Market Overview

Tiptree Reports Third Quarter 2019 Results

Share:
  • Revenues of $189.2 million for the quarter, up 9.6% from the prior year period.
  • Net loss before non-controlling interests of $0.9 million for the quarter compared to $0.5 million in the prior year period, driven primarily by higher unrealized losses on investments.
  • Operating EBITDA(1) of $17.3 million for the quarter, an increase of 20.1% from the prior year period, driven by growth in insurance operations and contributions from our shipping and mortgage operations within Tiptree Capital.
  • Book value per share as of September 30, 2019 was $11.43, which including dividends paid represents a 7.5%(2) year over year return.
  • Declared a dividend of $0.04 per share to stockholders of record on November 18, 2019 with a payment date of November 25, 2019.

Tiptree Inc. (NASDAQ:TIPT) ("Tiptree" or the "Company"), a holding company that combines specialty insurance operations with investment management, today announced its financial results for the nine months ended September 30, 2019.

Summary Consolidated Statements of Operations

($ in millions, except per share information)

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

GAAP:

2019

 

2018

 

2019

 

2018

Total revenues

$

189.2

 

 

$

172.6

 

 

$

564.2

 

 

$

473.4

 

Net income (loss) before non-controlling interests

(0.9

)

 

(0.5

)

 

15.6

 

 

29.4

 

Net income (loss) attributable to Common Stockholders

(1.5

)

 

(0.6

)

 

14.2

 

 

23.8

 

Diluted earnings per share

(0.04

)

 

(0.02

)

 

0.39

 

 

0.69

 

Cash dividends paid per common share

0.040

 

 

0.035

 

 

0.115

 

 

0.100

 

 

 

 

 

 

 

 

 

Non-GAAP: (1)

 

 

 

 

 

 

 

Operating EBITDA

17.3

 

 

14.4

 

 

42.6

 

 

38.3

 

Adjusted EBITDA

6.2

 

 

7.7

 

 

43.7

 

 

23.2

 

Book value per share

11.43

 

 

10.77

 

 

11.43

 

 

10.77

 

(1)

For further information relating to the Company's Operating EBITDA, Adjusted EBITDA and Book value per share, including a reconciliation to GAAP financials, see "—Non-GAAP Reconciliations" below.

(2)

Total return per share as of September 30, 2019 defined as cumulative dividends paid of $0.15 per share plus growth in book value per share from September 30, 2018.

Earnings Conference Call

Tiptree will host a conference call on Thursday, November 7, 2019 at 9:00 a.m. Eastern Time to discuss its third quarter 2019 financial results. A copy of our investor presentation, to be used during the conference call, as well as this press release, will be available in the Investor Relations section of the Company's website, located at www.tiptreeinc.com.

The conference call will be available via live or archived webcast at http://www.investors.tiptreeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the telephone conference call, please dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). Please dial in at least five minutes prior to the start time.

A replay of the call will be available from Thursday, November 7, 2019 at 1:00 p.m. Eastern Time, until midnight Eastern on Thursday, November 14, 2019. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13694922.

Q3'19 Financial Overview

Overall:

  • Delivered a year-to-date return of 7.0%, as measured by growth in book value per share plus dividends paid.
  • Year-to-date 2019, we purchased and retired 1,472,730 shares of our Common Stock for $9.1 million through open market purchases and block purchases.
  • Increased our quarterly dividend for the third consecutive year to $0.04 per share, a 14.3% increase.

Insurance:

  • Gross written premiums for the quarter were $275.1 million, up 22.0%, with net written premiums of $160.1 million, up 21.7%, both driven primarily by growth in credit protection and warranty products. Year-to-date 2019 gross written premiums were $736.1 million, up 18.8%, with net written premiums of $434.8 million, up 29.2%, driven by growth in all product lines.
  • Combined ratio of 92.1% for the quarter, and 92.8% for the year-to-date, both improvements from prior year as a result of increased underwriting margins.
  • Within our insurance investment portfolio, we earned an average annualized yield of 4.1%, up from 2.2% from the prior year period, driven primarily by lower unrealized losses and lower investment portfolio interest expense.
  • As part of our strategy to grow our specialty insurance operations in Europe, we acquired a majority interest in Defend, an automotive finance and insurance provider and insurance administrator operating in the Czech Republic, Poland, Hungary, Slovakia, and the UK.

Tiptree Capital:

  • Operating EBITDA grew
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