Tiptree Inc (TIPT) 2023 Q4 法說會逐字稿

Greetings. Welcome to Tiptree Inc. fourth quarter 2023 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to Scott McKinney, Chief Financial Officer. Thank you may begin.

問候。歡迎參加 Tiptree Inc. 2023 年第四季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。我現在將會議交給財務長 Scott McKinney。謝謝你可以開始了。

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.

早上好，歡迎參加我們的 2023 年第四季財報電話會議。今天加入我的是我們的執行主席 Michael Barnes；和執行長喬納森·伊蘭尼。我們今天的一些評論將包含前瞻性陳述，未來的實際結果可能會存在重大差異。請參閱我們最近向 SEC 提交的文件，其中確定了可能影響未來業績的主要風險和不確定性。

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.

在今天的電話會議中，我們將討論非公認會計準則財務指標，這些指標在我們的簡報中進行了更詳細的描述。這些指標的核對和其他揭露可以在我們的 SEC 文件、我們簡報的附錄以及我們的網站上找到。

With that, I will turn the call over to Michael.

這樣，我會將電話轉給麥可。

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.

謝謝斯科特，大家早安。事實證明，2023 年是 Tiptree 表現出色的一年。我們的營運業務持續保持成長和獲利能力，全年營收成長 18%，達到 16 億美元，調整後股本回報率達到 15%。鑑於我們持續的積極業績，我們很高興將季度股息增加 20% 至每股 0.06 美元。

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 unconditionally for public offerings, we firmly believe Fortegra is strategically well positioned to maintain the trajectory of consistent growth and sustained underwriting profitability over the long term.

我們的專業保險業務 Fortegra 集團今年取得了創紀錄的業績，保費和保費等值增長了 21%，調整後股本回報率為 29%。核保績效保持一致，綜合比率為 90%，突顯了公司紀律嚴明、專業核保的傳統。儘管最近的市場環境已經無條件公開發行，但我們堅信 Fortegra 在策略上處於有利位置，能夠長期保持持續成長和持續承保獲利的軌跡。

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 outperformed the broader mortgage industry for 2023.

Tiptree Capital 年底在我們的抵押貸款發放和服務業務、流動投資組合和現金方面部署了 1.78 億美元的資本。在 Reliance，儘管我們保留的服務帳簿的收入和持續的市場價值使業務在今年保持穩定，但持續的高抵押貸款利率使發放量保持低迷。這一結果明顯優於 2023 年整個抵押貸款行業。

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.

隨著抵押貸款利率穩定，我們對未來利潤潛力更大的業務保持積極的前景。對 Tiptree 來說，我們仍然專注於尋找實現長期目標的機會。絕對回報。我們的資產負債表資本充足，沒有控股公司債務和未來部署的現金。憑藉 2023 年的強勁業績，我們已做好成長準備，並對公司保持積極的前景。

With that, I'll turn the call over to Scott to discuss our financial results.

接下來，我會將電話轉給史考特，討論我們的財務表現。

Thank you, Michael. For the quarter, Tiptree's revenues were up 24%, excluding unrealized gains and losses, driven by growth in insurance underwriting and fee-based service revenues. Consolidated net income of $6.9 million was driven by growth in our insurance operations and unrealized investment gains, partially offset by the sale of our five vessels in 2022.

謝謝你，麥可。在保險核保和收費服務收入成長的推動下，剔除未實現的損益，Tiptree 本季的營收成長了 24%。690 萬美元的綜合淨利潤是由我們的保險業務成長和未實現的投資收益所推動的，但部分被我們 2022 年出售的五艘船所抵消。

Impacting the fourth quarter of 2023 and 2022 was a $9 million deferred tax expense related to the deconsolidation of Fortegra for tax purposes. This deferred tax liability is only crystallized on a sale of Fortegra. Adjusted net income for the quarter was $13.9 million, representing an increase of 43% compared to the prior year period.

影響 2023 年第四季和 2022 年的是與 Fortegra 為稅務目的而分拆相關的 900 萬美元遞延稅費。這種遞延所得稅負債僅在出售 Fortegra 時具體化。該季度調整後淨利潤為 1,390 萬美元，較去年同期成長 43%。

As Michael mentioned, our balance sheet remains well positioned. We ended the quarter with a highly rated liquid investment portfolio, substantial cash balances, and we continued to maintain a conservative position with respect to our loss reserves at the insurance company.

正如邁克爾所提到的，我們的資產負債表仍然處於良好狀態。本季結束時，我們擁有高度評價的流動性投資組合、大量現金餘額，我們繼續對保險公司的損失準備金保持保守立場。

Turning to our insurance results for the quarter. Gross written premiums and equivalents increased 38% year over year to $724 million, driven by robust growth in specialty E&S and admitted insurance lines, along with the benefits from a book roll transaction with one of our commercial MGA partners. Operationally, there continues to be robust submission activity and a healthy pipeline of new underwriting opportunities across our specialty lines.

轉向我們本季的保險業績。受專業 E&S 和承認保險業務的強勁增長以及與我們的商業 MGA 合作夥伴之一的賬簿交易帶來的好處的推動，毛保費和等價物同比增長 38% 至 7.24 億美元。在營運方面，我們的專業領域繼續保持強勁的提交活動和健康的新核保機會管道。

Net written premiums were $384 million for the quarter, an increase of 57%, in line with the growth in gross written premiums, along with increased retention on our whole account quota share agreement from 30% to 40%, which went effective April 1, 2023. Revenues grew by 25% to $433 million, and the combined ratio remained consistent at 89.8%. Underwriting improvements were offset by an increased expense ratio as we continue to invest in data science initiatives, bolster our excess and surplus Lines capabilities, and continued to expand in Europe. Adjusted return on equity for the year was 29% driven by growth, profitable underwriting, and the scalability of our technology-enabled platform.

本季淨承保保費為 3.84 億美元，成長 57%，與總承保保費的成長一致，同時我們的整個帳戶配額份額協議的保留率從 30% 增加到 40%，該協議於 4 月 1 日生效。 2023 年。營收成長 25%，達到 4.33 億美元，綜合成本率維持在 89.8%。隨著我們繼續投資數據科學計劃、增強我們的超額和盈餘保險業務能力，並繼續在歐洲擴張，費用率的增加抵消了承保的改善。由於成長、承保獲利以及我們技術支援平台的可擴展性，今年調整後的股本回報率為 29%。

Flipping to the investment results, for the year, net investment income when combined with interest on cash and cash equivalents yielded $38 million compared to $15 million in the prior year. With the decline in rates, we also experienced a $19 million recovery that impacted comprehensive income in 2023. The portfolio ended the year at $1.3 billion, with 90% invested in the combination of high credit quality, liquid securities, and cash with an average S&P rating of AA.

轉向投資業績，今年淨投資收入加上現金和現金等價物利息產生了 3800 萬美元，而上一年為 1500 萬美元。隨著費率下降，我們還實現了 1,900 萬美元的復甦，這影響了 2023 年的綜合收入。截至年底，該投資組合達到 13 億美元，其中 90% 投資於高信用品質、流動性證券和現金的組合，標準普爾平均評級為 AA。

Our embedded book yield was 3.3% at year end, up nearly 60 basis points from the prior year, driven by improving yields on short-duration fixed income securities and the money market funds. The duration of our fixed income portfolio was approximately 2.5 years, which positions us well as maturities roll and the portfolio grows to reinvest at higher yields.

受短期固定收益證券和貨幣市場基金收益率提高的推動，我們的嵌入帳面收益率年末為 3.3%，比上年上升近 60 個基點。我們的固定收益投資組合的期限約為 2.5 年，這使我們能夠很好地進行到期展期，並且投資組合會不斷增長，以更高的收益率進行再投資。

Each quarter, we include the next set of charts to display a snapshot of Fortegra's results over time. Gross written premium and equivalents have grown 26% annually since 2019, primarily driven by organic growth. For the year, the team delivered $2.7 billion of premiums, an increase of 21% over prior year.

每個季度，我們都會提供下一組圖表來顯示 Fortegra 隨著時間推移的業績快照。自 2019 年以來，總承保保費及等值保費每年增長 26%，這主要是由有機增長推動的。今年，該團隊交付保費 27 億美元，比上年增長 21%。

Excess and surplus lines represented 30% or just over $800 million of our 2023 written premiums and equivalents. The combined ratio remains consistent in the low 90s, improving two points over the past five years.

超額和盈餘額度占我們 2023 年承保保​​費和等值金額的 30%，即略高於 8 億美元。綜合成本率始終保持在 90 左右，在過去五年中提高了兩個百分點。

As the business mix increasingly trends towards specialty P&C lines, you'll notice a rise in the loss ratio, which is more than compensated for by decreases in our acquisition expenses and operational efficiencies. Adjusted net income crossed the $100 million mark this year, ultimately delivering $116 million or 38% growth year over year. Looking ahead, we anticipate the continued hard market environment in tandem with adding new agents and distribution partners will continue to extend Fortegra's growth profile.

隨著業務組合越來越傾向於專業財產險產品線，您會注意到損失率上升，而我們的收購費用和營運效率的下降足以彌補這一損失。今年調整後淨利突破 1 億美元大關，最終實現 1.16 億美元，年增 38%。展望未來，我們預計持續嚴峻的市場環境以及新代理商和分銷合作夥伴的增加將繼續擴大 Fortegra 的成長前景。

Turning to Tiptree Capital, the pre-tax loss for the quarter was $2.1 million, driven primarily by losses on invest in our mortgage servicing asset, partially offset by gains on other investments. Mortgage originations for the year were $877 million, down 23% from the prior year as elevated mortgage rates impacted volumes across the industry.

Tiptree Capital 表示，本季稅前虧損為 210 萬美元，主要是由於我們的抵押貸款服務資產投資虧損造成的，部分被其他投資收益所抵銷。由於抵押貸款利率上升影響了整個行業的交易量，全年抵押貸款發放量為 8.77 億美元，比上年下降 23%。

As Michael mentioned, with expectations of lower mortgage rates ahead, we expect origination volumes and margins to normalize throughout 2024. Tiptree Capital ended the quarter with $178 million of book value with two-thirds allocated to highly liquid investments.

正如 Michael 所提到的，隨著抵押貸款利率下降的預期，我們預計 2024 年貸款量和利潤率將趨於正常化。Tiptree Capital 本季末的帳面價值為 1.78 億美元，其中三分之二分配給了高流動性投資。

Now I'll pass the call back to Michael to wrap up our prepared remarks.

現在我將把電話轉給邁克爾，以結束我們準備好的發言。

Thanks, Scott. Our fourth quarter was a great finish to the year and a true testament to the hard work and expertise of Tiptree's team of professionals in those of our related companies. We began 2024 well positioned financially and we could not be more excited about Tiptree's future. Fortegra once again posted record results. The pipeline of new opportunities continues to build, and specialty market conditions remain favorable. We at Tiptree will continue to look for opportunities to allocate capital for long-term value accretion.

謝謝，斯科特。我們的第四季為這一年畫上了圓滿的句號，真正證明了我們相關公司的 Tiptree 專業團隊的辛勤工作和專業知識。2024 年伊始，我們的財務狀況良好，我們對 Tiptree 的未來感到非常興奮。Fortegra 再次創下了創紀錄的成績。新機會不斷湧現，專業市場狀況仍有利。Tiptree 將繼續尋找機會分配資本以實現長期價值增值。

I'd now like to turn the call back over to the operator for Q&A. Operator?

我現在想將電話轉回給接線員進行問答。操作員？

(Operator Instructions) There are no questions at this time, we will conclude today's conference. Thank you for your participation. You may now disconnect.

（操作員指示） 目前沒有問題，我們將結束今天的會議。感謝您的參與。您現在可以斷開連線。