Tiptree Inc. (NASDAQ:TIPT) Q4 2023 Earnings Conference Call February 29, 2024 10:30 AM ET Company Participants Scott McKinney – Chief Financial Officer Michael Barnes – Executive Chairman Conference Call Participants Operator Greetings. Welcome to Tiptree Inc. Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I’ll now ...

Tiptree Inc. (NASDAQ:TIPT) Q3 2023 Earnings Conference Call November 2, 2023 10:30 AM ET Company Participants Scott McKinney - CFO Michael G. Barnes - Executive Chairman Jonathan Ilany - CEO Conference Call Participants Operator Greetings and welcome to the Tiptree Third Quarter 2023 Earnings Conference Call. At this time all participants are in a listen only mode. [Operator Instructions]. As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Scott Mckinney, Chief Fi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly period ended September 30, 2023 OR ☐ 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 ...

Financial Data and Key Metrics Changes - Tiptree's revenues for the year increased to $786 million, up 18% from the prior year, contributing adjusted net income of $41 million [3][16] - Consolidated net income for the quarter was $6 million, driven by growth in insurance operations and positive contributions from the mortgage business [17] - Adjusted net income for the quarter was $24 million, representing an 18% annualized adjusted return on average equity [18] Business Line Data and Key Metrics Changes - Fortegra posted gross written premiums and equivalents of $1.6 billion, up 34% from the prior year, with a combined ratio of 91% and an adjusted return on equity of 30% [8][9] - Fortegra's premiums and equivalents increased 44% year-over-year to $855 million, with revenues growing by 31% to $385 million [19] - The warranty services side of the business grew topline by 19%, but faced margin pressures due to inflation impacting costs [21] Market Data and Key Metrics Changes - The overall excess and surplus markets have seen significant growth, nearly doubling in size from $35 billion in 2018 to $76 billion in 2022 [20] - Fortegra's investment portfolio grew 22%, ending the quarter with $1.2 billion of investable assets [11][25] Company Strategy and Development Direction - Tiptree continues to look for opportunities to generate long-term absolute returns, with a focus on specialty insurance lines [14][28] - The company maintains a strong balance sheet with no holding company debt and substantial cash for future deployment [3][32] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the mortgage business as rates appear to stabilize [13] - The management team has effectively controlled expenses during a period of rising rates, positioning the company for future growth [42][56] Other Important Information - Tiptree's sum of the parts value is estimated to be $28.69 per diluted share, representing over $1 billion of value [30] - The company has a strong cash and capital position, ending the quarter with over $370 million of cash and equivalents [18] Q&A Session Summary Question: What drove the acceleration in Fortegra's top line results? - Management indicated that the growth was driven by strong submission flow in E&S lines and good growth in auto lines, despite some softness on the consumer side [37][38] Question: How does Fortegra balance investing for future growth while maintaining the expense ratio? - Management emphasized the importance of investing in technology and hiring additional underwriters while maintaining a scalable expense ratio [39][40] Question: Can you discuss the profitability of Reliance and its historical ROE profile? - Management noted that Reliance returned to profitability in the second quarter and highlighted the management team's effective expense control during volatile market conditions [52][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ 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) Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly period ended June 30, 2023 OR Maryland 38-3754322 (State or Other Jurisdiction of In ...

Tiptree Inc. (NASDAQ:TIPT) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET Company Participants Scott McKinney - CFO Michael Barnes - Executive Chairman Jonathan Ilany - CEO Operator Greetings, and welcome to the Tiptree First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce ...

Financial Performance - Tiptree reported a net loss of $1.1 million for Q1 2023, compared to a net loss of $1.0 million in Q1 2022, primarily due to lower mortgage and shipping revenues [199]. - Adjusted net income for Q1 2023 was $17.3 million, an increase of $1.8 million or 11.9% from $15.5 million in Q1 2022, driven by growth in insurance operations [213]. - Total revenues for Q1 2023 increased by $56.7 million, or 17.5%, to $381.6 million, primarily due to growth in earned premiums and service fees [209]. - Adjusted net income for the three months ended March 31, 2023, was $22.9 million, an increase of 8.6% from $21.1 million in the prior year [222]. - Total revenues for the three months ended March 31, 2023, increased by 30.4% to $368.4 million, compared to $282.5 million for the same period in 2022 [228]. - Adjusted net income for Q1 2023 was $22.9 million, with an adjusted return on average equity of 26.1%, compared to $21.1 million and 28.2% in Q1 2022 [262]. - Adjusted net income decreased to $1.4 million for the three months ended March 31, 2023, compared to $2.5 million in 2022, influenced by the sale of five vessels [284]. Insurance Operations - Gross written premiums and premium equivalents reached $750.3 million in Q1 2023, up from $600.9 million in Q1 2022, reflecting growth in specialty insurance lines [199]. - The combined ratio improved to 91.3% in Q1 2023, indicating consistent underwriting performance and scalability of Fortegra's operating platform [199]. - Earned premiums, net rose by $56.9 million, or 27.3%, to $265.3 million, driven by growth in specialty admitted and E&S insurance lines [228]. - The combined ratio for the insurance segment was 91.3%, compared to 90.5% in the previous year, indicating a slight increase in underwriting expenses relative to premiums [222]. - The combined ratio for Q1 2023 was 91.3%, consisting of an underwriting ratio of 78.3% and an expense ratio of 13.0%, compared to 90.5% in Q1 2022 [252]. - U.S. Insurance segment increased by $96.0 million, or 23.6%, while U.S. Warranty Solutions grew by $49.3 million, or 30.3% in Q1 2023 [248]. Investment and Assets - Net investment income grew to $5.1 million, up from $3.2 million, reflecting an increase in investment yields [230]. - Total assets increased to $4,308.0 million as of March 31, 2023, up $268.4 million from $4,039.6 million as of December 31, 2022, primarily due to growth in the Insurance segment [290]. - Total stockholders' equity rose to $541.6 million as of March 31, 2023, compared to $533.6 million as of December 31, 2022, driven by other comprehensive income on AFS securities [291]. - Cash and cash equivalents as of March 31, 2023, were $412.0 million, a decrease of $126.1 million from $538.1 million at December 31, 2022 [311]. Mortgage Segment - The mortgage segment reported a loss before taxes of $2.6 million in Q1 2023, compared to income of $4.3 million in Q1 2022, due to declines in origination volumes [199]. - The Mortgage segment reported total revenues of $11.6 million for Q1 2023, down from $25.4 million in Q1 2022, with origination volumes of $202.8 million [269]. - For the three months ended March 31, 2023, loans funded were $202.8 million, a decrease of $151.6 million or 42.8% compared to $354.4 million in 2022, primarily due to increased mortgage interest rates [272]. - Gain on sale margins in the Mortgage segment improved to 4.8% in Q1 2023, compared to 4.3% in Q1 2022 [269]. Cash Flow and Financing - Cash provided by operating activities for the three months ended March 31, 2023, was $43.05 million, significantly lower than $149.07 million in 2022 [318]. - Cash used in investing activities was $247.5 million for the three months ended March 31, 2023, compared to $18.7 million in 2022 [321]. - Cash provided by financing activities was $78.3 million for the three months ended March 31, 2023, down from $124.7 million in 2022 [323]. - The increase in corporate debt as of March 31, 2023, was due to a $75 million draw on Fortegra's revolving credit facility for the acquisition of Premia [317]. - The primary sources of cash from operating activities in 2023 included growth in insurance premiums written, leading to increases in unearned premiums and policy liabilities [319]. Acquisitions and Growth - Fortegra acquired Premia Solutions Limited for approximately $22.5 million in February 2023, expanding its automotive protection product offerings in the UK [199]. - The company plans to use cash resources to fund operations and growth, potentially seeking additional cash sources for acquisitions [309]. - The mortgage business relies on short-term uncommitted financing, with ongoing efforts to renew credit facilities [312]. - The company expects cash flow from operations to be sufficient for growth and to cover interest on outstanding debt in the coming years [313]. Tax and Deferred Liabilities - The effective tax rate for the three months ended March 31, 2023, was 61.5%, significantly higher than the U.S. statutory income tax rate of 21.0% due to deferred taxes on investments [287]. - As of March 31, 2023, the deferred tax liability related to Fortegra was $44.1 million, an increase of $4.1 million from December 31, 2022 [288].

Financial Data and Key Metrics Changes - Revenues for the year increased to a record $1.4 billion, up 16% from the prior year, contributing adjusted net income of $63 million [9] - Adjusted net income increased to $84 million for 2022, representing a 37% growth rate over the past four years [15] - Book value per share of $10.92 increased by 2.6% compared to the prior quarter and decreased by 1.3% over the prior year [20] Business Line Data and Key Metrics Changes - Fortegra's top line premiums grew by 22% for the year, with a record adjusted return on equity of 26% [9] - Quarterly premiums and equivalents for Fortegra were $724 million, up 26% year-over-year, driven by growth in excess and surplus and warranty lines [22] - The combined ratio for Fortegra remained stable year-over-year at 89.8% [22] Market Data and Key Metrics Changes - The investment portfolio increased in size by 27% to $1.2 billion, with 92% invested in cash and high credit quality liquid securities [4][35] - Mortgage volumes were down 29% in 2022, although Reliance's performance was better than the broader market [28] Company Strategy and Development Direction - The company is focused on deploying capital with the objective of long-term shareholder value appreciation [30] - There is a robust specialty pipeline and a long history of consistent growth and profitable underwriting in the insurance business [4] - The company is exploring options for potential IPOs or monetization events to enhance shareholder value [42][47] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the mortgage business as rates stabilize, despite challenges in origination volumes [17] - The company remains confident in the outlook for Fortegra and sees significant opportunities to create value from underwriting income and investment profitability [37] Other Important Information - The company announced a 25% increase in its dividend to $0.05 per share as of March 2023, reflecting the strength in its operating businesses [18] - The transaction with Warburg Pincus resulted in a $63 million pre-tax gain, partially offset by a $45 million tax expense related to the tax deconsolidation of Fortegra [21] Q&A Session Summary Question: Thoughts on closing the gap between estimated fair value and current trading price - Management acknowledged the importance of closing the gap and is focused on growth and communicating Fortegra's unique value [39][46] Question: Consideration of spinning off Tiptree Capital - Management is exploring all options, including potential IPOs, to maintain shareholder value while focusing on growth [41][42][47]

Market and Competitive Risks - The company operates in highly competitive markets, which could impede growth and negatively impact results[19] - The cyclical nature of the insurance industry may lead to fluctuations in results and profitability[20] - The insurance business relies heavily on independent distribution partners, and the loss of these relationships could materially impact sales and revenues[146] - New lines of business or geographic markets may introduce additional risks, including increased competition and potential limitations on writing new insurance contracts[155] - Economic downturns may reduce demand for insurance products, leading to fewer policy sales and increased claims frequency[169] Financial and Capital Risks - A significant portion of the company's assets are illiquid, creating uncertainty in valuing these assets[19] - The company may need to raise additional capital in the future, with no assurance that it will be available on acceptable terms[19] - The insurance subsidiaries may face challenges in generating sufficient cash flows to service their indebtedness, impacting financial stability[176] - The company faces substantial liquidity problems if cash flows and capital resources are insufficient to fund debt service obligations, potentially leading to asset disposals or changes in dividend policy[177] - The insurance subsidiaries' inability to generate sufficient cash flows to satisfy debt obligations may materially adversely affect business operations and financial condition[178] Investment and Market Risks - The company's investment portfolio is subject to various risks, including market volatility and potential defaults[19] - Interest rates increased significantly in 2022, leading to a decrease in the value of fixed income securities[133] - The insurance subsidiaries may shift their investment strategy towards equity securities, increasing portfolio risk and potential volatility, which could adversely affect profitability[138] - There is a risk that the insurance subsidiaries may need to sell investments to meet liquidity requirements, potentially resulting in significant realized losses depending on market conditions[139] - The value of mortgage servicing rights (MSRs) is highly sensitive to interest rate changes, with decreases in rates potentially leading to increased prepayment rates and reduced MSR values[197] Regulatory and Compliance Risks - The evolving regulatory environment regarding data privacy and cybersecurity could increase compliance costs and expose the Company to regulatory enforcement actions[245] - The company is subject to extensive regulations, including the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR), which may increase compliance costs and limit business opportunities[250] - Regulatory actions by the Consumer Financial Protection Bureau (CFPB) could influence sales practices and cost structures related to insurance products, potentially reducing revenue[252] - The company faces increased compliance costs due to the CFPB's heightened scrutiny and regulatory requirements, which could adversely affect its mortgage business[256] - Changes in accounting practices and interpretations could materially affect the company's reported financial results and require additional compliance costs[225] Operational Risks - The company faces risks related to cybersecurity attacks and information system failures[19] - Cybersecurity threats pose a significant risk to the business operations, potentially leading to loss of critical information and reputational damage[140] - Cybersecurity incidents may necessitate resource expenditure for remediation, which could disrupt business operations and lead to financial losses[142] - Catastrophic events, such as severe weather and pandemics, could significantly disrupt the Company's operations and adversely affect its financial condition[227] - The Company's insurance subsidiaries may face challenges in writing new policies due to increased frequency and severity of natural disasters, which could lead to substantial volatility in their financial results[229] Credit and Reinsurance Risks - The company is exposed to risks related to the creditworthiness of independent agents and program partners[20] - The insurance subsidiaries face risks related to the cost and availability of reinsurance, which could impact underwriting commitments and overall business operations[152] - The insurance subsidiaries currently hold financial strength ratings of "A-" (Excellent) from A.M. Best and "A–" (Outlook Stable) from KBRA, which are subject to periodic review and could be downgraded[149] - A downgrade in financial strength ratings could lead to increased policy surrenders and adversely affect relationships with distributors, reducing new policy sales[148] Human Resource Risks - The ability to attract and retain experienced personnel is critical for maintaining competitive positioning, with potential challenges in recruitment and retention due to market dynamics[161] - The growth of the customer base depends on effective sales and marketing activities, which may be hindered by difficulties in recruiting qualified personnel[162] Economic and Political Risks - The exit of the United Kingdom from the European Union could adversely affect the company's business[20] - International operations expose the insurance subsidiaries to investment, political, and economic risks, including foreign currency and credit risk[159] - The company is exposed to risks associated with international trade and economic sanctions, which may increase compliance costs and penalties for violations[261] Miscellaneous Risks - The company's charter includes provisions that may delay or prevent takeovers, potentially affecting stockholder interests[233] - Changes in state or federal laws regarding sales tax could result in substantial tax liabilities for the Company's insurance business[242] - Non-compliance with anti-corruption laws could lead to severe administrative, civil, and criminal sanctions, adversely affecting the company's operations and reputation[263] - The shipping business is subject to complex environmental regulations, and violations could result in substantial fines and costs[266]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly period ended June 30, 2022 OR ☐ 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 In ...