Tiptree Inc (TIPT) 2024 Q3 法說會逐字稿

Ladies and gentlemen, greetings and welcome to the Tiptree Inc third quarter, 2024 earnings conference call at this time. All participants are in listen-only mode. A brief question and answer session will follow the formal presentation.

女士們、先生們，大家好，歡迎參加 Tiptree Inc 2024 年第三季財報電話會議。所有參與者都處於只聽模式。正式演講結束後將有一個簡短的問答環節。

If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號和零。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host Scott McKinney, Chief Financial Officer. Thank you and over to you.

現在我很高興介紹您的主持人、財務長 Scott McKinney。謝謝你，一切都交給你了。

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.

早安，歡迎參加我們 2024 年第三季財報電話會議。今天與我一起出席的還有我們的執行主席邁克爾·巴恩斯 (Michael Barnes)、首席執行官喬納森·伊拉尼 (Jonathan Ilany) 和總裁蘭迪·莫爾斯比 (Randy Maultsby)。

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.

我們今天的一些評論將包含前瞻性陳述，實際未來結果可能會存在重大差異。請參閱我們最新的證券交易委員會文件，其中列出了可能影響今天電話會議未來表現的主要風險和不確定性。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有更詳細的描述，這些指標的對帳和其他揭露可以在我們的美國證券交易委員會文件、簡報附錄和我們的網站上找到，我會將電話轉給麥可。

Thank you, Scott and Good morning to everyone.

謝謝你，斯科特，大家早安。

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%.

我們的業務在第三季持續保持強勁表現。今年迄今的收入比前一年增加了 28%。同時實現22%的調整後股本回報率。

Our insurance company fortegra delivered revenue growth of 28% and adjusted net income growth of 38%.

我們的保險公司 Fortegra 的收入成長了 28%，調整後淨收入成長了 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.

這些出色的數據是由專業保險業務的持續擴張推動的，特別是在超額和盈餘市場，毛承保保費和等價物為 22 億美元，比 2023 年增長了 10%。

We continue to see a strong pipeline of opportunities and the pricing environment remains attractive for underwriting new business.

我們繼續看到了大量機遇，承保新業務的定價環境仍然具有吸引力。

Within the third quarter. We witnessed several catastrophic events resulting in extreme destruction and personal loss in communities across the country. Our thoughts are with those who were impacted and the team of Fortegra remains focused on delivering quality service to its policyholders.

在第三季內。我們目睹了多起災難性事件，導致全國各地社區遭到極大破壞並造成人員傷亡。我們對那些受到影響的人表示慰問，Fortegra 團隊將繼續致力於為保單持有人提供優質服務。

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.

儘管發生了這些事件，Fortegra 的綜合比率仍改善至 90%，證明了我們多年來觀察到的核保紀律和風險分散性。

The investment portfolio which is overseen by our asset management subsidiary tip tree advisors ended the quarter at $1.5 billion of investable assets.

由我們的資產管理子公司tip tree advisors監管的投資組合在本季末的可投資資產為15億美元。

Our focus when investing paid in premiums remains unchanged.

我們投資已付保費的重點維持不變。

We allocate to high quality liquid fixed income securities coupled with select high yielding investment opportunities to enhance returns as the portfolio grows and maturing investments roll. We continue to see attractive opportunities that high quality bonds that enhance our overall book yield and future earnings profile.

我們將資產配置至優質流動性固定收益證券，並選擇高收益的投資機會，以隨著投資組合的成長和投資的到期而提高回報。我們繼續看到具有吸引力的機會，即高品質債券可以提高我們的整體帳面收益率和未來獲利狀況。

The team at our residential mortgage origination and servicing business reliance continues to execute in a tough operating environment.

我們的住宅抵押貸款發放和服務業務依賴團隊在艱難的營運環境中繼續努力工作。

Volumes have increased modestly compared to the prior year. And the fee income from our retained servicing book has led the business to profitability.

與上年相比，銷量略有增加。我們保留的服務帳簿所產生的費用收入已使業務獲利。

We hold a positive outlook for the business anticipating increased potential for future profit as mortgage rates tighten.

我們對該業務持樂觀態度，預計隨著抵押貸款利率收緊，未來的利潤潛力將會增加。

We are pleased with Tiptree's performance thus far in 2024. And as always, we remain committed to growing long term shareholder value and we'll continue to seek constructive ways to more fully reflect the intrinsic value of Tiptree's businesses in our share price. With that, I'll turn the call over to Scott for his comments.

我們對 Tiptree 在 2024 年迄今的表現感到滿意。像往常一樣，我們仍然致力於提高長期股東價值，並將繼續尋求建設性的方法，以便在我們的股價中更充分地反映 Tiptree 業務的內在價值。說完這些，我將把電話轉給斯科特，請他發表評論。

Thank you, Michael.

謝謝你，麥可。

As you highlighted the results for the quarter and nine months exceeded our expectations and we remain positive on the outlook for growth.

正如您所強調的，本季和前九個月的業績超出了我們的預期，我們對成長前景仍持樂觀態度。

Tiptree's revenues were up 19% for the quarter driven by growth and earned premiums, an increase in net investment income and investment gains as compared to the prior year adjusted net income for the quarter was $27.9 million, representing an increase of 56% driven by strong underwriting and investment income at our insurance business and increased origination volume at our mortgage business consolidated net income was $11.9 million compared to $2.2 million in the prior year.

Tiptree 本季的營收成長了 19%，這得益於成長和已賺保費，淨投資收入和投資收益與去年同期相比有所增加，本季調整後的淨收入為 2790 萬美元，增幅為 56%，這得益於我們保險業務的承保和投資收入強勁，以及抵押貸款業務的發放量為 56%，這得益於我們保險業務的承保和投資收入強勁，以及抵押貸款業務的發放量增加，綜合收入為 120 萬美元，而去年同期淨收入為 120 萬美元。

Tiptree's GAAP tax rate for the quarter was 44%.

Tiptree 本季的 GAAP 稅率為 44%。

Setting aside the book tax implications of being deconsolidated from Fortegra for tax purposes. Our effective tax rate was 28%.

出於稅務目的，暫且不論從 Fortegra 分離出來的帳面稅務影響。我們的有效稅率為28%。

The vast majority of which is deferred.

其中絕大部分被推遲。

Our balance sheet remains well positioned. We ended the quarter with a highly rated liquid investment portfolio, substantial cash balances and strong cash flow from operations.

我們的資產負債表依然保持良好狀態。我們在本季結束時擁有高評級的流動性投資組合、充足的現金餘額和強勁的營運現金流。

Consolidated cash flow from operations was $171 million driven by premium growth and profitable insurance and fee-based earnings. With the majority of proceeds being deployed into fixed income investments at attractive yields.

綜合經營現金流為 1.71 億美元，主要得益於保費成長以及保險和費用收益的獲利。大部分收益被投入具有誘人收益率的固定收益投資。

Book value per share increased by 18.6% from the prior year. Inclusive of dividends paid.

每股帳面價值較上年增加18.6%。包括已支付的股息。

This was driven by earnings growth and a significant recovery of unrealized losses on Fortegra's fixed income portfolio.

這是由於盈利增長以及 Fortegra 固定收益投資組合未實現損失的大幅恢復所推動的。

Turning to our insurance results for the quarter, gross written premiums and equivalents increased 13% year over year driven by growth in excess and surplus lines.

回顧本季的保險業績，受超額和盈餘線成長的推動，毛承保保費和等價物年增 13%。

Ens lines represented 40% or about $312 million of total premiums and grew at a rate of 34% in the quarter.

Ens 險種佔總保費的 40%，約 3.12 億美元，本季成長率為 34%。

We continue to see submission growth and positive rate movement on both property and casualty lines.

我們繼續看到財產險和意外險的投保額增長和費率積極變動。

Net written premiums were $389 million. An increase of 17% driven by overall premium growth and increased retention on both E&S and admitted P&C lines.

淨承保保費為 3.89 億美元。得益於整體保費增長以及 E&S 和承認的 P&C 險種留存率提高，保險費增長了 17%。

Property lines accounted for 33% of net written premiums up from 20% in the prior year, revenues grew by 18% and the combined ratio remained consistent at 90.2% even with the higher-than-average catastrophic events. This quarter, our combined ratio continues to demonstrate the team's underwriting discipline as we expand our diverse portfolio of paid in premiums impacts from named storm losses. In the third quarter. We were well within our actuarial defined loss reserves, and we continue to maintain a conservative position with respect to loss reserves. At our insurance subsidiaries, Fortegra's annualized adjusted return on equity was 28% driven by the combination of profitable insurance underwriting and fee-based service offerings.

財產險佔淨承保保費的 33%，高於上年的 20%，收入增長了 18%，即使發生高於平均水平的災難性事件，綜合成本率仍保持穩定在 90.2%。本季度，隨著我們擴大受指定風暴損失影響的已付保費的多樣化組合，我們的綜合比率繼續體現了團隊的承保紀律。在第三季。我們完全符合精算定義的損失準備金，我們繼續對損失準備金保持保守的立場。在我們的保險子公司中，Fortegra 的年化調整後股本回報率為 28%，這得益於盈利的保險承保和收費服務產品的結合。

In regard to the investment portfolio, we ended the quarter at $1.5 billion of investable assets with 90% invested in a combination of high credit quality liquid securities and cash with an average S&P rating of AA minus and a duration of 2.7 years for the nine months. Net investment income combined with interest on cash equivalents amounted to $37 million representing a 35% increase over the prior year.

就投資組合而言，我們本季末的可投資資產為 15 億美元，其中 90% 投資於高信用品質的流動證券和現金，平均標準普爾評級為 AA-，九個月的期限為 2.7 年。淨投資收益加上現金等價物利息達 3,700 萬美元，較上年增長 35%。

Our book yield was 4.1% at quarter, end up 90 basis points from the prior year driven by improving yields on our fixed income securities.

本季我們的帳面收益率為 4.1%，比去年同期成長 90 個基點，這得益於我們固定收益證券收益率的提高。

Additionally, with the move in rates in the quarter, we saw a substantial recovery on the bond portfolio registering a $22 million positive pretax impact to equity at quarter end, 24% of the total portfolio is held in cash and equivalents with these substantial cash balances. In addition to near term maturities and further growth in invested assets, we expect the portfolio will be a driver of future earnings growth.

此外，隨著本季利率的變動，我們看到債券投資組合大幅回升，在季度末對股權產生了 2,200 萬美元的稅前積極影響，總投資組合的 24% 以現金和等價物持有，並且現金餘額充足。除了近期到期的債券和投資資產的進一步成長之外，我們預計投資組合將成為未來獲利成長的驅動力。

Longer term transit, fortegra remain favorable as the next set of charts highlight over the past five years, top line premiums have compounded at 23% annually, primarily driven by organic growth, the flow of business into ens markets and ongoing positive rate environment. Coupled with the addition of new agents and distribution partners have driven this growth and are expected to continue as we look forward during the same period. The combined ratio has improved by 250 basis points with limited volatility from period to period.

長期運輸，Fortegra 仍然受到青睞，如下一組圖表突出顯示，在過去五年中，頂線保費每年複合增長率為 23%，主要受有機增長、業務流入 ENS 市場以及持續的積極利率環境推動。再加上新代理商和分銷合作夥伴的加入推動了這一成長，預計這一成長將在同一時期繼續下去。綜合比率改善了 250 個基點，且各期間波動較小。

As the business increasingly focuses on specialty P&C lines, the mix shift has driven an increase in the loss ratio which has been more than offset by reductions in both the acquisition ratio and the operating expense ratio.

隨著業務日益側重於專業財產和意外傷害保險，業務組合轉變導致損失率上升，但收購率和營業費用率的下降抵消了這一影響。

Even with that, we continue to make meaningful investments in people, technology and data that includes investments in our agent relationships and technology primarily focused on the underwriting and claims management tools that we believe will facilitate better results. Over the long term.

即便如此，我們仍繼續對人才、技術和數據進行有意義的投資，包括對代理關係和技術的投資，主要集中在我們認為將促進取得更好結果的承保和索賠管理工具上。從長遠來看。

Tiptree capital ended the quarter with $110 million of capital deployed across our mortgage origination and servicing business, our liquid investment portfolio and cash pretax income for the year was $1.8 million driven by positive contributions from our mortgage operations and realized gains on other investments.

截至本季度，Tiptree Capital 在抵押貸款發放和服務業務中部署了 1.1 億美元的資本，我們的流動投資組合和年度現金稅前收入為 180 萬美元，這主要得益於抵押貸款業務的積極貢獻以及其他投資的實現收益。

Mortgage originations for the year were $693 million. Up 4% on a comparative basis.

全年抵押貸款發放額為 6.93 億美元。相比之下，上漲了 4%。

Contributions from the servicing portfolio in addition to proactive cost management throughout the past two years have sustained our profitability. Despite the prevailing interest rate environment, as we look ahead, we expect origination volumes to improve, given the outlook for declining mortgage rates.

過去兩年來，服務組合的貢獻以及積極的成本管理維持了我們的獲利能力。儘管當前的利率環境如此，但展望未來，考慮到抵押貸款利率下降的前景，我們預計貸款發放量將會增加。

Consistent with prior quarters, we have included information to arrive at Tiptree's some of the parts value which takes into account a range of values for Fortegra based on the multiple implied by Warburg's investment as well as peer earnings. Multiples, Fortegra's adjusted net income increased to $147 million on a trailing 12-month basis.

與前幾季一致，我們納入了相關資訊以計算 Tiptree 的部分零件價值，該價值考慮了基於華寶投資及同業收益所隱含的倍數的 Fortegra 的一系列價值。以倍數計算，Fortegra 的調整後淨收入在過去 12 個月內增至 1.47 億美元。

This growth along with our holdings in Tiptree capital has contributed to an increase in our view of Tiptree's intrinsic value per share with that. I'll pass the call back to Michael to wrap up our prepared remarks.

這種成長加上我們在 Tiptree 資本的持股促使我們對 Tiptree 每股內在價值的看法有所提升。我會把電話轉回給邁克爾，讓他結束我們準備好的發言。

Thanks Scott.

謝謝斯科特。

Our third quarter was another great quarter.

我們的第三季又是一個出色的季度。

Fortegra continues to deliver excellent financial results. The pipeline of new opportunities continues to build and spec, and the specialty market conditions remain favorable reliance, remains profitable despite a challenging operating environment and is focused on opportunities to increase volume and profitability.

Fortegra 持續取得優異的財務表現。新機會的管道繼續建立和規範，專業市場條件保持有利依賴，儘管營運環境充滿挑戰，但仍保持盈利，並專注於增加產量和盈利能力的機會。

We at Tiptree will continue to look for opportunities to allocate capital for long term value creation. I'd now like to turn the call back to the operator for Q&A.

Tiptree 將繼續尋找機會分配資本來創造長期價值。我現在想將電話轉回給接線員進行問答。

(Operator Instructions)

（操作員指令）

Ladies and gentlemen, as there are no further questions. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

女士們、先生們，沒有其他問題了。今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與。