Tiptree (US:TIPT)2024-10-30 20:09Financial Performance - Tiptree reported net income of $33.8 million for the nine months ended September 30, 2024, compared to $7.1 million in the prior year period, representing a significant increase driven by growth in insurance operations [197]. - Total revenues were $1.5 billion, an increase of $329.8 million, or 28.4%, from 2023, driven by premium growth in specialty E&S and admitted insurance lines in the U.S. and Europe [198]. - Adjusted net income for the nine months ended September 30, 2024, was $72.8 million, an increase of $24.8 million, or 51.5%, from the same period in 2023 [214]. - Adjusted net income for the three months ended September 30, 2024, was $27.9 million, an increase of $10.0 million, or 55.9%, from the same period in 2023 [213]. - The company reported a total income before taxes of $107.1 million for the nine months ended September 30, 2024, compared to $53.0 million for the same period in 2023, an increase of 102.5% [219]. - Adjusted net income for the nine months ended September 30, 2024, was $66,043,000, compared to $48,063,000 in 2023, reflecting a significant increase [328]. Revenue Growth - Gross written premiums and premium equivalents were $2.2 billion for the nine months ended September 30, 2024, an increase of $192.6 million, or 9.5%, from the prior year period [198]. - Insurance segment revenues for the three months ended September 30, 2024, were $481.0 million, compared to $406.8 million for the same period in 2023, an increase of 18.2% [219]. - Total revenues for the nine months ended September 30, 2024, were $1,539.3 million, compared to $1,202.7 million for the same period in 2023, reflecting a growth of 28.0% [219]. - Total underwriting and fee revenues increased to $1.4 billion for the nine months ended September 30, 2024, up $294.5 million, or 26.8%, driven by growth across all business lines [281]. Equity and Book Value - Fortegra's total stockholders' equity was $606.4 million as of September 30, 2024, compared to $452.6 million as of December 31, 2023 [198]. - Book value per share increased to $12.56 as of September 30, 2024, up from $10.78 as of September 30, 2023, representing a growth of 16.3% [216]. - Total stockholders' equity rose to $656.2 million as of September 30, 2024, compared to $576.6 million as of December 31, 2023, driven by comprehensive income [313]. Expenses and Loss Ratios - Net losses and loss adjustment expenses increased by 40.6% to $175.9 million, driven by growth in U.S. and European insurance lines [247]. - The loss ratio for the period was 45.1%, up from 39.8% in the prior year [244]. - The loss ratio for the nine months ended September 30, 2024, was 46.3%, compared to 40.3% for the same period in 2023 [265]. - Total expenses for the nine months ended September 30, 2024, included $87.1 million in other expenses, an increase of $17.2 million, or 24.6%, compared to the same period in 2023 [270]. Investment and Cash Flow - Cash provided by operating activities was $170,799,000 for the nine months ended September 30, 2024, compared to $93,566,000 in 2023, indicating strong operational performance [340]. - Cash used in investing activities was $146,198,000 for the nine months ended September 30, 2024, compared to $144,721,000 in 2023, indicating continued investment in growth [340]. - Cash used in financing activities was $17,980,000 for the nine months ended September 30, 2024, compared to cash provided of $39,605,000 in 2023, reflecting a shift in financing strategy [341]. Employee Compensation - Employee compensation and benefits rose by 22.3% to $37.9 million, reflecting investments in human capital [248]. - Employee compensation and benefits for the nine months ended September 30, 2024, were $27.7 million, an increase of 4.0% from $26.7 million in the prior year period [297]. - Employee compensation and benefits for the three months ended September 30, 2024, were $1,974 thousand, a decrease of 4.1% from $2,058 thousand in the same period of 2023 [310]. Tax and Non-Recurring Items - The total income tax expense for the three months ended September 30, 2024, was $16.3 million, with an effective tax rate of 44.4% [306]. - The impact of non-controlling interests on adjusted net income was $(8,314) thousand, reflecting a significant portion of the income attributable to non-controlling interests [324]. - The company recorded net realized and unrealized losses of $(2,423) thousand, compared to gains of $7,453 thousand in the previous year, indicating a shift in investment performance [325].