Operating Segment Data

Tiptree is a holding company that allocates capital across a broad spectrum of businesses, assets and other investments. Tiptree’s principal operating subsidiary and primary source of earnings, Tiptree Insurance, along with its subsidiaries, is a leading provider of specialty insurance, warranty products and related administration services. We classify our business into one reportable segment – Tiptree Insurance, formally referred to as Specialty Insurance. This change for the year ended December 31, 2019 did not change any previously reported balances. We refer to our non-insurance operations, assets and other investments, which is comprised of our non-reportable operating segments and other business activities, as Tiptree Capital. Corporate activities include holding company interest expense, employee compensation and benefits, and other expenses.

Our reportable segment’s income or loss is reported before income taxes, discontinued operations and non-controlling interests. Segment results incorporate the revenues and expenses of these subsidiaries since they commenced operations or were acquired. Intercompany transactions are eliminated.

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

Tiptree Insurance operations are conducted through Tiptree Insurance, which includes Fortegra Financial Corporation (Fortegra), an insurance holding company incorporated in 1981, and Tiptree Warranty. Fortegra underwrites and administers specialty insurance programs and products, and is a leading provider of credit and asset protection products and administration services. Fortegra’s programs are provided across a diverse range of products and services including credit protection insurance, warranty and service contract products, premium finance, and niche personal and commercial lines of insurance. On January 3, 2020, Tiptree Warranty acquired Smart AutoCare, a rapidly growing vehicle warranty solutions provider in the United States.

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

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



	Year Ended December 31, 2019
	Tiptree Insurance			Tiptree Capital			Total
Total revenue	$	640,433		$	132,295		$	772,728
Total expense	(599,433		)	(111,309		)	(710,742		)
Corporate expense	—			—			(32,847		)
Income (loss) before taxes from continuing operations	$	41,000		$	20,986		$	29,139
Less: provision (benefit) for income taxes							9,017
Net income (loss) before non-controlling interests							$	20,122
Less: net income (loss) attributable to non-controlling interests							1,761
Net income (loss) attributable to Common Stockholders							$	18,361



	Year Ended December 31, 2018
	Tiptree Insurance			Tiptree Capital			Total
Total revenue	$	549,872		$	75,954		$	625,826
Total expense	(531,312		)	(83,759		)	(615,071		)
Corporate expense	—			—			(30,551		)
Income (loss) before taxes from continuing operations	$	18,560		$	(7,805	)	$	(19,796	)
Less: provision (benefit) for income taxes							(5,909		)
Net income (loss) from discontinued operations							43,770
Net income (loss) before non-controlling interests							$	29,883
Less: net income (loss) attributable to non-controlling interests							5,950
Net income (loss) attributable to Common Stockholders							$	23,933



	Year Ended December 31, 2017
	Tiptree Insurance			Tiptree Capital			Total
Total revenue	$	478,965		$	102,833		$	581,798
Total expense	(473,561		)	(92,954		)	(566,515		)
Net income attributable to consolidated CLOs	—			10,457			10,457
Corporate expense	—			—			(29,070		)
Income (loss) before taxes from continuing operations	$	5,404		$	20,336		$	(3,330	)
Less: provision (benefit) for income taxes							(12,562		)
Net income (loss) from discontinued operations							(3,998		)
Net income (loss) before non-controlling interests							$	5,234
Less: net income (loss) attributable to non-controlling interests							1,630
Net income (loss) attributable to Common Stockholders							$	3,604

The following table presents sources of revenue from Tiptree Capital:



	Year Ended December 31,
	2019		2018		2017
Net realized and unrealized gains (losses) ⁽¹⁾	$	76,973	$	40,446	$	64,110
Other investment income ⁽²⁾	45,985		25,541		26,261
Gain on sale of businesses ⁽³⁾	7,598		—		1,994
Management fee income	1,267		6,694		8,314
Other	472		3,273		2,154
Total revenue	$	132,295	$	75,954	$	102,833


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


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


⁽³⁾	Related to the sale of Telos and our commercial lending business for the year ended December 31, 2019 and 2017, respectively. See Note (3) Dispositions, Assets Held for Sale and Discontinued Operations.

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



	As of December 31, 2019								As of December 31, 2018
	Tiptree Insurance		Tiptree Capital		Corporate		Total		Tiptree Insurance		Tiptree Capital		Corporate		Total
Total assets	$	1,721,669	$	451,249	$	25,368	$	2,198,286	$	1,514,084	$	318,420	$	32,414	$	1,864,918