Business Wire | Nov 3, 2021 04:06PM EDT

Tiptree Reports Third Quarter and Nine-Month 2021 Results

Nov. 03, 2021

NEW YORK--(BUSINESS WIRE)--Nov. 03, 2021--Tiptree Inc. (NASDAQ:TIPT) ("Tiptree" or the "Company"), today announced its financial results for the three and nine months ended September 30, 2021.

"Our performance in the third quarter reflects the strength and diversification of our underlying operating businesses," said Tiptree Executive Chairman, Michael Barnes. "Fortegra's revenues have grown 50% this year and with our recently announced strategic partnership, we believe Fortegra will continue to produce best-in-class growth and returns over the long-term."

Barnes added, "Our mortgage and shipping businesses also reported excellent results in the quarter, benefiting from favorable market conditions. Looking ahead, our businesses are well-positioned to drive continued growth in value for shareholders."

($ in thousands, except Three Months Ended Nine Months Ended per share information) September 30, September 30,

GAAP: 2021 2020 2021 2020

Total revenues $ 286,605 $ 224,041 $ 880,980 $ 552,906

Net income (loss)attributable to common $ 2,008 $ 12,763 $ 38,558 $ (43,428 ) stockholders

Diluted earnings per $ 0.06 $ 0.35 $ 1.11 $ (1.27 ) share

Cash dividends paid per $ 0.04 $ 0.04 $ 0.12 $ 0.12 common share

Return on average 3.3 % 16.6 % 14.8 % (14.3 ) equity %



Non-GAAP: ^(1)

Adjusted net income $ 20,730 $ 17,807 $ 47,010 $ 35,240

Adjusted return on 20.5 % 20.1 % 16.2 % 12.2 % average equity

Book value per share $ 11.37 $ 10.36 $ 11.37 $ 10.36

____________________________

(1) For information relating to Adjusted net income, Adjusted return on average equity and book value per share, including a reconciliation to GAAP financials, see "-Non-GAAP Reconciliations" below.

Earnings Conference Call

Tiptree will host a conference call on Thursday, November 4, 2021 at 9:00 a.m. Eastern Time to discuss its third quarter 2021 financial results. A copy of our investor presentation, to be used during the conference call, as well as this press release, will be available in the Investor Relations section of the Company's website, located at www.tiptreeinc.com.

The conference call will be available via live or archived webcast at http://www.investors.tiptreeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the telephone conference call, please dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). Please dial in at least five minutes prior to the start time.

A replay of the call will be available from Thursday, November 4, 2021 at 1:00 p.m. Eastern Time, until midnight Eastern on Thursday, November 11, 2021. To listen to the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Passcode: 13722943.

Segment Financial Highlights - Third Quarter and Year-to-date 2021

Insurance (The Fortegra Group):

* Gross written premiums and premium equivalents (GWPPE) of $613.1 million in the third quarter, an increase of 31.9% from the prior year period. Year-to-date GWPPE of $1,689.6 million, up 43.7%, driven by growth in all business lines.

* Total revenues of $246.7 million, up 41.8% compared to third quarter 2020. Year-to-date revenues of $721.5 million, up 49.6%, driven by growth in domestic admitted and surplus insurance lines, as well as fee-based warranty programs. Excluding the impact of investment gains and losses, revenues increased by 40.6% over the prior year-to-date period.

* The combined ratio for the quarter was 89.6%, compared to 90.6% in third quarter 2020. The year-to-date 2021 combined ratio was 91.0%, compared to 92.1% in the prior year period. Operating and technology efficiencies contributed to an improved expense ratio, while the underwriting ratio remained stable.

* Income before taxes for the quarter of $13.3 million, flat to prior year driven by growth in underwriting and fee income, offset by unrealized investment losses in the period. Year-to-date 2021 income before taxes of $49.6 million compared to $0.4 million in the prior year. Annualized ROAE was 17.3% for year-to-date 2021, as compared to 1.5% in 2020.

* Adjusted net income for the quarter was $19.5 million, up 61.3% from the prior year period. Adjusted net income year-to-date was $46.4 million, up 55.5%, driven by revenue growth and an improved combined ratio. The annualized adjusted ROAE was 20.9% for year-to-date 2021, as compared to 14.2% in 2020.

* The combination of unearned premiums and deferred revenues on the balance sheet of $1,564.4 million grew by $413.1 million, or 35.9%, from September 30, 2020 to September 30, 2021 as a function of Fortegra's growth in GWPPE.

Tiptree Capital:

* Mortgage income before taxes was $25.1 million in 2021, as compared to $20.8 million in 2020, driven by higher servicing fees and positive fair value adjustments on the mortgage servicing portfolio. Return on average equity was 44.4% in the 2021 period.

* Maritime transportation income before taxes was $7.7 million in 2021, as compared to $1.0 million in 2020, with the increase driven by a rise in dry-bulk charter rates.

Results by Segment

We classify our business into two reportable segments, Insurance and Mortgage, with the remainder of our operations aggregated into Tiptree Capital - Other. Corporate activities include holding company interest expense, corporate employee compensation and benefits, and other expenses, including, but not limited to, public company expenses. The following table present summary financial data for the three and nine months ended September 30, 2021 and 2020.

Three Months Ended Nine Months Ended($ in thousands) September 30, September 30,

2021 2020 2021 2020

Revenues:

Insurance $ 246,706 $ 174,005 $ 721,524 $ 482,299

Mortgage 27,425 35,879 87,191 80,911

Tiptree Capital - other 12,474 14,157 72,265 (10,304 )

Corporate - - - -

Total revenues $ 286,605 $ 224,041 $ 880,980 $ 552,906



Income (loss) before taxes:

Insurance $ 13,337 $ 13,447 $ 49,569 $ 418

Mortgage 6,267 14,453 25,119 20,768

Tiptree Capital - other (4,700 ) (4,978 ) 12,914 (59,407 )

Corporate (11,320 ) (9,025 ) (33,151 ) (25,199 )

Total income (loss) before $ 3,584 $ 13,897 $ 54,451 $ (63,420 )taxes



Non-GAAP - Adjusted net income:

Insurance $ 19,533 $ 12,111 $ 46,400 $ 29,835

Mortgage 3,961 11,865 15,485 19,488

Tiptree Capital - other 5,522 495 8,153 3,565

Corporate (8,286 ) (6,664 ) (23,028 ) (17,648 )

Total adjusted net income^ $ 20,730 $ 17,807 $ 47,010 $ 35,240 (1)

(1) See "-Non-GAAP Reconciliations" for a discussion of non-GAAP financial measures.

The table below provides a break down between net realized and unrealized gains and losses from Invesque and other securities which impacted our consolidated results on a pre-tax basis. Many of our investments are carried at fair value and marked to market through unrealized gains and losses. As a result, we expect our earnings relating to these investments to be relatively volatile between periods. Our fixed income securities are primarily marked to market through AOCI in stockholders' equity and do not impact net realized and unrealized gains and losses until they are sold.

($ in thousands) Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Net realized andunrealized gains $ (4,267 ) $ 2,310 $ 9,345 $ (16,270 ) (losses)^(1)

Net realized andunrealized gains $ (12,566 ) $ (9,170 ) $ 4,246 $ (79,774 ) (losses) - Invesque

(1) Excludes Invesque and Mortgage realized and unrealized gains and losses.

Non-GAAP

Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See "Non-GAAP Reconciliations" for a reconciliation of these measures to their GAAP equivalents.

About Tiptree

Tiptree Inc. (NASDAQ: TIPT) is a holding company that allocates capital across a broad spectrum of businesses, assets and other investments. Our largest operating business, Fortegra, is a specialty insurance underwriter and service provider, which focuses on niche business lines and fee-oriented services. We also allocate capital to a diverse group of businesses and investments that we refer to as Tiptree Capital. For more information, please visit www.tiptreeinc.com.

Forward-Looking Statements

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. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "should," "target," "will," or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company's plans, objectives, expectations for our businesses and intentions. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K, and as 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. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.

Tiptree Inc.

Condensed Consolidated Balance Sheets

($ in thousands, except share data)

As of

September 30, December 31, 2021 2020

Assets:

Investments:

Available for sale securities, at fair value, net $ 541,121 $ 377,133 of allowance for credit losses

Loans, at fair value 89,326 90,732

Equity securities 139,418 123,838

Other investments 168,829 219,701

Total investments 938,694 811,404

Cash and cash equivalents 150,496 136,920

Restricted cash 21,588 58,355

Notes and accounts receivable, net 443,150 370,452

Reinsurance receivables 827,199 728,009

Deferred acquisition costs 352,940 229,430

Goodwill 179,103 179,236

Intangible assets, net 126,649 138,215

Other assets 152,938 162,034

Assets held for sale 185,595 181,705

Total assets $ 3,378,352 $ 2,995,760



Liabilities and Stockholders' Equity

Liabilities:

Debt, net $ 374,842 $ 366,246

Unearned premiums 1,053,120 860,690

Policy liabilities and unpaid claims 313,614 233,438

Deferred revenue 511,273 399,211

Reinsurance payable 239,499 224,660

Other liabilities and accrued expenses 305,519 362,865

Liabilities held for sale 178,343 175,112

Total liabilities $ 2,976,210 $ 2,622,222



Stockholders' Equity:

Preferred stock: $0.001 par value, 100,000,000 $ - $ - shares authorized, none issued or outstanding

Common stock: $0.001 par value, 200,000,000shares authorized, 33,888,810 and 32,682,462 34 33 shares issued and outstanding, respectively

Additional paid-in capital 314,060 315,014

Accumulated other comprehensive income (loss), 1,157 5,674 net of tax

Retained earnings 69,961 35,423

Total Tiptree Inc. stockholders' equity 385,212 356,144

Non-controlling interests 16,930 17,394

Total stockholders' equity 402,142 373,538

Total liabilities and stockholders' equity $ 3,378,352 $ 2,995,760

Tiptree Inc.

CondensedConsolidatedStatements of Operations

($ in thousands,except share data)

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Revenues:

Earned premiums, net $ 175,026 $ 116,418 $ 498,903 $ 344,994

Service and 69,664 47,701 191,414 134,290 administrative fees

Ceding commissions 2,722 5,157 8,827 16,217

Net investment income 3,330 3,023 9,331 8,803

Net realized andunrealized gains 14,805 38,959 120,268 6,628 (losses)

Other revenue 21,058 12,783 52,237 41,974

Total revenues 286,605 224,041 880,980 552,906

Expenses:

Policy and contract 80,831 57,738 237,198 167,761 benefits

Commission expense 104,392 68,868 292,580 207,172

Employee compensation 48,643 45,715 147,260 124,894 and benefits

Interest expense 8,657 8,321 26,890 23,518

Depreciation and 6,119 4,010 18,261 12,244 amortization

Other expenses 34,379 25,492 104,340 80,737

Total expenses 283,021 210,144 826,529 616,326

Income (loss) before 3,584 13,897 54,451 (63,420 )taxes

Less: provision(benefit) for income 237 (844 ) 11,416 (22,030 )taxes

Net income (loss) 3,347 14,741 43,035 (41,390 )

Less: net income(loss) attributable 1,339 1,978 4,477 2,038 to non-controllinginterests

Net income (loss)attributable to $ 2,008 $ 12,763 $ 38,558 $ (43,428 )common stockholders



Net income (loss) per common share:

Basic earnings per $ 0.06 $ 0.37 $ 1.15 $ (1.27 )share

Diluted earnings per $ 0.06 $ 0.35 $ 1.11 $ (1.27 )share



Weighted averagenumber of common shares:

Basic 33,558,106 33,684,301 32,963,451 34,076,837

Diluted 34,132,182 33,684,301 35,025,211 34,076,837



Dividends declared $ 0.04 $ 0.04 $ 0.12 $ 0.12 per common share

Tiptree Inc. Non-GAAP Reconciliations (Unaudited)

Non-GAAP Financial Measures - Adjusted net income and Adjusted return on average equity

The Company defines Adjusted net income as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting. We use adjusted net income as an internal operating performance measure in the management of business as part of our capital allocation process. We believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies. Adjusted net income should not be viewed as a substitute for income before taxes calculated in accordance with GAAP, and other companies may define adjusted net income differently.

We define Adjusted return on average equity as Adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholder's equity during the period. We use Adjusted return on average equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted return on average equity should not be viewed as a substitute for return on average equity calculated in accordance with GAAP, and other companies may define adjusted return on average equity differently.

Three Months Ended September 30, 2021

Tiptree Capital

($ in Insurance Mortgage Other Corporate Totalthousands)

Income (loss) $ 13,337 $ 6,267 $ (4,700 ) $ (11,320 ) $ 3,584 before taxes

Less: Incometax (benefit) (3,394 ) 14 1,591 1,552 (237 )expense

Less: Netrealized andunrealized 7,428 (1,055 ) 10,396 - 16,769 gains(losses)

Plus:Intangibles 3,830 - - - 3,830 amortization(1)

Plus:Stock-based 475 - 197 832 1,504 compensationexpense

Plus:Non-recurring (28 ) - 448 - 420 expenses

Plus:Non-cash fair - - (815 ) - (815 )valueadjustments

Less: Tax on (2,115 ) (1,265 ) (1,595 ) 650 (4,325 )adjustments

Adjusted net $ 19,533 $ 3,961 $ 5,522 $ (8,286 ) $ 20,730 income



Adjusted net $ 19,533 $ 3,961 $ 5,522 $ (8,286 ) $ 20,730 income

Averagestockholders' $ 291,281 $ 68,925 $ 118,729 $ (75,340 ) $ 403,595 equity

Adjustedreturn on 26.8 % 23.0 % 18.6 % NM % 20.5 %averageequity

Three Months Ended September 30, 2020

Tiptree Capital

($ in thousands)

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

$

13,447

$

14,453

$

(4,978

)

$

(9,025

)

$

13,897

Less: Income tax (benefit) expense

(2,167

)

(2,830

)

3,011

2,830

844

Less: Net realized and unrealized gains (losses)

(659

)

(66

)

7,586

-

6,861

Plus: Intangibles amortization (1)

2,256

-

-

-

2,256

Plus: Stock-based compensation expense

535

1,224

(3

)

678

2,434

Plus: Non-recurring expenses

(53

)

-

340

(93

)

194

Plus: Non-cash fair value adjustments

-

-

(2,441

)

-

(2,441

)

Less: Tax on adjustments

(1,248

)

(916

)

(3,020

)

(1,054

)

(6,238

)

Adjusted net income

$

12,111

$

11,865

$

495

$

(6,664

)

$

17,807

Adjusted net income

$

12,111

$

11,865

$

495

$

(6,664

)

$

17,807

Average stockholders' equity

$

283,989

$

45,991

$

94,580

$

(70,116

)

$

354,441

Adjusted return on average equity

17.1

%

103.2

%

2.1

%

NM

%

20.1

%

Three Months Ended September 30, 2020

Tiptree Capital

($ in Insurance Mortgage Other Corporate Totalthousands)

Income (loss) $ 13,447 $ 14,453 $ (4,978 ) $ (9,025 ) $ 13,897 before taxes

Less: Incometax (benefit) (2,167 ) (2,830 ) 3,011 2,830 844 expense

Less: Netrealized andunrealized (659 ) (66 ) 7,586 - 6,861 gains(losses)

Plus:Intangibles 2,256 - - - 2,256 amortization(1)

Plus:Stock-based 535 1,224 (3 ) 678 2,434 compensationexpense

Plus:Non-recurring (53 ) - 340 (93 ) 194 expenses

Plus:Non-cash fair - - (2,441 ) - (2,441 )valueadjustments

Less: Tax on (1,248 ) (916 ) (3,020 ) (1,054 ) (6,238 )adjustments

Adjusted net $ 12,111 $ 11,865 $ 495 $ (6,664 ) $ 17,807 income



Adjusted net $ 12,111 $ 11,865 $ 495 $ (6,664 ) $ 17,807 income

Averagestockholders' $ 283,989 $ 45,991 $ 94,580 $ (70,116 ) $ 354,441 equity

Adjustedreturn on 17.1 % 103.2 % 2.1 % NM % 20.1 %averageequity

Notes

(1)

Specifically associated with acquisition purchase accounting. See Note (3) Acquisitions.

Notes

(1) Specifically associated with acquisition purchase accounting. See Note (3) Acquisitions.

Nine Months Ended September 30, 2021

Tiptree Capital

($ in thousands)

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

$

49,569

$

25,119

$

12,914

$

(33,151

)

$

54,451

Less: Income tax (benefit) expense

(11,157

)

(4,448

)

(1,350

)

5,539

(11,416

)

Less: Net realized and unrealized gains (losses)

(5,004

)

(5,075

)

(3,512

)

-

(13,591

)

Plus: Intangibles amortization (1)

11,499

-

-

-

11,499

Plus: Stock-based compensation expense

1,347

331

209

1,831

3,718

Plus: Non-recurring expenses

2,076

-

729

2,171

4,976

Plus: Non-cash fair value adjustments

-

-

(2,167

)

-

(2,167

)

Less: Tax on adjustments

(1,930

)

(442

)

1,330

582

(460

)

Adjusted net income

$

46,400

$

15,485

$

8,153

$

(23,028

)

$

47,010

Adjusted net income

$

46,400

$

15,485

$

8,153

$

(23,028

)

$

47,010

Average stockholders' equity

$

296,125

$

62,093

$

110,818

$

(81,196

)

$

387,840

Adjusted return on average equity

20.9

%

33.3

%

9.8

%

NM

%

16.2

%

Nine Months Ended September 30, 2021

Tiptree Capital

($ in Insurance Mortgage Other Corporate Totalthousands)

Income (loss) $ 49,569 $ 25,119 $ 12,914 $ (33,151 ) $ 54,451 before taxes

Less: Incometax (benefit) (11,157 ) (4,448 ) (1,350 ) 5,539 (11,416 )expense

Less: Netrealized andunrealized (5,004 ) (5,075 ) (3,512 ) - (13,591 )gains(losses)

Plus:Intangibles 11,499 - - - 11,499 amortization(1)

Plus:Stock-based 1,347 331 209 1,831 3,718 compensationexpense

Plus:Non-recurring 2,076 - 729 2,171 4,976 expenses

Plus:Non-cash fair - - (2,167 ) - (2,167 )valueadjustments

Less: Tax on (1,930 ) (442 ) 1,330 582 (460 )adjustments

Adjusted net $ 46,400 $ 15,485 $ 8,153 $ (23,028 ) $ 47,010 income



Adjusted net $ 46,400 $ 15,485 $ 8,153 $ (23,028 ) $ 47,010 income

Averagestockholders' $ 296,125 $ 62,093 $ 110,818 $ (81,196 ) $ 387,840 equity

Adjustedreturn on 20.9 % 33.3 % 9.8 % NM % 16.2 %averageequity

Nine Months Ended September 30, 2020

Tiptree Capital

($ in thousands)

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

$

418

$

20,768

$

(59,407

)

$

(25,199

)

$

(63,420

)

Less: Income tax (benefit) expense

2,711

(4,061

)

14,742

8,638

22,030

Less: Net realized and unrealized gains (losses)

27,310

2,753

65,982

-

96,045

Plus: Intangibles amortization (1)

6,958

-

-

-

6,958

Plus: Stock-based compensation expense

1,378

2,120

155

2,504

6,157

Plus: Non-recurring expenses

2,185

-

340

353

2,878

Plus: Non-cash fair value adjustments

-

-

(2,961

)

-

(2,961

)

Less: Tax on adjustments

(11,125

)

(2,092

)

(15,286

)

(3,944

)

(32,447

)

Adjusted net income

$

29,835

$

19,488

$

3,565

$

(17,648

)

$

35,240

Adjusted net income

$

29,835

$

19,488

$

3,565

$

(17,648

)

$

35,240

Average stockholders' equity

279,897

43,001

122,554

(58,899

)

386,553

Adjusted return on average equity

14.2

%

60.4

%

3.9

%

NM

%

12.2

%

___________________________

The footnotes below correspond to the tables above, under "-Adjusted Net Income - Non-GAAP and "-Adjusted Return on Average Equity - Non-GAAP".

Nine Months Ended September 30, 2020

Tiptree Capital

($ in Insurance Mortgage Other Corporate Totalthousands)

Income (loss) $ 418 $ 20,768 $ (59,407 ) $ (25,199 ) $ (63,420 )before taxes

Less: Incometax (benefit) 2,711 (4,061 ) 14,742 8,638 22,030 expense

Less: Netrealized andunrealized 27,310 2,753 65,982 - 96,045 gains(losses)

Plus:Intangibles 6,958 - - - 6,958 amortization(1)

Plus:Stock-based 1,378 2,120 155 2,504 6,157 compensationexpense

Plus:Non-recurring 2,185 - 340 353 2,878 expenses

Plus:Non-cash fair - - (2,961 ) - (2,961 )valueadjustments

Less: Tax on (11,125 ) (2,092 ) (15,286 ) (3,944 ) (32,447 )adjustments

Adjusted net $ 29,835 $ 19,488 $ 3,565 $ (17,648 ) $ 35,240 income



Adjusted net $ 29,835 $ 19,488 $ 3,565 $ (17,648 ) $ 35,240 income

Averagestockholders' 279,897 43,001 122,554 (58,899 ) 386,553 equity

Adjustedreturn on 14.2 % 60.4 % 3.9 % NM % 12.2 %averageequity

___________________________

The footnotes below correspond to the tables above, under "-Adjusted Net Income - Non-GAAP and "-Adjusted Return on Average Equity - Non-GAAP".

Notes

(1) Specifically associated with acquisition purchase accounting. See Note (3) Acquisitions.

Non-GAAP Financial Measures - Book value per share

Management believes the use of this financial measure provides supplemental information useful to investors as book value is frequently used by the financial community to analyze company growth on a relative per share basis. The following table provides a reconciliation between total stockholders' equity and total shares outstanding, net of treasury shares.

($ in thousands, except per share information) As of September 30,

2021 2020

Total stockholders' equity $ 402,142 $ 361,691

Less: Non-controlling interests 16,930 13,953

Total stockholders' equity, net of non-controlling $ 385,212 $ 347,738 interests



Total common shares outstanding 33,889 33,563



Book value per share $ 11.37 $ 10.36

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CONTACT: Tiptree Inc. Investor Relations, 212-446-1400 ir@tiptreeinc.com