Tiptree Announces Third Quarter 2024 Results
Tiptree Inc. (NASDAQ:TIPT) reported strong financial results for Q3 2024. Total revenues reached $494.4 million, up 18.7% from Q3'23, driven by growth in Fortegra's specialty insurance lines. Net income increased to $11.9 million from $2.2 million in Q3'23. Adjusted net income grew 55.9% to $27.9 million. The company achieved an annualized adjusted return on equity of 24.8% for the quarter. Year-to-date revenues reached $1.54 billion, up 28% from 2023. The insurance segment maintained a strong combined ratio of 90.2%. A quarterly dividend of $0.06 per share was declared.
Tiptree Inc. (NASDAQ:TIPT) ha riportato risultati finanziari solidi per il terzo trimestre del 2024. I ricavi totali hanno raggiunto 494,4 milioni di dollari, con un incremento del 18,7% rispetto al Q3'23, grazie alla crescita delle linee di assicurazione specializzata di Fortegra. L'utile netto è aumentato a 11,9 milioni di dollari rispetto ai 2,2 milioni di dollari nel Q3'23. L'utile netto rettificato è cresciuto del 55,9%, raggiungendo 27,9 milioni di dollari. L'azienda ha ottenuto un ritorno annualizzato rettificato sul capitale proprio del 24,8% per il trimestre. I ricavi da inizio anno hanno toccato 1,54 miliardi di dollari, in aumento del 28% rispetto al 2023. Il segmento assicurativo ha mantenuto un forte indice di combinazione del 90,2%. È stata dichiarata una cedola trimestrale di 0,06 dollari per azione.
Tiptree Inc. (NASDAQ:TIPT) reportó resultados financieros sólidos para el tercer trimestre de 2024. Los ingresos totales alcanzaron 494.4 millones de dólares, un aumento del 18.7% en comparación con el Q3'23, impulsados por el crecimiento en las líneas de seguros especializados de Fortegra. La utilidad neta aumentó a 11.9 millones de dólares desde 2.2 millones en el Q3'23. La utilidad neta ajustada creció un 55.9% hasta 27.9 millones de dólares. La compañía logró un retorno anualizado ajustado sobre el capital de 24.8% para el trimestre. Los ingresos acumulados hasta la fecha alcanzaron 1.54 mil millones de dólares, un aumento del 28% desde 2023. El segmento de seguros mantuvo una sólida relación combinada del 90.2%. Se declaró un dividendo trimestral de 0.06 dólares por acción.
Tiptree Inc. (NASDAQ:TIPT)는 2024년 3분기 강력한 재무 실적을 발표했습니다. 총 수익은 4억 9,440만 달러에 달하며, 이는 2023년 3분기 대비 18.7% 증가한 수치로, Fortegra의 전문 보험 라인의 성장에 힘입은 것입니다. 순이익은 3분기 2.2백만 달러에서 1,190만 달러로 증가했습니다. 조정 순이익은 2,790만 달러로 55.9% 성장했습니다. 이 회사는 올해 분기 동안 24.8%의 연간화된 조정 자기자본이익률을 기록했습니다. 연초부터 누적 수익은 15.4억 달러에 달하며, 이는 2023년 대비 28% 증가한 수치입니다. 보험 부문은 90.2%의 우수한 배합 비율을 유지했습니다. 주당 0.06달러의 분기 배당금이 선언되었습니다.
Tiptree Inc. (NASDAQ:TIPT) a annoncé des résultats financiers solides pour le troisième trimestre de 2024. Les revenus totaux ont atteint 494,4 millions de dollars, en hausse de 18,7% par rapport au T3'23, grâce à la croissance des lignes d'assurance spécialisés de Fortegra. Le bénéfice net a augmenté à 11,9 millions de dollars par rapport à 2,2 millions de dollars au T3'23. Le bénéfice net ajusté a crû de 55,9% pour atteindre 27,9 millions de dollars. La société a réalisé un retour sur capitaux propres ajusté annualisé de 24,8% pour le trimestre. Les revenus depuis le début de l'année ont atteint 1,54 milliard de dollars, en hausse de 28% par rapport à 2023. Le segment des assurances a maintenu un solide ratio combiné de 90,2%. Un dividende trimestriel de 0,06 dollar par action a été déclaré.
Tiptree Inc. (NASDAQ:TIPT) hat starke Finanzergebnisse für das 3. Quartal 2024 gemeldet. Der Gesamtumsatz erreichte 494,4 Millionen Dollar, was einem Anstieg von 18,7% im Vergleich zum Q3'23 entspricht, bedingt durch das Wachstum in den Spezialversicherungszweigen von Fortegra. Der Nettogewinn stieg auf 11,9 Millionen Dollar von 2,2 Millionen Dollar im Q3'23. Der angepasste Nettogewinn wuchs um 55,9% auf 27,9 Millionen Dollar. Das Unternehmen erzielte eine annualisierte angepasste Eigenkapitalrendite von 24,8% für das Quartal. Die Umsätze seit Jahresbeginn erreichten 1,54 Milliarden Dollar, ein Anstieg um 28% im Vergleich zu 2023. Der Versicherungsbereich hielt ein gutes kombinierte Verhältnis von 90,2%. Eine quartalsweise Dividende von 0,06 Dollar pro Aktie wurde erklärt.
- Revenue growth of 18.7% to $494.4 million in Q3 2024
- Net income increased significantly to $11.9 million from $2.2 million YoY
- Adjusted net income up 55.9% to $27.9 million
- Strong insurance segment performance with 90.2% combined ratio
- Gross written premiums increased 13.2% to $776.8 million
- Return on average equity improved to 10.6% from 2.2% YoY
- Tiptree Capital segment reported loss before taxes of $2.7 million
- Mortgage segment reported $0.1 million loss in Q3 2024
Insights
The Q3 2024 results show robust performance with significant growth metrics. Total revenues increased by
Key performance indicators are impressive, with a stable combined ratio of
Fortegra's insurance operations show exceptional growth and efficiency. The
The increase in stockholders' equity to
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
($ in thousands, except per share information) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Total revenues |
$ |
494,362 |
|
|
$ |
416,514 |
|
|
$ |
1,539,256 |
|
|
$ |
1,202,657 |
|
|
Net income (loss) attributable to common stockholders |
$ |
11,915 |
|
|
$ |
2,153 |
|
|
$ |
33,816 |
|
|
$ |
7,080 |
|
|
Diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.04 |
|
|
$ |
0.83 |
|
|
$ |
0.18 |
|
|
Cash dividends paid per common share |
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
Return on average equity |
|
10.6 |
% |
|
|
2.2 |
% |
|
|
10.3 |
% |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
27,872 |
|
|
$ |
17,874 |
|
|
$ |
72,827 |
|
|
$ |
48,063 |
|
|
Adjusted return on average equity |
|
24.8 |
% |
|
|
17.9 |
% |
|
|
22.1 |
% |
|
|
16.2 |
% |
|
(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. |
||||||||||||||||
Third Quarter 2024 Summary
-
Revenues of
$494.4 million 18.7% from Q3'23, driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues increased17.2% .
-
Net income of
$11.9 million $2.2 million
-
Adjusted net income of
$27.9 million 55.9% from$17.9 million 24.8% for the quarter, as compared to17.9% in Q3'23.
-
Declared a dividend of
$0.06
Year-to-date 2024 Summary
-
Year-to-date revenues of
$1.54 billion 28.0% from 2023, driven by growth in specialty insurance lines, net investment income, investment gains, and mortgage revenues. Excluding investment gains and losses, revenues increased25.8% .
-
Net income of
$33.8 million $7.1 million
-
Adjusted net income of
$72.8 million 51.5% from$48.1 million 22.1% for the year, as compared to16.2% in 2023.
-
In March and April 2024, Tiptree, Warburg and Fortegra directors contributed
$30.0 million $9.9 million $0.1 million 79.3% by Tiptree,17.7% by Warburg and3.0% by management and directors of Fortegra, before giving effect to the exercise of outstanding warrants and management options and the conversion of outstanding preferred stock.
Segment Financial Highlights - Third Quarter 2024
Insurance (The Fortegra Group):
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
($ in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Gross written premiums and premium equivalents |
$ |
776,847 |
|
|
$ |
686,509 |
|
|
$ |
2,216,323 |
|
|
$ |
2,023,730 |
|
|
Net written premiums |
$ |
389,273 |
|
|
$ |
333,921 |
|
|
$ |
1,073,321 |
|
|
$ |
935,639 |
|
|
Total revenues |
$ |
481,013 |
|
|
$ |
406,779 |
|
|
$ |
1,489,711 |
|
|
$ |
1,159,900 |
|
|
Income before taxes |
$ |
47,209 |
|
|
$ |
35,722 |
|
|
$ |
135,270 |
|
|
$ |
85,584 |
|
|
Return on average equity |
|
24.3 |
% |
|
|
27.5 |
% |
|
|
25.1 |
% |
|
|
22.9 |
% |
|
Combined ratio |
|
90.2 |
% |
|
|
90.2 |
% |
|
|
90.2 |
% |
|
|
90.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income (before NCI) |
$ |
40,042 |
|
|
$ |
30,043 |
|
|
$ |
114,491 |
|
|
$ |
83,101 |
|
|
Adjusted return on average equity |
|
27.7 |
% |
|
|
31.2 |
% |
|
|
28.8 |
% |
|
|
30.3 |
% |
|
(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. |
||||||||||||||||
-
Gross written premiums and premium equivalents of
$776.8 million 13.2% , and$2.22 billion 9.5% , driven by growth in specialty E&S insurance lines.
-
Net written premiums were
$389.3 million 16.6% , and$1.07 billion 14.7% . 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.
-
Revenues increased
18.2% for the quarter and28.4% for the year driven by premium growth in specialty E&S and admitted lines. Excluding the impact of investment gains and losses, revenues increased by17.2% for the quarter and26.6% for the year.
-
The combined ratio for the quarter was
90.2% , flat to Q3’23, reflecting the consistent underwriting performance and scalability of the Company’s operations. Year-to-date combined ratio was90.2% , as compared to90.5% in 2023.
-
Income before taxes was
$47.2 million 32.2% . Year-to-date income before taxes was$135.3 million 58.1% . Annualized after-tax return on average equity for the year was25.1% , compared to22.9% in 2023.
-
Adjusted net income for the quarter of
$40.0 million 33.3% from Q3'23. Year-to-date adjusted net income of$114.5 million 37.8% . Annualized adjusted return on average equity for the year was28.8% , compared to30.3% in 2023.
-
Fortegra’s total stockholders’ equity was
$606.4 million $452.6 million $40 million
Tiptree Capital:
|
Three Months Ended September
|
|
Nine Months Ended September
|
|
||||||||||||
($ in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Total revenues |
$ |
13,349 |
|
|
$ |
9,735 |
|
|
$ |
49,545 |
|
|
$ |
42,757 |
|
|
Income before taxes |
$ |
(2,692 |
) |
|
$ |
(6,135 |
) |
|
$ |
1,794 |
|
|
$ |
(4,491 |
) |
|
Return on average equity |
|
(9.0 |
)% |
|
|
(10.4 |
)% |
|
|
0.8 |
% |
|
|
(3.2 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP: (1) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
1,401 |
|
|
$ |
(322 |
) |
|
$ |
2,101 |
|
|
$ |
248 |
|
|
Adjusted return on average equity |
|
4.9 |
% |
|
|
(0.7 |
)% |
|
|
1.9 |
% |
|
|
0.2 |
% |
|
(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. |
||||||||||||||||
-
Tiptree Capital loss before taxes was
$2.7 million $6.1 million $1.8 million $4.5 million
-
Mortgage loss before taxes was
$0.1 million $0.4 million $1.2 million $0.9 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, October 31, 2024 at 10:30 a.m. Eastern Time to discuss its Q3 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 http://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, October 31, 2024 at 1:30 p.m. Eastern Time, until midnight Eastern on Thursday, November 7, 2024. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13748819.
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)
|
As of |
||||||
|
September 30,
|
|
December 31,
|
||||
Assets: |
|
|
|
||||
Investments: |
|
|
|
||||
Available for sale securities, at fair value, net of allowance for credit losses |
$ |
1,010,067 |
|
|
$ |
802,609 |
|
Loans, at fair value |
|
81,816 |
|
|
|
69,556 |
|
Equity securities |
|
95,330 |
|
|
|
68,308 |
|
Other investments |
|
59,250 |
|
|
|
111,088 |
|
Total investments |
|
1,246,463 |
|
|
|
1,051,561 |
|
Cash and cash equivalents |
|
396,187 |
|
|
|
468,711 |
|
Restricted cash |
|
108,183 |
|
|
|
23,850 |
|
Notes and accounts receivable, net |
|
789,624 |
|
|
|
684,608 |
|
Reinsurance recoverable |
|
932,656 |
|
|
|
953,886 |
|
Prepaid reinsurance premiums |
|
978,149 |
|
|
|
900,524 |
|
Deferred acquisition costs |
|
570,923 |
|
|
|
565,746 |
|
Goodwill |
|
208,565 |
|
|
|
206,155 |
|
Intangible assets, net |
|
108,482 |
|
|
|
118,757 |
|
Other assets |
|
166,501 |
|
|
|
165,515 |
|
Total assets |
$ |
5,505,733 |
|
|
$ |
5,139,313 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Liabilities: |
|
|
|
||||
Debt, net |
$ |
388,523 |
|
|
$ |
402,411 |
|
Unearned premiums |
|
1,709,966 |
|
|
|
1,695,058 |
|
Policy liabilities and unpaid claims |
|
1,192,857 |
|
|
|
844,848 |
|
Deferred revenue |
|
692,389 |
|
|
|
673,085 |
|
Reinsurance payable |
|
458,610 |
|
|
|
543,602 |
|
Other liabilities and accrued expenses |
|
407,188 |
|
|
|
403,744 |
|
Total liabilities |
$ |
4,849,533 |
|
|
$ |
4,562,748 |
|
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Preferred stock: |
$ |
— |
|
|
$ |
— |
|
Common stock: |
|
37 |
|
|
|
37 |
|
Additional paid-in capital |
|
389,275 |
|
|
|
382,239 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(15,171 |
) |
|
|
(26,073 |
) |
Retained earnings |
|
87,805 |
|
|
|
60,663 |
|
Total Tiptree Inc. stockholders’ equity |
|
461,946 |
|
|
|
416,866 |
|
Non-controlling interests: |
|
|
|
||||
Fortegra preferred interests |
|
77,679 |
|
|
|
77,679 |
|
Common interests |
|
116,575 |
|
|
|
82,020 |
|
Total non-controlling interests |
|
194,254 |
|
|
|
159,699 |
|
Total stockholders’ equity |
|
656,200 |
|
|
|
576,565 |
|
Total liabilities and stockholders’ equity |
$ |
5,505,733 |
|
|
$ |
5,139,313 |
|
Tiptree Inc.
Condensed Consolidated Statements of Operations
($ in thousands, except share data)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenues: |
|
|
|
|
|
|
|
||||
Earned premiums, net |
$ |
359,496 |
|
$ |
291,293 |
|
$ |
1,105,273 |
|
$ |
826,418 |
Service and administrative fees |
|
95,362 |
|
|
100,146 |
|
|
311,696 |
|
|
290,291 |
Ceding commissions |
|
3,716 |
|
|
2,440 |
|
|
11,525 |
|
|
10,761 |
Net investment income |
|
9,111 |
|
|
5,416 |
|
|
22,250 |
|
|
19,613 |
Net realized and unrealized gains (losses) |
|
8,316 |
|
|
1,457 |
|
|
36,518 |
|
|
12,459 |
Other revenue |
|
18,361 |
|
|
15,762 |
|
|
51,994 |
|
|
43,115 |
Total revenues |
|
494,362 |
|
|
416,514 |
|
|
1,539,256 |
|
|
1,202,657 |
Expenses: |
|
|
|
|
|
|
|
||||
Policy and contract benefits |
|
203,442 |
|
|
153,966 |
|
|
645,081 |
|
|
443,375 |
Commission expense |
|
154,005 |
|
|
153,744 |
|
|
484,232 |
|
|
442,893 |
Employee compensation and benefits |
|
52,335 |
|
|
45,663 |
|
|
151,438 |
|
|
130,844 |
Interest expense |
|
7,614 |
|
|
6,716 |
|
|
23,919 |
|
|
20,225 |
Depreciation and amortization |
|
5,395 |
|
|
6,347 |
|
|
16,254 |
|
|
17,475 |
Other expenses |
|
34,790 |
|
|
28,937 |
|
|
111,206 |
|
|
94,857 |
Total expenses |
|
457,581 |
|
|
395,373 |
|
|
1,432,130 |
|
|
1,149,669 |
Income (loss) before taxes |
|
36,781 |
|
|
21,141 |
|
|
107,126 |
|
|
52,988 |
Less: provision (benefit) for income taxes |
|
16,308 |
|
|
12,273 |
|
|
48,799 |
|
|
29,119 |
Net income (loss) |
|
20,473 |
|
|
8,868 |
|
|
58,327 |
|
|
23,869 |
Less: net income (loss) attributable to non-controlling interests |
|
8,558 |
|
|
6,715 |
|
|
24,511 |
|
|
16,789 |
Net income (loss) attributable to common stockholders |
$ |
11,915 |
|
$ |
2,153 |
|
$ |
33,816 |
|
$ |
7,080 |
|
|
|
|
|
|
|
|
||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.32 |
|
$ |
0.06 |
|
$ |
0.91 |
|
$ |
0.19 |
Diluted earnings per share |
$ |
0.29 |
|
$ |
0.04 |
|
$ |
0.83 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares: |
|
|
|
|
|
|
|
||||
Basic |
|
36,789,571 |
|
|
36,749,199 |
|
|
36,781,408 |
|
|
36,672,120 |
Diluted |
|
37,818,491 |
|
|
37,684,131 |
|
|
37,784,637 |
|
|
37,569,405 |
|
|
|
|
|
|
|
|
||||
Dividends declared per common share |
$ |
0.06 |
|
$ |
0.05 |
|
$ |
0.18 |
|
$ |
0.15 |
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 September 30, 2024 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
47,209 |
|
|
$ |
(89 |
) |
|
$ |
(2,603 |
) |
|
$ |
(7,736 |
) |
|
$ |
36,781 |
|
Less: Income tax (benefit) expense |
|
(12,114 |
) |
|
|
32 |
|
|
|
104 |
|
|
|
(4,330 |
) |
|
|
(16,308 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
(2,218 |
) |
|
|
1,877 |
|
|
|
2,764 |
|
|
|
— |
|
|
|
2,423 |
|
Plus: Intangibles amortization (2) |
|
3,859 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,859 |
|
Plus: Stock-based compensation expense |
|
4,195 |
|
|
|
— |
|
|
|
— |
|
|
|
1,762 |
|
|
|
5,957 |
|
Plus: Non-recurring expenses (3) |
|
119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
119 |
|
Plus: Non-cash fair value adjustments (4) |
|
946 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
946 |
|
Plus: Impact of tax deconsolidation of Fortegra(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,907 |
|
|
|
5,907 |
|
Less: Tax on adjustments (6) |
|
(1,954 |
) |
|
|
(461 |
) |
|
|
(223 |
) |
|
|
(860 |
) |
|
|
(3,498 |
) |
Adjusted net income (before NCI) |
$ |
40,042 |
|
|
$ |
1,359 |
|
|
$ |
42 |
|
|
$ |
(5,257 |
) |
|
$ |
36,186 |
|
Less: Impact of non-controlling interests |
|
(8,314 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,314 |
) |
Adjusted net income |
$ |
31,728 |
|
|
$ |
1,359 |
|
|
$ |
42 |
|
|
$ |
(5,257 |
) |
|
$ |
27,872 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
40,042 |
|
|
$ |
1,359 |
|
|
$ |
42 |
|
|
$ |
(5,257 |
) |
|
$ |
36,186 |
|
Average stockholders’ equity |
$ |
577,776 |
|
|
$ |
53,272 |
|
|
$ |
59,943 |
|
|
$ |
(53,856 |
) |
|
$ |
637,135 |
|
Adjusted return on average equity (7) |
|
27.7 |
% |
|
|
10.2 |
% |
|
|
0.3 |
% |
|
NM% |
|
|
22.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended September 30, 2023 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
35,722 |
|
|
$ |
359 |
|
|
$ |
(6,494 |
) |
|
$ |
(8,446 |
) |
|
$ |
21,141 |
|
Less: Income tax (benefit) expense |
|
(9,261 |
) |
|
|
(76 |
) |
|
|
1,179 |
|
|
|
(4,115 |
) |
|
|
(12,273 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
1,616 |
|
|
|
(788 |
) |
|
|
6,625 |
|
|
|
— |
|
|
|
7,453 |
|
Plus: Intangibles amortization (2) |
|
4,878 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,878 |
|
Plus: Stock-based compensation expense |
|
717 |
|
|
|
— |
|
|
|
— |
|
|
|
1,246 |
|
|
|
1,963 |
|
Plus: Non-recurring expenses (3) |
|
113 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
Plus: Non-cash fair value adjustments (4) |
|
(2,447 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,447 |
) |
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,396 |
|
|
|
4,396 |
|
Less: Tax on adjustments (6) |
|
(1,295 |
) |
|
|
178 |
|
|
|
(1,305 |
) |
|
|
1,231 |
|
|
|
(1,191 |
) |
Adjusted net income (before NCI) |
$ |
30,043 |
|
|
$ |
(327 |
) |
|
$ |
5 |
|
|
$ |
(5,688 |
) |
|
$ |
24,033 |
|
Less: Impact of non-controlling interests |
|
(6,159 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,159 |
) |
Adjusted net income |
$ |
23,884 |
|
|
$ |
(327 |
) |
|
$ |
5 |
|
|
$ |
(5,688 |
) |
|
$ |
17,874 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
30,043 |
|
|
$ |
(327 |
) |
|
$ |
5 |
|
|
$ |
(5,688 |
) |
|
$ |
24,033 |
|
Average stockholders’ equity |
$ |
385,266 |
|
|
$ |
53,939 |
|
|
$ |
139,786 |
|
|
$ |
(34,169 |
) |
|
$ |
544,822 |
|
Adjusted return on average equity (7) |
|
31.2 |
% |
|
|
(2.4 |
)% |
|
|
— |
% |
|
NM% |
|
|
17.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
135,270 |
|
|
$ |
1,192 |
|
|
$ |
602 |
|
|
$ |
(29,938 |
) |
|
$ |
107,126 |
|
Less: Income tax (benefit) expense |
|
(35,604 |
) |
|
|
(244 |
) |
|
|
(704 |
) |
|
|
(12,247 |
) |
|
|
(48,799 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
(7,582 |
) |
|
|
428 |
|
|
|
726 |
|
|
|
— |
|
|
|
(6,428 |
) |
Plus: Intangibles amortization (2) |
|
11,557 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,557 |
|
Plus: Stock-based compensation expense |
|
5,999 |
|
|
|
— |
|
|
|
— |
|
|
|
7,190 |
|
|
|
13,189 |
|
Plus: Non-recurring expenses (3) |
|
3,455 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,455 |
|
Plus: Non-cash fair value adjustments (4) |
|
6,018 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,018 |
|
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,729 |
|
|
|
16,729 |
|
Less: Tax on adjustments (6) |
|
(4,622 |
) |
|
|
(145 |
) |
|
|
246 |
|
|
|
(1,752 |
) |
|
|
(6,273 |
) |
Adjusted net income (before NCI) |
$ |
114,491 |
|
|
$ |
1,231 |
|
|
$ |
870 |
|
|
$ |
(20,018 |
) |
|
$ |
96,574 |
|
Less: Impact of non-controlling interests |
|
(23,747 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23,747 |
) |
Adjusted net income |
$ |
90,744 |
|
|
$ |
1,231 |
|
|
$ |
870 |
|
|
$ |
(20,018 |
) |
|
$ |
72,827 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
114,491 |
|
|
$ |
1,231 |
|
|
$ |
870 |
|
|
$ |
(20,018 |
) |
|
$ |
96,574 |
|
Average stockholders’ equity |
$ |
529,486 |
|
|
$ |
52,771 |
|
|
$ |
91,263 |
|
|
$ |
(57,137 |
) |
|
$ |
616,383 |
|
Adjusted return on average equity (7) |
|
28.8 |
% |
|
|
3.1 |
% |
|
|
1.3 |
% |
|
NM% |
|
|
20.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||
|
|
|
Tiptree Capital |
|
|
|
|
||||||||||||
($ in thousands) |
Insurance |
|
Mortgage |
|
Other |
|
Corporate |
|
Total |
||||||||||
Income (loss) before taxes |
$ |
85,584 |
|
|
$ |
(894 |
) |
|
$ |
(3,597 |
) |
|
$ |
(28,105 |
) |
|
$ |
52,988 |
|
Less: Income tax (benefit) expense |
|
(22,936 |
) |
|
|
231 |
|
|
|
419 |
|
|
|
(6,833 |
) |
|
|
(29,119 |
) |
Less: Net realized and unrealized gains (losses) (1) |
|
10,602 |
|
|
|
(933 |
) |
|
|
5,885 |
|
|
|
— |
|
|
|
15,554 |
|
Plus: Intangibles amortization (2) |
|
12,667 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,667 |
|
Plus: Stock-based compensation expense |
|
1,238 |
|
|
|
— |
|
|
|
— |
|
|
|
5,032 |
|
|
|
6,270 |
|
Plus: Non-recurring expenses (3) |
|
2,476 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,476 |
|
Plus: Non-cash fair value adjustments (4) |
|
(2,611 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,611 |
) |
Plus: Impact of tax deconsolidation of Fortegra (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,210 |
|
|
|
10,210 |
|
Less: Tax on adjustments (6) |
|
(3,919 |
) |
|
|
207 |
|
|
|
(1,070 |
) |
|
|
1,468 |
|
|
|
(3,314 |
) |
Adjusted net income (before NCI) |
$ |
83,101 |
|
|
$ |
(1,389 |
) |
|
$ |
1,637 |
|
|
$ |
(18,228 |
) |
|
$ |
65,121 |
|
Less: Impact of non-controlling interests |
|
(17,058 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,058 |
) |
Adjusted net income |
$ |
66,043 |
|
|
$ |
(1,389 |
) |
|
$ |
1,637 |
|
|
$ |
(18,228 |
) |
|
$ |
48,063 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income (before NCI) |
$ |
83,101 |
|
|
$ |
(1,389 |
) |
|
$ |
1,637 |
|
|
$ |
(18,228 |
) |
|
$ |
65,121 |
|
Average stockholders’ equity |
$ |
365,375 |
|
|
$ |
54,411 |
|
|
$ |
103,332 |
|
|
$ |
15,456 |
|
|
$ |
538,574 |
|
Adjusted return on average equity (7) |
|
30.3 |
% |
|
|
(3.4 |
)% |
|
|
2.1 |
% |
|
NM% |
|
|
16.1 |
% |
||
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 September 30, 2024. |
(3) |
|
For the three and nine months ended September 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 nine months ended September 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 nine months ended September 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/20241030447925/en/
Tiptree Inc.
Investor Relations, 212-446-1400
ir@tiptreeinc.com
Source: Tiptree Inc.
FAQ
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