Tiptree Inc. (NASDAQ:TIPT) Q1 2024 Earnings Call Transcript

Turning to Tiptree Capital. Pretax income for the quarter was $3.7 million, driven by positive contributions from our mortgage operations and gains on other investments, partially offset by losses on Invesque. Mortgage originations for the quarter were $210 million, up 4% from the prior year. As Michael mentioned, the servicing side of the business and active cost management over the past year has kept the business profitable in the current interest rate environment. In April 2024, we sold our Invesque shares, crystallizing the capital loss for tax purposes, representing approximately $108 million that can be used to offset any future taxable gains. Finally, we have provided investors the information to calculate Tiptree sum-of-the-parts value, which takes into account a range of values for Fortegra based on the multiple implied by Warburg’s investment as well as earnings multiples of relevant peers.

We continue to believe there is significant value in Fortegra as evidenced by the $127 million of trailing 12-month adjusted net income, which increased 48% versus the first quarter of 2023. With that, I’ll pass the call back to Michael to wrap up our prepared remarks.

Michael Barnes: Thanks, Scott. Once again, our specialty insurance business, Fortegra, delivered exceptional growth in the first quarter. The pipeline of new opportunities continues to build and specialty market conditions remain favorable. We began 2024 well-positioned financially, and we could not be more excited about Tiptree’s future. And as always, we at Tiptree continue to look for opportunities to allocate capital for long-term value creation. I’d now like to turn the call back over to the operator for Q&A. Operator?

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.