Tiptree Announces Second Quarter 2024 Results
Tiptree Inc. (NASDAQ:TIPT) announced strong financial results for Q2 2024. Total revenues reached $546.7 million, a 35.1% increase from Q2'23. Net income rose to $12.9 million, up from $6.0 million in Q2'23. Adjusted net income grew 38.5% to $24.4 million. The company's insurance segment, Fortegra, posted record results with revenue growth of 34% and adjusted net income growth of 40% in the first half of 2024.
Key highlights include:
- Annualized adjusted return on average equity of 22.7% for Q2
- Declared dividend of $0.06 per share
- Gross written premiums and premium equivalents increased 8.4% to $776.1 million
- Combined ratio improved to 89.9% from 90.2% in Q2'23
Tiptree's strong performance was driven by growth in Fortegra's specialty insurance lines and improved mortgage operations.
Tiptree Inc. (NASDAQ:TIPT) ha annunciato forti risultati finanziari per il secondo trimestre del 2024. I ricavi totali hanno raggiunto i 546,7 milioni di dollari, con un incremento del 35,1% rispetto al Q2'23. Il reddito netto è salito a 12,9 milioni di dollari, rispetto ai 6,0 milioni di dollari del Q2'23. Il reddito netto rettificato è cresciuto del 38,5% fino a 24,4 milioni di dollari. Il segmento assicurativo dell'azienda, Fortegra, ha registrato risultati record con una crescita dei ricavi del 34% e una crescita del reddito netto rettificato del 40% nel primo semestre del 2024.
I punti salienti includono:
- Rendimento rettificato annualizzato del 22,7% sul capitale medio per il Q2
- Dividendo dichiarato di 0,06 dollari per azione
- I premi lordi scritti e equivalenti ai premi sono aumentati dell'8,4% fino a 776,1 milioni di dollari
- Il rapporto combinato è migliorato al 89,9% rispetto al 90,2% del Q2'23
Le prestazioni forti di Tiptree sono state guidate dalla crescita nelle linee di assicurazione specializzata di Fortegra e dal miglioramento delle operazioni ipotecarie.
Tiptree Inc. (NASDAQ:TIPT) anunció resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos totales alcanzaron los 546,7 millones de dólares, un aumento del 35,1% con respecto al segundo trimestre de 2023. El ingreso neto se incrementó a 12,9 millones de dólares, subiendo desde los 6,0 millones de dólares del segundo trimestre de 2023. El ingreso neto ajustado creció un 38,5% hasta 24,4 millones de dólares. El segmento de seguros de la compañía, Fortegra, reportó resultados récord con un crecimiento de ingresos del 34% y un crecimiento del ingreso neto ajustado del 40% en la primera mitad de 2024.
Los aspectos destacados incluyen:
- Rendimiento ajustado anualizado sobre el capital promedio del 22,7% para el segundo trimestre
- Dividendo declarado de 0,06 dólares por acción
- Las primas brutas escritas y los equivalentes de primas aumentaron un 8,4% hasta 776,1 millones de dólares
- El ratio combinado mejoró al 89,9% desde el 90,2% en el segundo trimestre de 2023
El sólido desempeño de Tiptree fue impulsado por el crecimiento en las líneas de seguros especiales de Fortegra y por la mejora en las operaciones hipotecarias.
Tiptree Inc. (NASDAQ:TIPT)는 2024년 2분기에 강력한 재무 결과를 발표했습니다. 총 수익은 5억 4670만 달러에 도달했으며, 이는 2023년 2분기 대비 35.1% 증가한 수치입니다. 순이익은 1,290만 달러로 증가했으며, 이는 2023년 2분기의 600만 달러에서 상승한 것입니다. 조정된 순이익은 38.5% 증가하여 2,440만 달러에 달했습니다. 회사의 보험 부문인 Fortegra는 2024년 상반기 동안 34%의 수익 성장과 40%의 조정된 순이익 성장을 기록하여 역대 최고 실적을 올렸습니다.
주요 하이라이트는 다음과 같습니다:
- 2024년 2분기 평균 자본 대비 연환산 조정 수익률 22.7%
- 주당 0.06달러 배당금 선언
- 총 수익 보험료 및 보험료 동등액이 8.4% 증가하여 7억 7610만 달러
- 복합 비율이 90.2%에서 89.9%로 개선됨
Tiptree의 강력한 성과는 Fortegra의 전문 보험 라인의 성장과 개선된 모기지 운영에 의해 주도되었습니다.
Tiptree Inc. (NASDAQ:TIPT) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024. Les revenus totaux ont atteint 546,7 millions de dollars, soit une augmentation de 35,1 % par rapport au T2'23. Le revenu net a atteint 12,9 millions de dollars, en hausse par rapport à 6,0 millions de dollars au T2'23. Le revenu net ajusté a augmenté de 38,5 % pour atteindre 24,4 millions de dollars. Le segment d'assurance de l'entreprise, Fortegra, a affiché des résultats records avec une croissance des revenus de 34 % et une croissance du revenu net ajusté de 40 % au cours de la première moitié de 2024.
Les points saillants incluent :
- Rendement ajusté annualisé des capitaux propres moyens de 22,7 % pour le T2
- Dividende déclaré de 0,06 dollar par action
- Les primes brutes souscrites et les équivalents de prime ont augmenté de 8,4 % pour atteindre 776,1 millions de dollars
- Le ratio combiné s'est amélioré à 89,9 % contre 90,2 % au T2'23
La solide performance de Tiptree a été soutenue par la croissance des lignes d'assurance spécialisée de Fortegra et l'amélioration des opérations hypothécaires.
Tiptree Inc. (NASDAQ:TIPT) hat für das zweite Quartal 2024 starke Finanzergebnisse bekannt gegeben. Die Gesamterträge erreichten 546,7 Millionen Dollar, ein Anstieg um 35,1% im Vergleich zum Q2'23. Der Nettogewinn stieg auf 12,9 Millionen Dollar, im Vergleich zu 6,0 Millionen Dollar im Q2'23. Der bereinigte Nettogewinn wuchs um 38,5% auf 24,4 Millionen Dollar. Der Versicherungsbereich des Unternehmens, Fortegra, verzeichnete rekordverdächtige Ergebnisse mit einem Umsatzwachstum von 34% und einem Wachstum des bereinigten Nettogewinns von 40% in der ersten Hälfte von 2024.
Wichtige Höhepunkte sind:
- Bereinigte annualisierte Rendite auf das durchschnittliche Eigenkapital von 22,7% für das Q2
- Erklärte Dividende von 0,06 Dollar pro Aktie
- Bruttoeingenommene Prämien und Prämienäquivalente stiegen um 8,4% auf 776,1 Millionen Dollar
- Kombinierte Ratio verbesserte sich von 90,2% im Q2'23 auf 89,9%
Die starke Leistung von Tiptree wurde durch das Wachstum in den Spezialversicherungsbereichen von Fortegra und verbesserte Hypothekenoperationen angetrieben.
- Total revenues increased 35.1% to $546.7 million in Q2 2024
- Net income rose to $12.9 million, up from $6.0 million in Q2'23
- Adjusted net income grew 38.5% to $24.4 million
- Fortegra posted record results with 34% revenue growth and 40% adjusted net income growth in H1 2024
- Annualized adjusted return on average equity improved to 22.7% for Q2
- Gross written premiums and premium equivalents increased 8.4% to $776.1 million
- Combined ratio improved to 89.9% from 90.2% in Q2'23
- Fortegra's total stockholders' equity increased to $549.2 million from $452.6 million at year-end 2023
- Tiptree Capital's income before taxes decreased to $0.7 million from $2.8 million in Q2'23
- Corporate expenses increased to $11.3 million from $9.5 million in Q2'23
Tiptree's Q2 2024 results demonstrate robust growth and financial strength, particularly in its insurance segment. Total revenues surged by 35.1% to
Key highlights include:
- Fortegra's record performance with
34% revenue growth and40% adjusted net income growth in H1 2024 - Impressive annualized adjusted return on average equity of
22.7% for Q2, up from17.6% in Q2'23 - Gross written premiums and premium equivalents increased by
8.4% to$776.1 million - Combined ratio improved slightly to
89.9% , indicating efficient underwriting
The capital contribution of
While the results are impressive, investors should monitor the sustainability of this growth rate and any potential impact of economic headwinds on the insurance and mortgage sectors. The company's focus on specialty lines and consistent underwriting performance bode well for future profitability, but maintaining this trajectory in a potentially challenging economic environment will be key.
Fortegra's performance in Q2 2024 is particularly noteworthy within the insurance industry context. The
The combined ratio of
The increase in net written premiums by
Fortegra's expansion in the U.S. and Europe, particularly in specialty E&S and admitted lines, positions it well for continued growth. However, the insurance industry is cyclical and maintaining this growth rate long-term may be challenging. Investors should watch for any signs of market saturation or increased competition in Fortegra's niche markets.
Tiptree's Q2 2024 results reflect broader trends in the specialty insurance and financial services sectors. The company's strong performance, particularly in Fortegra's specialty insurance lines, aligns with the growing demand for tailored insurance products in niche markets. This trend is likely to continue as businesses seek more specialized coverage in an increasingly complex risk environment.
The improvement in Tiptree's mortgage operations, with income before taxes of
The company's strategic decision to sell its Invesque shares for
Tiptree's diverse business model, spanning insurance, asset management and specialty finance, provides a hedge against sector-specific downturns. However, the company's increased focus on insurance through Fortegra suggests a strategic pivot that investors should monitor closely. The success of this strategy will depend on Fortegra's ability to maintain its growth trajectory and underwriting discipline in an increasingly competitive insurance market.
“We are extremely pleased with the second quarter results and remain well-positioned for future growth,” said Tiptree’s Executive Chairman, Michael Barnes. “Fortegra posted record results in the first half with growth in revenues of
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
($ in thousands, except per share information) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total revenues |
$ |
546,673 |
|
|
$ |
404,518 |
|
|
$ |
1,044,894 |
|
|
$ |
786,143 |
|
|
Net income (loss) attributable to common stockholders |
$ |
12,851 |
|
|
$ |
5,989 |
|
|
$ |
21,901 |
|
|
$ |
4,927 |
|
|
Diluted earnings per share |
$ |
0.31 |
|
|
$ |
0.16 |
|
|
$ |
0.54 |
|
|
$ |
0.13 |
|
|
Cash dividends paid per common share |
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.12 |
|
|
$ |
0.10 |
|
|
Return on average equity |
|
11.9 |
% |
|
|
6.0 |
% |
|
|
10.3 |
% |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
24,422 |
|
|
$ |
17,630 |
|
|
$ |
44,955 |
|
|
$ |
30,189 |
|
|
Adjusted return on average equity |
|
22.7 |
% |
|
|
17.6 |
% |
|
|
21.1 |
% |
|
|
15.1 |
% |
|
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests. |
||||||||||||||||
Second Quarter 2024 Summary
-
Revenues of
$546.7 million 35.1% from Q2'23, driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues increased33.9% .
-
Net income of
$12.9 million $6.0 million
-
Adjusted net income of
$24.4 million 38.5% from$17.6 million 22.7% for the quarter, as compared to17.6% in Q2'23.
-
Declared a dividend of
$0.06
Year-to-date 2024 Summary
-
Year-to-date revenues of
$1.04 5 billion32.9% from 2023, driven by growth in Fortegra’s specialty insurance lines, net realized and unrealized gains, and higher mortgage revenues. Excluding investment gains and losses, revenues were up30.4% .
-
Net income of
$21.9 million $4.9 million
-
Adjusted net income of
$45.0 million 48.9% from$30.2 million 21.1% for the year, as compared to15.1% in 2023.
-
In March and April 2024, Tiptree, Warburg and Fortegra directors contributed
$30.0 million $9.9 million $0.1 million 79.3% by Tiptree,17.7% by Warburg and3.0% by management and directors of Fortegra, before giving effect to the exercise of outstanding warrants and the conversion of outstanding preferred stock.
Segment Financial Highlights - Second Quarter 2024
Insurance (The Fortegra Group):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Gross written premiums and premium equivalents |
$ |
776,059 |
|
|
$ |
716,063 |
|
|
$ |
1,439,476 |
|
|
$ |
1,337,221 |
|
|
Net written premiums |
$ |
365,897 |
|
|
$ |
320,572 |
|
|
$ |
684,048 |
|
|
$ |
601,718 |
|
|
Total revenues |
$ |
529,942 |
|
|
$ |
384,677 |
|
|
$ |
1,008,698 |
|
|
$ |
753,121 |
|
|
Income before taxes |
$ |
51,250 |
|
|
$ |
30,417 |
|
|
$ |
88,061 |
|
|
$ |
49,862 |
|
|
Return on average equity |
|
28.4 |
% |
|
|
23.1 |
% |
|
|
25.8 |
% |
|
|
20.2 |
% |
|
Combined ratio |
|
89.9 |
% |
|
|
90.2 |
% |
|
|
90.0 |
% |
|
|
90.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
40,316 |
|
|
$ |
30,119 |
|
|
$ |
74,449 |
|
|
$ |
53,058 |
|
|
Adjusted return on average equity |
|
30.3 |
% |
|
|
32.4 |
% |
|
|
29.7 |
% |
|
|
29.6 |
% |
|
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests. |
||||||||||||||||
-
Record gross written premiums and premium equivalents of
$776.1 million 8.4% , and$1.4 billion 7.6% , driven primarily by growth in specialty E&S insurance lines.
-
Net written premiums were
$365.9 million 14.1% , and$684.0 million 13.7% . The increases in both periods were consistent with the growth in gross written premiums and premium equivalents and increased retention on Fortegra’s whole account quota share reinsurance agreement.
-
Record revenues increased
37.8% for the quarter and33.9% for the year driven by premium growth in specialty E&S and admitted lines, and services businesses in theU.S. andEurope . Excluding the impact of investment gains and losses, revenues increased by35.6% for the quarter and31.7% for the year.
-
The combined ratio for the quarter was
89.9% , compared to90.2% in Q2’23, reflecting the consistent underwriting performance and scalability of the Company’s operating platform. Year-to-date combined ratio was90.0% , as compared to90.8% in 2023.
-
Record income before taxes was
$51.3 million 68.5% . Year-to-date income before taxes was$88.1 million 76.6% . Annualized after-tax return on average equity for the year was25.8% , compared to20.2% in 2023.
-
Record adjusted net income for the quarter of
$40.3 million 33.9% from Q2'23. Year-to-date adjusted net income of$74.4 million 40.3% . Annualized adjusted return on average equity for the year was29.7% , compared to29.6% in 2023.
-
Fortegra’s total stockholders’ equity was
$549.2 million $452.6 million $40 million
Tiptree Capital:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total revenues |
$ |
16,731 |
|
|
$ |
19,841 |
|
|
$ |
36,196 |
|
|
$ |
33,022 |
|
|
Income before taxes |
$ |
740 |
|
|
$ |
2,767 |
|
|
$ |
4,486 |
|
|
$ |
1,644 |
|
|
Return on average equity |
|
1.7 |
% |
|
|
3.9 |
% |
|
|
4.6 |
% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
356 |
|
|
$ |
10 |
|
|
$ |
700 |
|
|
$ |
570 |
|
|
Adjusted return on average equity |
|
1.2 |
% |
|
|
— |
% |
|
|
1.0 |
% |
|
|
0.7 |
% |
|
(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented before the impacts of non-controlling interests. |
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-
Tiptree Capital income before taxes was
$0.7 million $2.8 million $4.5 million $1.6 million
-
Mortgage income before taxes was
$0.5 million $1.3 million $1.3 million $1.3 million
-
In April 2024, the Company sold its Invesque shares for
$0.6 million $106.8 million
Corporate:
Corporate includes expenses of the holding company for employee compensation and benefits, audit and professional fees, and public company and other expenses. For the quarter, corporate expenses were
Non-GAAP
Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.
Earnings Conference Call
Tiptree will host a conference call on Thursday, August 1, 2024 at 10:30 a.m. Eastern Time to discuss its Q2 2024 financial results. A copy of our investor presentation, to be used during the conference call, as well as this press release, will be available in the Investor Relations section of the Company’s website, located at www.tiptreeinc.com.
The conference call will be available via live or archived webcast at https://www.investors.tiptreeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the telephone conference call, please dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). Please dial in at least five minutes prior to the start time.
A replay of the call will be available from Thursday, August 1, 2024 at 1:30 p.m. Eastern Time, until midnight Eastern on Thursday, August 8, 2024. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13746746.
About Tiptree
Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.
Forward-Looking Statements
This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. The 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 forecast 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 the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein 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 federal securities laws, we undertake no obligation to update any forward-looking statements.
Tiptree Inc. Condensed Consolidated Balance Sheets ($ in thousands, except share data) |
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|
As of |
||||||
|
June 30,
|
|
December 31, 2023 |
||||
Assets: |
|
|
|
||||
Investments: |
|
|
|
||||
Available for sale securities, at fair value, net of allowance for credit losses |
$ |
825,223 |
|
|
$ |
802,609 |
|
Loans, at fair value |
|
74,326 |
|
|
|
69,556 |
|
Equity securities |
|
69,499 |
|
|
|
68,308 |
|
Other investments |
|
59,337 |
|
|
|
111,088 |
|
Total investments |
|
1,028,385 |
|
|
|
1,051,561 |
|
Cash and cash equivalents |
|
497,343 |
|
|
|
468,711 |
|
Restricted cash |
|
108,034 |
|
|
|
23,850 |
|
Notes and accounts receivable, net |
|
779,105 |
|
|
|
684,608 |
|
Reinsurance recoverable |
|
904,692 |
|
|
|
953,886 |
|
Prepaid reinsurance premiums |
|
962,159 |
|
|
|
900,524 |
|
Deferred acquisition costs |
|
545,033 |
|
|
|
565,746 |
|
Goodwill |
|
205,972 |
|
|
|
206,155 |
|
Intangible assets, net |
|
110,835 |
|
|
|
118,757 |
|
Other assets |
|
163,152 |
|
|
|
165,515 |
|
Total assets |
$ |
5,304,710 |
|
|
$ |
5,139,313 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Liabilities: |
|
|
|
||||
Debt, net |
$ |
387,338 |
|
|
$ |
402,411 |
|
Unearned premiums |
|
1,671,294 |
|
|
|
1,695,058 |
|
Policy liabilities and unpaid claims |
|
1,087,203 |
|
|
|
844,848 |
|
Deferred revenue |
|
683,513 |
|
|
|
673,085 |
|
Reinsurance payable |
|
478,168 |
|
|
|
543,602 |
|
Other liabilities and accrued expenses |
|
379,125 |
|
|
|
403,744 |
|
Total liabilities |
$ |
4,686,641 |
|
|
$ |
4,562,748 |
|
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Preferred stock: |
$ |
— |
|
|
$ |
— |
|
Common stock: |
|
37 |
|
|
|
37 |
|
Additional paid-in capital |
|
387,513 |
|
|
|
382,239 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(29,216 |
) |
|
|
(26,073 |
) |
Retained earnings |
|
78,115 |
|
|
|
60,663 |
|
Total Tiptree Inc. stockholders’ equity |
|
436,449 |
|
|
|
416,866 |
|
Non-controlling interests: |
|
|
|
||||
Fortegra preferred interests |
|
77,679 |
|
|
|
77,679 |
|
Common interests |
|
103,941 |
|
|
|
82,020 |
|
Total non-controlling interests |
|
181,620 |
|
|
|
159,699 |
|
Total stockholders’ equity |
|
618,069 |
|
|
|
576,565 |
|
Total liabilities and stockholders’ equity |
$ |
5,304,710 |
|
|
$ |
5,139,313 |
|
Tiptree Inc. Condensed Consolidated Statements of Operations ($ in thousands, except share data) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenues: |
|
|
|
|
|
|
|
||||
Earned premiums, net |
$ |
398,467 |
|
$ |
269,795 |
|
$ |
745,777 |
|
$ |
535,125 |
Service and administrative fees |
|
105,847 |
|
|
98,113 |
|
|
216,334 |
|
|
190,145 |
Ceding commissions |
|
5,065 |
|
|
4,676 |
|
|
7,809 |
|
|
8,321 |
Net investment income |
|
6,381 |
|
|
9,088 |
|
|
13,139 |
|
|
14,197 |
Net realized and unrealized gains (losses) |
|
12,578 |
|
|
8,825 |
|
|
28,202 |
|
|
11,002 |
Other revenue |
|
18,335 |
|
|
14,021 |
|
|
33,633 |
|
|
27,353 |
Total revenues |
|
546,673 |
|
|
404,518 |
|
|
1,044,894 |
|
|
786,143 |
Expenses: |
|
|
|
|
|
|
|
||||
Policy and contract benefits |
|
233,975 |
|
|
147,734 |
|
|
441,639 |
|
|
289,409 |
Commission expense |
|
173,279 |
|
|
142,699 |
|
|
330,227 |
|
|
289,149 |
Employee compensation and benefits |
|
49,917 |
|
|
44,383 |
|
|
99,103 |
|
|
85,181 |
Interest expense |
|
8,015 |
|
|
7,044 |
|
|
16,305 |
|
|
13,509 |
Depreciation and amortization |
|
5,291 |
|
|
5,875 |
|
|
10,859 |
|
|
11,128 |
Other expenses |
|
35,550 |
|
|
33,109 |
|
|
76,416 |
|
|
65,920 |
Total expenses |
|
506,027 |
|
|
380,844 |
|
|
974,549 |
|
|
754,296 |
Income (loss) before taxes |
|
40,646 |
|
|
23,674 |
|
|
70,345 |
|
|
31,847 |
Less: provision (benefit) for income taxes |
|
18,673 |
|
|
11,824 |
|
|
32,491 |
|
|
16,846 |
Net income (loss) |
|
21,973 |
|
|
11,850 |
|
|
37,854 |
|
|
15,001 |
Less: net income (loss) attributable to non-controlling interests |
|
9,122 |
|
|
5,861 |
|
|
15,953 |
|
|
10,074 |
Net income (loss) attributable to common stockholders |
$ |
12,851 |
|
$ |
5,989 |
|
$ |
21,901 |
|
$ |
4,927 |
|
|
|
|
|
|
|
|
||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.35 |
|
$ |
0.16 |
|
$ |
0.59 |
|
$ |
0.13 |
Diluted earnings per share |
$ |
0.31 |
|
$ |
0.16 |
|
$ |
0.54 |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares: |
|
|
|
|
|
|
|
||||
Basic |
|
36,785,305 |
|
|
36,742,295 |
|
|
36,777,557 |
|
|
36,633,226 |
Diluted |
|
37,752,682 |
|
|
37,585,811 |
|
|
37,766,573 |
|
|
37,509,660 |
|
|
|
|
|
|
|
|
||||
Dividends declared per common share |
$ |
0.06 |
|
$ |
0.05 |
|
$ |
0.12 |
|
$ |
0.10 |
Tiptree Inc. |
|
Non-GAAP Reconciliations (Unaudited) |
|
Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity
Adjusted net income is defined as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income is presented before the impacts of non-controlling interests. Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies.
|
Three Months Ended June 30, 2024 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
51,250 |
|
|
$ |
528 |
|
|
$ |
212 |
|
|
$ |
(11,344 |
) |
|
$ |
40,646 |
|
Less: Income tax (benefit) expense |
|
(13,568 |
) |
|
|
(113 |
) |
|
|
(116 |
) |
|
|
(4,876 |
) |
|
|
(18,673 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
(2,545 |
) |
|
|
(289 |
) |
|
|
103 |
|
|
|
— |
|
|
|
(2,731 |
) |
Plus: Intangibles amortization (2) |
|
3,727 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,727 |
|
Plus: Stock-based compensation expense |
|
1,022 |
|
|
|
— |
|
|
|
— |
|
|
|
2,375 |
|
|
|
3,397 |
|
Plus: Non-recurring expenses (3) |
|
166 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
166 |
|
Plus: Non-cash fair value adjustments (4) |
|
861 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
861 |
|
Plus: Impact of tax deconsolidation of Fortegra(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,357 |
|
|
|
6,357 |
|
Less: Tax on adjustments (6) |
|
(597 |
) |
|
|
55 |
|
|
|
(24 |
) |
|
|
(405 |
) |
|
|
(971 |
) |
Adjusted net income (before NCI) |
$ |
40,316 |
|
|
$ |
181 |
|
|
$ |
175 |
|
|
$ |
(7,893 |
) |
|
$ |
32,779 |
|
Less: Impact of non-controlling interests |
|
(8,357 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,357 |
) |
Adjusted net income |
$ |
31,959 |
|
|
$ |
181 |
|
|
$ |
175 |
|
|
$ |
(7,893 |
) |
|
$ |
24,422 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
40,316 |
|
|
$ |
181 |
|
|
$ |
175 |
|
|
$ |
(7,893 |
) |
|
$ |
32,779 |
|
Average stockholders’ equity |
$ |
531,447 |
|
|
$ |
53,092 |
|
|
$ |
66,580 |
|
|
$ |
(42,766 |
) |
|
$ |
608,353 |
|
Adjusted return on average equity (7) |
|
30.3 |
% |
|
|
1.4 |
% |
|
|
1.1 |
% |
|
NM% |
|
|
21.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June 30, 2023 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
30,417 |
|
|
$ |
1,312 |
|
|
$ |
1,455 |
|
|
$ |
(9,510 |
) |
|
$ |
23,674 |
|
Less: Income tax (benefit) expense |
|
(8,928 |
) |
|
|
(306 |
) |
|
|
(497 |
) |
|
|
(2,093 |
) |
|
|
(11,824 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
4,379 |
|
|
|
(1,588 |
) |
|
|
(1,063 |
) |
|
|
— |
|
|
|
1,728 |
|
Plus: Intangibles amortization (2) |
|
3,895 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,895 |
|
Plus: Stock-based compensation expense |
|
488 |
|
|
|
— |
|
|
|
— |
|
|
|
1,504 |
|
|
|
1,992 |
|
Plus: Non-recurring expenses (3) |
|
238 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
238 |
|
Plus: Non-cash fair value adjustments (4) |
|
(46 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(46 |
) |
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
|
|
3,500 |
|
Less: Tax on adjustments (6) |
|
(324 |
) |
|
|
373 |
|
|
|
324 |
|
|
|
274 |
|
|
|
647 |
|
Adjusted net income (before NCI) |
$ |
30,119 |
|
|
$ |
(209 |
) |
|
$ |
219 |
|
|
$ |
(6,325 |
) |
|
$ |
23,804 |
|
Less: Impact of non-controlling interests |
|
(6,174 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,174 |
) |
Adjusted net income |
$ |
23,945 |
|
|
$ |
(209 |
) |
|
$ |
219 |
|
|
$ |
(6,325 |
) |
|
$ |
17,630 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
30,119 |
|
|
$ |
(209 |
) |
|
$ |
219 |
|
|
$ |
(6,325 |
) |
|
$ |
23,804 |
|
Average stockholders’ equity |
$ |
371,843 |
|
|
$ |
53,297 |
|
|
$ |
150,672 |
|
|
$ |
(31,999 |
) |
|
$ |
543,813 |
|
Adjusted return on average equity (7) |
|
32.4 |
% |
|
|
(1.6 |
)% |
|
|
0.6 |
% |
|
NM% |
|
|
17.5 |
% |
||
|
Six Months Ended June 30, 2024 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
88,061 |
|
|
$ |
1,281 |
|
|
$ |
3,205 |
|
|
$ |
(22,202 |
) |
|
$ |
70,345 |
|
Less: Income tax (benefit) expense |
|
(23,490 |
) |
|
|
(276 |
) |
|
|
(808 |
) |
|
|
(7,917 |
) |
|
|
(32,491 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
(5,364 |
) |
|
|
(1,449 |
) |
|
|
(2,038 |
) |
|
|
— |
|
|
|
(8,851 |
) |
Plus: Intangibles amortization (2) |
|
7,698 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,698 |
|
Plus: Stock-based compensation expense |
|
1,804 |
|
|
|
— |
|
|
|
— |
|
|
|
5,428 |
|
|
|
7,232 |
|
Plus: Non-recurring expenses (3) |
|
3,336 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,336 |
|
Plus: Non-cash fair value adjustments (4) |
|
5,072 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,072 |
|
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,822 |
|
|
|
10,822 |
|
Less: Tax on adjustments (6) |
|
(2,668 |
) |
|
|
316 |
|
|
|
469 |
|
|
|
(892 |
) |
|
|
(2,775 |
) |
Adjusted net income (before NCI) |
$ |
74,449 |
|
|
$ |
(128 |
) |
|
$ |
828 |
|
|
$ |
(14,761 |
) |
|
$ |
60,388 |
|
Less: Impact of non-controlling interests |
|
(15,433 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,433 |
) |
Adjusted net income |
$ |
59,016 |
|
|
$ |
(128 |
) |
|
$ |
828 |
|
|
$ |
(14,761 |
) |
|
$ |
44,955 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
74,449 |
|
|
$ |
(128 |
) |
|
$ |
828 |
|
|
$ |
(14,761 |
) |
|
$ |
60,388 |
|
Average stockholders’ equity |
$ |
500,903 |
|
|
$ |
52,798 |
|
|
$ |
94,500 |
|
|
$ |
(50,884 |
) |
|
$ |
597,317 |
|
Adjusted return on average equity (7) |
|
29.7 |
% |
|
|
(0.5 |
)% |
|
|
1.8 |
% |
|
NM% |
|
|
20.2 |
% |
||
|
Six Months Ended June 30, 2023 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
49,862 |
|
|
$ |
(1,253 |
) |
|
$ |
2,897 |
|
|
$ |
(19,659 |
) |
|
$ |
31,847 |
|
Less: Income tax (benefit) expense |
|
(13,675 |
) |
|
|
307 |
|
|
|
(760 |
) |
|
|
(2,718 |
) |
|
|
(16,846 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
8,986 |
|
|
|
(145 |
) |
|
|
(740 |
) |
|
|
— |
|
|
|
8,101 |
|
Plus: Intangibles amortization (2) |
|
7,789 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,789 |
|
Plus: Stock-based compensation expense |
|
521 |
|
|
|
— |
|
|
|
— |
|
|
|
3,786 |
|
|
|
4,307 |
|
Plus: Non-recurring expenses (3) |
|
2,363 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,363 |
|
Plus: Non-cash fair value adjustments (4) |
|
(164 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(164 |
) |
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,814 |
|
|
|
5,814 |
|
Less: Tax on adjustments (6) |
|
(2,624 |
) |
|
|
29 |
|
|
|
235 |
|
|
|
237 |
|
|
|
(2,123 |
) |
Adjusted net income (before NCI) |
$ |
53,058 |
|
|
$ |
(1,062 |
) |
|
$ |
1,632 |
|
|
$ |
(12,540 |
) |
|
$ |
41,088 |
|
Less: Impact of non-controlling interests |
|
(10,899 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,899 |
) |
Adjusted net income |
$ |
42,159 |
|
|
$ |
(1,062 |
) |
|
$ |
1,632 |
|
|
$ |
(12,540 |
) |
|
$ |
30,189 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
53,058 |
|
|
$ |
(1,062 |
) |
|
$ |
1,632 |
|
|
$ |
(12,540 |
) |
|
$ |
41,088 |
|
Average stockholders’ equity |
$ |
358,600 |
|
|
$ |
54,272 |
|
|
$ |
111,285 |
|
|
$ |
15,665 |
|
|
$ |
539,822 |
|
Adjusted return on average equity (7) |
|
29.6 |
% |
|
|
(3.9 |
)% |
|
|
2.9 |
% |
|
NM% |
|
|
15.2 |
% |
||
| Notes | |
(1) |
Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights. |
(2) |
Specifically associated with acquisition purchase accounting. See Note (8) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended June 30, 2024. |
(3) |
For the three and six months ended June 30, 2024 and 2023, included in other expenses were expenses related to legal and other expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024 and acquisitions of services businesses in 2023. |
(4) |
For the three and six months ended June 30, 2024 and 2023, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability which are added-back to adjusted net income. |
(5) |
For the three and six months ended June 30, 2024 and 2023, included in the adjustment is an add-back of |
(6) |
Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts. |
(7) |
Total Adjusted return on average equity after non-controlling interests was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731473993/en/
Tiptree Inc.
Investor Relations, 212-446-1400
ir@tiptreeinc.com
Source: Tiptree Inc.
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