Holding company Tiptree has reported revenues of $416.5 million for Q3’23, an increase of 14.6% from Q3’22, driven by growth in Fortegra’s specialty insurance lines.
Tiptree intends to take its specialty insurance subsidiary, Fortegra, public. Tiptree expects the Fortegra IPO to be a primary offering with the proceeds used to support Fortegra’s growth.
Tiptree expects to maintain majority ownership of Fortegra and “believes a Fortegra IPO will create a platform to serve the future capital needs of the business.”
Tiptree reported a net income of $7.1 million for Q3 2023, net loss of $9.1 million in 2022.
Adjusted net income of $65.1 million increased by 33.4% from $48.8 million in 2022, driven by revenue growth in insurance operations while maintaining a consistent combined ratio.
Adjusted return on average equity was 16.1% for the year, as compared to 14.2% in 2022.
For the Fortegra business specifically, income before taxes for the quarter was $35.7 million, up $20.4 million. Revenues rose by 24.4% to $406.8 million riven by premium growth in specialty E&S and admitted lines, and services businesses in the U.S. and Europe.
Fortegra’s gross written premiums and premium equivalents similarly increased by 9.6% for the quarter to $834.5 million, driven by specialty insurance lines and services businesses in the U.S. and Europe.
Unearned premiums and deferred revenues grew to $2.3 billion, up $307.0 million, or 15.5%, from Q3’22.
The combined ratio for Fortegra in Q3 was 90.2%, compared to 91.3% in Q3’22, driven by consistent underwriting performance and the scalability of Fortegra’s operating platform.
Tiptree declared a dividend of $0.05 per share to stockholders of record on November 20, with a payment date of November 27.
