Yahoo Finance Tiptree Inc. (NASDAQ:TIPT) Q4 2023 Earnings Call Transcript
Tiptree Inc. (NASDAQ:TIPT) Q4 2023 Earnings Call Transcript February 29, 2024
Tiptree Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings. Welcome to Tiptree Inc. Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I’ll now turn the conference over to Scott McKinney, Chief Financial Officer. Thank you. you may begin.
Scott McKinney: Good morning, and welcome to our fourth quarter 2023 earnings call. Joining me today are Michael Barnes, our Executive Chairman; and Jonathan Ilany, CEO. 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 metrics, which are described in more detail in our presentation. Reconciliations of these metrics 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: Thanks, Scott, and good morning to everyone. 2023 proved to be a year of exceptional performance for Tiptree. Our operating businesses continued to build upon their track record of growth and profitability, resulting in an 18% increase in revenues to $1.6 billion for the year, alongside an adjusted return on equity of 15%. In light of our continuing positive performance, we are pleased to have increased our quarterly dividend by 20% to $0.06 per share. The Fortegra Group, our specialty insurance business achieved record results for the year with premium and premium equivalent growth of 21% and an adjusted return on equity of 29%. Underwriting results remained consistent posting a combined ratio of 90%, underscoring the company’s tradition of disciplined, specialized underwriting.
Although, the recent market environment has been unconducive for a public offering, we firmly believe Fortegra is strategically well-positioned to maintain the trajectory of consistent growth and sustained underwriting profitability over the long-term. Tiptree Capital finished the year with $178 million of capital deployed across our mortgage origination and servicing business. Our liquid investment portfolio and cash at reliance continued high mortgage rates kept origination volumes muted. Although, the income and sustained market value of our retained servicing book allowed the business to remain stable for the year. This result significantly outperforms the broader mortgage industry for 2023. We maintain a positive outlook for the business with greater potential for future profit as mortgage rates stabilize.
For Tiptree, we remain focused on seeking opportunities to achieve long-term absolute returns. Our balance sheet remains well capitalized with no holding company debt and cash for future deployment. With strong performance in 2023, we are well-positioned for growth and we maintain a positive outlook for the company. With that, I’ll turn the call over to Scott to discuss our financial results.
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