Tiptree (US:TIPT)2024-10-30 20:05Financial Performance - Revenues for Q3 2024 were $494.4 million, an increase of 18.7% from Q3 2023, driven by growth in Fortegra's specialty insurance lines[3] - Net income for Q3 2024 was $11.9 million, compared to $2.2 million in Q3 2023, reflecting growth in the insurance business[3] - Adjusted net income for Q3 2024 was $27.9 million, up 55.9% from $17.9 million in Q3 2023, with an annualized adjusted return on average equity of 24.8%[4] - Year-to-date revenues for 2024 reached $1.54 billion, an increase of 28.0% from 2023, driven by specialty insurance lines and net investment income[5] - Year-to-date net income for 2024 was $33.8 million, compared to $7.1 million in 2023, driven by growth in insurance and improved mortgage operations[5] - Total revenues for the three months ended September 30, 2024, were $494,362 thousand, a 18.7% increase from $416,514 thousand in the same period of 2023[25] - Net income attributable to common stockholders for the three months ended September 30, 2024, was $11,915 thousand, compared to $2,153 thousand in the same period of 2023, representing a significant increase of 453.5%[25] - Adjusted net income for the three months ended September 30, 2024, was $31,728,000, a decrease from $36,186,000 in the previous period[28] - For the nine months ended September 30, 2024, total income before taxes was $107,126,000, with an adjusted net income of $72,827,000[30] - The company reported a total income before taxes of $52,988,000 for the three months ended September 30, 2024, with an adjusted net income of $48,063,000[31] Premiums and Underwriting - Gross written premiums for Q3 2024 were $776.8 million, an increase of 13.2%, and $2.22 billion for the year, an increase of 9.5%[8] - Net written premiums for Q3 2024 were $389.3 million, an increase of 16.6%, and $1.07 billion for the year, an increase of 14.7%[9] - The combined ratio for Q3 2024 was 90.2%, consistent with Q3 2023, indicating stable underwriting performance[10] Equity and Assets - Fortegra's total stockholders' equity increased to $606.4 million as of September 30, 2024, from $452.6 million at the end of 2023, driven by net income and capital contributions[12] - Total stockholders' equity increased to $656,200 thousand as of September 30, 2024, from $576,565 thousand as of December 31, 2023[23] - Total assets as of September 30, 2024, were $5,505,733 thousand, an increase from $5,139,313 thousand as of December 31, 2023[23] - Total liabilities increased to $4,849,533 thousand as of September 30, 2024, compared to $4,562,748 thousand as of December 31, 2023[23] Cash and Expenses - Cash and cash equivalents decreased to $396,187 thousand as of September 30, 2024, from $468,711 thousand as of December 31, 2023[23] - Stock-based compensation expense for the three months ended September 30, 2024, totaled $5,957,000, an increase from $1,963,000 in the previous period[28] - The company reported a non-recurring expense of $119,000 for the three months ended September 30, 2024[28] - Other expenses included legal and other costs associated with the preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024[3] Investment Performance - Tiptree Capital reported a loss before taxes of $2.7 million for Q3 2024, an improvement from a loss of $6.1 million in Q3 2023, driven by unrealized investment losses[13] - The company experienced net realized and unrealized losses of $6,428,000 for the nine months ended September 30, 2024[30] - The company added back $5.9 million and $16.7 million related to deferred tax expense from the WP Transaction for the three and nine months ended September 30, 2024, respectively[5] - Non-cash fair-value adjustments for the three and nine months ended September 30, 2024, included changes in fair value of the Fortegra Additional Warrant liability, which were added back to adjusted net income[4] Shareholder Equity - The average stockholders' equity increased to $637,135,000, compared to $577,776,000 in the prior period, reflecting a growth of approximately 10.3%[28] - The average Tiptree Inc. stockholders' equity was $449.2 million for the three months ended September 30, 2024, compared to $399.0 million in 2023[7] - The average Tiptree Inc. stockholders' equity for the nine months ended September 30, 2024, was $439.4 million, compared to $396.7 million in 2023[7] Future Plans - The company plans to take Fortegra public, subject to market conditions and other factors[21] - The company experienced a significant increase in adjusted net income and return on equity, indicating strong financial performance and effective management strategies[7]