•
Jun 30, 2022

Tiptree Q2 2022 Earnings Report

Tiptree reported a net loss due to deferred tax liability and unrealized losses on investments, partially offset by growth in insurance and shipping operations, but adjusted net income increased driven by growth in specialty insurance and shipping operations.

Key Takeaways

Tiptree Inc. reported a net loss of $22.4 million for Q2 2022, driven by deferred tax liability and unrealized losses on investments. However, adjusted net income increased by 6.6% to $14.0 million, driven by growth in specialty insurance and shipping operations. Revenues increased by 13.4% to $339.8 million.

Closed $200 million strategic investment in Fortegra by Warburg Pincus and repaid $113 million of corporate debt.

Recognized a $63.2 million pre-tax gain from the Fortegra investment, offset by $39.6 million of tax expense.

Sold one dry bulk vessel for $21.5 million and signed agreements to sell two remaining vessels for $46.2 million, representing an approximate 45% gain.

Adjusted net income increased by 6.6% to $14.0 million, driven by growth in specialty insurance and shipping operations.

Total Revenue
$340M
Previous year: $300M
+13.4%
EPS
-$0.64
Previous year: $0.22
-390.9%
Gross Profit
$340M
Previous year: $300M
+13.4%
Cash and Equivalents
$338M
Previous year: $142M
+138.5%
Free Cash Flow
$133M
Previous year: $117M
+13.1%
Total Assets
$3.73B
Previous year: $3.21B
+16.2%

Tiptree

Tiptree

Tiptree Revenue by Segment

Forward Guidance

This release contains forward-looking statements which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements.

Positive Outlook

  • Statements about the Company’s plans
  • Statements about the Company’s objectives
  • Statements about the Company’s expectations for our businesses
  • Statements about the Company’s intentions
  • The Company has a significant track record investing in the insurance sector and across a variety of other industries, including mortgage origination, specialty finance and shipping.

Challenges Ahead

  • Risk Factors’ in the Company’s Annual Report on Form 10-K
  • Risk Factors described in the Company’s other filings with the Securities and Exchange Commission
  • Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release.
  • Other unknown or unpredictable factors also could affect our forward-looking statements.
  • Given these uncertainties, you should not place undue reliance on these forward-looking statements.