Tiptree Inc. (NASDAQ:TIPT) Q3 2024 Earnings Conference Call October 31, 2024 10:30 AM ET
Company Participants
Scott McKinney – Chief Financial Officer
Michael Barnes – Executive Chairman
Conference Call Participants
Operator
Ladies and gentlemen, greetings, and welcome to the Tiptree Inc. Third Quarter 2024 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Scott McKinney, Chief Financial Officer. Thank you and over to you.
Scott McKinney
Good morning, and welcome to our third quarter 2024 earnings call. Joining me today are Michael Barnes, our Executive Chairman; Jonathan Ilany, CEO; and Randy Maultsby, President. Some of our comments today will contain forward-looking statements, 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. In today's call, we will discuss non-GAAP financial measures, which are described in more detail in our presentation. Reconciliations of these measures and additional disclosures can be found in our SEC filings, the appendix to our presentation and on our website.
With that, I will turn the call over to Michael.
Michael Barnes
Thank you, Scott, and good morning to everyone. The strong performance from our businesses continued in the third quarter. Revenues year-to-date have increased by 28% from the prior year, while delivering an adjusted return on equity of 22%. Our insurance company, Fortegra, delivered revenue growth of 28% and adjusted net income growth of 38%. These exceptional figures were driven by continued expansion of specialty insurance lines, particularly in the excess and surplus market.
Gross written premiums and equivalents were $2.2 billion, an increase of 10% over 2023. We continue to see a strong pipeline of opportunities and the pricing environment remains attractive for underwriting new business. Within the third quarter, we witnessed several catastrophic events, resulting in extreme destruction and personal loss and communities across the country. Our thoughts are with those who were impacted and the team at Fortegra remains focused on delivering quality service to its policyholders. Despite these events, Fortegra's combined ratio improved to 90%, demonstrating the underwriting discipline and diversification of risk that we have observed for many years.
The investment portfolio, which is overseen by our asset management subsidiary, Tiptree Advisors, ended the quarter at $1.5 billion of investable assets. Our focus when investing paid in premiums remains unchanged. We allocate to high-quality liquid fixed income securities, coupled with select high-yielding investment opportunities to enhance return. As the portfolio grows and maturing investments roll, we continue to see attractive opportunities to add high-quality bonds that enhance our overall book yield and future earnings profile.