Tiptree announces intent to take Fortegra public

Tiptree Inc has announced plans to take its specialty insurance subsidiary, Fortegra, public via primary offering.

The IPO’s proceeds will be used to support Fortegra’s growth, a news release from the company said. Tiptree will maintain majority ownership of Fortegra.

Fortegra is headquartered in Jacksonville, Florida and has 15 locations globally, including London, Prague, and Malta.

Tiptree’s Q3 2023 earnings announced

The announcement comes as Tiptree unveiled its earnings results for the third quarter of 2023.

Fortegra recorded gross written premiums and premium equivalents of $835 million, up 9.6% for the quarter ended September 30, 2023, and $2.44 billion, up 24.7% for the year. The growth was driven by specialty E&S and admitted lines, and services businesses in the US and Europe.

Its combined ratio for the quarter improved to 90.2% from 91.3% the prior year quarter. The year-to-date combined ratio was 90.5%, as compared to 90.7% in 2022, reflecting the “consistent underwriting performance and scalability” of its operating platform, Tiptree said.

Unearned premiums and deferred revenues grew to $2.3 billion, up $307.0 million, or 15.5%, from Q2 2022.

Record revenues increased 24.4% for the quarter and 28.4% for the year. Excluding the impact of investment gains and losses, revenues rose by 22.5% for the quarter and 26.3% for the year.

Fortegra’s net income for the quarter stands at $30.0 million, a 51.5% increase from Q3 2022. Year-to-date adjusted net income was $83.1 million, up 38.7% from prior year. The increases were driven by growth in underwriting and fee revenues, the consistent combined ratio and increased net investment income, Tipree reported.

What are your thoughts on the planned Fortegra IPO? Share your comments below.