On November 1, 2023, Tiptree Inc (TIPT, Financial) released its financial results for the third quarter of 2023. The company reported a 14.6% increase in revenues to $416.5 million, primarily driven by growth in Fortegra’s specialty insurance lines. However, net income attributable to common stockholders fell to $2.2 million from $14.2 million in Q3 2022. The company also announced its intent to take its specialty insurance subsidiary, Fortegra, public.
Financial Highlights
For the three months ended September 30, 2023, Tiptree reported total revenues of $416.5 million, up from $363.5 million in the same period in 2022. The increase was primarily driven by growth in Fortegra’s specialty insurance lines. Excluding investment gains and losses, revenues were up 18.7%.
Net income attributable to common stockholders was $2.2 million, compared to $14.2 million in Q3 2022. The decrease was primarily due to unrealized losses on investments in Q3 2023 and lower shipping income as a result of the sale of vessels in 2022.
Adjusted net income, which excludes certain non-recurring items, increased by 23.9% to $24.0 million from $19.4 million in Q3 2022. The increase was driven by growth in the company's insurance operations. The company declared a dividend of $0.05 per share to stockholders of record on November 20, 2023, with a payment date of November 27, 2023.
Segment Performance
The Fortegra Group, Tiptree's insurance segment, reported gross written premiums and premium equivalents of $834.5 million, up 9.6% for the quarter and 24.7% for the year. The combined ratio for the quarter was 90.2%, compared to 91.3% in Q3 2022, reflecting the consistent underwriting performance and scalability of the company’s operating platform.
Tiptree Capital, another segment of the company, reported a loss before taxes of $6.1 million for the quarter, compared to income of $18.1 million in Q3 2022. The loss was primarily driven by unrealized losses on investments in Q3 2023 and declines in shipping operations as a result of the sale of five vessels in 2022.
Future Plans
Tiptree also announced its intent to take its specialty insurance subsidiary, Fortegra, public. The company expects the Fortegra IPO to be a primary offering with the proceeds used to support Fortegra’s growth. Tiptree expects to maintain majority ownership of Fortegra and believes a Fortegra IPO will create a platform to serve the future capital needs of the business.
Explore the complete 8-K earnings release (here) from Tiptree Inc for further details.
