Tiptree Inc. (NASDAQ:TIPT) Q2 2022 Earnings Conference Call August 9, 2022 9:00 AM ET
Company Participants
Scott McKinney - Deputy Chief Financial Officer
Michael Barnes - Executive Chairman
Jonathan Ilany - Chief Executive Officer
Sandra Bell - Chief Financial Officer
Conference Call Participants
Walter Schenker - MAZ Partners
Chris Colvin - Breach Inlet Capital
Operator
Good day, and welcome to the Tiptree Inc. Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Scott McKinney, Deputy CFO. Please go ahead, sir.
Scott McKinney
Good morning and welcome to our second 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 today, 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
Thank you, Scott and good morning to everyone. Tiptree is off to a solid first half of 2022 with each of our operating businesses producing positive results. Fortegra had another excellent quarter of premium growth and underwriting results. Our Marine business had its best quarter yet from strong charter rates and the gain on sale of one dry bulk vessel and our mortgage business was profitable despite the headwinds from rising interest rates.
Revenues for the first 6 months increased 12% versus last year to $665 million, and adjusted net income improved 12% to $29 million. In June, we closed on the $200 million investment in Fortegra by Warburg Pincus. As I have stated before, we are extremely bullish on Fortegra’s growth prospects and believe the partnership among Tiptree, Fortegra and Warburg Pincus will lead to fruitful results for years to come. Fortegra posted premiums and equivalents of $1.2 billion, up 16% from the prior year, led by strength in the specialty admitted and E&S insurance lines. Fortegra’s adjusted net income was $40 million, up 49% from 2021, which represented an adjusted return on equity of 26%. Specialty markets remained favorable, and we continue to see improvement in the combined ratio from operating efficiencies.