Insurance business Fortegra drives Q2 2024 net income growth at Tiptree

Tiptree has announced a net income of $12.9 million for the second quarter of 2024, compared to the net income of $6.0 million seen in the same period last year.

The company attributed this increase towards growth seen within their insurance business. Adjusted net income of $24.4 million increased by 38.5% from $17.6 million in Q2 2023.

Tiptree also posted $546.7 million in revenues for the quarter, a 35.1% increase from Q2 2023, which the company noted was driven by growth in Fortegra’s specialty insurance lines.

Excluding investment gains and losses, revenues increased 33.9%.

It is also worth noting that in March and April 2024, Tiptree, Warburg and Fortegra directors contributed $30.0 million, $9.9 million, and $0.1 million, respectively, to Fortegra in exchange for Fortegra Common Stock.

As of June 30, 2024, Fortegra was owned approximately 79.3% by Tiptree, 17.7% by Warburg and 3.0% by management and directors of Fortegra.

In Q2 2024, the Fortegra Group, saw record gross written premiums and premium equivalents of $776.1 million, a 8.4% increase when compared to the $716.1 million reported in Q2 2023.

According to the firm, this increase was mainly driven by growth in specialty E&S insurance lines.

Net written premiums within the Fortegra Group came in at $365.9 million for this year’s second quarter, a 14.1% increase.

Fortegra noted that this increase was consistent with the growth in gross written premiums and premium equivalents and increased retention on Fortegra’s whole account quota share reinsurance agreement.

Record revenues increased 37.8% for the quarter and 33.9% for the year driven by premium growth in specialty E&S and admitted lines, and services businesses in the U.S. and Europe.

At 89.9%, the combined ratio for Q2 2024 saw an improvement from the 90.2% reported in Q2 2023.

Income before taxes increased 68.5%, to $51.3 million, in this year’s second quarter. Adjusted net income for the quarter of $40.3 million, up 33.9% from Q2 2023’s $30.1 million.

Tiptree’s Executive Chairman, Michael Barnes commented: “We are extremely pleased with the second quarter results and remain well-positioned for future growth. Fortegra posted record results in the first half with growth in revenues of 34% and adjusted net income of 40%.

“As always, we remain committed to growing long term shareholder value and will continue to seek constructive ways to more fully reflect the intrinsic value of Tiptree’s businesses in our share price.”

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