Tiptree (US:TIPT)2023-03-09 16:20Financial 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]