Tiptree Inc. (NASDAQ:TIPT) Q4 2022 Earnings Conference Call March 9, 2023 9:00 AM ET
Company Participants
Scott McKinney - Deputy CFO
Michael Barnes - Executive Chairman
Sandra Bell - CFO
Conference Call Participants
Chris Colvin - Breach Inlet Capital
Operator
Greetings and welcome to Tiptree Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Scott McKinney, Deputy Chief Financial Officer. Thank you, sir. You may begin.
Scott McKinney
Good morning, and welcome to our fourth quarter 2022 earnings call. We are joined today by our Executive Chairman, Michael Barnes; and CFO, Sandra Bell. A copy of our earnings release, investor presentation and annual report are on our website, tiptreeinc.com.
Please note that some of our comments today will contain forward-looking statements based on our current view of our business, and actual future results may differ materially. Please see our most recent SEC filings, which identify the principal risks and uncertainties that could affect future performance.
During the call this morning, we will discuss non-GAAP financial measures, which are described in more detail in our presentation. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our SEC filings, the appendix to our presentation and posted on our website.
With that, I will turn the call over to Michael.
Michael Barnes
Good morning, everyone, and welcome to our fourth quarter earnings call. Although 2022 presented a number of significant market challenges, we were pleased with our results for the year.
Revenues for the year increased to a record $1.4 billion, up 16% from the prior year, while contributing adjusted net income of $63 million. Our specialty insurance business, Fortegra, continued to build upon its exceptional multiyear performance, producing a record adjusted return on equity of 26%, while growing top line premiums by 22% for the year. Fortegra's growth was led by strength in its specialty and remarkable over the past few years. More importantly, profitability has been maintained as the combined ratio has remained consistently low, registering an impressive 90.7% for the year. Our outlook for Fortegra remains bullish going forward.
With a robust specialty pipeline, $2 billion of deferred revenues and unearned premium sitting on the balance sheet and a long history of consistent growth and profitable underwriting, we could not be more excited about the future of our insurance business. While the financial markets provided some challenges to the performance of the investment portfolio, it increased in size by 27% to $1.2 billion. We take a conservative approach with the portfolio, and we anticipate future investment performance to be positively impacted by our ability to invest and reinvest in a higher interest rate environment.