Tiptree Inc. (NASDAQ:TIPT) Q3 2022 Results Conference Call November 3, 2022 9:00 AM ET

Company Participants

Scott McKinney - Deputy CFO

Michael Barnes - Executive Chairman

Jonathan Ilany - CEO

Sandra Bell - CFO

Operator

Welcome to the Tiptree Inc. Third Quarter 2022 Earnings Conference Call [Operator Instructions].

I would now like to turn the conference over to Scott McKinney, Deputy CFO. Please go ahead.

Scott McKinney

Good morning, and welcome to our third quarter 2022 earnings call. We are joined today by our Executive Chairman, Michael Barnes; CEO, Jonathan Ilany; and CFO, Sandra Bell. A copy of our earnings release and investor presentation 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'll turn the call over to Michael.

Michael Barnes

Thank you, Scott, and good morning to everyone. Before we dive into the quarter, I'm sure you've all seen the announcement that our CFO, Sandra Bell will be retiring at the end of March next year. Along with the rest of the Board, I want to personally thank Sandra for her leadership and contributions to Tiptree over the past several years. Sandra has been an integral part of our senior management team since joining us in 2015. She has built a top-notch finance organization that is well-positioned for the future. Taking over from Sandra will be Scott McKinney, our current Deputy CFO. Scott has been with us for many years, has a deep understanding of our businesses and is well-qualified and prepared to take on his new responsibilities. Both Jonathan and I, as well as the Board of Directors are excited to welcome Scott to his new role. Sandra and Scott have worked well together over many years and will ensure a smooth transition over the coming months.

Moving to the quarter. I plan to give a brief update, and then we'll let Sandra walk through the financial highlights. When we set out our plans for 2022, we had several key objectives in mind: first, closing the investment in Fortegra with our new partner, Warburg Pincus. -- second, continue to execute on the growth plan at Fortegra, including looking at ways to potentially accelerate the growth profile, all while maintaining the company's excellent underwriting track record. Third, generate solid returns on capital deployed within our businesses in Tiptree Capital. Burginkusan Fortegra closed in June. Fortegra is quickly putting the fresh capital to work with substantial growth in E&S premiums. We remain focused on growing both the specialty insurance and service contract businesses. While we expect most of the growth to be organic through product and distribution expansion, we are always looking for complementary bolt-on acquisition. Fortegra's premiums and equivalents grew by 21% year-over-year to nearly $2 billion, led by strength in U.S. specialty insurance lines and service contract businesses in the U.S. and Europe.