance Corporation (A. M. Best Rating: A rated); MFI Insurance Company, LTD (A. M. Best Rating: Not rated) and London Life International Reinsurance Corporation (A. M. Best Rating: Not rated). The related receivables of these reinsurers are collateralized by assets on hand, assets held in trust accounts and letters of credit. At September 30, 2017, the Company does not believe there is a risk of loss due to the concentration of credit risk in the reinsurance program given the collateralization.

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Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets, net

The following table presents identifiable finite and indefinite-lived intangible assets, accumulated amortization, and goodwill by segment:

	As of September 30, 2017												As of December 31, 2016
	Specialty insurance			Senior living			Specialty finance			Total			Specialty insurance			Senior living			Specialty finance			Total
Customer relationships	$	50,500		$	—		$	—		$	50,500		$	50,500		$	—		$	—		$	50,500
Accumulated amortization	(10,215		)	—			—			(10,215		)	(4,614		)	—			—			(4,614		)
Trade names	6,500			—			800			7,300			6,500			—			800			7,300
Accumulated amortization	(2,018		)	—			(180		)	(2,198		)	(1,484		)	—			(120		)	(1,604		)
Software licensing	8,500			—			640			9,140			8,500			—			640			9,140
Accumulated amortization	(4,817		)	—			(206		)	(5,023		)	(3,542		)	—			(137		)	(3,679		)
Insurance policies and contracts acquired	36,500			—			—			36,500			36,500			—			—			36,500
Accumulated amortization	(35,234		)	—			—			(35,234		)	(34,184		)	—			—			(34,184		)
Insurance licensing agreements(1)	13,749			—			—			13,749			13,000			—			—			13,000
Leases in place	1,317			44,380			—			45,697			1,317			32,233			—			33,550
Accumulated amortization	(101		)	(26,062		)	—			(26,163		)	(18		)	(20,413		)	—			(20,431		)
Intangible assets, net	64,681			18,318			1,054			84,053			72,475			11,820			1,183			85,478
Goodwill	89,854			—			2,913			92,767			89,854			—			2,913			92,767
Total goodwill and intangible assets, net	$	154,535		$	18,318		$	3,967		$	176,820		$	162,329		$	11,820		$	4,096		$	178,245

⁽¹⁾ Represents intangible assets with an indefinite useful life. Impairment tests are performed at least annually on these assets.

Goodwill

The following table presents the activity in goodwill, by segment, and includes the adjustments made to the balance of goodwill to reflect the effect of the final valuation adjustments made for acquisitions, as well as the reduction to any goodwill attributable to discontinued operations or impairment related charges:

	Specialty insurance		Specialty finance		Total
Balance at December 31, 2016	$	89,854	$	2,913	$	92,767
Balance at September 30, 2017	$	89,854	$	2,913	$	92,767

The Company conducts annual impairment tests of its goodwill as of October 1. For the three and nine months ended September 30, 2017 and 2016, respectively, no impairment was recorded on the Company’s goodwill or intangibles.

Intangible Assets, net

The following table presents the activity, by segment, in finite and indefinite-lived other intangible assets and includes the adjustments made to the balance to reflect the effect of any final valuation adjustments made for acquisitions, as well as any reduction attributable to discontinued operations or impairment-related charges:

	Specialty insurance			Senior living			Specialty finance			Total
Balance at December 31, 2016	$	72,475		$	11,820		$	1,183		$	85,478
Intangible assets acquired in 2017	749			12,147			—			12,896
Less: amortization expense	(8,543		)	(5,649		)	(129		)	(14,321		)
Balance at September 30, 2017	$	64,681		$	18,318		$	1,054		$	84,053

During the nine months ended September 30, 2017 a subsidiary in our specialty insurance business acquired 100% of the outstanding stock of an insurance company, licensed in several states but having no operations and no net insurance exposures. The purpose of this transaction was to acquire additional licenses to expand the Company’s direct writing capabilities to New York and Wisconsin. The transaction was accounted for as an asset acquisition, resulting in $749 recorded as an indefinite life intangible asset for the cost attributed to the insurance licenses.

The following table presents the amortization expense on finite-lived intangible assets for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Amortization expense on intangible assets	$	4,359	$	3,702	$	14,321	$	14,246

The following table presents the amortization expense on finite-lived intangible assets for the next five years by segment:

	As of September 30, 2017
	Specialty insurance (VOBA)		Specialty insurance (other)		Senior living		Specialty finance		Total
Remainder of 2017	$	200	$	2,482	$	1,730	$	42	$	4,454
2018	465		9,187		3,086		171		12,909
2019	217		7,619		958		171		8,965
2020	123		5,137		958		171		6,389
2021	82		4,361		958		171		5,572
2022 and thereafter	179		20,880		10,628		328		32,015
Total	$	1,266	$	49,666	$	18,318	$	1,054	$	70,304

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Derivative Financial Instruments and Hedging

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging

Derivative Financial Instruments and Hedging

The Company utilizes derivative financial instruments as part of its overall investment and hedging activities. Derivative contracts are subject to additional risk that can result in a loss of all or part of an investment. The Company’s derivative activities are primarily classified by underlying credit risk and interest rate risk. In addition, the Company is also subject to additional counterparty risk should its counterparties fail to meet the contract terms. The derivative financial instruments are located within derivative assets at fair value and are reported in other investments. Derivative liabilities are reported within other liabilities and accrued expenses.

Derivatives, at fair value

Credit Derivatives

Credit derivatives are generally defined as over‑the‑counter contracts between a buyer and seller of protection against the risk of default on a set of obligations issued by a specified reference entity.

Credit Default Swap Indices (CDX) are credit derivatives that reference multiple names through underlying baskets or portfolios of single name credit default swaps. The Company enters into these contracts as both a buyer of protection and seller of protection to manage the credit risk exposure of its investment portfolio. At inception of the investment into theCDX position, the Company was required to deposit cash collateral for these positions equal to an initial 2.25% of the notional amount of the sold protection side subject to increase based on additional maintenance margin as a result of decreases in value. As of September 30, 2017, the required collateral balance was $6,668 posted by the Company to cover its liabilities as a seller of protection. As of September 30, 2017, there is a cash collateral balance of $1,632 held by the Company as collateral for the payments due to the Company as buyer of protection, which is netted against the overall investment position.

Interest Rate Lock Commitments

The Company enters into interest rate lock commitments (IRLCs) in connection with its mortgage banking activities to fund residential mortgage loans with certain terms at specified times in the future. IRLCs that relate to the origination of mortgage loans that will be classified as held-for-sale are considered derivative instruments under applicable accounting guidance. As such, these IRLCs are recorded at fair value with changes in fair value typically resulting in recognition of a gain when the Company enters into IRLCs. In estimating the fair value of an IRLC, the Company assigns a probability that the loan commitment will be exercised and the loan will be funded (“pull through”). The fair value of the commitments is derived from the fair value of related mortgage loans, net of estimated costs to complete. Outstanding IRLCs expose the Company to the risk that the price of the loans underlying the commitments might decline from inception of the rate lock to funding of the loan. To manage this risk, the Company utilizes forward delivery contracts and TBA mortgage backed securities to economically hedge the risk of potential changes in the value of the loans that would result from the commitments.

Forward Delivery Contracts

The Company enters into forward delivery contracts with investors to manage the interest rate risk associated with IRLCs and loans held for sale.

TBA Mortgage Backed Securities

The Company enters into to be announced (TBA) mortgage backed securities which facilitate hedging and funding by allowing the Company to prearrange prices for mortgages that are in the process of originating. The Company utilizes these hedging instruments for Agency (Fannie Mae and Freddie Mac) and FHA/VA (Ginnie Mae) eligible IRLCs and typically commit them to investors at prices higher than otherwise available.

Interest Rate Swaps

The Company is exposed to interest rate risk when there is an unfavorable change in the value of investments as a result of adverse movements in the market interest rates. The Company enters into interest rate swaps (IRS) to protect against such adverse movements in interest rates. The Company is required to post collateral for the benefit of the counterparty. This is included in other assets in the condensed consolidated balance sheets.

The Company uses interest rate swaps to hedge the variability of floating rate borrowings. Cash flow hedge accounting was applied to the floating rate borrowings in its specialty insurance business, and during the second quarter of 2016, the Company elected to apply cash flow hedge accounting to such transactions in its senior living business. 

The following table summarizes the gross notional and fair value amounts of derivatives (on a gross basis) categorized by underlying risk:

	As of September 30, 2017						As of December 31, 2016
	Notional values		Asset derivatives		Liability derivatives		Notional values		Asset derivatives		Liability derivatives
Credit risk:
Credit derivatives sold protection	$	295,973	$	18,409	$	—	$	297,612	$	28,731	$	—
Credit derivatives bought protection	294,767		—		3,742		298,173		—		14,501
Sub-total	590,740		18,409		3,742		595,785		28,731		14,501
Foreign currency risk:
Foreign currency forward contracts	—		—		—		965		—		3
Interest rate risk:
Interest rate lock commitments	276,776		6,537		—		203,815		4,872		—
Forward delivery contracts	61,094		49		—		66,731		—		84
TBA mortgage backed securities	253,750		284		283		249,750		1,678		269
Interest rate swaps	133,143		1,284		426		134,343		1,388		1,042
Sub-total	724,763		8,154		709		654,639		7,938		1,395
Total	$	1,315,503	$	26,563	$	4,451	$	1,251,389	$	36,669	$	15,899

The Company nets the credit derivative assets and liabilities as these credit derivatives are subject to legally enforceable netting arrangements with the same party. The following table presents derivative instruments that are subject to offset by a master netting agreement:

	As of
	September 30, 2017			December 31, 2016
Derivatives subject to netting arrangements:
Credit default swap indices sold protection	$	18,409		$	28,731
Credit default swap indices bought protection	(3,742		)	(14,501		)
Gross assets recognized	14,667			14,230
Cash collateral	(1,632		)	(1,632		)
Net assets recognized (included in other investments)	$	13,035		$	12,598

Derivatives Designated as Cash Flow Hedging Instruments

A subsidiary in our specialty insurance business had an IRS with a counterparty, pursuant to which the subsidiary swapped the floating rate portion of its outstanding preferred trust securities to a fixed rate. This IRS was designated as a cash flow hedge and expired in June 2017.

Subsidiaries in our senior living business have IRSs with the same counterparty as the respective lenders, pursuant to which our subsidiary swapped the floating rate portion of its outstanding debt to a fixed rate. These IRSs are designated as cash flow hedges and expire between November 30, 2017 and August 1, 2023.

The following table presents the fair value and the related outstanding notional amounts of the Company's cash flow hedging derivative instruments and indicates where the Company records each amount in its condensed consolidated balance sheets:

		As of
	Balance Sheet Location	September 30, 2017		December 31, 2016
Derivatives designated as cash flow hedging instruments:
Notional value		$	133,143	$	134,343
Fair value of interest rate swaps	Other investments	$	1,284	$	1,388
Fair value of interest rate swaps	Other liabilities and accrued expenses	$	426	$	1,042
Unrealized gain (loss), net of tax, on the fair value of interest rate swaps	AOCI	$	1,606	$	1,759
Range of variable rates on interest rate swaps		1.23% to 1.24%		0.67% to 0.96%
Range of fixed rates on interest rate swaps		1.31% to 4.99%		1.31% to 4.99%

The following table presents the pretax impact of the cash flow hedging derivative instruments on the condensed consolidated financial statements for the following periods:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Gains (losses) recognized in AOCI on the derivative-effective portion	$	(33	)	$	156	$	(411	)	$	(515	)
(Gains) losses reclassified from AOCI into income-effective portion	$	(25	)	$	172	$	212		$	(56	)
Gains (losses) recognized in income on the derivative-ineffective portion	$	—		$	48	$	(2	)	$	(3	)

The following table presents the estimated amount to be reclassified to earnings from AOCI during the next 12 months. These net (gains) losses are reclassified into earnings through interest expense.

	As of
	September 30, 2017
Estimated (gains) losses to be reclassified to earnings from AOCI during the next 12 months	$	(199	)

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Assets and Liabilities of Consolidated CLOs

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Assets and Liabilities of Consolidated CLOs

Assets and Liabilities of Consolidated CLOs

The CLOs are considered variable interest entities (VIE) and the Company consolidates entities when it is determined to be the primary beneficiary under current VIE accounting guidance.

On January 18, 2017, the Company sold its ownership in the subordinated notes of a CLO. As a result of the sale, the Company determined that it no longer had the controlling interest in such entity. The Company, therefore, deconsolidated its ownership in the subordinated notes of the CLO and is no longer reporting the assets and liabilities of the CLO in its condensed consolidated balance sheet as of September 30, 2017, or the revenue and expenses of the CLO in its condensed consolidated statement of operations for the three and nine months ended September 30, 2017.

On August 10, 2017, the Company’s ownership in the subordinated notes of a CLO was redeemed for cash as part of the complete liquidation of the CLO. The operations of the CLO were consolidated in the Company’s condensed consolidated financial statements through the redemption date.

The table below represents the assets and liabilities of the consolidated CLOs that are included in the Company’s condensed consolidated balance sheets as of the dates indicated:

	As of
	September 30, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	20,586	$	45,589
Loans, at fair value (1)	343,382		928,240
Other assets	8,806		15,666
Total assets of consolidated CLOs	$	372,774	$	989,495
Liabilities:
Debt	$	326,716	$	912,034
Other liabilities and accrued expenses	27,621		19,935
Total liabilities of consolidated CLOs	$	354,337	$	931,969
Net	$	18,437	$	57,526

(1) The unpaid principal balance for these loans is $352,958 and $952,225 and the difference between their fair value and UPB is $9,576 and $23,985 at September 30, 2017 and December 31, 2016, respectively.

The Company’s beneficial interests and maximum exposure to loss related to the consolidated CLOs are limited to (i) ownership in the subordinated notes and related participations in management fees of the CLOs and (ii) accrued management fees. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative results in the net amount of the CLOs shown above to be equivalent to the beneficial interests retained by the Company as illustrated in the below table:

Beneficial interests:	As of
	September 30, 2017		December 31, 2016
Subordinated notes and related participations in management fees	$	18,128	$	56,820
Accrued management fees	309		706
Total beneficial interests	$	18,437	$	57,526

The following table represents revenue and expenses of the consolidated CLOs included in the Company’s condensed consolidated statements of operations for the periods indicated:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Income:
Net realized and unrealized gains (losses)	$	1,889	$	(1,422	)	$	3,457	$	(2,913	)
Interest income	5,327		13,978			20,567		37,626
Total revenue	7,216		12,556			24,024		34,713
Expenses:
Interest expense	4,580		8,267			13,629		22,667
Other expense	53		257			1,002		1,997
Total expense	4,633		8,524			14,631		24,664
Net income (loss) attributable to consolidated CLOs	$	2,583	$	4,032		$	9,393	$	10,049

As summarized in the table below, the application of the measurement alternative results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the CLOs which are eliminated upon consolidation:

Economic interests:	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Distributions received and realized and unrealized gains (losses) on the subordinated notes held by the Company, net	$	2,272	$	3,289	$	8,355	$	7,880
Management fee income	311		743		1,038		2,169
Total economic interests	$	2,583	$	4,032	$	9,393	$	10,049

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Debt, net (Notes)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt, Net

Debt, net

The following table summarizes the balance of the Company’s debt obligations, net of discounts and deferred financing costs, excluding notes payable of consolidated CLOs (See Note—(10) Assets and Liabilities of Consolidated CLOs):

			Maximum borrowing capacity as of		As of
Debt Type	Stated maturity date	Stated interest rate or range of rates	September 30, 2017		September 30, 2017			December 31, 2016
Secured corporate credit agreements	September 2018 - December 2019	LIBOR + 2.50% to 6.50%	$	251,250	$	167,000		$	164,000
Asset based revolving financing (1) (2)	September 2018 - July 2022	LIBOR + 2.25% to 5.75%	365,000		261,163			250,557
Residential mortgage warehouse borrowings (3)	March 2018 - August 2018	LIBOR + 2.50% to 2.75%	171,000		95,729			101,402
Real estate commercial mortgage borrowings:
Fixed rate	August 2019 - July 2048	4.00% to 5.12%	99,283		97,433			82,133
Variable rate (LIBOR based)	October 2019 - January 2023	LIBOR + 2.05% to 6.95%	206,074		203,779			158,618
Subordinated debt	April 2020	12.50%	20,000		12,500			8,500
Preferred trust securities	June 2037	LIBOR + 4.10%	35,000		35,000			35,000
Preferred notes payable	January 2021	12.00%			1,386			1,232
Total debt, face value					873,990			801,442
Unamortized discount, net					(471		)	(382		)
Unamortized deferred financing costs					(7,890		)	(8,051		)
Total debt, net					$	865,629		$	793,009

(1) Asset based revolving financing is generally recourse only to specific assets and related cash flows.

(2) The weighted average coupon rate for asset based revolving financing was 3.89% and 3.53% at September 30, 2017 and December 31, 2016, respectively.

(3) The weighted average coupon rate for residential mortgage warehouse borrowings was 4.10% and 3.51% at September 30, 2017 and December 31, 2016, respectively. Includes debt having a maximum borrowing capacity of $171,000 with a stated interest rate of LIBOR + 2.50% to LIBOR +2.75% and a floor of 3.00%.

The table below presents the amount of interest expense the Company incurred on its debt for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest expense on debt	$	10,427	$	7,769	$	28,650	$	20,612

The following table presents the future maturities of the unpaid principal balance on the Company’s long-term debt as of:

	September 30, 2017
Remainder of 2017	$	8,689
2018	182,173
2019	267,685
2020	121,514
2021	21,899
Thereafter	272,030
Total	$	873,990

The following narrative is a summary of certain of the terms of our debt agreements for the periods ended September 30, 2017:

Asset Backed Revolving Financing

An asset backed revolving borrowing in our asset management business entered into an amendment that changed the stated interest from LIBOR plus 2.50%, to LIBOR plus 2.25%, and extended the maturity date from July 2021 to July 2022.

An asset backed revolving borrowing in our specialty finance business increased its maximum borrowing capacity from $125,000 to $150,000 as of September 30, 2017 and also changed its maturing date from October 2019 to October 2020.

An asset backed revolving borrowing in our specialty insurance business with a maximum borrowing capacity of $15,000 matured in April 2017. A new borrowing maturing in April 2019 with an interest rate of LIBOR plus 2.60% and a maximum borrowing capacity of $25,000 was used to pay off the matured borrowing.

Residential Mortgage Warehouse Borrowings

The maximum borrowing amount for three of the six warehouse lines of credit, through subsidiaries in our specialty finance business, decreased by $18,000, from $88,000 as of December 31, 2016 to $70,000 as of September 30, 2017.

The maturity dates for warehouse lines of credit through subsidiaries in our specialty finance business were extended during the nine months ended September 30, 2017. One borrowing extended its maturity from April 2017 to March 2018, one borrowing extended its maturity from June 2017 to March 2018, and two borrowings extended their maturity from June 2017 to June 2018.

Real Estate Commercial Mortgage Borrowings

On February 3, 2017, in connection with an acquisition in the senior living business, the Company along with our partners entered into a $10,000, five year mortgage borrowing, which includes 12 months of interest only payments. The loan carries a variable rate of LIBOR plus 3.75%. If on or after February 3, 2019 the facility has achieved certain occupancy and minimum debt service coverage ratio, then the interest rate will be reduced to a rate of LIBOR plus 2.75% as of such date. This note matures on February 1, 2022.

On February 9, 2017, in connection with assets acquired in the senior living business, a pre-existing Housing and Urban Development (HUD) loan was assumed by a subsidiary in our senior living business. The 35 year loan was originally dated June 1, 2013 for $8,072. The loan carries a fixed interest rate of 3.08% per annum, and matures on July 1, 2048. As of the acquisition date, this debt had a balance of $7,586. All terms of the note assumed remain consistent with the original note.

On April 18, 2017, in connection with an acquisition in the senior living business, the Company entered into a $7,000, five year mortgage borrowing. The loan carries a variable rate of LIBOR plus 3.00% and matures on May 1, 2022.

On May 31, 2017, in connection with an acquisition of seven skilled nursing facilities in the senior living business, the Company entered into a $28,800, three year mortgage borrowing. The loan carries a variable rate of LIBOR plus 6.95% and matures on May 31, 2020.

On June 14, 2017, in connection with an acquisition in the senior living business, the Company entered into a $9,150, five year mortgage borrowing. The loan carries a fixed interest rate of 4.60% and matures on July 1, 2022.

Covenant Compliance

As of September 30, 2017, the Company is in compliance with the representations and covenants for outstanding borrowings or has obtained waivers for any events of non-compliance.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs to the extent possible to measure a financial instrument’s fair value. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability, and are affected by the type of product, whether the product is traded on an active exchange or in the secondary market, as well as current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is estimated by applying the hierarchy discussed in Note—(2) Summary of Significant Accounting Policies to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized within Level 3 of the fair value hierarchy.

The Company’s fair value measurement is based primarily on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable financial instruments. Sources of inputs to the market approach include third-party pricing services, independent broker quotations and pricing matrices. Management analyzes the third party valuation methodologies and its related inputs to perform assessments to determine the appropriate level within the fair value hierarchy and to assess reliability of values. Further, management has a process in place to review all changes in fair value that occurred during each measurement period. Any discrepancies or unusual observations are followed through to resolution through the source of the pricing as well as utilizing comparisons, if applicable, to alternate pricing sources. In addition, the Company utilizes an income approach to measure the fair value of NPLs, as discussed below.

The Company utilizes observable and unobservable inputs within its valuation methodologies. Observable inputs may include: benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. In addition, specific issuer information and other market data is used. Broker quotes are obtained from sources recognized to be market participants. Unobservable inputs may include: expected cash flow streams, default rates, supply and demand considerations and market volatility.

Available for Sale Securities

Available for sale securities are generally classified within either Level 1 or Level 2 of the fair value hierarchy and are based on prices provided by an independent pricing service and a third party investment manager who provide a single price or quote per security.

The following details the methods and assumptions used to estimate the fair value of each class of available for sale securities and the applicable level each security falls within the fair value hierarchy:

U.S Treasury Securities, Obligations of U.S. Government Authorities and Agencies, Obligations of State and Political Subdivisions, Corporate Securities, Asset-Backed Securities, and Obligations of Foreign Governments: Fair values were obtained from an independent pricing service and a third party investment manager. The prices provided by the independent pricing service are based on quoted market prices, when available, non-binding broker quotes, or matrix pricing and fall under Level 2 of the fair value hierarchy.

Certificates of Deposit: The estimated fair value of certificates of deposit approximate carrying value and fall under Level 1 of the fair value hierarchy.

Equity Securities: The fair values of publicly traded common and preferred stocks were obtained from market value quotations provided by an independent pricing service and fall under Level 1 of the fair value hierarchy. The fair values of non-publicly traded common and preferred stocks were based on prices obtained from an independent pricing service using unobservable inputs and fall under Level 3 of the fair value hierarchy.

Loans, at fair value

Corporate Loans (including those of consolidated CLOs): These loans are comprised of a diversified portfolio of middle market and broadly syndicated leveraged loans and are generally classified within either Level 2 or Level 3 in the fair value hierarchy. The Company has evaluated each loan’s respective liquidity and has additionally performed valuation benchmarking. The key characteristics which were evaluated as part of this determination were liquidity ratings, price changes to index benchmarks, depth of quotes, credit ratings and industry trends.

Mortgage Loans Held for Sale: Mortgage loans held for sale are generally classified as Level 2 in the fair value hierarchy and fair value is based upon forward sales contracts with third party investors, including estimated loan costs, and reserves. For non-performing mortgage loans held for sale, fair value is based upon estimated selling prices from third party investors of such types of loans.

Nonperforming Loans and REO: The Company determines the purchase price for NPLs at the time of acquisition and for each subsequent valuation by using a discounted cash flow valuation model and considering alternate loan resolution probabilities, including modification, liquidation, or conversion to REO. The significant unobservable inputs used in the fair value measurement of our NPLs are discount rates, loan resolution timeline, and the value of underlying properties. The fair values of NPLs which are making payments (generally based on a modification or a workout plan) are primarily based upon secondary market transaction prices, which are expressed as a percentage of unpaid principal balance (UPB). Observable inputs to the model include loan amounts, payment history, and property types. Our NPLs are on nonaccrual status at the time of purchase as it is probable that principal or interest is not fully collectible. NPLs are included in loans, at fair value and fall under Level 3 of the fair value hierarchy.

NPLs that have become REOs were measured at fair value on a non-recurring basis during the nine months ended September 30, 2017 and year ended December 31, 2016. The carrying value of REOs at September 30, 2017 and December 31, 2016 was $13,079 and $13,366, respectively. Upon conversion to REO, the fair value is estimated using broker price opinion (BPO). BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings, and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. REO is included in real estate, net.

Derivative Assets and Liabilities

Derivatives are comprised of credit default swaps (CDS), index credit default swaps (CDX), interest rate lock commitments (IRLC), to be announced mortgage backed securities (TBA) and interest rate swaps (IRS). The fair value of these instruments is based upon valuation pricing models, which represent the amount the Company would expect to receive or pay at the balance sheet date to exit the position. In general, the fair value of CDSs and CDXs are based on dealer quotes. Because significant inputs, other than unadjusted quoted prices in active markets are used to determine the dealer quotes, such as price volatility, the Company classifies them as Level 2 in the fair value hierarchy. The fair value of IRS is based upon either valuation pricing models, which represent the amount the Company would expect to pay at the balance sheet date if the contracts were exited, or by obtaining broker or counterparty quotes. Because there are observable inputs used to arrive at these prices, the Company has classified IRS within Level 2 of the fair value hierarchy. Our mortgage origination subsidiaries issue IRLCs to its customers, which are carried at estimated fair value on the Company’s condensed consolidated balance sheet. The estimated fair values of these commitments are generally calculated by reference to the value of the underlying loan associated with the IRLC net of costs to produce and an expected fall out assumption. The fair values of these commitments generally result in a Level 3 classification. Our mortgage origination subsidiaries manage their exposure by entering into forward delivery commitments with loan investors. For loans not locked with investors under a forward delivery commitment, the Company enters into hedge instruments, primarily TBAs, to protect against movements in interest rates. The fair values of TBA mortgage backed securities generally result in a Level 2 classification.

The following tables present the Company’s fair value hierarchies for financial assets and liabilities, including the balances associated with the consolidated CLOs, measured on a recurring basis:

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	615	$	—	$	47	$	662
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		36,354		—		36,354
Obligations of state and political subdivisions	—		47,633		—		47,633
Obligations of foreign governments	—		579		—		579
Certificates of deposit	896		—		—		896
Asset backed securities	—		24,100		—		24,100

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Corporate securities	—		53,869		—		53,869
Total available for sale securities	1,511		162,535		47		164,093
Loans, at fair value:
Corporate loans	—		33,427		129,085		162,512
Mortgage loans held for sale	—		114,461		—		114,461
Non-performing loans	—		—		44,980		44,980
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		147,888		175,234		323,122
Equity securities, trading, at fair value	28,106		—		—		28,106
Other investments:
Derivative assets:
Interest rate swaps	—		1,284		—		1,284
Forward delivery contracts	—		49		—		49
Interest rate lock commitments	—		—		6,537		6,537
TBA mortgage backed securities	—		284		—		284
Credit derivatives	—		13,035		—		13,035
Total derivative assets	—		14,652		6,537		21,189
CLOs	—		—		2,045		2,045
Debentures	—		3,957		—		3,957
Total other investments	—		18,609		8,582		27,191
Total financial instruments attributable to non-CLOs included in consolidated assets	29,617		329,032		183,863		542,512
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		132,623		210,759		343,382
Total financial instruments included in assets of consolidated CLOs	—		132,623		210,759		343,382
Total	$	29,617	$	461,655	$	394,622	$	885,894
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	426	$	—	$	426
TBA mortgage backed securities	—		283		—		283
Foreign currency forward contracts	—		—		—		—
Total derivative liabilities (included in other liabilities and accrued expenses)	—		709		—		709
Contingent consideration payable	—		—		52		52
Preferred notes payable	—		—		1,386		1,386
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		709		1,438		2,147
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		326,716		326,716
Total financial instruments included in liabilities of consolidated CLOs	—		—		326,716		326,716
Total	$	—	$	709	$	328,154	$	328,863

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	736	$	—	$	48	$	784

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		26,799		—		26,799
Obligations of state and political subdivisions	—		56,934		—		56,934
Obligations of foreign governments	—		728		—		728
Certificates of deposit	895		—		—		895
Asset backed securities	—		1,460		—		1,460
Corporate bonds	—		58,571		—		58,571
Total available for sale securities, at fair value	1,631		144,492		48		146,171
Loans, at fair value:
Corporate loans	—		46,352		129,206		175,558
Mortgage loans held for sale	—		121,439		—		121,439
Non-performing loans	—		—		74,923		74,923
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		167,791		205,298		373,089
Equity securities, trading, at fair value	48,612		—		—		48,612
Other investments:
Derivative assets:
Interest rate swaps	—		1,388		—		1,388
Interest rate lock commitments	—		—		4,872		4,872
TBA mortgage backed securities	—		1,678		—		1,678
Credit derivatives	—		12,598		—		12,598
Total derivative assets	—		15,664		4,872		20,536
CLOs	—		—		974		974
Debentures	—		3,957		—		3,957
Total other investments	—		19,621		5,846		25,467
Total financial instruments attributable to non-CLOs included in consolidated assets	50,243		331,904		211,192		593,339
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		342,370		585,870		928,240
Total financial instruments included in assets of consolidated CLOs	—		342,370		585,870		928,240
Total	$	50,243	$	674,274	$	797,062	$	1,521,579
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	1,042	$	—	$	1,042
Forward delivery contracts	—		84		—		84
TBA mortgage backed securities	—		269		—		269
Foreign currency forward contracts	—		3		—		3
Total derivative liabilities (included in other liabilities and accrued expenses)	—		1,398		—		1,398
Contingent consideration payable	—		—		1,852		1,852
Preferred notes payable	—		—		1,232		1,232
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		1,398		3,084		4,482
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		912,034		912,034
Total financial instruments included in liabilities of consolidated CLOs	—		—		912,034		912,034
Total	$	—	$	1,398	$	915,118	$	916,516

The following table represents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:    

	Nine Months Ended September 30,
	2017						2016 (3)
	Non-CLO assets			CLO assets			Non-CLO assets			CLO assets
Balance at January 1,	$	211,192		$	585,870		$	239,944		$	520,892
Net realized gains (losses)	7,279			(1,667		)	4,450			402
Net unrealized gains (losses)	2,800			89			5,482			15,584
Origination of IRLC	54,468			—			38,554			—
Purchases	41,458			76,122			101,161			157,144
Sales (1)	(74,010		)	(193,205		)	(56,824		)	(72,612		)
Issuances	590			676			1,716			1,546
Transfer into Level 3 (2)	9,286			17,601			23,184			32,858
Transfer adjustments (out of) Level 3 (2)	(7,641		)	(23,427		)	(15,280		)	(66,215		)
Deconsolidation of CLO due to sale	1,342			(251,300		)	—			—
Conversion to real estate owned	(9,793		)	—			(10,288		)	—
Conversion to mortgage held for sale	(53,069		)	—			(36,378		)	—
Warehouse transfer to CLO	—			—			(104,098		)	104,098
Other	(39		)	—			—			—
Balance at September 30,	$	183,863		$	210,759		$	191,623		$	693,697
Changes in unrealized gains (losses) included in earnings related to assets still held at period end	$	4,790		$	(168	)	$	4,023		$	11,325

(1) Included within the CLO assets amount are sales related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

(2) All transfers are deemed to occur at end of period. Transfers between Level 2 and 3 were a result of subjecting third-party pricing on both CLO and Non-CLO assets to various liquidity, depth, bid-ask spread and benchmarking criteria as well as assessing the availability of observable inputs affecting their fair valuation.

(3) Items within the Level 3 rollforward have been restated to reflect assets purchased during a period as purchases rather than transfers. The presentation of gross origination of IRLC’s and gross conversion to mortgage held for sale have also been restated to show the break out from net realized and unrealized gains and losses, conversion to real estate owned, and transfers out of Level 3 assets. These changes have no impact on the total amount of Level 3 assets.

The following table represents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:

	Nine Months Ended September 30,
	2017						2016
	Non-CLO liabilities			CLO liabilities			Non-CLO liabilities			CLO liabilities
Balance at January 1,	$	3,084		$	912,034		$	2,498		$	683,827
Net unrealized (gains) losses	—			(3,071		)	(262		)	23,169
Issuances	—			—			—			222,303
Settlements (1)	(4,838		)	(155,194		)	(377		)	—
Dispositions	—			(49,010		)	—			(1,317		)
FV adjustment	3,192			—			—			—
Deconsolidation of CLO due to sale	—			(378,043		)	—			—
Balance at September 30,	$	1,438		$	326,716		$	1,859		$	927,982
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end	$	154		$	(6,119	)	$	(262	)	$	23,169

(1) Included within the CLO liabilities amount are settlements related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

The following is quantitative information about Level 3 significant unobservable inputs used in fair valuation.

	Fair Value as of						Actual or Range (Weighted average)
Assets(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Interest rate lock commitments	$	6,537	$	4,872	Internal model	Pull through rate	45% - 95%	45% - 95%
NPLs	44,980		74,923		Discounted cash flow	See table below (2)	See table below	See table below
Total	$	51,517	$	79,795

(1) Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

(2) Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics, such as location and value of underlying collateral, affect the loan resolution timeline. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value.

The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our NPLs. For NPLs that are not making payments, discount rate, loan resolution time-line, value of underlying properties, holdings costs and liquidation costs are the primary inputs used to measure fair value. For NPLs that are making payments, note rate and secondary market transaction prices/UPB are the primary inputs used to measure fair value.

	As of September 30, 2017			As of December 31, 2016
Unobservable inputs	High	Low	Average(1)	High	Low	Average(1)
Discount rate	30.0%	16.0%	23.2%	30.0%	16.0%	22.9%
Loan resolution time-line (Years)	2.59	0.48	1.26	2.3	0.5	1.2
Value of underlying properties	$2,400	$40	$307	$1,800	$32	$234
Holding costs	22.0%	5.5%	7.7%	24.1%	5.4%	8.3%
Liquidation costs	20.8%	8.1%	9.4%	25.0%	8.5%	9.6%
Note rate	6.0%	3.0%	5.2%	6.0%	3.0%	4.8%
Secondary market transaction prices/UPB	88.5%	75.5%	85.2%	88.5%	75.5%	83.7%

(1) Weighted based on value of underlying properties (excluding the value of underlying properties line item).

	Fair Value as of						Actual or Range (Weighted average)
Liabilities(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Contingent consideration payable - Reliance (2)	$	—	$	1,800	Cash Flow model (3)	Forecast EBITDA	$1,000 - $8,000	$951 - $6,005
						Book value growth rate	N/A	5.0%
						Asset volatility	N/A	1.4% - 23.7%
Contingent consideration payable - Luxury	52		52		Cash Flow model	Projected cash available for distribution	$1,059 - $1,316	$1,059 - $1,316
Preferred notes payable	1,386		1,232		Cash Flow model	Discount rate	12.0%	12.0%
Total	$	1,438	$	3,084

(1) Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

(2) Settled in Q3 2017 with Class A common shares. See Note—(17) Stockholders’ Equity.

(3) Monte Carlo simulation is run, as needed.

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value and their respective levels within the fair value hierarchy:

	As of September 30, 2017					As of December 31, 2016
	Level within fair value hierarchy	Fair value		Carrying value		Level within fair value hierarchy	Fair value		Carrying value
Assets:
Notes and accounts receivable, net	2	$	19,310	$	19,310	2	$	28,293	$	28,732
Total assets		$	19,310	$	19,310		$	28,293	$	28,732
Liabilities:
Debt, net	3	$	876,444	$	872,133	3	$	798,806	$	799,828
Total liabilities		$	876,444	$	872,133		$	798,806	$	799,828

Notes and Accounts Receivable: To the extent that carrying amounts differ from fair value, fair value is determined based on contractual cash flows discounted at market rates for similar credits. Categorized as Level 2 of the fair value hierarchy.

Debt: The carrying value represents the total debt balance at face value excluding the unamortized discount. The fair value of notes payable is determined based on contractual cash flows discounted at market rates for mortgage notes payable and either dealer quotes or contractual cash flows discounted at market rates for other notes payable. Categorized as Level 3 of the fair value hierarchy.

Additionally, the following financial assets and liabilities on the condensed consolidated balance sheets are not carried at fair value, but whose carrying amounts approximate their fair value:

Loans Owned, at Amortized Cost: The fair value of loans owned, at amortized cost approximates its carrying value because the interest rates on the loans are based on a variable market interest rate. Categorized as Level 3 of the fair value hierarchy.

Cash and Cash Equivalents: The carrying amounts of cash and cash equivalents are carried at cost which approximates fair value. Categorized as Level 1 of the fair value hierarchy.

Accounts and Premiums Receivable, net, retrospective commissions receivable and other receivables: The carrying amounts approximate fair value since no interest rate is charged on these short duration assets. Categorized as Level 2 of the fair value hierarchy. See Note—(6) Notes and Accounts Receivable, net.

Due from Brokers, Dealers, and Trustees and Due to Brokers, Dealers and Trustees: The carrying amounts are included in other assets and other liabilities and accrued expenses and approximate their fair value due to their short‑term nature. Categorized as Level 2 of the fair value hierarchy.

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Liability for Unpaid Claims and Claim Adjustment Expenses (Notes)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Liability for Unpaid Claims and Claim Adjustment Expenses

Roll forward of Claim Liability

The following table presents the activity in the net liability for unpaid losses and allocated loss adjustment expenses of short-duration contracts for the following periods:

	Nine Months Ended September 30,
	2017			2016
Policy liabilities and unpaid claims balance as of January 1	$	103,391		$	80,663
Less : liabilities of policy-holder accounts balances, gross	(17,417		)	(19,037		)
Less : non-insurance warranty benefit claim liabilities	(91		)	(116		)
Gross liabilities for unpaid losses and loss adjustment expenses	85,883			61,510
Less : reinsurance recoverable on unpaid losses - short duration	(63,112		)	(42,341		)
Less : other lines, gross	(208		)	(163		)
Net balance as of January 1, short duration	22,563			19,006
Incurred (short duration) related to:
Current year	78,174			55,461
Prior years	2,958			(1,987		)
Total incurred	81,132			53,474
Paid (short duration) related to:
Current year	57,875			34,822
Prior years	20,600			13,992
Total paid	78,475			48,814
Net balance as of September 30, short duration	25,220			23,666
Plus : reinsurance recoverable on unpaid losses - short duration	69,813			60,236
Plus : other lines, gross	193			164
Gross liabilities for unpaid losses and loss adjustment expenses	95,226			84,066
Plus : liabilities of policy-holder accounts balances, gross	15,652			17,766
Plus : non-insurance warranty benefit claim liabilities	50			80
Policy liabilities and unpaid claims balance as of September 30,	$	110,928		$	101,912

The following schedule reconciles the total on short duration contracts per the table above to the amount of total losses incurred as presented in the condensed consolidated statement of operations, excluding the amount for member benefit claims:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total incurred	$	27,236	$	19,247	$	81,132	$	53,474
Other lines incurred	81		44		78		74
Unallocated loss adjustment expense	441		623		1,343		1,554
Total losses incurred	$	27,758	$	19,914	$	82,553	$	55,102

For the nine months ended September 30, 2017, the Company’s specialty insurance business experienced an increase in prior year case development of $2,958. This included $1,772 in non-standard auto and $1,852 in warranty. This development was partially offset by favorable development in its credit lines of business. The warranty and credit lines of business are primarily in retrospective commission arrangements that minimally impact the operating income of the Company.

For the nine months ended September 30, 2016, the Company’s specialty insurance business experienced a decrease in prior year case development of $1,987. This decrease was due to the favorable development in credit lines of business. This development was partially offset by increased case development of $1,644 in non-standard auto and $1,328 in warranty. The warranty and credit lines of business are primarily in retrospective commission arrangements that minimally impacts the operating income of the Company.

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Other Assets (Notes)

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other assets

Other Assets

The following table presents the components of other assets as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Due from brokers	$	1,505	$	2,027
Furniture, fixtures and equipment, net	5,669		5,936
Prepaid expenses	9,441		5,020
Accrued interest receivable	3,154		2,052
Management fee receivable	4,375		4,308
Other fee receivable	5,159		5,022
Income tax receivable	4,140		4,842
Other	15,101		8,679
Total other assets	$	48,544	$	37,886

The following table presents the depreciation expense related to furniture, fixtures and equipment for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense related to furniture, fixtures and equipment	$	656	$	667	$	1,883	$	1,978

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Other Liabilities and Accrued Expenses (Notes)

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Other Liabilities Disclosure [Text Block]

Other Liabilities and Accrued Expenses

The following table presents the components of other liabilities and accrued expenses as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Accounts payable and accrued expenses	$	46,544	$	67,837
Deferred tax liabilities, net	30,789		32,296
Due to brokers	7,733		8,457
Commissions payable	11,007		7,466
Accrued interest payable	2,127		1,729
Derivative liabilities, at fair value	709		1,398
Other liabilities	16,949		14,552
Total other liabilities and accrued expenses	$	115,858	$	133,735

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Other Income and Other Expenses (Notes)

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

Other Income and Other Expenses

The following table presents the components of other income as reported in the condensed consolidated statement of operations, primarily comprised of interest income and loan fee income related to both loans at fair value and loans at amortized costs, net in our specialty finance business, and management fees from our asset management business:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest income	$	5,254	$	4,215	$	14,439	$	13,455
Loan fee income	3,201		3,915		9,451		9,296
Management fee income	1,541		3,839		6,578		7,497
Other	1,383		450		3,352		1,477
Total other income	$	11,379	$	12,419	$	33,820	$	31,725

The following table presents the components of other expenses as reported in the condensed consolidated statement of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Professional fees	$	4,506	$	5,283	$	13,980	$	17,581
Acquisition and transaction costs	25		248		302		631
General and administrative	4,015		3,178		11,552		10,788
Premium taxes	2,810		1,637		8,840		5,480
Mortgage origination expenses	2,406		2,308		6,728		5,944
Property operating expenses	2,635		1,854		7,798		5,439
Rent and related	2,992		3,091		8,998		9,189
Other	3,775		4,087		15,182		13,299
Total other expense	$	23,164	$	21,686	$	73,380	$	68,351

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

All shares of our Class A common stock have equal rights as to earnings, assets, dividends and voting. Shares of Class B common stock have the voting rights as the Class A common stock but no economic rights (including no right to receive dividends or other distributions upon liquidation, dissolution or otherwise). Distributions may be paid to holders of Class A common stock when duly authorized by our board of directors and declared out of legally available assets.

TFP owns a warrant to purchase 652,500 shares of Class A common stock at $11.33 per share which is immediately exercisable and expires on September 30, 2018. Such an exercise would be accounted for as treasury stock held at TFP and would have no impact on Tiptree’s financial statements.

On June 5, 2017, in settlement of an option, TFP delivered 1,510,920 shares of the Company’s Class A common stock to Tricadia for total consideration of approximately $8,100.

On June 21, 2017, a subsidiary of Tiptree purchased 1,000,000 shares of Class A common stock of Tiptree for aggregate consideration of $7,300. The shares acquired are accounted for as treasury shares and therefore are not outstanding for accounting or voting purposes.

On August 10, 2017, the Company settled a contingent consideration payable related to the acquisition of Reliance in 2015 with 756,046 shares of Class A common stock.

The Company declared cash dividends per share for the following periods presented below:

	Dividends per share for
	Nine Months Ended September 30,
	2017		2016
First Quarter	$	0.030	$	0.025
Second Quarter	0.030		0.025
Third Quarter	0.030		0.025
Total cash dividends declared	$	0.090	$	0.075

Statutory Reporting and Insurance Company Subsidiaries Dividend Restrictions

The Company's insurance company subsidiaries may pay dividends to the Company, subject to statutory restrictions. Payments in excess of statutory restrictions (extraordinary dividends) to the Company are permitted only with prior approval of the insurance department of the applicable state of domicile. The Company eliminated all dividends from its subsidiaries in the condensed consolidated financial statements. For the three and nine months ended September 30, 2017 and 2016, respectively, the Company’s insurance company subsidiaries did not pay any ordinary or extraordinary dividends.

The following table presents the combined statutory capital and surplus of the Company's insurance company subsidiaries, the required minimum statutory capital and surplus, as required by the laws of the states in which they are domiciled, and the combined amount available for ordinary dividends of the Company's insurance company subsidiaries for the following periods:

	As of
	September 30, 2017		December 31, 2016
Combined statutory capital and surplus of the Company's insurance company subsidiaries	$	108,666	$	100,920
Required minimum statutory capital and surplus	$	19,200	$	17,200
Amount available for ordinary dividends of the Company's insurance company subsidiaries	$	9,425	$	9,049

At September 30, 2017, the maximum amount of dividends that our regulated insurance company subsidiaries could pay under applicable laws and regulations without regulatory approval was approximately $9,425. The Company may seek regulatory approval to pay dividends in excess of this permitted amount, but there can be no assurance that the Company would receive regulatory approval if sought.

Under the National Association of Insurance Commissioners (NAIC) Risk-Based Capital Act of 1995, a company's Risk-Based Capital (RBC) is calculated by applying certain risk factors to various asset, claim and reserve items. If a company's adjusted surplus falls below calculated RBC thresholds, regulatory intervention or oversight is required. The Company's insurance company subsidiaries' RBC levels, as calculated in accordance with the NAIC’s RBC instructions, exceeded all RBC thresholds as of September 30, 2017.

The following table presents the net income of the Company’s statutory insurance companies for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income of statutory insurance companies	$	391	$	4,199	$	6,745	$	10,326

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following table presents the activity in accumulated other comprehensive income (loss) (AOCI), net of tax, for the following periods:

	Unrealized gains (losses) on									Amount attributable to noncontrolling interests
	Available for sale securities			Interest rate swaps			Total AOCI			TFP			Other			Total AOCI to Tiptree Inc.
Balance at December 31, 2015	$	(222	)	$	111		$	(111	)	$	—		$	—		$	(111	)
Other comprehensive income (losses) before reclassifications	2,448			(357		)	2,091			(237		)	29			1,883
Amounts reclassified from AOCI	(715		)	(26		)	(741		)	—			—			(741		)
Period change	1,733			(383		)	1,350			(237		)	29			1,142
Balance at September 30, 2016	$	1,511		$	(272	)	$	1,239		$	(237	)	$	29		$	1,031
Balance at December 31, 2016	$	(700	)	$	1,759		$	1,059		$	(128	)	$	(376	)	$	555
Other comprehensive income (losses) before reclassifications	1,165			(296		)	869			(154		)	48			763
Amounts reclassified from AOCI	(238		)	143			(95		)	—			—			(95		)
Period change	927			(153		)	774			(154		)	48			668
Balance at September 30, 2017	$	227		$	1,606		$	1,833		$	(282	)	$	(328	)	$	1,223

The following table presents the reclassification adjustments out of AOCI included in net income and the impacted line items on the condensed consolidated statement of operations for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in Condensed Consolidated Statement of Operations
Components of AOCI	2017			2016			2017			2016
Unrealized gains (losses) on available for sale securities	$	394		$	960		$	367		$	1,100		Net realized and unrealized gains (losses)
Related tax (expense) benefit	(138		)	(336		)	(129		)	(385		)	Provision for income tax
Net of tax	$	256		$	624		$	238		$	715
Unrealized gains (losses) on interest rate swaps	$	25		$	(172	)	$	(212	)	$	56		Interest expense
Related tax (expense) benefit	(8		)	54			69			(30		)	Provision for income tax
Net of tax	$	17		$	(118	)	$	(143	)	$	26

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Stock Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation

Stock Based Compensation

Equity Plans

2007 Manager Equity Plan

The Care Investment Trust Inc. Manager Equity Plan (Manager Plan) was adopted in June 2007. On June 6, 2017, the 134,629 remaining shares of Class A common stock available for issuance under the Manager Plan was rolled into the 2017 Equity Plan and the Manager Plan was simultaneously terminated.

2013 Omnibus Incentive Plan

The Tiptree 2013 Omnibus Incentive Plan (2013 Equity Plan) was adopted on August 8, 2013. On June 6, 2017, the 7,359 remaining shares of Class A common stock available for issuance under the 2013 Equity Plan was rolled into the 2017 Equity Plan and the 2013 Equity Plan was simultaneously terminated.

2017 Omnibus Incentive Plan

The Company adopted the Tiptree 2017 Omnibus Incentive Plan (2017 Equity Plan) on June 6, 2017, which permits the grant of stock units, stock, and stock options up to a maximum of 6,100,000 shares of Class A common stock. The general purpose of the 2017 Equity Plan is to attract, motivate and retain selected employees and directors for the Company and its subsidiaries, to provide them with incentives and rewards for performance and to better align their interests with the interests of the Company’s stockholders. Unless otherwise extended, the 2017 Equity Plan terminates automatically on the 10th anniversary of its adoption.

The table below summarizes changes to the issuances under the Company’s 2013 and 2017 Equity Plan for the periods indicated:

2013 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	961,650
Shares granted	(954,291	)
Shares rolled into 2017 Equity Plan	(7,359	)
Available for issuance as of September 30, 2017	—
2017 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	—
Available from 2017 Equity Plan	6,100,000
Shares granted	(71,016	)
Available for issuance as of September 30, 2017	6,028,984

(1) Excludes shares granted under the Company’s subsidiary incentive plans that are exchangeable for Tiptree Class A common stock.

Restricted Stock Units (RSUs)

Generally, the Tiptree RSUs shall vest and become nonforfeitable with respect to one-third of Tiptree shares granted on each of the first, second and third anniversaries of the date of the grant, and expensed using the straight-line method over the requisite service period.

The following table summarizes changes to the issuances of Class A common stock and RSUs under the 2017 Equity Plan for the periods indicated:

	Number of shares issuable		Weighted average grant date fair value
Unvested units as of December 31, 2016	299,817		$	6.27
Granted (1)	454,680		6.60
Vested	(155,615	)	6.42
Unvested units as of September 30, 2017	598,882		$	6.48

(1) Includes grants of 27,192 shares of Class A common stock to directors.

The Company values RSUs at their grant-date fair value as measured by Tiptree’s common stock price. Included in vested shares for 2017 are 16,716 shares surrendered to pay taxes on behalf of the employees with shares vesting. During the nine months ended September 30, 2017, the Company granted 427,488 RSUs to employees of the Company. 142,175 shares vest ratably over a period of three years that began in February 2017 and the remaining 285,313 shares will cliff vest in February 2020.

Subsidiary Incentive Plans

Certain of Tiptree’s subsidiaries have established RSU programs under which they are authorized to issue RSUs or their equivalents, representing equity of such subsidiaries to certain of their employees. Such awards are accounted for as equity. These RSUs are subject to performance-vesting criteria based on the performance of the subsidiary (performance vesting RSUs) and time-vesting subject to continued employment (time vesting RSUs). Following the service period, such vested RSUs may be exchanged at fair market value, at the option of the holder, for Tiptree Class A common stock under the 2017 Equity Plan. The Company has the option, but not the obligation to settle the exchange right in shares or cash.

The following table summarizes changes to the issuances of subsidiary RSU’s under the subsidiary incentive plans for the periods indicated:

	Grant date fair value of equity shares issuable
Unvested balance as of December 31, 2016	$	8,089
Vested	(2,436		)
Grant value adjustment (1)	(210		)
Unvested balance as of September 30, 2017 (2)	$	5,443

(1) Due to the approval of the 2017 Equity Plan, Tiptree changed the classification of the subsidiary RSU’s during the three months ended September 30, 2017 from liability to equity awards, because the Company expects to settle these awards in stock.

(2) The unvested balance translates to 1,093,139 shares of Class A common stock if converted as of September 30, 2017.

Stock Options

Option awards have been granted to the Executive Committee with an exercise price equal to the fair market value of our common stock on the date of grant; those option awards have a 10-year term and are subject the recipient’s continuous service, a market requirement, and generally vest over five years beginning on the 3^rd anniversary of the grant date. Options granted during the year ended December 31, 2016 contained a market requirement that, at any time during the option term, the 20-day volume weighted average stock price must exceed the December 31, 2015 book value per share. Options granted in 2017 contained a market requirement that, at any time during the option term, the 20-day volume weighted average stock price plus the sum of actual cash dividends paid must exceed the December 31, 2016 as exchanged book value per share. The market requirement may be met any time before the option expires and it only needs to be met once for the option to remain exercisable for the remainder of its term. If the service condition is met, the full amount of the compensation expense will be recognized over the appropriate vesting period whether the market requirement is met or not.

The fair value option grants are estimated on the date of grant using a Black-Scholes-Merton option pricing formula embedded within a Monte Carlo model used to simulate the future stock prices of the Company, which assumes that the market requirement is achieved. Historical volatility was computed based on historical daily returns of the Company’s stock between the grant date and July 1, 2013, the date of the business combination through which Tiptree became a public company. The valuation is done under a risk-neutral framework using the 10-year zero-coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve on the grant date. The current quarterly dividend rates in effect as of the date of the grant are used to calculate a spot dividend yield as of the date of grant for use in the model.

The following table presents the assumptions used to estimate the fair values of the stock options granted for the following period:

Valuation Input	Nine Months Ended September 30, 2017
	Assumption		Average
Historical volatility	47.20	%	N/A
Risk-free rate	2.44	%	N/A
Dividend yield	1.80	%	N/A
Expected term (years)			6.5

The following table presents the Company's stock option activity for the current period:

	Options outstanding	Weighted average exercise price (in dollars per stock option)		Weighted average grant date value (in dollars per stock option)		Options exercisable
Balance, December 31, 2016	251,237	$	5.69	$	2.62	—
Granted	570,627	6.65		2.91		—
Balance, September 30, 2017	821,864	$	6.36	$	2.82	—
Weighted average remaining contractual term at September 30, 2017 (in years)	9.1

Stock-based Compensation Expense

The following table presents the total time-based and performance-based stock-based compensation expense and the related income tax benefit recognized on the condensed consolidated statements of operations:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Employee compensation and benefits	$	1,135		$	633		$	4,275		$	1,597
Professional fees (1)	—			35			—			99
Income tax benefit	(401		)	(236		)	(1,509		)	(599		)
Net stock-based compensation expense	$	734		$	432		$	2,766		$	1,097

(1) Professional fees consist of the value of restricted stock units and options granted to persons providing services to the Company.

Additional information on total non-vested stock-based compensation is as follows:

	As of
	September 30, 2017
	Stock options		Restricted stock awards and RSUs
Unrecognized compensation cost related to non-vested awards	$	1,798	$	9,176
Weighted - average recognition period (in years)	3.1		1.8

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Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

On June 30, 2012, TAMCO, TFP and Tricadia Holdings LP (Tricadia) entered into the Transition Services Agreement (TSA) in connection with the internalization of the management of Tiptree which was assigned to the Company in connection with the Contribution Transactions. Pursuant to the TSA, Tricadia provides the Company with the services of its Executive Chairman and office space and in 2016, information technology services. Payments to Tricadia for the services of our Executive Chairman are included in employee compensation and benefits.

TFP and Back Office Services Group, Inc. (BOSG) entered into an administrative services agreement on June 12, 2007 (Administrative Services Agreement), which was assigned to Tiptree on July 1, 2013 in connection with the Contribution Transactions, under which BOSG provided certain back office, administrative and accounting services to the Company and its subsidiaries. BOSG is an affiliate of Mariner Investment Group (Mariner). As of June 30, 2016, the Company has concluded that Mariner no longer meets the definition of a related party. This agreement was terminated on December 31, 2016.

Payments under the TSA and Administrative Services Agreement in the three and nine months ended September 30, 2017 and 2016 were not material.

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Income Taxes (Notes)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table represents the income tax expense (benefit):

	Three Months Ended September 30,									Nine Months Ended September 30,
	2017					2016				2017					2016
Income tax expense (benefit)	$	(2,052			)	$	3,712			$	(2,761			)	$	5,298
Effective tax rate (ETR)	37.8		%	(1)		32.3		%	(1)	27.3		%	(2)		19.2		%	(3)

⁽¹⁾ Bears a customary relationship to the federal statutory income tax rate.

⁽²⁾ Lower than the federal statutory income tax rate, primarily due a change in fair value of a contingent consideration liability, an increase in a valuation allowance on net operating losses, and various other discrete items. The ETR for the nine months ended September 30, 2017 excluding the effect of discrete items was 28.1%, which is lower than the federal statutory income tax rate, primarily due to a state tax benefit and the effect of non-controlling interests at certain subsidiaries.

⁽³⁾ Lower than the federal statutory income tax rate primarily due to $4,044 of discrete tax benefits for the period, primarily related to the tax restructuring that resulted in a consolidated corporate tax group effective January 1, 2016.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Contractual Obligations

The table below summarizes the Company’s contractual obligations by period that payments are due:

	As of September 30, 2017
	Less than one year		1-3 years		3-5 years		More than 5 years		Total
Operating lease obligations (1)	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969
Total	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969

(1) Minimum rental obligations for Tiptree, Care, Siena, Luxury, Reliance and Fortegra office leases.

The following table presents rent expense for the Company’s office leases recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rent expense for office leases	$	1,745	$	1,630	$	5,230	$	4,820

In August 2017, Tiptree entered into a lease for office space. The terms of the lease are $2,322 per annum for five years starting on the one year anniversary of the commencement date. Upon the six year anniversary of the commencement date, the lease escalates to $2,520 per annum for five years. The expected commencement date is July 1, 2018.

In addition, Tiptree’s subsidiary Siena issues standby letters of credit for credit enhancements that are required by its borrower’s respective businesses. As of September 30, 2017, there was $400 outstanding relating to these letters of credit.

Litigation

The Company is a defendant in Mullins v. Southern Financial Life Insurance Co., which was filed in February 2006, in the Pike Circuit Court, in the Commonwealth of Kentucky. A class was certified in June 2010. At issue is the duration or term of coverage under certain disability and life credit insurance policies. The action alleges violations of the Consumer Protection Act and certain insurance statutes, as well as common law fraud and seeks compensatory and punitive damages, attorney fees and interest. To date, the court has not awarded sanctions in connection with Plaintiffs’ April 2012 Motion for Sanctions. In January 2015, the trial court issued an Order denying Fortegra’s motion to decertify the class, which was upheld on appeal. Following a February 2017 hearing, the court denied Fortegra’s Motion for Summary Judgment as to certain disability insurance policies but has not yet ruled on such motion with respect to the life insurance policies at issue.  In June, a new Special Master was appointed. No trial or hearings are currently scheduled.

The Company considers such litigation customary in the insurance industry. In management's opinion, based on information available at this time, the ultimate resolution of such litigation, which it is vigorously defending, should not be materially adverse to the financial position of the Company. It should be noted that large punitive damage awards, bearing little relation to actual damages sustained by plaintiffs, have been awarded in certain states against other companies in the credit insurance business. At this time, the Company cannot estimate a range of loss that is reasonably possible.

The Company and its subsidiaries are parties to other legal proceedings in the ordinary course of business. Although Tiptree’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company does not believe that these proceedings, either individually or in the aggregate, are likely to have a material adverse effect on the Company’s financial position.

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Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The Company calculates basic net income per Class A common share based on the weighted average number of Class A common shares outstanding (inclusive of vested restricted share units). The unvested restricted share units have the non-forfeitable right to participate in dividends declared and paid on the Company’s common stock on an as vested basis and are therefore considered a participating security. The Company calculates basic earnings per share using the “two-class” method, and for the three and nine months ended September 30, 2017 and September 30, 2016, the income available to common stockholders was allocated to the unvested restricted stock units.

Diluted net income per Class A common shares for the period includes the effect of potential equity of subsidiaries as well as potential Class A common stock, if dilutive. For the three months and nine months ended September 30, 2017, the assumed exercise of all dilutive instruments were anti-dilutive and, therefore, were not included in the diluted net income per Class A common share calculation.

The following table presents a reconciliation of basic and diluted net income per common share for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	(3,378	)	$	7,838		$	(7,360	)	$	22,273
Less:
Net income (loss) attributable to non-controlling interests	(264		)	1,933			(903		)	4,680
Net income allocated to participating securities	—			60			—			148
Net income (loss) attributable to Tiptree Inc. Class A common shares - basic	$	(3,114	)	$	5,845		$	(6,457	)	$	17,445
Effect of Dilutive Securities:
Securities of subsidiaries	—			(50		)	—			(148		)
Adjustments to income relating to exchangeable interests, net of tax	—			1,362			—			—
Net income (loss) attributable to Tiptree Inc. Class A common shares - diluted	$	(3,114	)	$	7,157		$	(6,457	)	$	17,297
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - basic	29,455,462			29,143,470			28,908,195			32,845,124
Weighted average number of incremental shares of Tiptree Inc. Class A common stock issuable from exchangeable interests and contingent considerations	—			8,087,180			—			67,392
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - diluted	29,455,462			37,230,650			28,908,195			32,912,516
Basic:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.20		$	(0.22	)	$	0.53
Diluted:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.19		$	(0.22	)	$	0.53

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Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On November 2, 2017, the Company’s board of directors declared a quarterly cash dividend of $0.03 per share to Class A stockholders with a record date of November 20, 2017, and a payment date of November 27, 2017.

On October 16, 2017, Fortegra completed a private placement offering of $125,000 of 8.50% Fixed Rate Resetting Junior Subordinated Notes due 2057 (the “Notes”). Substantially all of the net proceeds from the Notes were used to repay Fortegra’s existing credit facility, which was terminated thereafter. The Notes, which are issued under an indenture, are the unsecured obligations of Fortegra and rank in right of payment and upon liquidation, junior to all of Fortegra’s current and future senior indebtedness. The Notes are not obligations of or guaranteed by any of Fortegra’s subsidiaries or any other Tiptree entities. So long as no event of default has occurred and is continuing, Fortegra may defer all or part of the interest payments on the Notes on one or more occasions for up to five consecutive years per deferral period. The indenture governing the Notes contains customary affirmative and negative covenants and events of default.

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Summary of Significant Accounting Policies - Quarter (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements of Tiptree have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and include the accounts of the Company and its subsidiaries. The condensed consolidated financial statements are presented in U.S. dollars, the main operating currency of the Company. The unaudited condensed consolidated financial statements presented herein should be read in conjunction with the annual audited financial statements included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2016. In the opinion of management, the accompanying unaudited interim financial information reflects all adjustments, including normal recurring adjustments necessary to present fairly the Company’s financial position, results of operations, comprehensive income and cash flows for each of the interim periods presented. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending on December 31, 2017.

As a result of changes in presentation made in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications had no effect on the reported results of operations. The primary difference in the presentation of the condensed consolidated financial statements from the prior year is the aggregation of investments on the condensed consolidated balance sheets and the summation of the net investment income of our specialty insurance business in the condensed consolidated statements of operations. The condensed consolidated cash flow statement has also been conformed to this new presentation. In addition certain immaterial balances have been combined in the condensed consolidated balance sheet and condensed consolidated statement of operations.

Principles of Consolidation

Tiptree consolidates those entities in which it has an investment of 50% or more of voting rights or has control over significant operating, financial and investing decisions of the entity as well as variable interest entities (VIEs) in which Tiptree is determined to be the primary beneficiary. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity risk for the entity to finance its activities without additional subordinated financial support from other parties.

A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Generally, Tiptree’s consolidated VIEs are entities which Tiptree is considered the primary beneficiary through its controlling financial interests.

Non-controlling interests on the condensed consolidated balance sheets represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Tiptree. Accounts and transactions between consolidated entities have been eliminated.

Use of Estimates

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Management makes estimates and assumptions that include, but are not limited to, the determination of the following significant items:

• Fair value of financial assets and liabilities, including, but not limited to, securities, loans and derivatives

• Value of acquired assets and liabilities;

• Carrying value of goodwill and other intangibles, including estimated amortization period and useful lives;

• Reserves for unpaid losses and loss adjustment expenses, estimated future claims and losses, potential litigation and other claims;

• Valuation of contingent share issuances for compensation and purchase consideration, including estimates of number of shares and vesting schedules;

• Revenue recognition including, but not limited to, the timing and amount of insurance premiums, service, administration fees, and loan origination fees; and

• Other matters that affect the reported amounts and disclosure of contingencies in the condensed consolidated financial statements.

Although these and other estimates and assumptions are based on the best available estimates, actual results could differ materially from management’s estimates.

Business Combination Accounting

Business Combination Accounting

The Company accounts for business combinations by applying the acquisition method of accounting. The acquisition method requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at fair value as of the closing date of the acquisition. The net assets acquired may consist of tangible and intangible assets and the excess of purchase price over the fair value of identifiable net assets acquired, or goodwill. The determination of estimated useful lives and the allocation of the purchase price to the intangible assets requires significant judgment and affects the amount of future amortization and possible impairment charges. Contingent consideration, if any, is measured at fair value on the date of acquisition. The fair value of any contingent consideration liability is remeasured at each reporting date with any change recorded in other expense in the condensed consolidated statements of operations. Acquisition and transaction costs are expensed as incurred.

In certain instances, the Company may acquire less than 100% ownership of an entity, resulting in the recording of a non-controlling interest. The measurement of assets and liabilities acquired and non-controlling interest is initially established at a preliminary estimate of fair value, which may be adjusted during the measurement period, primarily due to the results of valuation studies applicable to the business combination.

Acquisitions that do not meet the criteria for the acquisition method of accounting are accounted for as acquisitions of assets.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels, from highest to lowest, are defined as follows:

•Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

•Level 2 – Significant inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. The types of financial assets and liabilities carried at level 2 are valued based on one or more of the following:

a) Quoted prices for similar assets or liabilities in active markets;

b) Quoted prices for identical or similar assets or liabilities in nonactive markets;

c) Pricing models whose inputs are observable for substantially the full term of the asset or liability;

d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

•Level 3 – Significant inputs that are unobservable inputs for the asset or liability, including the Company’s own data and assumptions that are used in pricing the asset or liability.

Fair Value Option

In addition to the financial instruments the Company is required to measure at fair value, the Company has elected to make an irrevocable election to utilize fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in Net realized and unrealized gains (losses) within the condensed consolidated statements of operations. The decision to elect the fair value option is determined on an instrument-by-instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are reported separately in our condensed consolidated balance sheets from those instruments using another accounting method.

Recent Accounting Pronouncements

Recent Accounting Standards

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, Investments -Equity Method and Joint Ventures (Topic 323), which eliminates the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this Update eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those annual periods. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties that Are Under Common Control, which amends the consolidation guidance on how a reporting entity, that is the single decision maker of a VIE, evaluates whether it is the primary beneficiary of a VIE. This new guidance is effective for fiscal years beginning after December 15, 2016. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements, Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this standard affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On July 9, 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year. Reporting entities may choose to adopt the standard as of the original effective date. The deferral results in ASU 2014-09 being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which makes targeted improvements to the recognition, measurement, presentation and disclosure of certain financial instruments. ASU 2016-01 focuses primarily on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for certain financial instruments. Among its provisions for public business entities, ASU 2016-01 eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires the separate presentation in other comprehensive income of the change in fair value of a liability due to instrument-specific credit risk for a liability for which the reporting entity has elected the fair value option, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) and clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for a limited number of provisions. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarify the implementation guidance on principal versus net considerations. The effective date and transition requirements for this standard are the same as the effective date and transition requirements of ASU 2014-09. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The Update includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The Update seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which  rescinds SEC paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic 606,” and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity,” announced at the March 3, 2016 Emerging Issues Task Force (EITF) meeting.  The Company believes that that the adoption of this standard will not have a material impact on the Company’s condensed consolidated financial statements.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides guidance on collectability, noncash consideration, and completed contracts at transition.  Additionally, the amendments in this Update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers.  The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). The Company is currently evaluating the effect on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including the adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which addresses classification and presentation of changes in restricted cash on the statement of cash flows.ASU 2016-18 requires an entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include in cash and cash equivalents amounts generally described as restricted cash and restricted cash equivalents. The ASU does not define restricted cash or restricted cash equivalents, but an entity will need to disclose the nature of the restrictions. ASU 2016-18 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 does not change the qualitative assessment; however, it removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Therefore, as the FASB notes in the ASU’s Basis for Conclusions, the goodwill of reporting units with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit indicate that goodwill is impaired. Entities will, however, be required to disclose any reporting units with zero or negative carrying amounts and the respective amounts of goodwill allocated to those reporting units. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2016. The guidance may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The ASU also adds guidance for partial sales of nonfinancial assets. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted for interim or annual reporting periods beginning after December 15, 2017. The guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The Company is currently evaluating the effect on its condensed consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provided clarity as to what changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for the Company for interim and annual periods beginning after December 15, 2017, with early adoption permitted, and is applied prospectively to changes in terms or conditions of awards occurring on or after the adoption date. The Company will consider the impact that this standard may have on future stock-based payment award modifications should they occur.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the guidance on hedge accounting. The amendment will make more financial and nonfinancial hedging strategies eligible for hedge accounting and amend the presentation and disclosure requirements. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 can be adopted immediately in any interim or annual period. The mandatory effective date for calendar year-end public companies is January 1, 2019. The Company is currently evaluating the effect on its condensed consolidated financial statements.

Fair Value of Financial Instruments, Policy [Policy Text Block]

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs to the extent possible to measure a financial instrument’s fair value. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability, and are affected by the type of product, whether the product is traded on an active exchange or in the secondary market, as well as current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value is estimated by applying the hierarchy discussed in Note—(2) Summary of Significant Accounting Policies to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized within Level 3 of the fair value hierarchy.

The Company’s fair value measurement is based primarily on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable financial instruments. Sources of inputs to the market approach include third-party pricing services, independent broker quotations and pricing matrices. Management analyzes the third party valuation methodologies and its related inputs to perform assessments to determine the appropriate level within the fair value hierarchy and to assess reliability of values. Further, management has a process in place to review all changes in fair value that occurred during each measurement period. Any discrepancies or unusual observations are followed through to resolution through the source of the pricing as well as utilizing comparisons, if applicable, to alternate pricing sources. In addition, the Company utilizes an income approach to measure the fair value of NPLs, as discussed below.

The Company utilizes observable and unobservable inputs within its valuation methodologies. Observable inputs may include: benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. In addition, specific issuer information and other market data is used. Broker quotes are obtained from sources recognized to be market participants. Unobservable inputs may include: expected cash flow streams, default rates, supply and demand considerations and market volatility.

Available for Sale Securities

Available for sale securities are generally classified within either Level 1 or Level 2 of the fair value hierarchy and are based on prices provided by an independent pricing service and a third party investment manager who provide a single price or quote per security.

The following details the methods and assumptions used to estimate the fair value of each class of available for sale securities and the applicable level each security falls within the fair value hierarchy:

U.S Treasury Securities, Obligations of U.S. Government Authorities and Agencies, Obligations of State and Political Subdivisions, Corporate Securities, Asset-Backed Securities, and Obligations of Foreign Governments: Fair values were obtained from an independent pricing service and a third party investment manager. The prices provided by the independent pricing service are based on quoted market prices, when available, non-binding broker quotes, or matrix pricing and fall under Level 2 of the fair value hierarchy.

Certificates of Deposit: The estimated fair value of certificates of deposit approximate carrying value and fall under Level 1 of the fair value hierarchy.

Equity Securities: The fair values of publicly traded common and preferred stocks were obtained from market value quotations provided by an independent pricing service and fall under Level 1 of the fair value hierarchy. The fair values of non-publicly traded common and preferred stocks were based on prices obtained from an independent pricing service using unobservable inputs and fall under Level 3 of the fair value hierarchy.

Loans, at fair value

Corporate Loans (including those of consolidated CLOs): These loans are comprised of a diversified portfolio of middle market and broadly syndicated leveraged loans and are generally classified within either Level 2 or Level 3 in the fair value hierarchy. The Company has evaluated each loan’s respective liquidity and has additionally performed valuation benchmarking. The key characteristics which were evaluated as part of this determination were liquidity ratings, price changes to index benchmarks, depth of quotes, credit ratings and industry trends.

Mortgage Loans Held for Sale: Mortgage loans held for sale are generally classified as Level 2 in the fair value hierarchy and fair value is based upon forward sales contracts with third party investors, including estimated loan costs, and reserves. For non-performing mortgage loans held for sale, fair value is based upon estimated selling prices from third party investors of such types of loans.

Nonperforming Loans and REO: The Company determines the purchase price for NPLs at the time of acquisition and for each subsequent valuation by using a discounted cash flow valuation model and considering alternate loan resolution probabilities, including modification, liquidation, or conversion to REO. The significant unobservable inputs used in the fair value measurement of our NPLs are discount rates, loan resolution timeline, and the value of underlying properties. The fair values of NPLs which are making payments (generally based on a modification or a workout plan) are primarily based upon secondary market transaction prices, which are expressed as a percentage of unpaid principal balance (UPB). Observable inputs to the model include loan amounts, payment history, and property types. Our NPLs are on nonaccrual status at the time of purchase as it is probable that principal or interest is not fully collectible. NPLs are included in loans, at fair value and fall under Level 3 of the fair value hierarchy.

NPLs that have become REOs were measured at fair value on a non-recurring basis during the nine months ended September 30, 2017 and year ended December 31, 2016. The carrying value of REOs at September 30, 2017 and December 31, 2016 was $13,079 and $13,366, respectively. Upon conversion to REO, the fair value is estimated using broker price opinion (BPO). BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings, and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. REO is included in real estate, net.

Derivative Assets and Liabilities

Derivatives are comprised of credit default swaps (CDS), index credit default swaps (CDX), interest rate lock commitments (IRLC), to be announced mortgage backed securities (TBA) and interest rate swaps (IRS). The fair value of these instruments is based upon valuation pricing models, which represent the amount the Company would expect to receive or pay at the balance sheet date to exit the position. In general, the fair value of CDSs and CDXs are based on dealer quotes. Because significant inputs, other than unadjusted quoted prices in active markets are used to determine the dealer quotes, such as price volatility, the Company classifies them as Level 2 in the fair value hierarchy. The fair value of IRS is based upon either valuation pricing models, which represent the amount the Company would expect to pay at the balance sheet date if the contracts were exited, or by obtaining broker or counterparty quotes. Because there are observable inputs used to arrive at these prices, the Company has classified IRS within Level 2 of the fair value hierarchy. Our mortgage origination subsidiaries issue IRLCs to its customers, which are carried at estimated fair value on the Company’s condensed consolidated balance sheet. The estimated fair values of these commitments are generally calculated by reference to the value of the underlying loan associated with the IRLC net of costs to produce and an expected fall out assumption. The fair values of these commitments generally result in a Level 3 classification. Our mortgage origination subsidiaries manage their exposure by entering into forward delivery commitments with loan investors. For loans not locked with investors under a forward delivery commitment, the Company enters into hedge instruments, primarily TBAs, to protect against movements in interest rates. The fair values of TBA mortgage backed securities generally result in a Level 2 classification.

Notes and Accounts Receivable: To the extent that carrying amounts differ from fair value, fair value is determined based on contractual cash flows discounted at market rates for similar credits. Categorized as Level 2 of the fair value hierarchy.

Debt: The carrying value represents the total debt balance at face value excluding the unamortized discount. The fair value of notes payable is determined based on contractual cash flows discounted at market rates for mortgage notes payable and either dealer quotes or contractual cash flows discounted at market rates for other notes payable. Categorized as Level 3 of the fair value hierarchy.

Additionally, the following financial assets and liabilities on the condensed consolidated balance sheets are not carried at fair value, but whose carrying amounts approximate their fair value:

Loans Owned, at Amortized Cost: The fair value of loans owned, at amortized cost approximates its carrying value because the interest rates on the loans are based on a variable market interest rate. Categorized as Level 3 of the fair value hierarchy.

Cash and Cash Equivalents: The carrying amounts of cash and cash equivalents are carried at cost which approximates fair value. Categorized as Level 1 of the fair value hierarchy.

Accounts and Premiums Receivable, net, retrospective commissions receivable and other receivables: The carrying amounts approximate fair value since no interest rate is charged on these short duration assets. Categorized as Level 2 of the fair value hierarchy. See Note—(6) Notes and Accounts Receivable, net.

Due from Brokers, Dealers, and Trustees and Due to Brokers, Dealers and Trustees: The carrying amounts are included in other assets and other liabilities and accrued expenses and approximate their fair value due to their short‑term nature. Categorized as Level 2 of the fair value hierarchy.

Derivatives, Policy [Policy Text Block]

The Company utilizes derivative financial instruments as part of its overall investment and hedging activities. Derivative contracts are subject to additional risk that can result in a loss of all or part of an investment. The Company’s derivative activities are primarily classified by underlying credit risk and interest rate risk. In addition, the Company is also subject to additional counterparty risk should its counterparties fail to meet the contract terms. The derivative financial instruments are located within derivative assets at fair value and are reported in other investments. Derivative liabilities are reported within other liabilities and accrued expenses.

Derivatives, at fair value

Credit Derivatives

Credit derivatives are generally defined as over‑the‑counter contracts between a buyer and seller of protection against the risk of default on a set of obligations issued by a specified reference entity.

Credit Default Swap Indices (CDX) are credit derivatives that reference multiple names through underlying baskets or portfolios of single name credit default swaps. The Company enters into these contracts as both a buyer of protection and seller of protection to manage the credit risk exposure of its investment portfolio. At inception of the investment into theCDX position, the Company was required to deposit cash collateral for these positions equal to an initial 2.25% of the notional amount of the sold protection side subject to increase based on additional maintenance margin as a result of decreases in value. As of September 30, 2017, the required collateral balance was $6,668 posted by the Company to cover its liabilities as a seller of protection. As of September 30, 2017, there is a cash collateral balance of $1,632 held by the Company as collateral for the payments due to the Company as buyer of protection, which is netted against the overall investment position.

Interest Rate Lock Commitments

The Company enters into interest rate lock commitments (IRLCs) in connection with its mortgage banking activities to fund residential mortgage loans with certain terms at specified times in the future. IRLCs that relate to the origination of mortgage loans that will be classified as held-for-sale are considered derivative instruments under applicable accounting guidance. As such, these IRLCs are recorded at fair value with changes in fair value typically resulting in recognition of a gain when the Company enters into IRLCs. In estimating the fair value of an IRLC, the Company assigns a probability that the loan commitment will be exercised and the loan will be funded (“pull through”). The fair value of the commitments is derived from the fair value of related mortgage loans, net of estimated costs to complete. Outstanding IRLCs expose the Company to the risk that the price of the loans underlying the commitments might decline from inception of the rate lock to funding of the loan. To manage this risk, the Company utilizes forward delivery contracts and TBA mortgage backed securities to economically hedge the risk of potential changes in the value of the loans that would result from the commitments.

Forward Delivery Contracts

The Company enters into forward delivery contracts with investors to manage the interest rate risk associated with IRLCs and loans held for sale.

TBA Mortgage Backed Securities

The Company enters into to be announced (TBA) mortgage backed securities which facilitate hedging and funding by allowing the Company to prearrange prices for mortgages that are in the process of originating. The Company utilizes these hedging instruments for Agency (Fannie Mae and Freddie Mac) and FHA/VA (Ginnie Mae) eligible IRLCs and typically commit them to investors at prices higher than otherwise available.

Interest Rate Swaps

The Company is exposed to interest rate risk when there is an unfavorable change in the value of investments as a result of adverse movements in the market interest rates. The Company enters into interest rate swaps (IRS) to protect against such adverse movements in interest rates. The Company is required to post collateral for the benefit of the counterparty. This is included in other assets in the condensed consolidated balance sheets.

The Company uses interest rate swaps to hedge the variability of floating rate borrowings. Cash flow hedge accounting was applied to the floating rate borrowings in its specialty insurance business, and during the second quarter of 2016, the Company elected to apply cash flow hedge accounting to such transactions in its senior living business. 

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for transactions completed during the nine months ended September 30, 2016:

	2016 Acquisitions
	Senior living
Consideration:
Cash	$	81,492
Non-cash non-controlling interests contributions	3,113
Fair value of total consideration	$	84,605
Acquisition costs	$	612
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	184
Real estate, net	77,787
Intangible assets, net	6,838
Other assets	248
Liabilities:
Deferred revenue	(290		)
Other liabilities and accrued expenses	(162		)
Total identifiable net assets assumed	$	84,605

The following table summarizes the consideration paid and the amounts of the final determination, as described above, for the transactions completed during the nine months ended September 30, 2017:

	2017 Acquisitions
	Senior living
Consideration:
Cash	$	25,999
Fair value of total consideration	$	25,999
Acquisition costs	$	288
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets:
Cash and cash equivalents	$	717
Real estate, net	21,800
Intangible assets, net	3,850
Other assets	76
Liabilities:
Deferred revenue	(409		)
Other liabilities and accrued expenses	(35		)
Total identifiable net assets assumed	$	25,999

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.61	$	6,838

The following table shows the values recorded by the Company, as of the acquisition date, for finite-lived intangible assets and their estimated amortization period:

Intangible Assets	Weighted Average Amortization Period (in Years)	Senior living
In-place lease	1.38	$	3,850

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Operating Segment Data (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of segment profit (loss), and segment assets

The tables below present the components of revenue, expense, pre-tax income (loss), and segment assets for each of the operating segments for the following periods:

	Three Months Ended September 30, 2017
	Specialty insurance			Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	118,714		$	1,448	$	19,583		$	24,976	$	(202	)	$	164,519
Total expense	121,059			1,058		21,118			22,381		6,916			172,532
Net income attributable to consolidated CLOs	—			2,583		—			—		—			2,583
Income (loss) before taxes	$	(2,345	)	$	2,973	$	(1,535	)	$	2,595	$	(7,118	)	$	(5,430	)
Less: provision (benefit) for income taxes														(2,052		)
Net income (loss) before non-controlling interests														$	(3,378	)
Less: net income (loss) attributable to non-controlling interests														(264		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders														$	(3,114	)

	Three Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	82,630	$	4,746	$	15,695		$	29,013	$	76		$	132,160
Total expense	71,971		2,303		16,168			24,832		9,368			124,642
Net income attributable to consolidated CLOs	—		4,032		—			—		—			4,032
Income (loss) before taxes	$	10,659	$	6,475	$	(473	)	$	4,181	$	(9,292	)	$	11,550
Less: provision (benefit) for income taxes													3,712
Net income (loss) before non-controlling interests													$	7,838
Less: net income (loss) attributable to non-controlling interests													1,933
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	5,905

⁽¹⁾ Reclassified to conform to current period presentation

	Nine Months Ended September 30, 2017
	Specialty insurance		Asset management		Senior living			Specialty finance		Corporate and other			Total
Total revenue	$	351,731	$	8,239	$	55,927		$	70,325	$	75		$	486,297
Total expense	350,007		4,549		61,286			67,696		22,273			505,811
Net income (loss) attributable to consolidated CLOs	—		9,393		—			—		—			9,393
Income (loss) before taxes	$	1,724	$	13,083	$	(5,359	)	$	2,629	$	(22,198	)	$	(10,121	)
Less: provision (benefit) for income taxes													(2,761		)
Net income (loss) before non-controlling interests													$	(7,360	)
Less: net income (loss) attributable to non-controlling interests													(903		)
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	(6,457	)

	Nine Months Ended September 30, 2016
	Specialty insurance(1)		Asset management(1)		Senior living			Specialty finance		Corporate and other(1)			Total
Total revenue	$	268,743	$	10,754	$	44,204		$	67,790	$	3,568		$	395,059
Total expense	233,116		6,131		49,691			62,280		26,319			377,537
Net income (loss) attributable to consolidated CLOs	—		10,049		—			—		—			10,049
Income (loss) before taxes	$	35,627	$	14,672	$	(5,487	)	$	5,510	$	(22,751	)	$	27,571
Less: provision (benefit) for income taxes													5,298
Net income (loss) before non-controlling interests													$	22,273
Less: net income (loss) attributable to non-controlling interests													4,680
Net income (loss) attributable to Tiptree Inc. Class A common stockholders													$	17,593

⁽¹⁾ Reclassified to conform to current period presentation

The following table presents the segment assets for the following periods:
	Segment Assets as of September 30, 2017
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,319,165	$	21,175	$	390,818	$	303,203	$	41,619	$	2,075,980
Assets of consolidated CLOs	—		372,774		—		—		—		372,774
Total assets											$	2,448,754
	Segment Assets as of December 31, 2016
	Specialty insurance		Asset management		Senior living		Specialty finance		Corporate and other		Total
Segment assets	$	1,268,152	$	17,427	$	323,169	$	271,795	$	20,012	$	1,900,555
Assets of consolidated CLOs	—		989,495		—		—		—		989,495
Total assets											$	2,890,050

⁽¹⁾ Reclassified to conform to current period presentation

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Available for Sale Securities, at fair value (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of available-for-sale securities reconciliation

The following tables present the Company's investments in available for sale securities:

	As of September 30, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	36,474	$	96	$	(216	)	$	36,354
Obligations of state and political subdivisions	47,542		415		(324		)	47,633
Corporate securities	53,589		447		(167		)	53,869
Asset backed securities	24,011		105		(16		)	24,100
Certificates of deposit	896		—		—			896
Equity securities	658		13		(9		)	662
Obligations of foreign governments	566		13		—			579
Total	$	163,736	$	1,089	$	(732	)	$	164,093
	As of December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	27,149	$	27	$	(377	)	$	26,799
Obligations of state and political subdivisions	57,425		107		(598		)	56,934
Corporate securities	58,769		204		(402		)	58,571
Asset backed securities	1,459		1		—			1,460
Certificates of deposit	895		—		—			895
Equity securities	818		3		(37		)	784
Obligations of foreign governments	733		3		(8		)	728
Total	$	147,248	$	345	$	(1,422	)	$	146,171

Schedule of available-for-sale securities, continuous unrealized loss position

The following tables summarize the gross unrealized losses on available for sale securities in an unrealized loss position:

	As of September 30, 2017
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	25,152	$	(187	)	119	$	924	$	(29	)	5
Obligations of state and political subdivisions	9,936		(145		)	55	7,142		(179		)	34
Corporate securities	16,269		(61		)	164	4,479		(106		)	86
Asset-backed securities	1,294		(16		)	2	—		—			—
Equity securities	411		(7		)	3	19		(2		)	2
Obligations of foreign governments	—		—			—	—		—			—
Total	$	53,062	$	(416	)	343	$	12,564	$	(316	)	127
	As of December 31, 2016
	Less Than or Equal to One Year						More Than One Year
	Fair value		Gross unrealized losses			# of Securities	Fair value		Gross unrealized losses			# of Securities
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	20,979	$	(376	)	115	$	16	$	(1	)	5
Obligations of state and political subdivisions	41,639		(597		)	170	1,334		(1		)	3
Corporate securities	29,856		(400		)	279	253		(2		)	3
Asset-backed securities	706		—			1	—		—			—
Equity securities	736		(35		)	5	19		(2		)	2
Obligations of foreign governments	338		(8		)	4	—		—			—
Total	$	94,254	$	(1,416	)	574	$	1,622	$	(6	)	13

Schedule of amortized cost and fair value by contractual maturity date

The amortized cost and fair values of investments in debt securities, by contractual maturity date, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Excluded from this table are equity securities since they have no contractual maturity.

	As of
	September 30, 2017				December 31, 2016
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	19,075	$	19,074	$	22,846	$	22,833
Due after one year through five years	68,918		69,207		66,063		65,841
Due after five years through ten years	45,447		45,375		49,036		48,381
Due after ten years	5,627		5,675		7,026		6,872
Asset backed securities	24,011		24,100		1,459		1,460
Total	$	163,078	$	163,431	$	146,430	$	145,387

Restricted Investments

The following table presents the Company's restricted investments included in the Company's available for sale securities:

	As of
	September 30, 2017		December 31, 2016
Fair value of restricted investments for special deposits required by state insurance departments	$	9,939	$	10,111
Fair value of restricted investments in trust pursuant to reinsurance agreements	7,287		7,573
Total fair value of restricted investments	$	17,226	$	17,684

Available-for-sale Securities

The following table presents additional information on the Company’s available for sale securities:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
Purchases of available for sale securities	$	45,250	$	12,799		$	79,907		$	22,477
Proceeds from maturities, calls and prepayments of available for sale securities	$	7,686	$	4,483		$	23,909		$	26,086
Gains (losses) realized on maturities, calls and prepayments of available for sale securities	$	—	$	(14	)	$	(5	)	$	83
Gross proceeds from sales of available for sale securities	$	21,167	$	35,069		$	39,493		$	45,928
Gains (losses) realized on sales of available for sale securities	$	395	$	974		$	372		$	1,016

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Investment in Loans (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table presents the Company’s investments in loans, measured at fair value pledged as collateral:

	As of
	September 30, 2017		December 31, 2016
Corporate loans	$	161,000	$	175,365
Mortgage loans held for sale	111,927		117,734
Non-performing loans	39,537		60,409
Total fair value of loans pledged as collateral	$	312,464	$	353,508

The following table presents the Company’s investments in loans, measured at amortized cost:

	As of
	September 30, 2017		December 31, 2016
Loans at amortized cost, net
Asset backed loans and other loans, net	$	152,168	$	115,033
Less: Allowance for loan losses	1,572		1,195
Total loans at amortized cost, net	$	150,596	$	113,838
Net deferred loan origination fees included in asset backed loans	$	5,701	$	5,244

The following tables present the Company’s investments in loans, measured at fair value:

	As of September 30, 2017							As of December 31, 2016
	Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB			Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB
Loans, at fair value
Corporate loans	$	162,512	$	162,582	$	(70	)	$	175,558	$	176,808	$	(1,250	)
Mortgage loans held for sale	114,461		110,803		3,658			121,439		118,162		3,277
Non-performing loans	44,980		62,237		(17,257		)	74,923		113,892		(38,969		)
Other loans receivable	1,169		1,169		—			1,169		1,169		—
Total loans, at fair value	$	323,122	$	336,791	$	(13,669	)	$	373,089	$	410,031	$	(36,942	)

The following table presents additional information on the Company’s asset backed loans:

	As of
	September 30, 2017		December 31, 2016
Pledged as collateral	$	157,169	$	119,558
Loans receivable, net, attributable to a subsidiary in our specialty finance business	$	149,896	$	113,138

The following table summarizes the total notes and accounts receivable, net:

	As of
	September 30, 2017		December 31, 2016
Premium financing program (1)	$	15,403	$	20,615
Notes from affiliates of partner (2)	3,862		3,862
Other	45		298
Notes receivable, net	$	19,310	$	24,775
Accounts and premiums receivable, net	60,763		45,041
Retrospective commissions receivable	65,156		59,175
Other receivables	33,497		28,509
Total	$	178,726	$	157,500

(1) Related to the Company’s specialty insurance business.

(2) Related to the Company’s senior living business, which owns a 75% interest in a managed property. The remaining 25% interest is owned by our joint venture partner.

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Real Estate, Net (Tables)

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

Schedule of real estate assets

The following table contains information regarding the Company’s investment in real estate as of the following periods:

	As of September 30, 2017
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	19,447	$	208,751	$	(16,283	)	$	211,915
Triple net lease properties	19,741		135,857		(9,455		)	146,143
Foreclosed residential real estate property	—		13,079		—			13,079
Total	$	39,188	$	357,687	$	(25,738	)	$	371,137
	As of December 31, 2016
	Land		Buildings and equipment		Accumulated depreciation			Total
Managed properties	$	16,347	$	189,463	$	(11,212	)	$	194,598
Triple net lease properties	13,778		94,291		(6,610		)	101,459
Foreclosed residential real estate property	—		13,366		—			13,366
Total	$	30,125	$	297,120	$	(17,822	)	$	309,423

Schedule of Other Operating Cost and Expense, by Component [Table Text Block]

The following table presents rental revenues from residential leases at the managed properties for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rental revenues from residential leases	$	14,274	$	12,685	$	42,005	$	35,231

The following table presents the depreciation expense related to the Company’s real estate investments for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense on real estate investments	$	2,873	$	1,974	$	7,916	$	5,581

The following table presents the depreciation expense related to furniture, fixtures and equipment for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense related to furniture, fixtures and equipment	$	656	$	667	$	1,883	$	1,978

The following table presents the components of other expenses as reported in the condensed consolidated statement of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Professional fees	$	4,506	$	5,283	$	13,980	$	17,581
Acquisition and transaction costs	25		248		302		631
General and administrative	4,015		3,178		11,552		10,788
Premium taxes	2,810		1,637		8,840		5,480
Mortgage origination expenses	2,406		2,308		6,728		5,944
Property operating expenses	2,635		1,854		7,798		5,439
Rent and related	2,992		3,091		8,998		9,189
Other	3,775		4,087		15,182		13,299
Total other expense	$	23,164	$	21,686	$	73,380	$	68,351

Schedule of future minimum annual rental revenue

The following table presents the future minimum rental revenue under the noncancelable terms of all operating leases related to our triple net lease properties, as of:

	September 30, 2017
Remainder of 2017	$	3,280
2018	13,248
2019	13,519
2020	13,797
2021	15,161
Thereafter	60,999
Total	$	120,004

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Net Investment Income (Tables)

9 Months Ended

Sep. 30, 2017

Income Statement [Abstract]

Investment Income [Table Text Block]

The following table presents the components of net investment income related to our specialty insurance business recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
Net investment income	2017		2016		2017		2016
Available for sale securities, at fair value	$	823	$	653	$	2,423	$	2,323
Loans, at fair value	2,698		1,971		8,330		4,981
Equity securities, trading, at fair value	459		969		1,912		1,933
Real estate, net	156		—		482		—
Other investments	73		73		277		224
Total investment income	4,209		3,666		13,424		9,461
Less: investment expenses	369		359		1,392		1,052
Net investment income	$	3,840	$	3,307	$	12,032	$	8,409

Gain (Loss) on Investments [Table Text Block]

The following table presents the net gain on the sale of mortgage loans and the cumulative net unrealized gains (losses) on equity securities, trading, at fair value recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Net realized gain on sale of mortgage loans (1)	$	16,476		$	20,045	$	47,237		$	48,412
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date	$	(11,125	)	$	1,365	$	(21,183	)	$	6,386

The following table presents the components of net realized and unrealized gains (losses) recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,					Nine Months Ended September 30,
Net realized and unrealized gains (losses)	2017			2016		2017			2016
Net realized gains (losses)	$	18,817		$	19,948	$	48,150		$	48,423
Net unrealized gains (losses)	(11,291		)	6,267		(12,967		)	17,531
Net realized and unrealized gains (losses)	$	7,526		$	26,215	$	35,183		$	65,954

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Notes and Accounts Receivable, net Notes and Accounts Receivable, net (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table presents the Company’s investments in loans, measured at fair value pledged as collateral:

	As of
	September 30, 2017		December 31, 2016
Corporate loans	$	161,000	$	175,365
Mortgage loans held for sale	111,927		117,734
Non-performing loans	39,537		60,409
Total fair value of loans pledged as collateral	$	312,464	$	353,508

The following table presents the Company’s investments in loans, measured at amortized cost:

	As of
	September 30, 2017		December 31, 2016
Loans at amortized cost, net
Asset backed loans and other loans, net	$	152,168	$	115,033
Less: Allowance for loan losses	1,572		1,195
Total loans at amortized cost, net	$	150,596	$	113,838
Net deferred loan origination fees included in asset backed loans	$	5,701	$	5,244

The following tables present the Company’s investments in loans, measured at fair value:

	As of September 30, 2017							As of December 31, 2016
	Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB			Fair value		Unpaid principal balance (UPB)		Fair value exceeds / (below) UPB
Loans, at fair value
Corporate loans	$	162,512	$	162,582	$	(70	)	$	175,558	$	176,808	$	(1,250	)
Mortgage loans held for sale	114,461		110,803		3,658			121,439		118,162		3,277
Non-performing loans	44,980		62,237		(17,257		)	74,923		113,892		(38,969		)
Other loans receivable	1,169		1,169		—			1,169		1,169		—
Total loans, at fair value	$	323,122	$	336,791	$	(13,669	)	$	373,089	$	410,031	$	(36,942	)

The following table presents additional information on the Company’s asset backed loans:

	As of
	September 30, 2017		December 31, 2016
Pledged as collateral	$	157,169	$	119,558
Loans receivable, net, attributable to a subsidiary in our specialty finance business	$	149,896	$	113,138

The following table summarizes the total notes and accounts receivable, net:

	As of
	September 30, 2017		December 31, 2016
Premium financing program (1)	$	15,403	$	20,615
Notes from affiliates of partner (2)	3,862		3,862
Other	45		298
Notes receivable, net	$	19,310	$	24,775
Accounts and premiums receivable, net	60,763		45,041
Retrospective commissions receivable	65,156		59,175
Other receivables	33,497		28,509
Total	$	178,726	$	157,500

(1) Related to the Company’s specialty insurance business.

(2) Related to the Company’s senior living business, which owns a 75% interest in a managed property. The remaining 25% interest is owned by our joint venture partner.

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Reinsurance Receivables (Tables)

9 Months Ended

Sep. 30, 2017

Reinsurance Disclosures [Abstract]

Effects of Reinsurance [Table Text Block]

The following table presents the effect of reinsurance on premiums written and earned by our specialty insurance business for the following periods:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Premiums written:
Life insurance	$	18,375	$	9,587	$	525	$	9,313	5.6	%
Accident and health insurance	34,034		23,077		862		11,819		7.3	%
Property and liability insurance	149,414		56,380		4,844		97,878		4.9	%
Total premiums written	201,823		89,044		6,231		119,010		5.2	%
Premiums earned:
Life insurance	15,654		7,764		481		8,371		5.7	%
Accident and health insurance	28,347		19,511		814		9,650		8.4	%
Property and liability insurance	126,847		52,201		3,406		78,052		4.4	%
Total premiums earned	$	170,848	$	79,476	$	4,701	$	96,073	4.9	%
For the Three Months ended September 30, 2016
Premiums written:
Life insurance	$	18,246	$	9,668	$	674	$	9,252	7.3	%
Accident and health insurance	31,553		21,635		865		10,783		8.0	%
Property and liability insurance	126,230		94,095		3,842		35,977		10.7	%
Total premiums written	176,029		125,398		5,381		56,012		9.6	%
Premiums earned:
Life insurance	15,861		7,712		642		8,791		7.3	%
Accident and health insurance	28,391		20,093		830		9,128		9.1	%
Property and liability insurance	126,902		98,883		1,671		29,690		5.6	%
Total premiums earned	$	171,154	$	126,688	$	3,143	$	47,609	6.6	%
For the Nine Months ended September 30, 2017
Premiums written:
Life insurance	$	46,275	$	23,264	$	1,458	$	24,469	6.0	%
Accident and health insurance	87,242		57,911		2,355		31,686		7.4	%
Property and liability insurance	406,976		176,477		15,670		246,169		6.4	%
Total premiums written	540,493		257,652		19,483		302,324		6.4	%
Premiums earned:
Life insurance	45,995		22,685		1,473		24,783		5.9	%
Accident and health insurance	82,242		56,736		2,373		27,879		8.5	%
Property and liability insurance	357,448		148,402		11,073		220,119		5.0	%
Total premiums earned	$	485,685	$	227,823	$	14,919	$	272,781	5.5	%
For the Nine Months ended September 30, 2016
Premiums written:
Life insurance	$	49,018	$	25,267	$	1,971	$	25,722	7.7	%
Accident and health insurance	87,446		59,657		2,507		30,296		8.3	%
Property and liability insurance	389,157		302,945		10,146		96,358		10.5	%
Total premiums written	525,621		387,869		14,624		152,376		9.6	%
Premiums earned:
Life insurance	46,112		22,139		2,003		25,976		7.7	%
Accident and health insurance	84,994		60,134		2,465		27,325		9.0	%
Property and liability insurance	377,589		296,523		4,149		85,215		4.9	%
Total premiums earned	$	508,695	$	378,796	$	8,617	$	138,516	6.2	%

The following table presents the components of policy and contract benefits, including the effect of reinsurance on losses and loss adjustment expenses ("LAE") incurred:

	Direct amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount - assumed to net
For the Three Months ended September 30, 2017
Losses Incurred
Life insurance	$	8,003	$	4,573	$	178	$	3,608	4.9	%
Accident and health insurance	4,456		3,252		190		1,394		13.6	%
Property and liability insurance	48,783		26,571		544		22,756		2.4	%
Total losses incurred	61,242		34,396		912		27,758		3.3	%
	Member benefit claims (1)						3,812
	Total policy and contract benefits						$	31,570
For the Three Months ended September 30, 2016
Losses Incurred
Life insurance	$	8,550	$	4,647	$	378	$	4,281	8.8	%
Accident and health insurance	5,697		4,863		205		1,039		19.7	%
Property and liability insurance	61,431		47,469		632		14,594		4.3	%
Total losses incurred	75,678		56,979		1,215		19,914		6.1	%
	Member benefit claims (1)						5,967
	Total policy and contract benefits						$	25,881
For the Nine Months ended September 30, 2017
Losses Incurred
Life insurance	$	24,527	$	13,558	$	748	$	11,717	6.4	%
Accident and health insurance	13,200		10,815		662		3,047		21.7	%
Property and liability insurance	144,535		78,454		1,708		67,789		2.5	%
Total losses incurred	182,262		102,827		3,118		82,553		3.8	%
	Member benefit claims (1)						11,811
	Total policy and contract benefits						$	94,364
For the Nine Months ended September 30, 2016
Losses Incurred
Life insurance	$	24,962	$	12,957	$	1,061	$	13,066	8.1	%
Accident and health insurance	14,598		12,203		700		3,095		22.6	%
Property and liability insurance	166,586		128,542		897		38,941		2.3	%
Total losses incurred	206,146		153,702		2,658		55,102		4.8	%
	Member benefit claims (1)						17,334
	Total policy and contract benefits						$	72,436

(1) - Member benefit claims are not covered by reinsurance.

The following table presents the components of the reinsurance receivables:

	As of
	September 30, 2017		December 31, 2016
Prepaid reinsurance premiums:
Life (1)	$	64,223	$	64,621
Accident and health (1)	55,175		53,999
Property (2)	122,883		94,091
Total	242,281		212,711
Ceded claim reserves:
Life	3,015		2,929
Accident and health	9,819		10,435
Property	57,138		49,917
Total ceded claim reserves recoverable	69,972		63,281
Other reinsurance settlements recoverable	20,770		20,242
Reinsurance receivables	$	333,023	$	296,234

(1) Including policyholder account balances ceded.

(2) The December 31, 2016 amount includes a non-cash transaction, as part of a reinsurance contract cancellation that resulted in a reduction of $92,854 in reinsurance receivable, offset by an increase of $88,857 in assets and a decrease of $3,997 in liabilities.

Components of Reinsurance Receivable [Table Text Block]

The following table presents the aggregate amount included in reinsurance receivables that is comprised of the three largest receivable balances from unrelated reinsurers:

	As of
	September 30, 2017
Total of the three largest receivable balances from unrelated reinsurers	$	78,783

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Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

The following table presents identifiable finite and indefinite-lived intangible assets, accumulated amortization, and goodwill by segment:

	As of September 30, 2017												As of December 31, 2016
	Specialty insurance			Senior living			Specialty finance			Total			Specialty insurance			Senior living			Specialty finance			Total
Customer relationships	$	50,500		$	—		$	—		$	50,500		$	50,500		$	—		$	—		$	50,500
Accumulated amortization	(10,215		)	—			—			(10,215		)	(4,614		)	—			—			(4,614		)
Trade names	6,500			—			800			7,300			6,500			—			800			7,300
Accumulated amortization	(2,018		)	—			(180		)	(2,198		)	(1,484		)	—			(120		)	(1,604		)
Software licensing	8,500			—			640			9,140			8,500			—			640			9,140
Accumulated amortization	(4,817		)	—			(206		)	(5,023		)	(3,542		)	—			(137		)	(3,679		)
Insurance policies and contracts acquired	36,500			—			—			36,500			36,500			—			—			36,500
Accumulated amortization	(35,234		)	—			—			(35,234		)	(34,184		)	—			—			(34,184		)
Insurance licensing agreements(1)	13,749			—			—			13,749			13,000			—			—			13,000
Leases in place	1,317			44,380			—			45,697			1,317			32,233			—			33,550
Accumulated amortization	(101		)	(26,062		)	—			(26,163		)	(18		)	(20,413		)	—			(20,431		)
Intangible assets, net	64,681			18,318			1,054			84,053			72,475			11,820			1,183			85,478
Goodwill	89,854			—			2,913			92,767			89,854			—			2,913			92,767
Total goodwill and intangible assets, net	$	154,535		$	18,318		$	3,967		$	176,820		$	162,329		$	11,820		$	4,096		$	178,245

⁽¹⁾ Represents intangible assets with an indefinite useful life. Impairment tests are performed at least annually on these assets.

Schedule of Goodwill [Table Text Block]

The following table presents the activity in goodwill, by segment, and includes the adjustments made to the balance of goodwill to reflect the effect of the final valuation adjustments made for acquisitions, as well as the reduction to any goodwill attributable to discontinued operations or impairment related charges:

	Specialty insurance		Specialty finance		Total
Balance at December 31, 2016	$	89,854	$	2,913	$	92,767
Balance at September 30, 2017	$	89,854	$	2,913	$	92,767

Schedule of identifiable intangible assets

The following table presents the activity, by segment, in finite and indefinite-lived other intangible assets and includes the adjustments made to the balance to reflect the effect of any final valuation adjustments made for acquisitions, as well as any reduction attributable to discontinued operations or impairment-related charges:

	Specialty insurance			Senior living			Specialty finance			Total
Balance at December 31, 2016	$	72,475		$	11,820		$	1,183		$	85,478
Intangible assets acquired in 2017	749			12,147			—			12,896
Less: amortization expense	(8,543		)	(5,649		)	(129		)	(14,321		)
Balance at September 30, 2017	$	64,681		$	18,318		$	1,054		$	84,053

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

The following table presents the amortization expense on finite-lived intangible assets for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Amortization expense on intangible assets	$	4,359	$	3,702	$	14,321	$	14,246

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following table presents the amortization expense on finite-lived intangible assets for the next five years by segment:

	As of September 30, 2017
	Specialty insurance (VOBA)		Specialty insurance (other)		Senior living		Specialty finance		Total
Remainder of 2017	$	200	$	2,482	$	1,730	$	42	$	4,454
2018	465		9,187		3,086		171		12,909
2019	217		7,619		958		171		8,965
2020	123		5,137		958		171		6,389
2021	82		4,361		958		171		5,572
2022 and thereafter	179		20,880		10,628		328		32,015
Total	$	1,266	$	49,666	$	18,318	$	1,054	$	70,304

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Derivative Financial Instruments and Hedging (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following table summarizes the gross notional and fair value amounts of derivatives (on a gross basis) categorized by underlying risk:

	As of September 30, 2017						As of December 31, 2016
	Notional values		Asset derivatives		Liability derivatives		Notional values		Asset derivatives		Liability derivatives
Credit risk:
Credit derivatives sold protection	$	295,973	$	18,409	$	—	$	297,612	$	28,731	$	—
Credit derivatives bought protection	294,767		—		3,742		298,173		—		14,501
Sub-total	590,740		18,409		3,742		595,785		28,731		14,501
Foreign currency risk:
Foreign currency forward contracts	—		—		—		965		—		3
Interest rate risk:
Interest rate lock commitments	276,776		6,537		—		203,815		4,872		—
Forward delivery contracts	61,094		49		—		66,731		—		84
TBA mortgage backed securities	253,750		284		283		249,750		1,678		269
Interest rate swaps	133,143		1,284		426		134,343		1,388		1,042
Sub-total	724,763		8,154		709		654,639		7,938		1,395
Total	$	1,315,503	$	26,563	$	4,451	$	1,251,389	$	36,669	$	15,899

Offsetting Assets

The following table presents derivative instruments that are subject to offset by a master netting agreement:

	As of
	September 30, 2017			December 31, 2016
Derivatives subject to netting arrangements:
Credit default swap indices sold protection	$	18,409		$	28,731
Credit default swap indices bought protection	(3,742		)	(14,501		)
Gross assets recognized	14,667			14,230
Cash collateral	(1,632		)	(1,632		)
Net assets recognized (included in other investments)	$	13,035		$	12,598

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents the fair value and the related outstanding notional amounts of the Company's cash flow hedging derivative instruments and indicates where the Company records each amount in its condensed consolidated balance sheets:

		As of
	Balance Sheet Location	September 30, 2017		December 31, 2016
Derivatives designated as cash flow hedging instruments:
Notional value		$	133,143	$	134,343
Fair value of interest rate swaps	Other investments	$	1,284	$	1,388
Fair value of interest rate swaps	Other liabilities and accrued expenses	$	426	$	1,042
Unrealized gain (loss), net of tax, on the fair value of interest rate swaps	AOCI	$	1,606	$	1,759
Range of variable rates on interest rate swaps		1.23% to 1.24%		0.67% to 0.96%
Range of fixed rates on interest rate swaps		1.31% to 4.99%		1.31% to 4.99%

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the pretax impact of the cash flow hedging derivative instruments on the condensed consolidated financial statements for the following periods:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Gains (losses) recognized in AOCI on the derivative-effective portion	$	(33	)	$	156	$	(411	)	$	(515	)
(Gains) losses reclassified from AOCI into income-effective portion	$	(25	)	$	172	$	212		$	(56	)
Gains (losses) recognized in income on the derivative-ineffective portion	$	—		$	48	$	(2	)	$	(3	)

Schedule of Interest Rate Derivatives [Table Text Block]

The following table presents the estimated amount to be reclassified to earnings from AOCI during the next 12 months. These net (gains) losses are reclassified into earnings through interest expense.

	As of
	September 30, 2017
Estimated (gains) losses to be reclassified to earnings from AOCI during the next 12 months	$	(199	)

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Assets and Liabilites of Consolidated CLOs (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule Of Variable Interest Entities

The following table represents revenue and expenses of the consolidated CLOs included in the Company’s condensed consolidated statements of operations for the periods indicated:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Income:
Net realized and unrealized gains (losses)	$	1,889	$	(1,422	)	$	3,457	$	(2,913	)
Interest income	5,327		13,978			20,567		37,626
Total revenue	7,216		12,556			24,024		34,713
Expenses:
Interest expense	4,580		8,267			13,629		22,667
Other expense	53		257			1,002		1,997
Total expense	4,633		8,524			14,631		24,664
Net income (loss) attributable to consolidated CLOs	$	2,583	$	4,032		$	9,393	$	10,049

The table below represents the assets and liabilities of the consolidated CLOs that are included in the Company’s condensed consolidated balance sheets as of the dates indicated:

	As of
	September 30, 2017		December 31, 2016
Assets:
Cash and cash equivalents	$	20,586	$	45,589
Loans, at fair value (1)	343,382		928,240
Other assets	8,806		15,666
Total assets of consolidated CLOs	$	372,774	$	989,495
Liabilities:
Debt	$	326,716	$	912,034
Other liabilities and accrued expenses	27,621		19,935
Total liabilities of consolidated CLOs	$	354,337	$	931,969
Net	$	18,437	$	57,526

(1) The unpaid principal balance for these loans is $352,958 and $952,225 and the difference between their fair value and UPB is $9,576 and $23,985 at September 30, 2017 and December 31, 2016, respectively.

As summarized in the table below, the application of the measurement alternative results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the CLOs which are eliminated upon consolidation:

Economic interests:	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Distributions received and realized and unrealized gains (losses) on the subordinated notes held by the Company, net	$	2,272	$	3,289	$	8,355	$	7,880
Management fee income	311		743		1,038		2,169
Total economic interests	$	2,583	$	4,032	$	9,393	$	10,049

The Company’s beneficial interests and maximum exposure to loss related to the consolidated CLOs are limited to (i) ownership in the subordinated notes and related participations in management fees of the CLOs and (ii) accrued management fees. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative results in the net amount of the CLOs shown above to be equivalent to the beneficial interests retained by the Company as illustrated in the below table:

Beneficial interests:	As of
	September 30, 2017		December 31, 2016
Subordinated notes and related participations in management fees	$	18,128	$	56,820
Accrued management fees	309		706
Total beneficial interests	$	18,437	$	57,526

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Debt, net (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The following table summarizes the balance of the Company’s debt obligations, net of discounts and deferred financing costs, excluding notes payable of consolidated CLOs (See Note—(10) Assets and Liabilities of Consolidated CLOs):

			Maximum borrowing capacity as of		As of
Debt Type	Stated maturity date	Stated interest rate or range of rates	September 30, 2017		September 30, 2017			December 31, 2016
Secured corporate credit agreements	September 2018 - December 2019	LIBOR + 2.50% to 6.50%	$	251,250	$	167,000		$	164,000
Asset based revolving financing (1) (2)	September 2018 - July 2022	LIBOR + 2.25% to 5.75%	365,000		261,163			250,557
Residential mortgage warehouse borrowings (3)	March 2018 - August 2018	LIBOR + 2.50% to 2.75%	171,000		95,729			101,402
Real estate commercial mortgage borrowings:
Fixed rate	August 2019 - July 2048	4.00% to 5.12%	99,283		97,433			82,133
Variable rate (LIBOR based)	October 2019 - January 2023	LIBOR + 2.05% to 6.95%	206,074		203,779			158,618
Subordinated debt	April 2020	12.50%	20,000		12,500			8,500
Preferred trust securities	June 2037	LIBOR + 4.10%	35,000		35,000			35,000
Preferred notes payable	January 2021	12.00%			1,386			1,232
Total debt, face value					873,990			801,442
Unamortized discount, net					(471		)	(382		)
Unamortized deferred financing costs					(7,890		)	(8,051		)
Total debt, net					$	865,629		$	793,009

(1) Asset based revolving financing is generally recourse only to specific assets and related cash flows.

(2) The weighted average coupon rate for asset based revolving financing was 3.89% and 3.53% at September 30, 2017 and December 31, 2016, respectively.

(3) The weighted average coupon rate for residential mortgage warehouse borrowings was 4.10% and 3.51% at September 30, 2017 and December 31, 2016, respectively. Includes debt having a maximum borrowing capacity of $171,000 with a stated interest rate of LIBOR + 2.50% to LIBOR +2.75% and a floor of 3.00%.

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

The table below presents the amount of interest expense the Company incurred on its debt for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest expense on debt	$	10,427	$	7,769	$	28,650	$	20,612

Schedule of Maturities of Long-term Debt [Table Text Block]

The following table presents the future maturities of the unpaid principal balance on the Company’s long-term debt as of:

	September 30, 2017
Remainder of 2017	$	8,689
2018	182,173
2019	267,685
2020	121,514
2021	21,899
Thereafter	272,030
Total	$	873,990

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of fair values and carrying values of assets and liabilities and the fair value level(s) associated with them

The following tables present the Company’s fair value hierarchies for financial assets and liabilities, including the balances associated with the consolidated CLOs, measured on a recurring basis:

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	615	$	—	$	47	$	662
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		36,354		—		36,354
Obligations of state and political subdivisions	—		47,633		—		47,633
Obligations of foreign governments	—		579		—		579
Certificates of deposit	896		—		—		896
Asset backed securities	—		24,100		—		24,100

	As of September 30, 2017
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Corporate securities	—		53,869		—		53,869
Total available for sale securities	1,511		162,535		47		164,093
Loans, at fair value:
Corporate loans	—		33,427		129,085		162,512
Mortgage loans held for sale	—		114,461		—		114,461
Non-performing loans	—		—		44,980		44,980
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		147,888		175,234		323,122
Equity securities, trading, at fair value	28,106		—		—		28,106
Other investments:
Derivative assets:
Interest rate swaps	—		1,284		—		1,284
Forward delivery contracts	—		49		—		49
Interest rate lock commitments	—		—		6,537		6,537
TBA mortgage backed securities	—		284		—		284
Credit derivatives	—		13,035		—		13,035
Total derivative assets	—		14,652		6,537		21,189
CLOs	—		—		2,045		2,045
Debentures	—		3,957		—		3,957
Total other investments	—		18,609		8,582		27,191
Total financial instruments attributable to non-CLOs included in consolidated assets	29,617		329,032		183,863		542,512
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		132,623		210,759		343,382
Total financial instruments included in assets of consolidated CLOs	—		132,623		210,759		343,382
Total	$	29,617	$	461,655	$	394,622	$	885,894
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	426	$	—	$	426
TBA mortgage backed securities	—		283		—		283
Foreign currency forward contracts	—		—		—		—
Total derivative liabilities (included in other liabilities and accrued expenses)	—		709		—		709
Contingent consideration payable	—		—		52		52
Preferred notes payable	—		—		1,386		1,386
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		709		1,438		2,147
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		326,716		326,716
Total financial instruments included in liabilities of consolidated CLOs	—		—		326,716		326,716
Total	$	—	$	709	$	328,154	$	328,863

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
Assets:
Available for sale securities, at fair value:
Equity securities	$	736	$	—	$	48	$	784

	As of December 31, 2016
	Quoted prices in  active markets Level 1		Other significant  observable inputs  Level 2		Significant unobservable inputs Level 3		Fair value
U.S. Treasury securities and obligations of U.S. government authorities and agencies	—		26,799		—		26,799
Obligations of state and political subdivisions	—		56,934		—		56,934
Obligations of foreign governments	—		728		—		728
Certificates of deposit	895		—		—		895
Asset backed securities	—		1,460		—		1,460
Corporate bonds	—		58,571		—		58,571
Total available for sale securities, at fair value	1,631		144,492		48		146,171
Loans, at fair value:
Corporate loans	—		46,352		129,206		175,558
Mortgage loans held for sale	—		121,439		—		121,439
Non-performing loans	—		—		74,923		74,923
Other loans receivable	—		—		1,169		1,169
Total loans, at fair value	—		167,791		205,298		373,089
Equity securities, trading, at fair value	48,612		—		—		48,612
Other investments:
Derivative assets:
Interest rate swaps	—		1,388		—		1,388
Interest rate lock commitments	—		—		4,872		4,872
TBA mortgage backed securities	—		1,678		—		1,678
Credit derivatives	—		12,598		—		12,598
Total derivative assets	—		15,664		4,872		20,536
CLOs	—		—		974		974
Debentures	—		3,957		—		3,957
Total other investments	—		19,621		5,846		25,467
Total financial instruments attributable to non-CLOs included in consolidated assets	50,243		331,904		211,192		593,339
Financial instruments included in assets of consolidated CLOs:
Loans, at fair value	—		342,370		585,870		928,240
Total financial instruments included in assets of consolidated CLOs	—		342,370		585,870		928,240
Total	$	50,243	$	674,274	$	797,062	$	1,521,579
Liabilities:
Derivative liabilities:
Interest rate swaps	$	—	$	1,042	$	—	$	1,042
Forward delivery contracts	—		84		—		84
TBA mortgage backed securities	—		269		—		269
Foreign currency forward contracts	—		3		—		3
Total derivative liabilities (included in other liabilities and accrued expenses)	—		1,398		—		1,398
Contingent consideration payable	—		—		1,852		1,852
Preferred notes payable	—		—		1,232		1,232
Total financial instruments attributable to Non-CLOs included in consolidated liabilities	—		1,398		3,084		4,482
Financial instruments included in liabilities of consolidated CLOs:
Notes payable of CLOs	—		—		912,034		912,034
Total financial instruments included in liabilities of consolidated CLOs	—		—		912,034		912,034
Total	$	—	$	1,398	$	915,118	$	916,516

Schedule of additional information about assets that are measured at fair value on a recurring basis for which the company utilized Level 3 inputs to determine fair value

The following table represents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:    

	Nine Months Ended September 30,
	2017						2016 (3)
	Non-CLO assets			CLO assets			Non-CLO assets			CLO assets
Balance at January 1,	$	211,192		$	585,870		$	239,944		$	520,892
Net realized gains (losses)	7,279			(1,667		)	4,450			402
Net unrealized gains (losses)	2,800			89			5,482			15,584
Origination of IRLC	54,468			—			38,554			—
Purchases	41,458			76,122			101,161			157,144
Sales (1)	(74,010		)	(193,205		)	(56,824		)	(72,612		)
Issuances	590			676			1,716			1,546
Transfer into Level 3 (2)	9,286			17,601			23,184			32,858
Transfer adjustments (out of) Level 3 (2)	(7,641		)	(23,427		)	(15,280		)	(66,215		)
Deconsolidation of CLO due to sale	1,342			(251,300		)	—			—
Conversion to real estate owned	(9,793		)	—			(10,288		)	—
Conversion to mortgage held for sale	(53,069		)	—			(36,378		)	—
Warehouse transfer to CLO	—			—			(104,098		)	104,098
Other	(39		)	—			—			—
Balance at September 30,	$	183,863		$	210,759		$	191,623		$	693,697
Changes in unrealized gains (losses) included in earnings related to assets still held at period end	$	4,790		$	(168	)	$	4,023		$	11,325

(1) Included within the CLO assets amount are sales related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

(2) All transfers are deemed to occur at end of period. Transfers between Level 2 and 3 were a result of subjecting third-party pricing on both CLO and Non-CLO assets to various liquidity, depth, bid-ask spread and benchmarking criteria as well as assessing the availability of observable inputs affecting their fair valuation.

(3) Items within the Level 3 rollforward have been restated to reflect assets purchased during a period as purchases rather than transfers. The presentation of gross origination of IRLC’s and gross conversion to mortgage held for sale have also been restated to show the break out from net realized and unrealized gains and losses, conversion to real estate owned, and transfers out of Level 3 assets. These changes have no impact on the total amount of Level 3 assets.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table represents additional information about liabilities that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:

	Nine Months Ended September 30,
	2017						2016
	Non-CLO liabilities			CLO liabilities			Non-CLO liabilities			CLO liabilities
Balance at January 1,	$	3,084		$	912,034		$	2,498		$	683,827
Net unrealized (gains) losses	—			(3,071		)	(262		)	23,169
Issuances	—			—			—			222,303
Settlements (1)	(4,838		)	(155,194		)	(377		)	—
Dispositions	—			(49,010		)	—			(1,317		)
FV adjustment	3,192			—			—			—
Deconsolidation of CLO due to sale	—			(378,043		)	—			—
Balance at September 30,	$	1,438		$	326,716		$	1,859		$	927,982
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end	$	154		$	(6,119	)	$	(262	)	$	23,169

(1) Included within the CLO liabilities amount are settlements related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

Schedule of quantitative information of Level 3 significant unobservable inputs used in fair valuation of assets

The following is quantitative information about Level 3 significant unobservable inputs used in fair valuation.

	Fair Value as of						Actual or Range (Weighted average)
Assets(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Interest rate lock commitments	$	6,537	$	4,872	Internal model	Pull through rate	45% - 95%	45% - 95%
NPLs	44,980		74,923		Discounted cash flow	See table below (2)	See table below	See table below
Total	$	51,517	$	79,795

(1) Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

(2) Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics, such as location and value of underlying collateral, affect the loan resolution timeline. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value.

The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of our NPLs. For NPLs that are not making payments, discount rate, loan resolution time-line, value of underlying properties, holdings costs and liquidation costs are the primary inputs used to measure fair value. For NPLs that are making payments, note rate and secondary market transaction prices/UPB are the primary inputs used to measure fair value.

	As of September 30, 2017			As of December 31, 2016
Unobservable inputs	High	Low	Average(1)	High	Low	Average(1)
Discount rate	30.0%	16.0%	23.2%	30.0%	16.0%	22.9%
Loan resolution time-line (Years)	2.59	0.48	1.26	2.3	0.5	1.2
Value of underlying properties	$2,400	$40	$307	$1,800	$32	$234
Holding costs	22.0%	5.5%	7.7%	24.1%	5.4%	8.3%
Liquidation costs	20.8%	8.1%	9.4%	25.0%	8.5%	9.6%
Note rate	6.0%	3.0%	5.2%	6.0%	3.0%	4.8%
Secondary market transaction prices/UPB	88.5%	75.5%	85.2%	88.5%	75.5%	83.7%

(1) Weighted based on value of underlying properties (excluding the value of underlying properties line item).

Schedule of quantitative information of Level 3 significant unobservable inputs used in fair valuation of liabilities

	Fair Value as of						Actual or Range (Weighted average)
Liabilities(1)	September 30, 2017		December 31, 2016		Valuation technique	Unobservable input(s)	September 30, 2017	December 31, 2016
Contingent consideration payable - Reliance (2)	$	—	$	1,800	Cash Flow model (3)	Forecast EBITDA	$1,000 - $8,000	$951 - $6,005
						Book value growth rate	N/A	5.0%
						Asset volatility	N/A	1.4% - 23.7%
Contingent consideration payable - Luxury	52		52		Cash Flow model	Projected cash available for distribution	$1,059 - $1,316	$1,059 - $1,316
Preferred notes payable	1,386		1,232		Cash Flow model	Discount rate	12.0%	12.0%
Total	$	1,438	$	3,084

(1) Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

(2) Settled in Q3 2017 with Class A common shares. See Note—(17) Stockholders’ Equity.

(3) Monte Carlo simulation is run, as needed.

Schedule of fair values and carrying values of financial assets and liabilities, and fair value hierarchy

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value and their respective levels within the fair value hierarchy:

	As of September 30, 2017					As of December 31, 2016
	Level within fair value hierarchy	Fair value		Carrying value		Level within fair value hierarchy	Fair value		Carrying value
Assets:
Notes and accounts receivable, net	2	$	19,310	$	19,310	2	$	28,293	$	28,732
Total assets		$	19,310	$	19,310		$	28,293	$	28,732
Liabilities:
Debt, net	3	$	876,444	$	872,133	3	$	798,806	$	799,828
Total liabilities		$	876,444	$	872,133		$	798,806	$	799,828

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Liability for Unpaid Claims and Claim Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

Roll forward of Claim Liability

The following table presents the activity in the net liability for unpaid losses and allocated loss adjustment expenses of short-duration contracts for the following periods:

	Nine Months Ended September 30,
	2017			2016
Policy liabilities and unpaid claims balance as of January 1	$	103,391		$	80,663
Less : liabilities of policy-holder accounts balances, gross	(17,417		)	(19,037		)
Less : non-insurance warranty benefit claim liabilities	(91		)	(116		)
Gross liabilities for unpaid losses and loss adjustment expenses	85,883			61,510
Less : reinsurance recoverable on unpaid losses - short duration	(63,112		)	(42,341		)
Less : other lines, gross	(208		)	(163		)
Net balance as of January 1, short duration	22,563			19,006
Incurred (short duration) related to:
Current year	78,174			55,461
Prior years	2,958			(1,987		)
Total incurred	81,132			53,474
Paid (short duration) related to:
Current year	57,875			34,822
Prior years	20,600			13,992
Total paid	78,475			48,814
Net balance as of September 30, short duration	25,220			23,666
Plus : reinsurance recoverable on unpaid losses - short duration	69,813			60,236
Plus : other lines, gross	193			164
Gross liabilities for unpaid losses and loss adjustment expenses	95,226			84,066
Plus : liabilities of policy-holder accounts balances, gross	15,652			17,766
Plus : non-insurance warranty benefit claim liabilities	50			80
Policy liabilities and unpaid claims balance as of September 30,	$	110,928		$	101,912

Reconciliation of Short Duration Contracts to Total Losses Incurred [Table Text Block]

The following schedule reconciles the total on short duration contracts per the table above to the amount of total losses incurred as presented in the condensed consolidated statement of operations, excluding the amount for member benefit claims:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total incurred	$	27,236	$	19,247	$	81,132	$	53,474
Other lines incurred	81		44		78		74
Unallocated loss adjustment expense	441		623		1,343		1,554
Total losses incurred	$	27,758	$	19,914	$	82,553	$	55,102

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Other Assets (Tables)

9 Months Ended

Sep. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Operating Cost and Expense, by Component [Table Text Block]

The following table presents rental revenues from residential leases at the managed properties for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rental revenues from residential leases	$	14,274	$	12,685	$	42,005	$	35,231

The following table presents the depreciation expense related to the Company’s real estate investments for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense on real estate investments	$	2,873	$	1,974	$	7,916	$	5,581

The following table presents the depreciation expense related to furniture, fixtures and equipment for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense related to furniture, fixtures and equipment	$	656	$	667	$	1,883	$	1,978

The following table presents the components of other expenses as reported in the condensed consolidated statement of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Professional fees	$	4,506	$	5,283	$	13,980	$	17,581
Acquisition and transaction costs	25		248		302		631
General and administrative	4,015		3,178		11,552		10,788
Premium taxes	2,810		1,637		8,840		5,480
Mortgage origination expenses	2,406		2,308		6,728		5,944
Property operating expenses	2,635		1,854		7,798		5,439
Rent and related	2,992		3,091		8,998		9,189
Other	3,775		4,087		15,182		13,299
Total other expense	$	23,164	$	21,686	$	73,380	$	68,351

Schedule of Other Assets

The following table presents the components of other assets as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Due from brokers	$	1,505	$	2,027
Furniture, fixtures and equipment, net	5,669		5,936
Prepaid expenses	9,441		5,020
Accrued interest receivable	3,154		2,052
Management fee receivable	4,375		4,308
Other fee receivable	5,159		5,022
Income tax receivable	4,140		4,842
Other	15,101		8,679
Total other assets	$	48,544	$	37,886

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Other Liabilities and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Other Liabilities [Table Text Block]

The following table presents the components of other liabilities and accrued expenses as reported in the condensed consolidated balance sheets:

	As of
	September 30, 2017		December 31, 2016
Accounts payable and accrued expenses	$	46,544	$	67,837
Deferred tax liabilities, net	30,789		32,296
Due to brokers	7,733		8,457
Commissions payable	11,007		7,466
Accrued interest payable	2,127		1,729
Derivative liabilities, at fair value	709		1,398
Other liabilities	16,949		14,552
Total other liabilities and accrued expenses	$	115,858	$	133,735

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Other Income and Other Expenses (Tables)

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income, by Component [Table Text Block]

The following table presents the components of other income as reported in the condensed consolidated statement of operations, primarily comprised of interest income and loan fee income related to both loans at fair value and loans at amortized costs, net in our specialty finance business, and management fees from our asset management business:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Interest income	$	5,254	$	4,215	$	14,439	$	13,455
Loan fee income	3,201		3,915		9,451		9,296
Management fee income	1,541		3,839		6,578		7,497
Other	1,383		450		3,352		1,477
Total other income	$	11,379	$	12,419	$	33,820	$	31,725

Schedule of Other Operating Cost and Expense, by Component [Table Text Block]

The following table presents rental revenues from residential leases at the managed properties for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rental revenues from residential leases	$	14,274	$	12,685	$	42,005	$	35,231

The following table presents the depreciation expense related to the Company’s real estate investments for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense on real estate investments	$	2,873	$	1,974	$	7,916	$	5,581

The following table presents the depreciation expense related to furniture, fixtures and equipment for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Depreciation expense related to furniture, fixtures and equipment	$	656	$	667	$	1,883	$	1,978

The following table presents the components of other expenses as reported in the condensed consolidated statement of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Professional fees	$	4,506	$	5,283	$	13,980	$	17,581
Acquisition and transaction costs	25		248		302		631
General and administrative	4,015		3,178		11,552		10,788
Premium taxes	2,810		1,637		8,840		5,480
Mortgage origination expenses	2,406		2,308		6,728		5,944
Property operating expenses	2,635		1,854		7,798		5,439
Rent and related	2,992		3,091		8,998		9,189
Other	3,775		4,087		15,182		13,299
Total other expense	$	23,164	$	21,686	$	73,380	$	68,351

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Dividends Declared [Table Text Block]

The Company declared cash dividends per share for the following periods presented below:

	Dividends per share for
	Nine Months Ended September 30,
	2017		2016
First Quarter	$	0.030	$	0.025
Second Quarter	0.030		0.025
Third Quarter	0.030		0.025
Total cash dividends declared	$	0.090	$	0.075

Statutory Accounting Practices Disclosure [Table Text Block]

The following table presents the net income of the Company’s statutory insurance companies for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income of statutory insurance companies	$	391	$	4,199	$	6,745	$	10,326

The following table presents the combined statutory capital and surplus of the Company's insurance company subsidiaries, the required minimum statutory capital and surplus, as required by the laws of the states in which they are domiciled, and the combined amount available for ordinary dividends of the Company's insurance company subsidiaries for the following periods:

	As of
	September 30, 2017		December 31, 2016
Combined statutory capital and surplus of the Company's insurance company subsidiaries	$	108,666	$	100,920
Required minimum statutory capital and surplus	$	19,200	$	17,200
Amount available for ordinary dividends of the Company's insurance company subsidiaries	$	9,425	$	9,049

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the activity in accumulated other comprehensive income (loss) (AOCI), net of tax, for the following periods:

	Unrealized gains (losses) on									Amount attributable to noncontrolling interests
	Available for sale securities			Interest rate swaps			Total AOCI			TFP			Other			Total AOCI to Tiptree Inc.
Balance at December 31, 2015	$	(222	)	$	111		$	(111	)	$	—		$	—		$	(111	)
Other comprehensive income (losses) before reclassifications	2,448			(357		)	2,091			(237		)	29			1,883
Amounts reclassified from AOCI	(715		)	(26		)	(741		)	—			—			(741		)
Period change	1,733			(383		)	1,350			(237		)	29			1,142
Balance at September 30, 2016	$	1,511		$	(272	)	$	1,239		$	(237	)	$	29		$	1,031
Balance at December 31, 2016	$	(700	)	$	1,759		$	1,059		$	(128	)	$	(376	)	$	555
Other comprehensive income (losses) before reclassifications	1,165			(296		)	869			(154		)	48			763
Amounts reclassified from AOCI	(238		)	143			(95		)	—			—			(95		)
Period change	927			(153		)	774			(154		)	48			668
Balance at September 30, 2017	$	227		$	1,606		$	1,833		$	(282	)	$	(328	)	$	1,223

Reclassification out of Accumulated Other Comprehensive Income

The following table presents the reclassification adjustments out of AOCI included in net income and the impacted line items on the condensed consolidated statement of operations for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,						Affected line item in Condensed Consolidated Statement of Operations
Components of AOCI	2017			2016			2017			2016
Unrealized gains (losses) on available for sale securities	$	394		$	960		$	367		$	1,100		Net realized and unrealized gains (losses)
Related tax (expense) benefit	(138		)	(336		)	(129		)	(385		)	Provision for income tax
Net of tax	$	256		$	624		$	238		$	715
Unrealized gains (losses) on interest rate swaps	$	25		$	(172	)	$	(212	)	$	56		Interest expense
Related tax (expense) benefit	(8		)	54			69			(30		)	Provision for income tax
Net of tax	$	17		$	(118	)	$	(143	)	$	26

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Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Activity [Table Text Block]

The table below summarizes changes to the issuances under the Company’s 2013 and 2017 Equity Plan for the periods indicated:

2013 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	961,650
Shares granted	(954,291	)
Shares rolled into 2017 Equity Plan	(7,359	)
Available for issuance as of September 30, 2017	—
2017 Equity Plan	Number of shares (1)
Available for issuance as of December 31, 2016	—
Available from 2017 Equity Plan	6,100,000
Shares granted	(71,016	)
Available for issuance as of September 30, 2017	6,028,984

(1) Excludes shares granted under the Company’s subsidiary incentive plans that are exchangeable for Tiptree Class A common stock.

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes changes to the issuances of Class A common stock and RSUs under the 2017 Equity Plan for the periods indicated:

	Number of shares issuable		Weighted average grant date fair value
Unvested units as of December 31, 2016	299,817		$	6.27
Granted (1)	454,680		6.60
Vested	(155,615	)	6.42
Unvested units as of September 30, 2017	598,882		$	6.48

(1) Includes grants of 27,192 shares of Class A common stock to directors.

he following table presents the Company's stock option activity for the current period:

	Options outstanding	Weighted average exercise price (in dollars per stock option)		Weighted average grant date value (in dollars per stock option)		Options exercisable
Balance, December 31, 2016	251,237	$	5.69	$	2.62	—
Granted	570,627	6.65		2.91		—
Balance, September 30, 2017	821,864	$	6.36	$	2.82	—
Weighted average remaining contractual term at September 30, 2017 (in years)	9.1

Schedule of Other Share-based Compensation, Activity [Table Text Block]

The following table summarizes changes to the issuances of subsidiary RSU’s under the subsidiary incentive plans for the periods indicated:

	Grant date fair value of equity shares issuable
Unvested balance as of December 31, 2016	$	8,089
Vested	(2,436		)
Grant value adjustment (1)	(210		)
Unvested balance as of September 30, 2017 (2)	$	5,443

(1) Due to the approval of the 2017 Equity Plan, Tiptree changed the classification of the subsidiary RSU’s during the three months ended September 30, 2017 from liability to equity awards, because the Company expects to settle these awards in stock.

(2) The unvested balance translates to 1,093,139 shares of Class A common stock if converted as of September 30, 2017.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following table presents the assumptions used to estimate the fair values of the stock options granted for the following period:

Valuation Input	Nine Months Ended September 30, 2017
	Assumption		Average
Historical volatility	47.20	%	N/A
Risk-free rate	2.44	%	N/A
Dividend yield	1.80	%	N/A
Expected term (years)			6.5

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The following table presents the total time-based and performance-based stock-based compensation expense and the related income tax benefit recognized on the condensed consolidated statements of operations:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Employee compensation and benefits	$	1,135		$	633		$	4,275		$	1,597
Professional fees (1)	—			35			—			99
Income tax benefit	(401		)	(236		)	(1,509		)	(599		)
Net stock-based compensation expense	$	734		$	432		$	2,766		$	1,097

(1) Professional fees consist of the value of restricted stock units and options granted to persons providing services to the Company.

Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block]

Additional information on total non-vested stock-based compensation is as follows:

	As of
	September 30, 2017
	Stock options		Restricted stock awards and RSUs
Unrecognized compensation cost related to non-vested awards	$	1,798	$	9,176
Weighted - average recognition period (in years)	3.1		1.8

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table represents the income tax expense (benefit):

	Three Months Ended September 30,									Nine Months Ended September 30,
	2017					2016				2017					2016
Income tax expense (benefit)	$	(2,052			)	$	3,712			$	(2,761			)	$	5,298
Effective tax rate (ETR)	37.8		%	(1)		32.3		%	(1)	27.3		%	(2)		19.2		%	(3)

⁽¹⁾ Bears a customary relationship to the federal statutory income tax rate.

⁽²⁾ Lower than the federal statutory income tax rate, primarily due a change in fair value of a contingent consideration liability, an increase in a valuation allowance on net operating losses, and various other discrete items. The ETR for the nine months ended September 30, 2017 excluding the effect of discrete items was 28.1%, which is lower than the federal statutory income tax rate, primarily due to a state tax benefit and the effect of non-controlling interests at certain subsidiaries.

⁽³⁾ Lower than the federal statutory income tax rate primarily due to $4,044 of discrete tax benefits for the period, primarily related to the tax restructuring that resulted in a consolidated corporate tax group effective January 1, 2016.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of contractual obligations

The table below summarizes the Company’s contractual obligations by period that payments are due:

	As of September 30, 2017
	Less than one year		1-3 years		3-5 years		More than 5 years		Total
Operating lease obligations (1)	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969
Total	$	4,946	$	14,070	$	7,981	$	11,972	$	38,969

(1) Minimum rental obligations for Tiptree, Care, Siena, Luxury, Reliance and Fortegra office leases.

Schedule of rent expense for the Company’s office leases

The following table presents rent expense for the Company’s office leases recorded on the condensed consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Rent expense for office leases	$	1,745	$	1,630	$	5,230	$	4,820

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of reconciliation of basic and diluted net income per common share

The following table presents a reconciliation of basic and diluted net income per common share for the following periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net income (loss)	$	(3,378	)	$	7,838		$	(7,360	)	$	22,273
Less:
Net income (loss) attributable to non-controlling interests	(264		)	1,933			(903		)	4,680
Net income allocated to participating securities	—			60			—			148
Net income (loss) attributable to Tiptree Inc. Class A common shares - basic	$	(3,114	)	$	5,845		$	(6,457	)	$	17,445
Effect of Dilutive Securities:
Securities of subsidiaries	—			(50		)	—			(148		)
Adjustments to income relating to exchangeable interests, net of tax	—			1,362			—			—
Net income (loss) attributable to Tiptree Inc. Class A common shares - diluted	$	(3,114	)	$	7,157		$	(6,457	)	$	17,297
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - basic	29,455,462			29,143,470			28,908,195			32,845,124
Weighted average number of incremental shares of Tiptree Inc. Class A common stock issuable from exchangeable interests and contingent considerations	—			8,087,180			—			67,392
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - diluted	29,455,462			37,230,650			28,908,195			32,912,516
Basic:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.20		$	(0.22	)	$	0.53
Diluted:
Net income (loss) attributable to Tiptree Inc. Class A common shares	$	(0.11	)	$	0.19		$	(0.22	)	$	0.53

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Organization Organization Narrative (Details)		9 Months Ended
	Jan. 01, 2016 shares	Sep. 30, 2017
Schedule of Equity Method Investments [Line Items]
Number of Reportable Segments		4
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest	81.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	19.00%
Common Stock - Class A
Schedule of Equity Method Investments [Line Items]
Partnership Units', Conversion Rate	2.798

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Acquisitions Business Acquisition Narrative (Details) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 20, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2017 USD ($) unit	Sep. 30, 2016 USD ($) unit	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Long-term Debt, Gross			$ 873,990		$ 801,442
2017 Acquisitions
Business Acquisition [Line Items]
Number of Real Estate Properties | unit			2
Payments to Acquire Businesses, Gross			$ 4,096
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			4,398
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			1,941
2016 Acquisitions
Business Acquisition [Line Items]
Number of Real Estate Properties | unit				3
Fair value of total consideration		$ 125		$ 84,605
Payments to Acquire Businesses, Gross	$ 4,778
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual				7,247
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual				1,899
Long-term Debt, Gross				$ 59,817
Parent | 2017 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration			25,999
Hope Center Property | 2017 Acquisitions
Business Acquisition [Line Items]
Long-term Debt, Gross			7,000
Landsdale Property | 2017 Acquisitions
Business Acquisition [Line Items]
Proceeds from Sale of Notes Receivable			1,036
Long-term Debt, Gross			$ 10,000

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Acquisitions Acquisitions Tables (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 69,400	$ 111,751	$ 65,995	$ 63,010
Intangible assets, net		84,053		85,478
Other assets		48,544		37,886
Liabilities
Deferred Revenue		(53,930)		(52,254)
Other Liabilities		(115,858)		(133,735)
2016 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration	$ 125		84,605
Senior Living Segment
Assets
Intangible assets, net		18,318		$ 11,820
Senior Living Segment | 2017 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration		25,999
Acquisition Costs		288
Assets
Cash and cash equivalents		717
Real estate, net		21,800
Intangible assets, net		3,850
Other assets		(76)
Liabilities
Deferred Revenue		(409)
Other Liabilities		(35)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net		25,999
Senior Living Segment | 2016 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration			84,605
Acquisition Costs			612
Assets
Cash and cash equivalents		184
Real estate, net			77,787
Intangible assets, net			6,838
Other assets			248
Liabilities
Deferred Revenue			(290)
Other Liabilities			(162)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			84,605
Parent | 2017 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration		25,999
Parent | Senior Living Segment | 2017 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration		$ 25,999
Parent | Senior Living Segment | 2016 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration			81,492
Noncontrolling interest | Senior Living Segment | 2016 Acquisitions
Business Acquisition [Line Items]
Fair value of total consideration			$ 3,113

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Acquisitions Tables of Finite Lived Intangibles Acquired (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,896
Senior Living Segment
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,147
2017 Acquisitions | Senior Living Segment | Leases in place
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in Years)	1 year 4 months 18 days
Gross Carrying Amount	$ 3,850
2016 Acquisitions | Senior Living Segment | Leases in place
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in Years)		1 year 7 months 8 days
Gross Carrying Amount		$ 6,838

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Operating Segment Data Segment Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016		Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations	$ (5,430)	$ 11,550		$ (10,121)	$ 27,571
Net income (loss) attributable to consolidated CLOs	2,583	4,032		9,393	10,049
Corporate and Other
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations	(7,118)	(9,292)	[1]	(22,198)	(22,751)	[1]
Net income (loss) attributable to consolidated CLOs	0	0	[1]	0	0
Specialty Insurance
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations	(2,345)	10,659		1,724	35,627	[1]
Net income (loss) attributable to consolidated CLOs	0	0		0	0
Asset Management Segment
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations	2,973	6,475	[1]	13,083	14,672	[1]
Net income (loss) attributable to consolidated CLOs	$ 2,583	4,032	[1]	$ 9,393	10,049	[1]
Scenario, Previously Reported | Reclassifications | Corporate and Other
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations		6,808			20,160
Scenario, Adjustment | Reclassifications | Specialty Insurance
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations		2,634			10,527
Scenario, Adjustment | Reclassifications | Asset Management Segment
Segment Reporting Information [Line Items]
Income (Loss) from Continuing Operations		4,174			9,633
Net income (loss) attributable to consolidated CLOs		$ 3,312			$ 7,583

[1] (1) Reclassified to conform to current period presentation

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Operating Segment Data Table of Segment Results (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)		Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Number of Reportable Segments				4
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	$ 164,519	$ 132,160		$ 486,297	$ 395,059
Total expenses	172,532	124,642		505,811	377,537
Net income (loss) attributable to consolidated CLOs	2,583	4,032		9,393	10,049
Pre-tax income (loss)	(5,430)	11,550		(10,121)	27,571
Less: provision (benefit) for income taxes	(2,052)	3,712		(2,761)	5,298
Net income (loss) before non-controlling interests	(3,378)	7,838		(7,360)	22,273
Net income (loss) attributable to Tiptree Inc. Class A common stockholders	(3,114)	5,905		(6,457)	17,593
Specialty Insurance
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	118,714	82,630		351,731	268,743	[1]
Total expenses	121,059	71,971		350,007	233,116	[1]
Net income (loss) attributable to consolidated CLOs	0	0		0	0
Pre-tax income (loss)	(2,345)	10,659		1,724	35,627	[1]
Asset Management Segment
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	1,448	4,746	[1]	8,239	10,754	[1]
Total expenses	1,058	2,303	[1]	4,549	6,131	[1]
Net income (loss) attributable to consolidated CLOs	2,583	4,032	[1]	9,393	10,049	[1]
Pre-tax income (loss)	2,973	6,475	[1]	13,083	14,672	[1]
Senior Living Segment
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	19,583	15,695		55,927	44,204
Total expenses	21,118	16,168		61,286	49,691
Net income (loss) attributable to consolidated CLOs	0	0		0	0
Pre-tax income (loss)	(1,535)	(473)		(5,359)	(5,487)
Specialty Finance Segment
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	24,976	29,013		70,325	67,790
Total expenses	22,381	24,832		67,696	62,280
Net income (loss) attributable to consolidated CLOs	0	0		0	0
Pre-tax income (loss)	2,595	4,181		2,629	5,510
Corporate and Other
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total revenues	(202)	76	[1]	75	3,568	[1]
Total expenses	6,916	9,368	[1]	22,273	26,319	[1]
Net income (loss) attributable to consolidated CLOs	0	0	[1]	0	0
Pre-tax income (loss)	(7,118)	(9,292)	[1]	(22,198)	(22,751)	[1]
Noncontrolling interest
Segment Reporting Information, Operating Income (Loss) [Abstract]
Less: net (loss) income attributable to non-controlling interests	$ (264)	1,933		$ (903)	4,680
Scenario, Adjustment | Reclassifications | Specialty Insurance
Segment Reporting Information, Operating Income (Loss) [Abstract]
Pre-tax income (loss)		2,634			10,527
Scenario, Adjustment | Reclassifications | Asset Management Segment
Segment Reporting Information, Operating Income (Loss) [Abstract]
Net income (loss) attributable to consolidated CLOs		3,312			7,583
Pre-tax income (loss)		$ 4,174			$ 9,633

[1] (1) Reclassified to conform to current period presentation

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Operating Segment Data Table of Segment Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Segment Assets	$ 2,448,754	$ 2,890,050
Assets of consolidated CLOs	372,774	989,495
Specialty Insurance
Segment Reporting Information [Line Items]
Segment Assets	1,319,165	1,268,152	[1]
Assets of consolidated CLOs	0	0
Asset Management Segment
Segment Reporting Information [Line Items]
Segment Assets	21,175	17,427	[1]
Assets of consolidated CLOs	372,774	989,495
Senior Living Segment
Segment Reporting Information [Line Items]
Segment Assets	390,818	323,169
Assets of consolidated CLOs	0	0
Specialty Finance Segment
Segment Reporting Information [Line Items]
Segment Assets	303,203	271,795
Assets of consolidated CLOs	0	0
Corporate and Other
Segment Reporting Information [Line Items]
Segment Assets	41,619	20,012	[1]
Assets of consolidated CLOs	0	0
Operating Segments
Segment Reporting Information [Line Items]
Segment Assets	$ 2,075,980	$ 1,900,555

[1] (1) Reclassified to conform to current period presentation

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Available for Sale Securities, at fair value Table of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 163,736	$ 147,248
Gross unrealized gains	1,089	345
Gross unrealized losses	(732)	(1,422)
Fair value	164,093	146,171
U.S. Treasury securities and obligations of U.S. government authorities and agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	36,474	27,149
Gross unrealized gains	96	27
Gross unrealized losses	(216)	(377)
Fair value	36,354	26,799
Obligations of states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	47,542	57,425
Gross unrealized gains	415	107
Gross unrealized losses	(324)	(598)
Fair value	47,633	56,934
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	53,589	58,769
Gross unrealized gains	447	204
Gross unrealized losses	(167)	(402)
Fair value	53,869	58,571
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	24,011	1,459
Gross unrealized gains	105	1
Gross unrealized losses	(16)	0
Fair value	24,100	1,460
Certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	896	895
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair value	896	895
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	658	818
Gross unrealized gains	13	3
Gross unrealized losses	(9)	(37)
Fair value	662	784
Obligations of foreign governments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	566	733
Gross unrealized gains	13	3
Gross unrealized losses	0	(8)
Fair value	$ 579	$ 728

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Available for Sale Securities, at fair value Table of Available-for-sale Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 53,062	$ 94,254
Gross Unrealized Losses, Less Than or Equal to One Year	$ (416)	$ (1,416)
Number of Securities, Less Than or Equal to One Year	343	574
Fair Value, More Than One Year	$ 12,564	$ 1,622
Gross Unrealized Losses, More Than One Year	$ (316)	$ (6)
Number of Securities, More Than One Year	127	13
U.S. Treasury securities and obligations of U.S. government authorities and agencies
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 25,152	$ 20,979
Gross Unrealized Losses, Less Than or Equal to One Year	$ (187)	$ (376)
Number of Securities, Less Than or Equal to One Year	119	115
Fair Value, More Than One Year	$ 924	$ 16
Gross Unrealized Losses, More Than One Year	$ (29)	$ (1)
Number of Securities, More Than One Year	5	5
Obligations of states and political subdivisions
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 9,936	$ 41,639
Gross Unrealized Losses, Less Than or Equal to One Year	$ (145)	$ (597)
Number of Securities, Less Than or Equal to One Year	55	170
Fair Value, More Than One Year	$ 7,142	$ 1,334
Gross Unrealized Losses, More Than One Year	$ (179)	$ (1)
Number of Securities, More Than One Year	34	3
Corporate securities
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 16,269	$ 29,856
Gross Unrealized Losses, Less Than or Equal to One Year	$ (61)	$ (400)
Number of Securities, Less Than or Equal to One Year	164	279
Fair Value, More Than One Year	$ 4,479	$ 253
Gross Unrealized Losses, More Than One Year	$ (106)	$ (2)
Number of Securities, More Than One Year	86	3
Asset-backed Securities
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 1,294	$ 706
Gross Unrealized Losses, Less Than or Equal to One Year	$ (16)	$ 0
Number of Securities, Less Than or Equal to One Year	2	1
Fair Value, More Than One Year	$ 0	$ 0
Gross Unrealized Losses, More Than One Year	$ 0	$ 0
Number of Securities, More Than One Year	0	0
Equity securities
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 411	$ 736
Gross Unrealized Losses, Less Than or Equal to One Year	$ (7)	$ (35)
Number of Securities, Less Than or Equal to One Year	3	5
Fair Value, More Than One Year	$ 19	$ 19
Gross Unrealized Losses, More Than One Year	$ (2)	$ (2)
Number of Securities, More Than One Year	2	2
Obligations of foreign governments
Gross Unrealized Losses:
Fair Value, Less Than or Equal to One Year	$ 0	$ 338
Gross Unrealized Losses, Less Than or Equal to One Year	$ 0	$ (8)
Number of Securities, Less Than or Equal to One Year	0	4
Fair Value, More Than One Year	$ 0	$ 0
Gross Unrealized Losses, More Than One Year	$ 0	$ 0
Number of Securities, More Than One Year	0	0

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Available for Sale Securities, at fair value Table of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 19,075	$ 22,846
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	68,918	66,063
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	45,447	49,036
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	5,627	7,026
Asset backed securities	24,011	1,459
Amortized cost	163,078	146,430
Fair Value
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	19,074	22,833
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	69,207	65,841
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	45,375	48,381
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	5,675	6,872
Asset backed securities	24,100	1,460
Fair Value	$ 163,431	$ 145,387

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Available for Sale Securities, at fair value Table of Restricted Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Fair value of restricted investments for special deposits required by state insurance departments	$ 9,939	$ 10,111
Fair value of restricted investments in trust pursuant to reinsurance agreements	7,287	7,573
Total fair value of restricted investments	$ 17,226	$ 17,684

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Available for Sale Securities, at fair value Table of Purchases, Proceeds and Gains & Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Purchases of available for sale securities	$ 45,250	$ 12,799	$ 79,907	$ 22,477
Proceeds from maturities, calls and prepayments of available for sale securities	7,686	4,483	23,909	26,086
Gains (losses) realized on maturities, calls and prepayments of available for sale securities	0	(14)	(5)	83
Gross proceeds from sales of available for sale securities	21,167	35,069	39,493	45,928
Gains (losses) realized on sales of available for sale securities	$ 395	$ 974	$ 372	$ 1,016

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Investment in Loans Table of the Company's Investment in Loans Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, Fair Value Disclosure	$ 323,122	$ 373,089
Loans Receivable, Unpaid Principal Balance	336,791	410,031
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	(13,669)	(36,942)
Corporate Loans | Telos Asset Management LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, Fair Value Disclosure	162,512	175,558
Loans Receivable, Unpaid Principal Balance	162,582	176,808
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	(70)	(1,250)
Mortgage Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, Fair Value Disclosure	114,461	121,439
Loans Receivable, Unpaid Principal Balance	110,803	118,162
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	3,658	3,277
Nonperforming Financial Instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, Fair Value Disclosure	44,980	74,923
Loans Receivable, Unpaid Principal Balance	62,237	113,892
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	(17,257)	(38,969)
Loan and lease receivable, other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable, Fair Value Disclosure	1,169	1,169
Loans Receivable, Unpaid Principal Balance	1,169	1,169
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables	$ 0	$ 0

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Investment in Loans Table of Investments in Loans, Measured at Fair Value Pledged as Collateral (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	$ 312,464	$ 353,508
Corporate Loans | Telos Asset Management LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	161,000	175,365
Mortgage Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	111,927	117,734
Nonperforming Financial Instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	$ 39,537	$ 60,409

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Investment in Loans Table of Investment in Loans Measured at Amortized Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at amortized cost, net	$ 150,596	$ 113,838
Asset-backed investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Collateral for Secured Borrowings	152,168	115,033
Loans and Leases Receivable, Allowance	1,572	1,195
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	$ 5,701	$ 5,244

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Investment in Loans Table of Additional Information on the Company’s Asset Backed Loans(Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	$ 312,464	$ 353,508
Loans at amortized cost, net	150,596	113,838
Asset-backed investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	157,169	119,558
Asset-backed investment | Siena Capital Finance LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at amortized cost, net	$ 149,896	$ 113,138

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Investment in Loans Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at amortized cost, net	$ 150,596	$ 113,838
Mortgage Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair Value, Option, Loans Held as Assets, 90 Days or More Past Due		66
Asset-backed investment | Siena Capital Finance LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	0
Valuation Allowances and Reserves, Charged to Cost and Expense	0
Loans at amortized cost, net	149,896	113,138
Asset-backed investment | Siena Capital Finance LLC | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at amortized cost, net	1,000
Asset-backed investment | Siena Capital Finance LLC | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at amortized cost, net	25,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Mortgage Loans Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 142

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Real Estate, Net Table of Investment in Real Estate (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) unit	Dec. 31, 2016 USD ($)
Real Estate Properties [Line Items]
Land	$ 39,188	$ 30,125
Buildings	357,687	297,120
Accumulated Depreciation	(25,738)	(17,822)
Real Estate Acquired Through Foreclosure	13,079	13,366
Total	371,137	309,423
Business Combination [Abstract]
Intangible Assets Acquired	$ 12,896
2017 Acquisitions
Business Combination [Abstract]
Number of Real Estate Properties | unit	2
2017 Acquisitions | Real Estate Investment
Business Combination [Abstract]
Number of Real Estate Properties | unit	10
Real estate, net	$ 47,654
Leases in place | 2017 Acquisitions | Real Estate Investment
Business Combination [Abstract]
Intangible Assets Acquired	8,297
Triple Net Leases
Real Estate Properties [Line Items]
Land	19,741	13,778
Buildings	135,857	94,291
Accumulated Depreciation	(9,455)	(6,610)
Total	146,143	101,459
Corporate Joint Venture [Member]
Real Estate Properties [Line Items]
Land	19,447	16,347
Buildings	208,751	189,463
Accumulated Depreciation	(16,283)	(11,212)
Total	$ 211,915	$ 194,598
Minimum | Leases in place | 2017 Acquisitions
Business Combination [Abstract]
Weighted Average Amortization Period (in Years)	7 years
Maximum | Leases in place | 2017 Acquisitions
Business Combination [Abstract]
Weighted Average Amortization Period (in Years)	12 years

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Real Estate, Net Table of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Assets Leased to Others, Real Estate investments
Property, Plant and Equipment [Line Items]
Depreciation	$ 2,873	$ 1,974	$ 7,916	$ 5,581

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Real Estate, Net Table of Future Minimum Rental Revenues (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
Remainder of 2017	$ 3,280
2018	13,248
2019	13,519
2020	13,797
2021	15,161
Thereafter	60,999
Total	$ 120,004

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Real Estate, Net Table of Rental Revnues from Residential Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Operating Leases, Income Statement, Lease Revenue	$ 14,274	$ 12,685	$ 42,005	$ 35,231

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Net Investment Income Table of Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment Income, Interest and Dividend	$ 4,209	$ 3,666	$ 13,424	$ 9,461
Less: investment expenses	369	359	1,392	1,052
Net investment income	3,840	3,307	12,032	8,409
Available-for-sale Securities
Gross Investment Income, Operating	823	653	2,423	2,323
Loans, at fair value
Gross Investment Income, Operating	2,698	1,971	8,330	4,981
Equity securities, trading, at fair value
Gross Investment Income, Operating	459	969	1,912	1,933
Real Estate Investment
Gross Investment Income, Operating	156	0	482	0
Other Investments
Gross Investment Income, Operating	$ 73	$ 73	$ 277	$ 224

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Net Investment Income Table of Net Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net realized gains (losses)	$ 18,817	$ 19,948	$ 48,150	$ 48,423
Net unrealized gains (losses)	(11,291)	6,267	(12,967)	17,531
Net realized and unrealized gains (losses)	$ 7,526	$ 26,215	$ 35,183	$ 65,954

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Net Investment Income Table of Gains on Sale of Mortgage Loans and Equity Securities, Trading, Still Held (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net realized gain on sale of mortgage loans (1)	[1]	$ 16,476	$ 20,045	$ 47,237	$ 48,412
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date		$ (11,125)	$ 1,365	$ (21,183)	$ 6,386

[1] Related to the Company’s specialty finance business.

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Notes and Accounts Receivable, net Table of Notes and Accounts Receivable, net (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016	Jan. 01, 2016	Feb. 28, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, net		$ 19,310	$ 24,775
Accounts and premiums receivable, net		60,763	45,041
Retrospective commissions receivable		65,156	59,175
Other Receivables		33,497	28,509
Total		$ 178,726	157,500
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners				19.00%
Specialty Insurance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of voting interest		100.00%
Senior Living Segment | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, net	[1]	$ 3,862	3,862
Consumer Financing, Premium Financing Program | Specialty Insurance | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, net	[2]	15,403	20,615
Consumer Financing, Pay Us Later Program | Specialty Insurance | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, net		$ 45	$ 298
Calamar Enterprises, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of voting interest					75.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					25.00%

[1] Related to the Company’s senior living business, which owns a 75% interest in a managed property. The remaining 25% interest is owned by our joint venture partner.

[2] Related to the Company’s specialty insurance business.

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Notes and Accounts Receivable, net Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts and premiums receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Valuation Allowances and Reserves, Balance	$ 319	$ 225
Specialty Insurance | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Valuation Allowances and Reserves, Balance	1,528	1,444
Specialty Insurance | Financing Receivables, Equal to Greater than 90 Days Past Due | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	$ 1,848	$ 2,188

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Reinsurance Receivables Table of Direct, Assumed and Ceded (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Premiums Written, Net [Abstract]
Direct and assumed	$ 201,823	$ 176,029	$ 540,493	$ 525,621
Ceded	89,044	125,398	257,652	387,869
Assumed Premiums Written	6,231	5,381	19,483	14,624
Net	$ 119,010	$ 56,012	$ 302,324	$ 152,376
Premiums, Percentage Assumed to Net	5.20%	9.60%	6.40%	9.60%
Premiums Earned, Net [Abstract]
Direct and assumed	$ 170,848	$ 171,154	$ 485,685	$ 508,695
Ceded	(79,476)	(126,688)	(227,823)	(378,796)
Assumed Premiums Earned	4,701	3,143	14,919	8,617
Net	$ 96,073	$ 47,609	$ 272,781	$ 138,516
Premiums earned, Percentage Assumed to Net	4.90%	6.60%	5.50%	6.20%
Life
Premiums Written, Net [Abstract]
Direct and assumed	$ 18,375	$ 18,246	$ 46,275	$ 49,018
Ceded	9,587	9,668	23,264	25,267
Assumed Premiums Written	525	674	1,458	1,971
Net	$ 9,313	$ 9,252	$ 24,469	$ 25,722
Premiums, Percentage Assumed to Net	5.60%	7.30%	6.00%	7.70%
Premiums Earned, Net [Abstract]
Direct and assumed	$ 15,654	$ 15,861	$ 45,995	$ 46,112
Ceded	(7,764)	(7,712)	(22,685)	(22,139)
Assumed Premiums Earned	481	642	1,473	2,003
Net	$ 8,371	$ 8,791	$ 24,783	$ 25,976
Premiums earned, Percentage Assumed to Net	5.70%	7.30%	5.90%	7.70%
Accident and health
Premiums Written, Net [Abstract]
Direct and assumed	$ 34,034	$ 31,553	$ 87,242	$ 87,446
Ceded	23,077	21,635	57,911	59,657
Assumed Premiums Written	862	865	2,355	2,507
Net	$ 11,819	$ 10,783	$ 31,686	$ 30,296
Premiums, Percentage Assumed to Net	7.30%	8.00%	7.40%	8.30%
Premiums Earned, Net [Abstract]
Direct and assumed	$ 28,347	$ 28,391	$ 82,242	$ 84,994
Ceded	(19,511)	(20,093)	(56,736)	(60,134)
Assumed Premiums Earned	814	830	2,373	2,465
Net	$ 9,650	$ 9,128	$ 27,879	$ 27,325
Premiums earned, Percentage Assumed to Net	8.40%	9.10%	8.50%	9.00%
Property
Premiums Written, Net [Abstract]
Direct and assumed	$ 149,414	$ 126,230	$ 406,976	$ 389,157
Ceded	56,380	94,095	176,477	302,945
Assumed Premiums Written	4,844	3,842	15,670	10,146
Net	$ 97,878	$ 35,977	$ 246,169	$ 96,358
Premiums, Percentage Assumed to Net	4.90%	10.70%	6.40%	10.50%
Premiums Earned, Net [Abstract]
Direct and assumed	$ 126,847	$ 126,902	$ 357,448	$ 377,589
Ceded	(52,201)	(98,883)	(148,402)	(296,523)
Assumed Premiums Earned	3,406	1,671	11,073	4,149
Net	$ 78,052	$ 29,690	$ 220,119	$ 85,215
Premiums earned, Percentage Assumed to Net	4.40%	5.60%	5.00%	4.90%

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Reinsurance Receivables Table of Losses and LAE Incurred (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Effects of Reinsurance [Line Items]
Direct and assumed		$ 61,242	$ 75,678	$ 182,262	$ 206,146
Ceded		(34,396)	(56,979)	(102,827)	(153,702)
Policyholder Benefits and Claims Incurred, Assumed		912	1,215	3,118	2,658
Net losses and LAE incurred		27,758	19,914	82,553	55,102
Member benefit claims	[1]	3,812	5,967	11,811	17,334
Policy and contract benefits		$ 31,570	$ 25,881	$ 94,364	$ 72,436
Losses Incurred, Percentage Assumed to Net		3.30%	6.10%	3.80%	4.80%
Life
Effects of Reinsurance [Line Items]
Direct and assumed		$ 8,003	$ 8,550	$ 24,527	$ 24,962
Ceded		(4,573)	(4,647)	(13,558)	(12,957)
Policyholder Benefits and Claims Incurred, Assumed		178	378	748	1,061
Net losses and LAE incurred		$ 3,608	$ 4,281	$ 11,717	$ 13,066
Losses Incurred, Percentage Assumed to Net		4.90%	8.80%	6.40%	8.10%
Accident and health
Effects of Reinsurance [Line Items]
Direct and assumed		$ 4,456	$ 5,697	$ 13,200	$ 14,598
Ceded		(3,252)	(4,863)	(10,815)	(12,203)
Policyholder Benefits and Claims Incurred, Assumed		190	205	662	700
Net losses and LAE incurred		$ 1,394	$ 1,039	$ 3,047	$ 3,095
Losses Incurred, Percentage Assumed to Net		13.60%	19.70%	21.70%	22.60%
Property
Effects of Reinsurance [Line Items]
Direct and assumed		$ 48,783	$ 61,431	$ 144,535	$ 166,586
Ceded		(26,571)	(47,469)	(78,454)	(128,542)
Policyholder Benefits and Claims Incurred, Assumed		544	632	1,708	897
Net losses and LAE incurred		$ 22,756	$ 14,594	$ 67,789	$ 38,941
Losses Incurred, Percentage Assumed to Net		2.40%	4.30%	2.50%	2.30%

[1] Member benefit claims are not covered by reinsurance.

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Reinsurance Receivables Table of the Components of Reinsurance Receivables (Details) - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Effects of Reinsurance [Line Items]
Prepaid reinsurance premiums:		$ 242,281		$ 212,711
Reinsurance receivables		333,023		296,234
Supplemental Cash Flow Information [Abstract]
Increase (Decrease) in Reinsurance Recoverable		33,312	$ 28,237
Increase (Decrease) in Other Operating Assets		8,205	$ 2,223
Life (1)
Effects of Reinsurance [Line Items]
Prepaid reinsurance premiums:	[1]	64,223		64,621
Ceded claim reserves:		3,015		2,929
Accident and health (1)
Effects of Reinsurance [Line Items]
Prepaid reinsurance premiums:	[1]	55,175		53,999
Ceded claim reserves:		9,819		10,435
Property (2)
Effects of Reinsurance [Line Items]
Prepaid reinsurance premiums:		122,883		94,091	[2]
Ceded claim reserves:		57,138		49,917
Total ceded claim reserves recoverable
Effects of Reinsurance [Line Items]
Ceded claim reserves:		69,972		63,281
Other reinsurance settlements recoverable
Effects of Reinsurance [Line Items]
Other reinsurance settlements recoverable		$ 20,770		20,242
Reinsurance Contract Cancellation [Member]
Supplemental Cash Flow Information [Abstract]
Increase (Decrease) in Reinsurance Recoverable				(92,854)
Increase (Decrease) in Other Operating Assets				88,857
Increase (Decrease) in Other Operating Liabilities				$ (3,997)

[1] Including policyholder account balances ceded.

[2] The December 31, 2016 amount includes a non-cash transaction, as part of a reinsurance contract cancellation that resulted in a reduction of $92,854 in reinsurance receivable, offset by an increase of $88,857 in assets and a decrease of $3,997 in liabilities.

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Reinsurance Receivables Table of Reinsurance Concentration of Credit Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Total of the three largest receivable balances from unrelated reinsurers	$ 333,023	$ 296,234
Customer Concentration Risk
Concentration Risk [Line Items]
Total of the three largest receivable balances from unrelated reinsurers	$ 78,783

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Goodwill and Intangible Assets, Net Table of Identifiable Finite and Indefinite-Lived Intangible Assets, Accumulated Amortization and Goodwill (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Schedule of Intangible Assets, Net [Line Items]
Intangible Assets, Net		$ 84,053	$ 85,478
Goodwill		92,767	92,767
Total		176,820	178,245
Insurance licensing agreements
Schedule of Intangible Assets, Net [Line Items]
Indefinite-Lived License Agreements	[1]	13,749	13,000
Customer relationships
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		50,500	50,500
Accumulated amortization		(10,215)	(4,614)
Trade Names
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		7,300	7,300
Accumulated amortization		(2,198)	(1,604)
Software licensing
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		9,140	9,140
Accumulated amortization		(5,023)	(3,679)
Insurance policies and contracts acquired
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		36,500	36,500
Accumulated amortization		(35,234)	(34,184)
Leases in place
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		45,697	33,550
Accumulated amortization		(26,163)	(20,431)
Specialty Insurance
Schedule of Intangible Assets, Net [Line Items]
Intangible Assets, Net		64,681	72,475
Goodwill		89,854	89,854
Total		154,535	162,329
Specialty Insurance | Insurance licensing agreements
Schedule of Intangible Assets, Net [Line Items]
Indefinite-Lived License Agreements	[1]	13,749	13,000
Specialty Insurance | Customer relationships
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		50,500	50,500
Accumulated amortization		(10,215)	(4,614)
Specialty Insurance | Trade Names
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		6,500	6,500
Accumulated amortization		(2,018)	(1,484)
Specialty Insurance | Software licensing
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		8,500	8,500
Accumulated amortization		(4,817)	(3,542)
Specialty Insurance | Insurance policies and contracts acquired
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		36,500	36,500
Accumulated amortization		(35,234)	(34,184)
Specialty Insurance | Leases in place
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		1,317	1,317
Accumulated amortization		(101)	(18)
Senior Living Segment
Schedule of Intangible Assets, Net [Line Items]
Intangible Assets, Net		18,318	11,820
Goodwill		0	0
Total		18,318	11,820
Senior Living Segment | Insurance licensing agreements
Schedule of Intangible Assets, Net [Line Items]
Indefinite-Lived License Agreements		0	0
Senior Living Segment | Customer relationships
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Senior Living Segment | Trade Names
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Senior Living Segment | Software licensing
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Senior Living Segment | Insurance policies and contracts acquired
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Senior Living Segment | Leases in place
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		44,380	32,233
Accumulated amortization		(26,062)	(20,413)
Specialty Finance Segment
Schedule of Intangible Assets, Net [Line Items]
Intangible Assets, Net		1,054	1,183
Goodwill		2,913	2,913
Total		3,967	4,096
Specialty Finance Segment | Insurance licensing agreements
Schedule of Intangible Assets, Net [Line Items]
Indefinite-Lived License Agreements		0	0
Specialty Finance Segment | Customer relationships
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Specialty Finance Segment | Trade Names
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		800	800
Accumulated amortization		(180)	(120)
Specialty Finance Segment | Software licensing
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		640	640
Accumulated amortization		(206)	(137)
Specialty Finance Segment | Insurance policies and contracts acquired
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		0	0
Specialty Finance Segment | Leases in place
Schedule of Intangible Assets, Net [Line Items]
Finite-Lived Intangible Assets, Gross		0	0
Accumulated amortization		$ 0	$ 0

[1] Represents intangible assets with an indefinite useful life. Impairment tests are performed at least annually on these assets.

XML

Goodwill and Intangible Assets, Net Table of Goodwill Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Goodwill [Roll Forward]
Goodwill			$ 92,767
Goodwill, Impairment Loss	$ 0	$ 0	0	$ 0
Goodwill	92,767		92,767
Specialty Insurance
Goodwill [Roll Forward]
Goodwill			89,854
Goodwill	89,854		89,854
Specialty Finance Segment
Goodwill [Roll Forward]
Goodwill			2,913
Goodwill	$ 2,913		$ 2,913

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Goodwill and Intangible Assets, Net Table of Intangible Assets, Net Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Net (Excluding Goodwill)			$ 85,478
Intangible Assets Acquired			12,896
Amortization of Intangible Assets	$ (4,359)	$ (3,702)	(14,321)	$ (14,246)
Intangible Assets, Net (Excluding Goodwill)	84,053		84,053
Impairment of Intangible Assets (Excluding Goodwill) [Abstract]
Impairment of Intangible Assets (Excluding Goodwill)	$ 0	$ 0	$ 0	$ 0
Specialty Insurance
Finite-Lived Intangible Assets [Line Items]
Percentage of voting interest	100.00%		100.00%
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Net (Excluding Goodwill)			$ 72,475
Intangible Assets Acquired			749
Amortization of Intangible Assets			8,543
Intangible Assets, Net (Excluding Goodwill)	$ 64,681		64,681
Senior Living Segment
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Net (Excluding Goodwill)			11,820
Intangible Assets Acquired			12,147
Amortization of Intangible Assets			5,649
Intangible Assets, Net (Excluding Goodwill)	18,318		18,318
Specialty Finance Segment
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Net (Excluding Goodwill)			1,183
Intangible Assets Acquired			0
Amortization of Intangible Assets			129
Intangible Assets, Net (Excluding Goodwill)	$ 1,054		$ 1,054

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Goodwill and Intangible Assets, Net Table of Amoritzation Expense on Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4,359	$ 3,702	$ 14,321	$ 14,246

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Goodwill and Intangible Assets, Net Table of Future Amortization Expense on Intangibles (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2017	$ 4,454
2018	12,909
2019	8,965
2020	6,389
2021	5,572
2022 and thereafter	32,015
Finite-Lived Intangible Assets, Net	70,304
Specialty Insurance
Finite-Lived Intangible Assets [Line Items]
Remainder of 2017	2,482
2018	9,187
2019	7,619
2020	5,137
2021	4,361
2022 and thereafter	20,880
Finite-Lived Intangible Assets, Net	49,666
Senior Living Segment
Finite-Lived Intangible Assets [Line Items]
Remainder of 2017	1,730
2018	3,086
2019	958
2020	958
2021	958
2022 and thereafter	10,628
Finite-Lived Intangible Assets, Net	18,318
Specialty Finance Segment
Finite-Lived Intangible Assets [Line Items]
Remainder of 2017	42
2018	171
2019	171
2020	171
2021	171
2022 and thereafter	328
Finite-Lived Intangible Assets, Net	1,054
Insurance policies and contracts acquired | Specialty Insurance
Finite-Lived Intangible Assets [Line Items]
Remainder of 2017	200
2018	465
2019	217
2020	123
2021	82
2022 and thereafter	179
Finite-Lived Intangible Assets, Net	$ 1,266

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Derivative Financial Instruments and Hedging Derivative Financial Instruments and Hedging Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Credit Default Swap
Derivative [Line Items]
Derivative, percent cash collateral required	2.25%
Collateral already posted, aggregate fair value	$ 6,668
Credit Default Swap | Credit Index Product
Derivative [Line Items]
Cash collateral	$ 1,632	$ 1,632

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Derivative Financial Instruments and Hedging Table of Derivatives - Gross notional and fair value amounts of derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional values	$ 1,315,503	$ 1,251,389
Asset derivatives	26,563	36,669
Liability derivatives	4,451	15,899
Credit Risk Contract
Derivative [Line Items]
Notional values	590,740	595,785
Asset derivatives	18,409	28,731
Liability derivatives	3,742	14,501
Foreign currency forward contracts
Derivative [Line Items]
Notional values	0	965
Asset derivatives	0	0
Liability derivatives	0	3
Interest Risk, Interest Rate Lock Commitments
Derivative [Line Items]
Notional values	276,776	203,815
Asset derivatives	6,537	4,872
Liability derivatives	0	0
Interest Risk, Forward Delivery Contracts
Derivative [Line Items]
Notional values	61,094	66,731
Asset derivatives	49	0
Liability derivatives	0	84
Interest Risk, TBA Mortgage Backed Securities
Derivative [Line Items]
Notional values	253,750	249,750
Asset derivatives	284	1,678
Liability derivatives	283	269
Interest Risk, Interest Rate Swaps
Derivative [Line Items]
Notional values	133,143	134,343
Asset derivatives	1,284	1,388
Liability derivatives	426	1,042
Interest Rate Risk
Derivative [Line Items]
Notional values	724,763	654,639
Asset derivatives	8,154	7,938
Liability derivatives	709	1,395
Credit Default Swap, Selling Protection | Credit Risk Contract
Derivative [Line Items]
Notional values	295,973	297,612
Asset derivatives	18,409	28,731
Liability derivatives	0	0
Credit Default Swap, Buying Protection | Credit Risk Contract
Derivative [Line Items]
Notional values	294,767	298,173
Asset derivatives	0	0
Liability derivatives	$ 3,742	$ 14,501

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Derivative Financial Instruments and Hedging Table of Derivatives subject to netting agreement (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Derivative assets	$ 26,563	$ 36,669
Credit Default Swap, Selling Protection | Credit Default Swap
Derivative [Line Items]
Gross assets recognized	18,409	28,731
Credit Default Swap, Buying Protection | Credit Default Swap
Derivative [Line Items]
Gross assets recognized	3,742	14,501
Credit Index Product | Credit Default Swap
Derivative [Line Items]
Gross assets recognized	14,667	14,230
Cash collateral	(1,632)	(1,632)
Derivative assets	$ 13,035	$ 12,598

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Derivative Financial Instruments and Hedging Table of derivatives designated as cash flow hedging instrument (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Notional values	$ 1,315,503		$ 1,251,389
Balance Sheet Related Disclosures [Abstract]
Description of Location of Gain (Loss) on Interest Rate Cash Flow Hedge Derivative in Financial Statements	AOCI
Interest Rate Swap | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Notional values	$ 133,143		134,343
Interest Rate Cash Flow Hedge Asset at Fair Value	1,284		1,388
Interest Rate Cash Flow Hedge Liability at Fair Value	426		$ 1,042
Cash Flow Hedges Derivative Instruments at Fair Value, Net	$ 1,606	$ 1,759
Minimum | Interest Rate Swap | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Variable Interest Rate	1.23%		0.67%
Derivative, Fixed Interest Rate	1.31%		1.31%
Maximum | Interest Rate Swap | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Variable Interest Rate	1.24%		0.96%
Derivative, Fixed Interest Rate	4.99%		4.99%
Other Assets
Balance Sheet Related Disclosures [Abstract]
Description of Location of Gain (Loss) on Interest Rate Cash Flow Hedge Derivative in Financial Statements	Other investments
Other Liabilities
Balance Sheet Related Disclosures [Abstract]
Description of Location of Gain (Loss) on Interest Rate Cash Flow Hedge Derivative in Financial Statements	Other liabilities and accrued expenses

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Derivative Financial Instruments and Hedging Table of Pretax Impact of Cash Flow Hedging Derivative Instruments on the Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Gain (loss) recognized in AOCI on the derivative-effective portion	$ (33)	$ 156	$ (411)	$ (515)
(Gains) losses reclassified from AOCI into income-effective portion	25	(172)	(212)	56
Interest Rate Swap | Cash Flow Hedging
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Gain (loss) recognized in AOCI on the derivative-effective portion	(33)	156	(411)	(515)
Interest Rate Swap | Cash Flow Hedging | Amount reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
(Gains) losses reclassified from AOCI into income-effective portion	(25)	172	212	(56)
Gains (losses) recognized in income on the derivative-ineffective portion	$ 0	$ 48	$ (2)	$ (3)

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Derivative Financial Instruments and Hedging Table of Amount to be Reclassified from AOCI during the next 12 months (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Estimated (gains) losses to be reclassified to earnings from AOCI during the next 12 months	$ (199)

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Assets and Liabilites of Consolidated CLOs Schedule of Assets and Liabilities of the Consolidated CLOs (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents		$ 111,751	$ 63,010	$ 65,995	$ 69,400
Loans Receivable, Fair Value Disclosure		323,122	373,089
Other assets		48,544	37,886
Total assets of consolidated CLOs		372,774	989,495
Liabilities:
Other liabilities and accrued expenses		115,858	133,735
Total liabilities of consolidated CLOs		354,337	931,969
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables		13,669	36,942
Telos Asset Management LLC | Primary beneficiary
Assets:
Cash and cash equivalents		20,586	45,589
Loans Receivable, Fair Value Disclosure	[1]	343,382	928,240
Other assets		8,806	15,666
Total assets of consolidated CLOs		372,774	989,495
Liabilities:
Debt		326,716	912,034
Other liabilities and accrued expenses		27,621	19,935
Total liabilities of consolidated CLOs		354,337	931,969
Net		18,437	57,526
Loans Receivable Held-for-sale, Unpaid Principal Balance		352,958	952,225
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables		$ 9,576	$ 23,985

[1] (1) The unpaid principal balance for these loans is $352,958 and $952,225 and the difference between their fair value and UPB is $9,576 and $23,985 at September 30, 2017 and December 31, 2016, respectively.

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Assets and Liabilites of Consolidated CLOs Table of Beneficial Interests (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Accrued management fees	$ 53,930	$ 52,254
Telos Asset Management LLC | Primary beneficiary
Variable Interest Entity [Line Items]
Subordinated notes	18,128	56,820
Accrued management fees	309	706
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net	$ 18,437	$ 57,526

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Assets and Liabilites of Consolidated CLOs Table of Revenues and Expenses of CLO's (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income:
Total revenue	$ 7,216	$ 12,556	$ 24,024	$ 34,713
Expenses:
Interest expense	10,361	7,839	28,444	20,770
Other expenses	23,164	21,686	73,380	68,351
Total expense	4,633	8,524	14,631	24,664
Net income (loss) attributable to consolidated CLOs	2,583	4,032	9,393	10,049
Telos Asset Management LLC | Primary beneficiary
Income:
Net realized and unrealized gains (losses)	1,889	(1,422)	3,457	(2,913)
Interest income	5,327	13,978	20,567	37,626
Total revenue	7,216	12,556	24,024	34,713
Expenses:
Interest expense	4,580	8,267	13,629	22,667
Other expenses	53	257	1,002	1,997
Total expense	4,633	8,524	14,631	24,664
Net income (loss) attributable to consolidated CLOs	$ 2,583	$ 4,032	$ 9,393	$ 10,049

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Assets and Liabilites of Consolidated CLOs Table of Economic Interests in the CLOs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Variable Interest Entity [Line Items]
Management fee income	$ 1,541	$ 3,839	$ 6,578	$ 7,497
Net income (loss) attributable to consolidated CLOs	2,583	4,032	9,393	10,049
Telos Asset Management LLC | Primary beneficiary
Variable Interest Entity [Line Items]
Distributions received and realized and unrealized gains (losses) on the subordinated notes held by the Company, net	2,272	3,289	8,355	7,880
Management fee income	311	743	1,038	2,169
Net income (loss) attributable to consolidated CLOs	$ 2,583	$ 4,032	$ 9,393	$ 10,049

XML

Debt, net Table of Debt (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 873,990	$ 801,442
Debt Instrument, Unamortized Discount		(471)	(382)
Deferred Financing Costs, Net		(7,890)	(8,051)
Debt, net		865,629	793,009
Secured Debt
Debt Instrument [Line Items]
Long-term Debt, Gross		167,000	164,000
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		$ 251,250
Secured Debt | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Description of Variable Rate Basis		LIBOR
Asset-based revolving facility
Debt Instrument [Line Items]
Long-term Debt, Gross	[1],[2]	$ 261,163	$ 250,557
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		$ 365,000
Long-term Debt, Weighted Average Interest Rate		3.89%	3.53%
Asset-based revolving facility | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Description of Variable Rate Basis		LIBOR
Line of Credit
Debt Instrument [Line Items]
Long-term Debt, Gross	[3]	$ 95,729	$ 101,402
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity	[3]	$ 171,000
Long-term Debt, Weighted Average Interest Rate		4.10%	3.51%
Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Description of Variable Rate Basis		LIBOR
Mortgages
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 97,433	$ 82,133
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		99,283
Mortgages | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Long-term Debt, Gross		203,779	158,618
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		$ 206,074
Debt Instrument, Description of Variable Rate Basis		LIBOR
Subordinated Debt
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 12,500	8,500
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		$ 20,000
Debt Instrument, Interest Rate, Stated Percentage		12.50%
Preferred trust securities
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 35,000	35,000
Long-term Debt, Other Disclosures [Abstract]
Debt instrument, maximum borrowing capacity		$ 35,000
Preferred trust securities | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Description of Variable Rate Basis		LIBOR
Preferred Notes Payable
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 1,386	$ 1,232
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Interest Rate, Stated Percentage		12.00%
Minimum | Secured Debt | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Minimum | Asset-based revolving facility | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate	[1],[2]	2.25%
Minimum | Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate	[3]	2.50%
Minimum | Mortgages
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		4.00%
Minimum | Mortgages | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		2.05%
Maximum | Secured Debt | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		6.50%
Maximum | Asset-based revolving facility | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate	[1],[2]	5.75%
Maximum | Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate	[3]	2.75%
Maximum | Mortgages
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		5.12%
Maximum | Mortgages | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		6.95%
Maximum | Preferred trust securities
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Interest Rate, Stated Percentage		4.10%
Luxury Mortgage Corp | Line of Credit
Long-term Debt, Other Disclosures [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity		$ 171,000
Luxury Mortgage Corp | Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Description of Variable Rate Basis		LIBOR
Luxury Mortgage Corp | Minimum | Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Debt Instrument, Interest Rate, Effective Percentage		3.00%
Luxury Mortgage Corp | Maximum | Line of Credit | London Interbank Offered Rate (LIBOR)
Long-term Debt, Other Disclosures [Abstract]
Debt Instrument, Basis Spread on Variable Rate		2.75%

[1] Asset based revolving financing is generally recourse only to specific assets and related cash flows.

[2] The weighted average coupon rate for asset based revolving financing was 3.89% and 3.53% at September 30, 2017 and December 31, 2016, respectively.

[3] The weighted average coupon rate for residential mortgage warehouse borrowings was 4.10% and 3.51% at September 30, 2017 and December 31, 2016, respectively. Includes debt having a maximum borrowing capacity of $171,000 with a stated interest rate of LIBOR + 2.50% to LIBOR +2.75% and a floor of 3.00%.

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Debt, net Table of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Interest expense	$ 10,427	$ 7,769	$ 28,650	$ 20,612

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Debt, net Table of Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Remainder of 2017	$ 8,689
2018	182,173
2019	267,685
2020	121,514
2021	21,899
Thereafter	272,030
Total	$ 873,990	$ 801,442

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Debt, net Narrative (Details) $ in Thousands							1 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
		Jun. 14, 2017 USD ($) Rate	May 31, 2017 USD ($) unit Rate	Apr. 18, 2017 USD ($) Rate	Feb. 09, 2017 USD ($) Rate	Feb. 03, 2017 USD ($) Rate	Sep. 30, 2017 USD ($) unit Rate	Sep. 30, 2017 USD ($) unit Rate	Aug. 27, 2017 USD ($) Rate	Sep. 30, 2017 USD ($) unit Rate	Dec. 31, 2016 USD ($)	Jun. 01, 2013 USD ($)
Debt Instrument [Line Items]
Long-term Debt, Gross							$ 873,990	$ 873,990		$ 873,990	$ 801,442
Secured Debt
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							251,250	251,250		251,250
Long-term Debt, Gross							167,000	167,000		167,000	164,000
Asset-based revolving facility
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							365,000	365,000		365,000
Long-term Debt, Gross	[1],[2]						261,163	261,163		261,163	250,557
Line of Credit
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity	[3]						171,000	171,000		171,000
Long-term Debt, Gross	[3]						95,729	95,729		95,729	101,402
Mortgages
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							99,283	99,283		99,283
Long-term Debt, Gross							97,433	97,433		97,433	82,133
Subordinated Debt
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							20,000	20,000		20,000
Long-term Debt, Gross							$ 12,500	$ 12,500		$ 12,500	8,500
Debt Instrument, Interest Rate, Stated Percentage | Rate							12.50%	12.50%		12.50%
Preferred trust securities
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							$ 35,000	$ 35,000		$ 35,000
Long-term Debt, Gross							35,000	35,000		35,000	35,000
Specialty Insurance | Asset-based revolving facility
Debt Instrument [Line Items]
Line of Credit, Maximum Borrowing Capacity, Matured, Amount								15,000
Line of Credit Facility, Maximum Borrowing Capacity							25,000	25,000		25,000
Specialty Finance Segment | Asset-based revolving facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							150,000	150,000	$ 125,000	150,000
Specialty Finance Segment | Line of Credit
Debt Instrument [Line Items]
Increase in maximum borrowing capacity											18,000
Line of Credit Facility, Maximum Borrowing Capacity							$ 70,000	$ 70,000		$ 70,000	88,000
Number of credit agreements | unit							6	6		6
Specialty Finance Segment | First uncommitted credit agreement | Line of Credit
Debt Instrument [Line Items]
Number of credit agreements | unit							3	3		3
Senior Living Segment | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Term		5 years	3 years	5 years	35 years	5 years
Interest only payment term, in months						12 months
Long-term Debt, Gross		$ 9,150	$ 28,800	$ 7,000	$ 7,586	$ 10,000						$ 8,072
Debt Instrument, Interest Rate, Stated Percentage | Rate		4.60%			3.08%
Minimum | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										4.00%
Maximum | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										5.12%
Maximum | Preferred trust securities
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage | Rate							4.10%	4.10%		4.10%
London Interbank Offered Rate (LIBOR) | Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis										LIBOR
London Interbank Offered Rate (LIBOR) | Asset-based revolving facility
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis										LIBOR
London Interbank Offered Rate (LIBOR) | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis										LIBOR
London Interbank Offered Rate (LIBOR) | Mortgages
Debt Instrument [Line Items]
Debt instrument, maximum borrowing capacity							$ 206,074	$ 206,074		$ 206,074
Debt Instrument, Description of Variable Rate Basis										LIBOR
Long-term Debt, Gross							$ 203,779	$ 203,779		$ 203,779	$ 158,618
London Interbank Offered Rate (LIBOR) | Preferred trust securities
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis										LIBOR
London Interbank Offered Rate (LIBOR) | Asset Management Segment | Asset-based revolving facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate							2.25%		2.50%
London Interbank Offered Rate (LIBOR) | Specialty Insurance | Asset-based revolving facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										2.60%
London Interbank Offered Rate (LIBOR) | Senior Living Segment | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate						3.75%
London Interbank Offered Rate (LIBOR) | Minimum | Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										2.50%
London Interbank Offered Rate (LIBOR) | Minimum | Asset-based revolving facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	[1],[2]									2.25%
London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	[3]									2.50%
London Interbank Offered Rate (LIBOR) | Minimum | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										2.05%
London Interbank Offered Rate (LIBOR) | Minimum | Senior Living Segment | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate			6.95%	3.00%		2.75%
London Interbank Offered Rate (LIBOR) | Maximum | Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										6.50%
London Interbank Offered Rate (LIBOR) | Maximum | Asset-based revolving facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	[1],[2]									5.75%
London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	[3]									2.75%
London Interbank Offered Rate (LIBOR) | Maximum | Mortgages
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate										6.95%
2017 Acquisitions
Debt Instrument [Line Items]
Number of Real Estate Properties | unit							2	2		2
Real Estate Investment | 2017 Acquisitions
Debt Instrument [Line Items]
Number of Real Estate Properties | unit							10	10		10
Real Estate Investment | 2017 Acquisitions | Senior Living Segment
Debt Instrument [Line Items]
Number of Real Estate Properties | unit			7

[1] Asset based revolving financing is generally recourse only to specific assets and related cash flows.

[2] The weighted average coupon rate for asset based revolving financing was 3.89% and 3.53% at September 30, 2017 and December 31, 2016, respectively.

[3] The weighted average coupon rate for residential mortgage warehouse borrowings was 4.10% and 3.51% at September 30, 2017 and December 31, 2016, respectively. Includes debt having a maximum borrowing capacity of $171,000 with a stated interest rate of LIBOR + 2.50% to LIBOR +2.75% and a floor of 3.00%.

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Fair Value of Financial Instruments Table of Fair Value Hierarchies for Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real Estate Acquired Through Foreclosure		$ 13,079	$ 13,366
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		164,093	146,171
Loans Receivable, Fair Value Disclosure		323,122	373,089
Asset derivatives		26,563	36,669
Trading assets		28,106	48,612
Total other investments		27,191	25,467
Liabilities, Fair Value Disclosure [Abstract]
Total derivative liabilities (included in other liabilities and accrued expenses)		709	1,398
Liability derivatives		4,451	15,899
Significant unobservable inputs Level 3
Assets, Fair Value Disclosure [Abstract]
Total assets	[1]	51,517	79,795
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities	[2]	1,438	3,084
Recurring | Quoted prices in active markets Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets		29,617	50,243
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		0	0
Recurring | Other significant observable inputs Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets		461,655	674,274
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		709	1,398
Recurring | Significant unobservable inputs Level 3
Assets, Fair Value Disclosure [Abstract]
Total assets		394,622	797,062
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		328,154	915,118
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		1,511	1,631
Loans Receivable, Fair Value Disclosure		0	0
Mortgage loans held for sale		0	0
Asset derivatives		0	0
Total other investments		0	0
Total assets		29,617	50,243
Liabilities, Fair Value Disclosure [Abstract]
Total derivative liabilities (included in other liabilities and accrued expenses)		0	0
Preferred notes payable		0	0
Total financial instruments attributable to Non-CLOs included in consolidated liabilities			0
Total liabilities		0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Interest Rate Swap
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Forward Delivery Contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives			0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Interest Rate Lock Commitments
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Foreign currency forward contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Contingent Consideration Payable
Liabilities, Fair Value Disclosure [Abstract]
Contingent consideration payable		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Equity securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		615	736
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Obligations of states and political subdivisions
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Obligations of foreign governments
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Certificates of deposit
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		896	895
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Asset-backed Securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Corporate Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Nonperforming Financial Instruments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Trading Securities
Assets, Fair Value Disclosure [Abstract]
Trading assets		28,106	48,612
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Other Loans Receivable
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Interest Rate Swap
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Credit Derivatives
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Forward Delivery Contracts
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | CLOs
Assets, Fair Value Disclosure [Abstract]
Trading assets		0	0
Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Other Investments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		162,535	144,492
Loans Receivable, Fair Value Disclosure		147,888	167,791
Mortgage loans held for sale		114,461	121,439
Asset derivatives		14,652	15,664
Total other investments		18,609	19,621
Total assets		329,032	331,904
Liabilities, Fair Value Disclosure [Abstract]
Total derivative liabilities (included in other liabilities and accrued expenses)		709	1,398
Preferred notes payable		0	0
Total financial instruments attributable to Non-CLOs included in consolidated liabilities			1,398
Total liabilities		709
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Interest Rate Swap
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		426	1,042
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Forward Delivery Contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives			84
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Interest Rate Lock Commitments
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		283	269
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Foreign currency forward contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	3
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Contingent Consideration Payable
Liabilities, Fair Value Disclosure [Abstract]
Contingent consideration payable		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Equity securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		36,354	26,799
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Obligations of states and political subdivisions
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		47,633	56,934
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Obligations of foreign governments
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		579	728
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Certificates of deposit
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Asset-backed Securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		24,100	1,460
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		53,869	58,571
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Corporate Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		33,427	46,352
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Nonperforming Financial Instruments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Trading Securities
Assets, Fair Value Disclosure [Abstract]
Trading assets		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Other Loans Receivable
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Interest Rate Swap
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		1,284	1,388
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Credit Derivatives
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		13,035	12,598
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Forward Delivery Contracts
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		49
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | CLOs
Assets, Fair Value Disclosure [Abstract]
Trading assets		0	0
Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Other Investments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		3,957	3,957
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		47	48
Loans Receivable, Fair Value Disclosure		175,234	205,298
Mortgage loans held for sale		0	0
Asset derivatives		6,537	4,872
Total other investments		8,582	5,846
Total assets		183,863	211,192
Liabilities, Fair Value Disclosure [Abstract]
Total derivative liabilities (included in other liabilities and accrued expenses)		0	0
Preferred notes payable		1,386	1,232
Total financial instruments attributable to Non-CLOs included in consolidated liabilities			3,084
Total liabilities		1,438
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Interest Rate Swap
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Forward Delivery Contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives			0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Interest Rate Lock Commitments
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Foreign currency forward contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Contingent Consideration Payable
Liabilities, Fair Value Disclosure [Abstract]
Contingent consideration payable		52	1,852
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Equity securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		47	48
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Obligations of states and political subdivisions
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Obligations of foreign governments
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Certificates of deposit
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Asset-backed Securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Corporate Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		129,085	129,206
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Nonperforming Financial Instruments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		44,980	74,923
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Trading Securities
Assets, Fair Value Disclosure [Abstract]
Trading assets		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Other Loans Receivable
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		1,169	1,169
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Interest Rate Swap
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		6,537	4,872
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Credit Derivatives
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Forward Delivery Contracts
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | CLOs
Assets, Fair Value Disclosure [Abstract]
Trading assets		2,045	974
Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Other Investments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Primary beneficiary | Recurring | Quoted prices in active markets Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets		0	0
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		0	0
Primary beneficiary | Recurring | Quoted prices in active markets Level 1 | CLOs
Liabilities, Fair Value Disclosure [Abstract]
Notes Payable, Fair Value Disclosure		0	0
Primary beneficiary | Recurring | Quoted prices in active markets Level 1 | Investment in Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		0	0
Primary beneficiary | Recurring | Other significant observable inputs Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets		132,623	342,370
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		0	0
Primary beneficiary | Recurring | Other significant observable inputs Level 2 | CLOs
Liabilities, Fair Value Disclosure [Abstract]
Notes Payable, Fair Value Disclosure		0	0
Primary beneficiary | Recurring | Other significant observable inputs Level 2 | Investment in Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		132,623	342,370
Primary beneficiary | Recurring | Significant unobservable inputs Level 3
Assets, Fair Value Disclosure [Abstract]
Total assets		210,759	585,870
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		326,716	912,034
Primary beneficiary | Recurring | Significant unobservable inputs Level 3 | CLOs
Liabilities, Fair Value Disclosure [Abstract]
Notes Payable, Fair Value Disclosure		326,716	912,034
Primary beneficiary | Recurring | Significant unobservable inputs Level 3 | Investment in Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		210,759	585,870
Fair Value | Other significant observable inputs Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets		19,310	28,293
Fair Value | Significant unobservable inputs Level 3
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		876,444	798,806
Fair Value | Recurring
Assets, Fair Value Disclosure [Abstract]
Total assets		885,894	1,521,579
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		328,863	916,516
Fair Value | Non-Collateralized Loans Obligations | Recurring
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		164,093	146,171
Loans Receivable, Fair Value Disclosure		323,122	373,089
Mortgage loans held for sale		114,461	121,439
Asset derivatives		21,189	20,536
Total other investments		27,191	25,467
Total assets		542,512	593,339
Liabilities, Fair Value Disclosure [Abstract]
Total derivative liabilities (included in other liabilities and accrued expenses)		709	1,398
Preferred notes payable		1,386	1,232
Total financial instruments attributable to Non-CLOs included in consolidated liabilities			4,482
Total liabilities		2,147
Fair Value | Non-Collateralized Loans Obligations | Recurring | Interest Rate Swap
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		426	1,042
Fair Value | Non-Collateralized Loans Obligations | Recurring | Forward Delivery Contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives			84
Fair Value | Non-Collateralized Loans Obligations | Recurring | Interest Rate Lock Commitments
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		283	269
Fair Value | Non-Collateralized Loans Obligations | Recurring | Foreign currency forward contracts
Liabilities, Fair Value Disclosure [Abstract]
Liability derivatives		0	3
Fair Value | Non-Collateralized Loans Obligations | Recurring | Contingent Consideration Payable
Liabilities, Fair Value Disclosure [Abstract]
Contingent consideration payable		52
Fair Value | Non-Collateralized Loans Obligations | Recurring | Equity securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		662	784
Fair Value | Non-Collateralized Loans Obligations | Recurring | U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		36,354	26,799
Fair Value | Non-Collateralized Loans Obligations | Recurring | Obligations of states and political subdivisions
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		47,633	56,934
Fair Value | Non-Collateralized Loans Obligations | Recurring | Obligations of foreign governments
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		579	728
Fair Value | Non-Collateralized Loans Obligations | Recurring | Certificates of deposit
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		896	895
Fair Value | Non-Collateralized Loans Obligations | Recurring | Asset-backed Securities
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		24,100	1,460
Fair Value | Non-Collateralized Loans Obligations | Recurring | Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Investments in available for sale securities		53,869	58,571
Fair Value | Non-Collateralized Loans Obligations | Recurring | Corporate Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		162,512	175,558
Fair Value | Non-Collateralized Loans Obligations | Recurring | Nonperforming Financial Instruments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		44,980	74,923
Fair Value | Non-Collateralized Loans Obligations | Recurring | Trading Securities
Assets, Fair Value Disclosure [Abstract]
Trading assets		28,106	48,612
Fair Value | Non-Collateralized Loans Obligations | Recurring | Other Loans Receivable
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		1,169	1,169
Fair Value | Non-Collateralized Loans Obligations | Recurring | Interest Rate Swap
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		1,284	1,388
Fair Value | Non-Collateralized Loans Obligations | Recurring | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		6,537	4,872
Fair Value | Non-Collateralized Loans Obligations | Recurring | Credit Derivatives
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		13,035	12,598
Fair Value | Non-Collateralized Loans Obligations | Recurring | Forward Delivery Contracts
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		49
Fair Value | Non-Collateralized Loans Obligations | Recurring | CLOs
Assets, Fair Value Disclosure [Abstract]
Trading assets		2,045	974
Fair Value | Non-Collateralized Loans Obligations | Recurring | Other Investments
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		3,957	3,957
Fair Value | Primary beneficiary | Recurring
Assets, Fair Value Disclosure [Abstract]
Total assets		343,382	928,240
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		326,716	912,034
Fair Value | Primary beneficiary | Recurring | CLOs
Liabilities, Fair Value Disclosure [Abstract]
Notes Payable, Fair Value Disclosure		326,716	912,034
Fair Value | Primary beneficiary | Recurring | Investment in Loans
Assets, Fair Value Disclosure [Abstract]
Loans Receivable, Fair Value Disclosure		343,382	928,240
Mortgage Backed Securities, Other | Non-Collateralized Loans Obligations | Recurring | Quoted prices in active markets Level 1 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Mortgage Backed Securities, Other | Non-Collateralized Loans Obligations | Recurring | Other significant observable inputs Level 2 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		284	1,678
Mortgage Backed Securities, Other | Non-Collateralized Loans Obligations | Recurring | Significant unobservable inputs Level 3 | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		0	0
Mortgage Backed Securities, Other | Fair Value | Non-Collateralized Loans Obligations | Recurring | Interest Rate Lock Commitments
Assets, Fair Value Disclosure [Abstract]
Asset derivatives		$ 284	$ 1,678

[1] Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

[2] Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

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Fair Value of Financial Instruments Table of Level 3 Rollforward, Assets Measured on Recurring Basis Utilizing Level 3 Inputs (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1,		$ 211,192	$ 239,944	[1]
Net realized gains/(losses)		7,279	4,450	[1]
Net unrealized gains/(losses)		2,800	5,482	[1]
Issuances		590	1,716	[1]
Purchases		41,458	101,161	[1]
Sales	[2]	(74,010)	(56,824)	[1]
Transfer adjustments (out of) Level 3	[3]	(7,641)	(15,280)	[1]
Transfers into Level 3	[3]	9,286	23,184	[1]
Balance at September 30,		183,863	191,623	[1]
Assets, Fair Value Disclosure [Abstract]
Fair value,measurement with unobservable inputs reconciliation,changes in unrealized gains included in earnings related to assets still held at period end		4,790	4,023
Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1,		585,870	520,892	[1]
Net realized gains/(losses)		(1,667)	402	[1]
Net unrealized gains/(losses)		89	15,584	[1]
Issuances		676	1,546	[1]
Purchases		76,122	157,144	[1]
Sales	[2]	(193,205)	(72,612)	[1]
Transfer adjustments (out of) Level 3	[3]	(23,427)	(66,215)	[1]
Transfers into Level 3	[3]	17,601	32,858	[1]
Balance at September 30,		210,759	693,697	[1]
Assets, Fair Value Disclosure [Abstract]
Fair value,measurement with unobservable inputs reconciliation,changes in unrealized gains included in earnings related to assets still held at period end		(168)	11,325
Other real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		(9,793)	(10,288)	[1]
Other real estate | Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		0	0	[1]
Mortgage Loans Held for Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		(53,069)	(36,378)	[1]
Mortgage Loans Held for Sale | Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		0	0	[1]
CLOs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		0	(104,098)	[1]
Deconsolidation of CLO due to sale		1,342	0	[1]
CLOs | Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfers into Level 3		0	104,098	[1]
Deconsolidation of CLO due to sale		(251,300)	0	[1]
Other Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		(39)	0	[1]
Other Assets | Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer adjustments (out of) Level 3		0	0	[1]
Interest Rate Lock Commitments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Issuances		54,468	38,554	[1]
Interest Rate Lock Commitments | Primary beneficiary
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Issuances		$ 0	$ 0	[1]

[1] Items within the Level 3 rollforward have been restated to reflect assets purchased during a period as purchases rather than transfers. The presentation of gross origination of IRLC’s and gross conversion to mortgage held for sale have also been restated to show the break out from net realized and unrealized gains and losses, conversion to real estate owned, and transfers out of Level 3 assets. These changes have no impact on the total amount of Level 3 assets.

[2] Included within the CLO assets amount are sales related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

[3] All transfers are deemed to occur at end of period. Transfers between Level 2 and 3 were a result of subjecting third-party pricing on both CLO and Non-CLO assets to various liquidity, depth, bid-ask spread and benchmarking criteria as well as assessing the availability of observable inputs affecting their fair valuation.

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Fair Value of Financial Instruments Table of Level 3 Rollforward, Liabilities Measured on Recurring Basis Utilizing Level 3 Inputs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1,	$ 3,084		$ 2,498
Net unrealized (gains) losses	0		(262)
Issuances	0		0
Settlements (1)	(4,838)		(377)
Dispositions	0		0
Net realized gains (losses)	3,192		0
Balance at September 30,	1,438		1,859
Liabilities, Fair Value Disclosure [Abstract]
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end	154		(262)
Primary beneficiary
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at January 1,	912,034		683,827
Net unrealized (gains) losses	(3,071)		23,169
Issuances	0		222,303
Settlements (1)	(155,194)	[1]	0
Dispositions	49,010		1,317
Net realized gains (losses)	0		0
Balance at September 30,	326,716		927,982
Liabilities, Fair Value Disclosure [Abstract]
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end	(6,119)		23,169
Liabilities of Consolidated CLOs | Primary beneficiary
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Deconsolidation of CLO due to sale	(378,043)		0
CLOs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Deconsolidation of CLO due to sale	$ 0		$ 0

[1] Included within the CLO liabilities amount are settlements related to the liquidation of a consolidated CLO during the nine months ended September 30, 2017.

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Fair Value of Financial Instruments Table of Significant Observable Inputs used in the Valuation of Level 3 Assets(Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset derivatives		$ 26,563	$ 36,669
Loans Receivable, Fair Value Disclosure		323,122	373,089
Significant unobservable inputs Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total	[1]	51,517	79,795
Significant unobservable inputs Level 3 | Interest Rate Lock Commitments | Internal Model
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset derivatives	[1]	$ 6,537	$ 4,872
Significant unobservable inputs Level 3 | Interest Rate Lock Commitments | Internal Model | Minimum
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Assumptions, Pull Through Rate		45.00%	45.00%
Significant unobservable inputs Level 3 | Interest Rate Lock Commitments | Internal Model | Maximum
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Assumptions, Pull Through Rate		95.00%	95.00%
Nonperforming Financial Instruments | Significant unobservable inputs Level 3 | Investment in Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loans Receivable, Fair Value Disclosure	[1]	$ 44,980	$ 74,923

[1] Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

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Fair Value of Financial Instruments Table of Significant Observable Inputs used in the Valuation of Nonperforming Loans (Details) - Nonperforming Financial Instruments - Investment in Loans - Significant unobservable inputs Level 3 - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate		30.00%	30.00%
Loan resolution time-line (Years)		2 years 7 months 2 days	2 years 3 months 17 days
Value of underlying properties		$ 2,400	$ 1,800
Holding costs		22.00%	24.10%
Liquidation costs		20.80%	25.00%
Fair Value Inputs, Note Rate		6.00%	6.00%
Secondary market transaction prices/UPB		88.50%	88.50%
Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate		16.00%	16.00%
Loan resolution time-line (Years)		5 months 23 days	5 months 30 days
Value of underlying properties		$ 40	$ 32
Holding costs		5.50%	5.40%
Liquidation costs		8.10%	8.50%
Fair Value Inputs, Note Rate		3.00%	3.00%
Secondary market transaction prices/UPB		75.50%	75.50%
Weighted Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	[1]	23.20%	22.90%
Loan resolution time-line (Years)	[1]	1 year 3 months 3 days	1 year 2 months 12 days
Value of underlying properties	[1]	$ 307	$ 234
Holding costs	[1]	7.70%	8.30%
Liquidation costs	[1]	9.40%	9.60%
Fair Value Inputs, Note Rate	[1]	5.20%	4.80%
Secondary market transaction prices/UPB	[1]	85.20%	83.70%

[1] Weighted based on value of underlying properties (excluding the value of underlying properties line item).

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Fair Value of Financial Instruments Table of Significant Observable Inputs used in the Valuation of Level 3 Liabilities (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2017		Dec. 31, 2016
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Total liabilities	[1]	$ 1,438		$ 3,084
Preferred Notes Payable | Cash Flow Model
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Preferred notes payable	[1]	1,386		1,232
Reliance | Other Liabilities | Cash Flow Model
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration payable	[1]	0	[2]	1,800
Luxury Mortgage Corp | Other Liabilities | Cash Flow Model
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration payable	[1]	52		52
Minimum | Reliance | Other Liabilities | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Inputs, Earnings Before Interest, Taxes, Depreciation and Amortization	[3]	1,000		$ 951
Fair Value Inputs, Asset Volatility	[3]			1.40%
Minimum | Luxury Mortgage Corp | Other Liabilities | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Inputs, Projected Cash Available for Distributions		1,059		$ 1,059
Maximum | Reliance | Other Liabilities | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Inputs, Earnings Before Interest, Taxes, Depreciation and Amortization	[3]	8,000		$ 6,005
Fair Value Inputs, Asset Volatility	[3]			23.70%
Maximum | Luxury Mortgage Corp | Other Liabilities | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Inputs, Projected Cash Available for Distributions		$ 1,316		$ 1,316
Weighted Average | Preferred Notes Payable | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Discount rate		12.00%		12.00%
Weighted Average | Reliance | Other Liabilities | Cash Flow Model
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Fair Value Inputs, Book Value Growth Rate	[3]			5.00%

[1] Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

[2] Settled in Q3 2017 with Class A common shares. See Note—(17) Stockholders’ Equity.

[3] Monte Carlo simulation is run, as needed.

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Fair Value of Financial Instruments Table of Fair Values and Carrying Values of Assets and Liabilities (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Assets, Fair Value Disclosure [Abstract]
Notes receivable, net		$ 19,310	$ 24,775
Fair Value, Inputs, Level 2 | Fair Value
Assets, Fair Value Disclosure [Abstract]
Notes receivable, net		19,310	28,293
Total assets		19,310	28,293
Fair Value, Inputs, Level 2 | Carrying value
Assets, Fair Value Disclosure [Abstract]
Notes receivable, net		19,310	28,732
Total assets		19,310	28,732
Fair Value, Inputs, Level 3
Assets, Fair Value Disclosure [Abstract]
Total assets	[1]	51,517	79,795
Liabilities, Fair Value Disclosure [Abstract]
Debt, net		872,133	799,828
Total liabilities	[2]	1,438	3,084
Fair Value, Inputs, Level 3 | Fair Value
Liabilities, Fair Value Disclosure [Abstract]
Debt, net		876,444	798,806
Total liabilities		876,444	798,806
Fair Value, Inputs, Level 3 | Carrying value
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities		$ 872,133	$ 799,828

[1] Financial assets classified as Level 3 and fair valued using significant unobservable inputs classified as Level 3 have not been provided as these are not readily available to the Company (including servicing release premium for interest rate lock commitments and forward delivery contracts).

[2] Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—(10) Assets and Liabilities of Consolidated CLOs.

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Liability for Unpaid Claims and Claim Adjustment Expenses Schedule of Net Liability for Unpaid Losses and Loss Adjustment Expenses of Short-Duration Contracts - Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Policy liabilities and unpaid claims balance at January 1			$ 103,391	$ 80,663
Policyholder Funds			(17,417)	(19,037)
Non-insurance warranty benefit claim liabilities			(91)	(116)
Liability for Claims and Claims Adjustment Expense			85,883	61,510
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net			22,563	19,006
Policyholder Benefits and Claims Incurred [Abstract]
Current Year Claims and Claims Adjustment Expense			78,174	55,461
Prior Year Claims and Claims Adjustment Expense			2,958	(1,987)
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims	$ 27,236	$ 19,247	81,132	53,474
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year			57,875	34,822
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years			20,600	13,992
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid			78,475	48,814
Liability for Claims and Claims Adjustment Expense	95,226	84,066	95,226	84,066
Policyholder Funds	(15,652)	(17,766)	(15,652)	(17,766)
Non-insurance warranty benefit claim liabilities	(50)	(80)	(50)	(80)
Policy liabilities and unpaid claims balance as of September 30,	110,928	101,912	110,928	101,912
Other Short-duration Insurance Product Line [Member]
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments			(63,112)	(42,341)
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net	25,220	23,666	25,220	23,666
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments	(69,813)	(60,236)	(69,813)	(60,236)
Other Insurance Product Line [Member]
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments			(208)	(163)
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments	$ (193)	$ (164)	$ (193)	$ (164)

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Liability for Unpaid Claims and Claim Adjustment Expenses Reconciliation of Short Duration Contracts to Total Losses Incurred (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Insurance [Abstract]
Total incurred	$ 27,236	$ 19,247	$ 81,132	$ 53,474
Other lines incurred	81	44	78	74
Unallocated loss adjustment expense	441	623	1,343	1,554
Net losses and LAE incurred	$ 27,758	$ 19,914	$ 82,553	$ 55,102

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Liability for Unpaid Claims and Claim Adjustment Expenses Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Prior Year Claims and Claims Adjustment Expense	$ 2,958	$ 1,987
Non-Standard Auto
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount	1,772	1,644
Warranty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount	$ 1,852	$ 1,328

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Other Assets Table of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Due from brokers	$ 1,505	$ 2,027
Furniture, fixtures and equipment, net	5,669	5,936
Prepaid expenses	9,441	5,020
Interest Receivable	3,154	2,052
Management Fee Receivable	4,375	4,308
Accrued Fees and Other Revenue Receivable	5,159	5,022
Income tax receivable	4,140	4,842
Other	15,101	8,679
Total other assets	$ 48,544	$ 37,886

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Other Assets Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Depreciation	$ 656	$ 667	$ 1,883	$ 1,978

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Other Assets Table of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Depreciation	$ 656	$ 667	$ 1,883	$ 1,978

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Other Liabilities and Accrued Expenses Table of Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accounts payable and accrued expenses	$ 46,544	$ 67,837
Deferred tax liabilities, net	30,789	32,296
Due to broker and trustee	7,733	8,457
Commissions payable	11,007	7,466
Accrued interest payable	2,127	1,729
Trading liabilities, at fair value	709	1,398
Other liabilities	16,949	14,552
Total other liabilities and accrued expenses	$ 115,858	$ 133,735

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Other Income and Other Expenses Table of Other Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Interest Income, Other	$ 5,254	$ 4,215	$ 14,439	$ 13,455
Loan fee income	3,201	3,915	9,451	9,296
Management fee income	1,541	3,839	6,578	7,497
Other Nonoperating Income	1,383	450	3,352	1,477
Other income	$ 11,379	$ 12,419	$ 33,820	$ 31,725

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Other Income and Other Expenses Table of Other Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Professional Fees	$ 4,506	$ 5,283	$ 13,980	$ 17,581
Acquisition and transaction costs	25	248	302	631
Selling, General and Administrative Expense	4,015	3,178	11,552	10,788
Taxes, Other	2,810	1,637	8,840	5,480
Loan Processing Fee	2,406	2,308	6,728	5,944
Cost of Other Property Operating Expense	2,635	1,854	7,798	5,439
Rent and related	2,992	3,091	8,998	9,189
Other Nonoperating Expense	3,775	4,087	15,182	13,299
Other expenses	$ 23,164	$ 21,686	$ 73,380	$ 68,351

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Stockholders' Equity Stockholders’ Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands				9 Months Ended
	Aug. 10, 2017	Jun. 21, 2017	Jun. 05, 2017	Sep. 30, 2017	Sep. 30, 2016
Class of Stock [Line Items]
Treasury Stock, Value, Acquired, Cost Method				$ 7,300	$ 42,532
Common Stock - Class A
Class of Stock [Line Items]
Warrants and Rights Outstanding				652,500
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 11.33
Option Indexed to Issuer's Equity, Shares			1,510,920
Proceeds from Issuance of Common Stock			$ 8,100
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued	756,046
Treasury Stock | Common Stock - Class A
Class of Stock [Line Items]
Treasury Stock, Shares, Acquired		1,000,000		1,000,000	6,596,000
Treasury Stock, Value, Acquired, Cost Method		$ 7,300		$ 7,300	$ 42,524

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Stockholders' Equity Table of Declared Cash Dividends Per Share (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Common Stock - Class A
Dividends, Common Stock [Abstract]
Dividends declared per share	$ 0.030	$ 0.030	$ 0.030	$ 0.025	$ 0.025	$ 0.025	$ 0.090	$ 0.075

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Stockholders' Equity Table of Statutory Insurance Ordinary and Extraordinary Dividends Paid (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Insurance [Abstract]
Statutory Accounting Practices, Dividends Paid not needing the Approval of Regulatory Agency	$ 0	$ 0	$ 0	$ 0
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency	0	0	0	0
Statutory Accounting Practices, Dividends Paid, Total	$ 0	$ 0	$ 0	$ 0

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Stockholders' Equity Table of Statutory Insurance - Capital Requirements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Insurance [Abstract]
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	$ 108,666	$ 100,920
Statutory Accounting Practices, Statutory Capital and Surplus Required	19,200	17,200
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval	$ 9,425	$ 9,049

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Stockholders' Equity Table of Statutory Insurance Companies Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Insurance [Abstract]
Statutory Accounting Practices, Statutory Net Income Amount	$ 391	$ 4,199	$ 6,745	$ 10,326

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Accumulated Other Comprehensive Income (Loss) Schedule of Activity in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			$ 555
Period change	$ (56)	$ (751)	774	$ 1,350
Ending balance	1,223		1,223
Available for sale securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(700)	(222)
Other comprehensive gain (loss) before reclassification			1,165	2,448
Amounts reclassified from AOCI			(238)	(715)
Period change			927	1,733
Ending balance	227	1,511	227	1,511
Interest rate swaps
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			1,759	111
Other comprehensive gain (loss) before reclassification			(296)	(357)
Amounts reclassified from AOCI			143	(26)
Period change			(153)	(383)
Ending balance	1,606	(272)	1,606	(272)
Total AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			1,059	(111)
Other comprehensive gain (loss) before reclassification			869	2,091
Amounts reclassified from AOCI			(95)	(741)
Period change			774	1,350
Ending balance	1,833	1,239	1,833	1,239
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			555	(111)
Other comprehensive gain (loss) before reclassification			763	1,883
Amounts reclassified from AOCI			(95)	(741)
Period change			668	1,142
Ending balance	1,223	1,031	1,223	1,031
Tiptree Financial Partners, L.P. | Noncontrolling interest
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(128)	0
Other comprehensive gain (loss) before reclassification			(154)	(237)
Amounts reclassified from AOCI			0	0
Period change			(154)	(237)
Ending balance	(282)	(237)	(282)	(237)
Noncontrolling interests - other | Noncontrolling interest
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance			(376)	0
Other comprehensive gain (loss) before reclassification			48	29
Amounts reclassified from AOCI			0	0
Period change			48	29
Ending balance	$ (328)	$ 29	$ (328)	$ 29

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Accumulated Other Comprehensive Income (Loss) Schedule of Reclassifications Out of AOCI into Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Related tax (expense) benefit	$ 2,052	$ (3,712)	$ 2,761	$ (5,298)
Income (loss)	(3,378)	7,838	(7,360)	22,273
Available for sale securities | Amount reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on available for sale securities	394	960	367	1,100
Related tax (expense) benefit	(138)	(336)	(129)	(385)
Income (loss)	256	624	238	715
Interest rate swaps | Amount reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on interest rate swaps	25	(172)	(212)	56
Related tax (expense) benefit	(8)	54	69	(30)
Income (loss)	$ 17	$ (118)	$ (143)	$ 26
Interest Expense
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI			Interest expense
Provision for income taxes
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI			Provision for income tax

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Stock Based Compensation Equity Plans Narrative (Details) - shares		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2017	Jun. 06, 2017	Dec. 31, 2016
Care Investment Trust Inc. 2007 Manager Equity Plan | Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				134,629
Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Tiptree Financial Inc. 2017 Omnibus Incentive Plan | Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				6,100,000
Stock Compensation Plan | Tiptree Financial Inc. 2013 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	[1]		0	7,359	961,650
Stock Compensation Plan | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	[1]		6,028,984		0

[1] (1) Excludes shares granted under the Company’s subsidiary incentive plans that are exchangeable for Tiptree Class A common stock.

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Stock Based Compensation Table of Changes to Equity Plan (Details)	9 Months Ended
	Sep. 30, 2017 shares	[1]
Stock Compensation Plan | Tiptree Financial Inc. 2013 Omnibus Incentive Plan
Options outstanding
Beginning	961,650
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	(954,291)
Share increase (decrease) (in shares)	7,359
Ending	0
Stock Compensation Plan | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Options outstanding
Beginning	0
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	(71,016)
Ending	6,028,984
Common Stock - Class A | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Options outstanding
Share increase (decrease) (in shares)	6,100,000

[1] (1) Excludes shares granted under the Company’s subsidiary incentive plans that are exchangeable for Tiptree Class A common stock.

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Stock Based Compensation Table of Changes to Restricted Stock Units and Restricted Stock (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Shares Paid for Tax Withholding for Share Based Compensation	16,716
Director | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Granted	27,192
Employees | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Granted	427,488
Three year vesting period, Starting April 2017 [Member] | Employees | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Granted	142,175
Three year vesting period, Starting February 2017 [Member] | Employees | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Amount vesting in February 2020 [Member] | Employees | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Granted	285,313
RSU’s and restricted stock vesting - first tranche
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
RSU’s and restricted stock vesting - second tranche
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
RSU’s and restricted stock vesting - third tranche
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Common Stock - Class A | Tiptree Financial Inc. 2013 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Unvested units at beginning of period	299,817
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested units at beginning of period | $ / shares	$ 6.27
Common Stock - Class A | Tiptree Financial Inc. 2017 Omnibus Incentive Plan
Number of shares issuable [Roll Forward]
Granted	454,680	[1]
Vested	(155,615)
Unvested units at end of period	598,882
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Granted | $ / shares	$ 6.60
Vested(1) | $ / shares	6.42
Unvested units at end of period | $ / shares	$ 6.48

[1] Includes grants of 27,192 shares of Class A common stock to directors.

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Stock Based Compensation Table of RSU’s under the Subsidiary Incentive Plans Rollforward (Details) - Subsidiary Incentive Plan - Restricted Stock Units (RSUs) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Nonvested Shares, If Converted | shares	1,093,139
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested balance as of December 31, 2016	$ 8,089
Vested	2,436
Grant value adjustment	(210)	[1]
Unvested balance as of September 30, 2017 (2)	$ 5,443	[2]

[1] Due to the approval of the 2017 Equity Plan, Tiptree changed the classification of the subsidiary RSU’s during the three months ended September 30, 2017 from liability to equity awards, because the Company expects to settle these awards in stock.

[2] The unvested balance translates to 1,093,139 shares of Class A common stock if converted as of September 30, 2017.

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Stock Based Compensation Table of Stock Options Valuation Assumptions (Details) - $ / shares	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Common Stock - Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared per share	$ 0.030	$ 0.030	$ 0.030	$ 0.025	$ 0.025	$ 0.025	$ 0.090	$ 0.075
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period							10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period							3 years
Share-based Compensation Arrangement by Share-based Payment Award, Term Requirement Where Weighted Average Stock Price Must Exceed Book Value									20 days
Share-based Compensation Arrangement by Share-based Payment Award, Term Requirement Where Weighted Average Stock Price Plus Sum of Actual Cash Dividends Paid Must Exceed as Exchanged Book Value							20 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Historical volatility							47.20%
Risk-free rate							2.44%
Expected term (years)							6 years 6 months
Employee Stock Option | Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate							1.80%

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Stock Based Compensation Table of Stock Option Activity Rollforward (Details) - Employee Stock Option	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Options outstanding
Balance at beginning of period | shares	251,237
Granted | shares	570,627
Balance at end of period | shares	821,864
Weighted average exercise price (in dollars per stock option)
Weighted average exercise price, beginning balance	$ 5.69
Granted	6.65
Weighted average exercise price, ending balance	6.36
Weighted average grant date value (in dollars per stock option)
Weighted average grant date value, beginning balance	2.62
Granted	2.91
Weighted average grant date value, ending balance	$ 2.82
Options Exercisable
Options Exercisable | shares	0
Options Exercisable | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term at September 30, 2017 (in years)	9 years 1 month 15 days

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Stock Based Compensation Table of Share-based Compensation Expense (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Income tax benefit		$ (401)	$ (236)	$ (1,509)	$ (599)
Net stock-based compensation expense		734	432	2,766	1,097
Payroll and employee commissions
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense		1,135	633	4,275	1,597
Professional fees expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	[1]	$ 0	$ 35	$ 0	$ 99

[1] Professional fees consist of the value of restricted stock units and options granted to persons providing services to the Company.

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Stock Based Compensation Table of Unrecognized Compensation Costs Related to Non-vested Awards (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 1,798
Weighted - average recognition period (in years)	3 years 1 month 15 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 9,176
Weighted - average recognition period (in years)	1 year 9 months

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Income Tax Disclosure [Abstract]
Total income tax expense	$ (2,052)		$ 3,712		$ (2,761)		$ 5,298
Effective Income Tax Rate Reconciliation, Percent	37.80%	[1]	32.30%	[1]	27.30%	[2]	19.20%	[3]
Effective Income Tax Rate Reconciliation, Excluding the Effect of Discrete Items, Percent					28.10%
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount							$ 4,044

[1] Bears a customary relationship to the federal statutory income tax rate.

[2] Lower than the federal statutory income tax rate, primarily due a change in fair value of a contingent consideration liability, an increase in a valuation allowance on net operating losses, and various other discrete items. The ETR for the nine months ended September 30, 2017 excluding the effect of discrete items was 28.1%, which is lower than the federal statutory income tax rate, primarily due to a state tax benefit and the effect of non-controlling interests at certain subsidiaries.

[3] Lower than the federal statutory income tax rate primarily due to $4,044 of discrete tax benefits for the period, primarily related to the tax restructuring that resulted in a consolidated corporate tax group effective January 1, 2016.

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Commitments and Contingencies Table of Contractual Obligations (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Contractual Obligation, Fiscal Year Maturity [Abstract]
Less than one year	$ 4,946
1-3 years	14,070
3-5 years	7,981
More than 5 years	11,972
Total	38,969
Other Liabilities, Unclassified [Abstract]
Letters of Credit Outstanding, Amount	400
Operating lease obligations
Operating lease obligations
Less than one year	4,946	[1]
1-3 years	14,070	[1]
3-5 years	7,981	[1]
More than 5 years	11,972	[1]
Total	$ 38,969	[1]

[1] Minimum rental obligations for Tiptree, Care, Siena, Luxury, Reliance and Fortegra office leases.

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Commitments and Contingencies Table of Rent Expense for the Company's Office Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Rent expense for office leases	$ 1,745	$ 1,630	$ 5,230	$ 4,820
Annual rent during first term of lease			$ 2,322
Initial term of leasing contract			5 years
Year following commencement when lease terms begin			1 year
Year of lease escalation			6 years
Annual rent following lease escalation			$ 2,520
Escalated lease term			5 years

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Earnings Per Share Table of Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ (3,378)	$ 7,838	$ (7,360)	$ 22,273
Net income from continuing operations attributable to non-controlling interests	(264)	1,933	(903)	4,680
Net income allocated to participating securities	0	60	0	148
Common Stock - Class A
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) available to Class A common stockholders	(3,114)	5,845	(6,457)	17,445
Net income (loss) attributable to Tiptree Inc. Class A common shares - diluted	$ (3,114)	$ 7,157	$ (6,457)	$ 17,297
Weighted Average Number of Shares Outstanding, Basic
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - basic	29,455,462	29,143,470	28,908,195	32,845,124
Weighted average number of incremental shares of Tiptree Inc. Class A common stock issuable from exchangeable interests and contingent considerations	0	8,087,180	0	67,392
Weighted Average Number of Shares Outstanding, Diluted
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - diluted	29,455,462	37,230,650	28,908,195	32,912,516
Basic:
Basic earnings per share	$ (0.11)	$ 0.20	$ (0.22)	$ 0.53
Diluted:
Diluted earnings per share	$ (0.11)	$ 0.19	$ (0.22)	$ 0.53
Securities of subsidiaries
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share	$ 0	$ (50)	$ 0	$ (148)
Adjustments to income relating to exchangeable interests, net of tax
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive Securities, Effect on Basic Earnings Per Share	$ 0	$ 1,362	$ 0	$ 0

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended						9 Months Ended
	Nov. 02, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Oct. 16, 2017
Subsequent Event
Subsequent Event [Line Items]
Junior Subordinated Notes										$ 125,000
Debt Instrument, Interest Rate, Stated Percentage										8.50%
Common Stock - Class A
Subsequent Event [Line Items]
Dividends declared per share		$ 0.030	$ 0.030	$ 0.030	$ 0.025	$ 0.025	$ 0.025	$ 0.090	$ 0.075
Common Stock - Class A | Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share	$ 0.03