(Mark One)
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x
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Maryland
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38-3754322
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(State or Other Jurisdiction of Incorporation of Organization)
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(IRS Employer Identification No.)
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780 Third Avenue, 21st Floor, New York, New York
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10017
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Class A Common Stock, par value $0.001 per share
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Nasdaq Capital Market
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•
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expanding our insurance operations, while continuing to be a leading provider of specialty insurance products and maintaining our strong underwriting performance;
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•
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continuing to grow and expand the businesses and investments within Tiptree Capital; and
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•
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generating enhanced, risk adjusted investment returns.
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•
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have strong and experienced management teams;
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•
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generate attractive and stable cash returns;
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•
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complement existing businesses or strategies; and
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•
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have sustainable and scalable business models.
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•
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our ability to realize the full extent of the benefits, synergies or cost savings that we expect to realize as a result of the completion of an acquisition within the anticipated time frame, or at all;
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•
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receipt of necessary consents, clearances and approvals in connection with the acquisition;
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•
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diversion of management’s attention from other strategies and objectives;
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•
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motivating, recruiting and retaining executives and key employees; and
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•
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conforming and integrating financial reporting, standards, controls, procedures and policies, business cultures and compensation structures.
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•
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we could experience an impasse on certain decisions because we do not have sole decision-making authority, which could require us to expend additional resources on resolving such impasses or potential disputes;
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•
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our partners could have investment goals that are not consistent with our investment objectives, including the timing, terms and strategies for any investments;
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•
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our partners might become bankrupt, fail to fund their share of required capital contributions or fail to fulfill their obligations as partners, which may require us to infuse our own capital into such venture(s) on behalf of the partner(s) despite other competing uses for such capital;
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•
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our partners may have competing interests in our markets that could create conflict of interest issues;
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•
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any sale or other disposition of our interest in such a venture may require consents which we may not be able to obtain;
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•
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such transactions may also trigger other contractual rights held by a partner, lender or other third party depending on how the transaction is structured; and
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•
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there may be disagreements as to whether consents and/or approvals are required in connection with the consummation of a particular transaction with a partner, lender and/or other third party, or whether such transaction triggers other contractual rights held by a partner, lender and/or other third party, and in either case, those disagreements may result in litigation.
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•
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our representations and warranties concerning loan quality and loan circumstances are inaccurate, including
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•
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we fail to secure adequate mortgage insurance within a certain period after closing;
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•
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a mortgage insurance provider denies coverage; or
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•
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we fail to comply, at the individual loan level or otherwise, with regulatory requirements in the current dynamic regulatory environment.
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2017
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High Price
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Low Price
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Dividends
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||||||
First Quarter
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$
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7.45
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$
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6.00
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$
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0.030
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Second Quarter
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$
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7.60
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$
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5.80
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$
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0.030
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Third Quarter
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$
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7.20
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$
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5.69
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$
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0.030
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Fourth Quarter
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$
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7.23
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$
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5.75
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$
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0.030
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|
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||||||
2016
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High Price
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Low Price
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Dividends
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||||||
First Quarter
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$
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6.78
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$
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5.33
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$
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0.025
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Second Quarter
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$
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6.82
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$
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4.74
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$
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0.025
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Third Quarter
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$
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6.16
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$
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5.03
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$
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0.025
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Fourth Quarter
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$
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7.15
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$
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5.53
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$
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0.025
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Consolidated Statement of Operations Data:
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For the Years Ended December 31,
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||||||||||||||||||
(in thousands, except shares and per share amounts)
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2017
(1)
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2016
(1)
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2015
(1)(3)
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2014
(1)(2)(3)
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2013
(1)(4)
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||||||||||
Total revenues
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$
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581,798
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$
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506,423
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$
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392,331
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$
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51,032
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$
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14,869
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Total expenses
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595,585
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477,537
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388,346
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72,940
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24,258
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|||||
Net income (loss) attributable to consolidated CLOs
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10,457
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20,254
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(6,889
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)
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19,525
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28,865
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|||||
Income (loss) before taxes from continuing operations
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(3,330
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)
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49,140
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(2,904
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)
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(2,383
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)
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19,476
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|||||
Less: provision (benefit) for income taxes
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(12,562
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)
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12,515
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(753
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)
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5,317
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854
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|||||
Net income (loss) from continuing operations
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9,232
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36,625
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(2,151
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)
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(7,700
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)
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18,622
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|||||
Net income (loss) from discontinued operations
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(3,998
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)
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(4,287
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)
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10,953
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12,284
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22,107
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|||||
Net income (loss) before non-controlling interests
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5,234
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32,338
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8,802
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4,584
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40,729
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|||||
Less: net income (loss) attributable to non-controlling interests
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1,630
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7,018
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3,023
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6,294
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30,336
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Net income (loss) attributable to Tiptree Inc. Class A common stockholders
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$
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3,604
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$
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25,320
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$
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5,779
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$
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(1,710
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)
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$
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10,393
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Net income (loss) per Class A common share:
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||||||||||
Basic, continuing operations, net
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$
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0.22
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$
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0.88
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$
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(0.01
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)
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$
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(0.58
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)
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$
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0.48
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Basic, discontinued operations, net
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(0.10
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)
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(0.09
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)
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0.18
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0.48
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|
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0.53
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|||||
Basic earnings per share
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0.12
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|
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0.79
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0.17
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(0.10
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)
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1.01
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|||||
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||||||||||
Diluted, continuing operations, net
|
|
0.21
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|
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0.86
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(0.01
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)
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(0.58
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)
|
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0.48
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|
|||||
Diluted, discontinued operations, net
|
|
(0.10
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)
|
|
(0.08
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)
|
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0.18
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|
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0.48
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|
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0.53
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|
|||||
Diluted earnings per share
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$
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0.11
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|
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$
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0.78
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|
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$
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0.17
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|
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$
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(0.10
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)
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$
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1.01
|
|
|
|
|
|
|
|
|
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||||||||||
Weighted average number of Class A common shares:
|
|
|
|
|
|
|
|
|
|
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||||||||||
Basic
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|
29,134,190
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|
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31,721,449
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33,202,681
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16,771,980
|
|
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10,250,438
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|||||
Diluted
|
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37,306,632
|
|
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31,766,674
|
|
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33,202,681
|
|
|
16,771,980
|
|
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10,250,438
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|||||
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|
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||||||||||
Cash dividends paid per common share
|
|
$
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0.12
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|
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$
|
0.10
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|
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$
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0.10
|
|
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$
|
—
|
|
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$
|
0.175
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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|
As of December 31,
|
||||||||||||||||||
Consolidated Balance Sheet Data:
(in thousands)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Total assets
(5)
|
|
$
|
1,989,742
|
|
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$
|
2,890,050
|
|
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$
|
2,494,970
|
|
|
$
|
8,202,447
|
|
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$
|
6,872,271
|
|
Debt, net
(6)
|
|
346,081
|
|
|
554,870
|
|
|
502,255
|
|
|
254,072
|
|
|
188,978
|
|
|||||
Total stockholders’ equity
|
|
$
|
396,774
|
|
|
$
|
390,144
|
|
|
$
|
397,694
|
|
|
$
|
401,621
|
|
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$
|
396,896
|
|
Total Tiptree Inc. stockholders’ equity
|
|
300,077
|
|
|
293,431
|
|
|
312,840
|
|
|
284,462
|
|
|
98,979
|
|
(1)
|
Care revenues of $76.0 million, $60.7 million, $46.1 million, $29.3 million and $8.9 million and net income (loss) of $(4.0) million, $(4.3) million, $(11.7) million, $4.3 million and $(2.9) million for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively, are included in Net income (loss) from discontinued operations, net.
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(2)
|
2014 results reflects the impact of the acquisition of Fortegra in December 2014.
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(3)
|
PFG revenues of $40.5 million and $78.7 million and net income of $7.0 million and $7.9 million for the years ended December 31, 2015 and December 31, 2014, respectively, and gain on sale of $15.6 million for the year ended December 31, 2015 are included in Net income (loss) from discontinued operations, net.
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(4)
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Reflects the combination of Tiptree Inc. and Care. Prior to July 1, 2013 Care was a public REIT and dividends reflect those paid by Care and Tiptree.
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(5)
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Total assets on December 31, 2016, 2015, 2014, and 2013 include $989.5 million, $728.8 million, $1,978.1 million, and $1,405.4 million and of assets held by consolidated CLO entities, respectively.
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(6)
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Excludes debt of discontinued operations.
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•
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Overview
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•
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Results of Operations
|
•
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Non-GAAP Reconciliations
|
•
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Liquidity and Capital Resources
|
•
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Critical Accounting Policies and Estimates
|
•
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Off-Balance Sheet Arrangements
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•
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Specialty Insurance operations continued to grow and expand product offerings. Gross written premiums were $767 million, up 8.3%, driven by growth in warranty and credit products. Net written premiums were $418 million, up 24.0%, driven by increase in retention of credit products and growth in warranty products.
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•
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In Q4'17, we completed the issuance of $125 million of 40 year Junior Subordinated Notes which refinanced existing indebtedness and strengthened the capital position as part of our strategy to grow the insurance company.
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•
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On February 1, 2018, we sold our senior living operations to Invesque in exchange for 16.6 million shares of Invesque common stock. Tiptree’s increase to book value was approximately $0.91 per share, or a 9.1% increase over our December 31, 2017 book value per share, as exchanged. The transaction is expected to be accretive to our 2018 GAAP earnings per share and Adjusted EBITDA. At December 31, 2017, our senior living operations are carried as discontinued operations.
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•
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Through the Invesque transaction, along with additional pending or closed sales in 2017, Tiptree’s consolidated debt was reduced by $518 million from September 30, 2017 to December 31, 2017. After giving effect to these transactions, the Company’s debt to equity leverage was reduced from 2.2x to less than 0.9x.
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•
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On October 1, 2017, we sold our investment in our commercial lending subsidiary for $13.5 million in a combination of cash and a seller’s note.
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•
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On December 12, 2017, we entered into a definitive agreement to sell Luxury Mortgage. The agreement is subject to, among other things, regulatory approval, and is expected to close during the second half of 2018.
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•
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Throughout 2017, we exited substantially all of our CLO subordinated note positions and related hedges for $3.9 million in gains over our carrying value.
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•
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As a result of the above divestitures, we have approximately $90 million of cash, net of cash at regulated insurance subsidiaries, that can be used for investments and acquisitions.
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•
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We returned $11.8 million to investors through $7.3 million of share buy-backs and $4.5 million of dividends paid.
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
GAAP:
|
2017
|
|
2016
|
|
2015
|
||||||
Total revenues
|
$
|
581,798
|
|
|
$
|
506,423
|
|
|
$
|
392,331
|
|
Net income before non-controlling interests
|
5,234
|
|
|
32,338
|
|
|
8,802
|
|
|||
Net income attributable to Tiptree Inc. Class A common stockholders
|
3,604
|
|
|
25,320
|
|
|
5,779
|
|
|||
Diluted earnings per share
|
0.11
|
|
|
0.78
|
|
|
0.17
|
|
|||
Cash dividends paid per common share
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|||
|
|
|
|
|
|
||||||
Non-GAAP:
(1)
|
|
|
|
|
|
||||||
Adjusted EBITDA
|
37,988
|
|
|
78,916
|
|
|
$
|
58,419
|
|
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Book value per share, as exchanged
|
9.97
|
|
|
10.14
|
|
|
8.90
|
|
(1)
|
For further information relating to the Company’s Adjusted EBITDA and book value per share, as exchanged, including a reconciliation to GAAP financials, see “—Non-GAAP Reconciliations.”
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Unrealized & realized gains (losses) on equity securities
|
$
|
(23,753
|
)
|
|
$
|
11,694
|
|
|
$
|
141
|
|
Stock-based compensation
|
(6,560
|
)
|
|
(2,584
|
)
|
|
(437
|
)
|
|||
Reliance contingent earn-out liability
(1)
|
(3,039
|
)
|
|
(1,277
|
)
|
|
1,300
|
|
|||
Depreciation and amortization
(1)(2)
|
(29,486
|
)
|
|
(28,468
|
)
|
|
(45,124
|
)
|
(1)
|
Added back to Adjusted EBITDA. For a reconciliation of Adjusted EBITDA to GAAP financials, see “—Non-GAAP Reconciliations.”
|
(2)
|
Includes depreciation and amortization from continuing and discontinued operations. Depreciation and amortization associated with Care was
$15.6 million
for 2017,
$14.2 million
for 2016, and
$14.5 million
for 2015.
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Specialty insurance
|
$
|
5,404
|
|
|
$
|
46,804
|
|
|
$
|
32,012
|
|
Tiptree Capital:
|
|
|
|
|
|
||||||
Asset management
|
14,245
|
|
|
25,264
|
|
|
(6,753
|
)
|
|||
Mortgage
|
2,090
|
|
|
4,882
|
|
|
2,464
|
|
|||
Other
|
4,001
|
|
|
6,996
|
|
|
3,475
|
|
|||
Corporate
|
(29,070
|
)
|
|
(34,806
|
)
|
|
(34,102
|
)
|
|||
Pre-tax income (loss) from continuing operations
|
$
|
(3,330
|
)
|
|
$
|
49,140
|
|
|
$
|
(2,904
|
)
|
Pre-tax income (loss) from discontinued operations
(1)
|
$
|
(6,222
|
)
|
|
$
|
(5,824
|
)
|
|
$
|
16,879
|
|
(1)
|
Includes PFG for 2015 and Care for 2015, 2016, 2017. Includes $15.6 million net gain on sale of PFG in 2015.
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||||||||||||||
|
Total Capital
|
|
Adjusted EBITDA
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Specialty Insurance
|
$
|
441,317
|
|
|
$
|
410,190
|
|
|
$
|
331,799
|
|
|
$
|
26,961
|
|
|
$
|
60,526
|
|
|
$
|
43,349
|
|
Tiptree Capital
|
161,825
|
|
|
215,262
|
|
|
210,125
|
|
|
35,430
|
|
|
49,954
|
|
|
5,406
|
|
||||||
Asset management
|
4,977
|
|
|
73,173
|
|
|
98,849
|
|
|
14,245
|
|
|
25,265
|
|
|
(6,753
|
)
|
||||||
Mortgage
|
30,725
|
|
|
25,257
|
|
|
21,479
|
|
|
5,677
|
|
|
6,671
|
|
|
1,406
|
|
||||||
Other
(2)
|
126,123
|
|
|
116,832
|
|
|
89,797
|
|
|
15,508
|
|
|
18,018
|
|
|
10,753
|
|
||||||
Corporate
|
37,965
|
|
|
393
|
|
|
56,161
|
|
|
(24,403
|
)
|
|
(31,564
|
)
|
|
(22,837
|
)
|
||||||
Discontinued Operations (PFG)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,501
|
|
||||||
Total Tiptree
|
$
|
641,107
|
|
|
$
|
625,845
|
|
|
$
|
598,085
|
|
|
$
|
37,988
|
|
|
$
|
78,916
|
|
|
$
|
58,419
|
|
(1)
|
For further information relating to the Company’s Total Capital and Adjusted EBITDA, including a reconciliation to GAAP total stockholders equity and pre-tax income, see “—Non-GAAP Reconciliations.”
|
(2)
|
Includes discontinued operations related to Care. As of February 1, 2018, invested capital from Care discontinued operations is represented by our investment in Invesque common shares. For more information, see ““Note—
(4) Dispositions, Assets Held for Sale and Discontinued Operations
.”
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Gross written premiums
|
$
|
766,889
|
|
|
$
|
708,287
|
|
|
$
|
686,007
|
|
Net written premiums
|
418,020
|
|
|
337,171
|
|
|
182,096
|
|
|||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
371,700
|
|
|
$
|
229,436
|
|
|
$
|
166,265
|
|
Service and administrative fees
|
95,160
|
|
|
109,348
|
|
|
106,525
|
|
|||
Ceding commissions
|
8,770
|
|
|
24,784
|
|
|
43,217
|
|
|||
Net investment income
|
16,286
|
|
|
12,981
|
|
|
5,455
|
|
|||
Net realized and unrealized gains (losses)
|
(16,503
|
)
|
|
14,762
|
|
|
1,065
|
|
|||
Other income
|
3,552
|
|
|
2,859
|
|
|
8,361
|
|
|||
Total revenues
|
$
|
478,965
|
|
|
$
|
394,170
|
|
|
$
|
330,888
|
|
Expenses:
|
|
|
|
|
|
||||||
Policy and contract benefits
|
123,959
|
|
|
106,784
|
|
|
86,312
|
|
|||
Commission expense
|
241,835
|
|
|
147,253
|
|
|
105,751
|
|
|||
Employee compensation and benefits
|
41,300
|
|
|
37,937
|
|
|
38,786
|
|
|||
Interest expense
|
15,072
|
|
|
9,244
|
|
|
6,968
|
|
|||
Depreciation and amortization expenses
|
12,799
|
|
|
13,184
|
|
|
29,673
|
|
|||
Other expenses
|
38,596
|
|
|
32,964
|
|
|
31,386
|
|
|||
Total expenses
|
$
|
473,561
|
|
|
$
|
347,366
|
|
|
$
|
298,876
|
|
Pre-tax income (loss)
|
$
|
5,404
|
|
|
$
|
46,804
|
|
|
$
|
32,012
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
Gross Written Premiums
|
|
Net Written Premiums
|
||||||||||||||||||||
Specialty Insurance Products:
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Credit protection
|
$
|
512,298
|
|
|
$
|
488,183
|
|
|
$
|
527,452
|
|
|
$
|
328,936
|
|
|
$
|
257,601
|
|
|
$
|
121,737
|
|
Warranty
|
110,309
|
|
|
62,433
|
|
|
50,545
|
|
|
60,330
|
|
|
46,076
|
|
|
42,004
|
|
||||||
Programs
|
144,253
|
|
|
157,649
|
|
|
107,977
|
|
|
28,754
|
|
|
33,494
|
|
|
18,355
|
|
||||||
Services and Other
|
29
|
|
|
22
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total Specialty Insurance
|
$
|
766,889
|
|
|
$
|
708,287
|
|
|
$
|
686,007
|
|
|
$
|
418,020
|
|
|
$
|
337,171
|
|
|
$
|
182,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
Adjusted Revenues
|
|
Adjusted Underwriting Margin
|
||||||||||||||||||||
Specialty Insurance Products:
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Credit protection
|
$
|
352,760
|
|
|
$
|
231,938
|
|
|
$
|
203,197
|
|
|
$
|
67,356
|
|
|
$
|
64,769
|
|
|
$
|
61,353
|
|
Warranty
|
80,648
|
|
|
87,928
|
|
|
112,086
|
|
|
25,919
|
|
|
23,813
|
|
|
31,845
|
|
||||||
Programs
|
36,880
|
|
|
42,001
|
|
|
20,353
|
|
|
9,841
|
|
|
9,095
|
|
|
5,539
|
|
||||||
Services and Other
|
9,915
|
|
|
10,612
|
|
|
11,661
|
|
|
8,984
|
|
|
10,022
|
|
|
11,330
|
|
||||||
Total Specialty Insurance
|
$
|
480,203
|
|
|
$
|
372,479
|
|
|
$
|
347,297
|
|
|
$
|
112,100
|
|
|
$
|
107,699
|
|
|
$
|
110,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Invested Capital
(1)
|
$
|
281,317
|
|
|
$
|
269,690
|
|
|
$
|
205,299
|
|
Total Capital
(1)
|
$
|
441,317
|
|
|
$
|
410,190
|
|
|
$
|
331,799
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA drivers:
|
|
|
|
|
|
||||||
Underwriting
|
$
|
33,803
|
|
|
$
|
35,938
|
|
|
$
|
37,661
|
|
Investments - Net Portfolio Income (Loss)
|
(6,842
|
)
|
|
24,588
|
|
|
5,688
|
|
|||
Specialty Insurance Adjusted EBITDA
(1)
|
$
|
26,961
|
|
|
$
|
60,526
|
|
|
$
|
43,349
|
|
|
|
|
|
|
|
||||||
Key drivers of Adjusted EBITDA:
|
|
|
|
|
|
||||||
Unrealized gains (losses)
|
$
|
(22,318
|
)
|
|
$
|
10,042
|
|
|
$
|
1,633
|
|
Stock-based compensation expense
|
$
|
3,934
|
|
|
$
|
1,108
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Insurance operating ratios:
|
|
|
|
|
|
||||||
Combined ratio
|
92.9
|
%
|
|
87.9
|
%
|
|
77.9
|
%
|
|||
Adjusted Combined ratio - Non-GAAP
(1)
|
93.2
|
%
|
|
89.5
|
%
|
|
87.4
|
%
|
|
|
|
|
|
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
Revenues:
|
2017
|
|
2016
|
|
2015
|
||||||
Asset Management
|
$
|
9,741
|
|
|
$
|
13,114
|
|
|
$
|
6,770
|
|
Mortgage
|
56,571
|
|
|
56,294
|
|
|
22,934
|
|
|||
Other
|
36,521
|
|
|
42,845
|
|
|
31,739
|
|
|||
|
|
|
|
|
|
||||||
Expenses:
|
|
|
|
|
|
||||||
Asset Management
|
$
|
(5,953
|
)
|
|
$
|
(8,104
|
)
|
|
$
|
(6,634
|
)
|
Mortgage
|
(54,481
|
)
|
|
(51,412
|
)
|
|
(20,470
|
)
|
|||
Other
|
(32,520
|
)
|
|
(35,849
|
)
|
|
(28,264
|
)
|
|||
|
|
|
|
|
|
||||||
Asset Management - Net income attributable to consolidated CLOs
|
$
|
10,457
|
|
|
$
|
20,254
|
|
|
(6,889
|
)
|
|
|
|
|
|
|
|
||||||
Pre-tax income:
|
|
|
|
|
|
||||||
Asset Management
|
$
|
14,245
|
|
|
$
|
25,264
|
|
|
$
|
(6,753
|
)
|
Mortgage
|
2,090
|
|
|
4,882
|
|
|
2,464
|
|
|||
Other
|
4,001
|
|
|
6,996
|
|
|
3,475
|
|
|||
Discontinued operations (Care)
|
(6,222
|
)
|
|
(5,824
|
)
|
|
(9,535
|
)
|
|
Year Ended December 31,
|
||||||||||||||||||||||
($ in thousands)
|
Invested Capital
(1)
|
|
Adjusted EBITDA
(1)
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Asset management - fees, net
(2)
|
$
|
2,247
|
|
|
$
|
4,308
|
|
|
$
|
2,451
|
|
|
$
|
3,514
|
|
|
$
|
4,794
|
|
|
$
|
4,560
|
|
Asset management - credit investments
|
2,730
|
|
|
68,865
|
|
|
96,398
|
|
|
10,731
|
|
|
20,470
|
|
|
(11,313
|
)
|
||||||
Mortgage
|
30,725
|
|
|
25,257
|
|
|
21,479
|
|
|
5,677
|
|
|
6,671
|
|
|
1,406
|
|
||||||
Other
|
6,619
|
|
|
16,031
|
|
|
15,233
|
|
|
4,927
|
|
|
7,549
|
|
|
4,163
|
|
||||||
Care - Discontinued Operations
(3)
|
119,504
|
|
|
100,801
|
|
|
74,564
|
|
|
10,581
|
|
|
10,469
|
|
|
6,590
|
|
||||||
Tiptree Capital
|
$
|
161,825
|
|
|
$
|
215,262
|
|
|
$
|
210,125
|
|
|
$
|
35,430
|
|
|
$
|
49,953
|
|
|
$
|
5,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized and unrealized gains (losses)
(4)
|
|
|
|
|
|
|
$
|
3,824
|
|
|
$
|
5,883
|
|
|
$
|
(29,833
|
)
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Employee compensation and benefits
|
14,178
|
|
|
13,400
|
|
|
14,002
|
|
|||
Interest expense
|
4,812
|
|
|
4,730
|
|
|
5,630
|
|
|||
Depreciation and amortization expenses
|
248
|
|
|
248
|
|
|
145
|
|
|||
Other expenses
|
9,832
|
|
|
16,428
|
|
|
14,325
|
|
|||
Total expenses
|
$
|
29,070
|
|
|
$
|
34,806
|
|
|
$
|
28,264
|
|
|
|
|
|
|
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income (loss) available to Class A common stockholders
|
$
|
3,604
|
|
|
$
|
25,320
|
|
|
$
|
5,779
|
|
Add: net (loss) income attributable to noncontrolling interests
|
1,630
|
|
|
7,018
|
|
|
3,023
|
|
|||
Less: net income from discontinued operations
|
(3,998
|
)
|
|
(4,287
|
)
|
|
$
|
10,953
|
|
||
Income (loss) from continuing operations
|
$
|
9,232
|
|
|
$
|
36,625
|
|
|
$
|
(2,151
|
)
|
Consolidated interest expense
|
25,562
|
|
|
21,010
|
|
|
16,695
|
|
|||
Consolidated income tax expense (benefit)
|
(12,562
|
)
|
|
12,515
|
|
|
(753
|
)
|
|||
Consolidated depreciation and amortization expense
|
13,841
|
|
|
14,302
|
|
|
$
|
30,578
|
|
||
EBITDA from Continuing Operations
|
$
|
36,073
|
|
|
$
|
84,452
|
|
|
$
|
44,369
|
|
Asset-based interest expense
(1)
|
(12,724
|
)
|
|
(10,492
|
)
|
|
(5,065
|
)
|
|||
Effects of purchase accounting
(2)
|
(1,433
|
)
|
|
(5,054
|
)
|
|
(24,166
|
)
|
|||
Non-cash fair value adjustments
(3)
|
3,547
|
|
|
1,277
|
|
|
(1,300
|
)
|
|||
Non-recurring expenses
(4)
|
1,944
|
|
|
(1,736
|
)
|
|
5,489
|
|
|||
Adjusted EBITDA from Continuing Operations
|
$
|
27,407
|
|
|
$
|
68,447
|
|
|
$
|
19,327
|
|
|
|
|
|
|
|
||||||
Income (loss) from discontinued operations
|
$
|
(3,998
|
)
|
|
$
|
(4,287
|
)
|
|
$
|
10,953
|
|
Consolidated interest expense
|
13,068
|
|
|
8,691
|
|
|
12,022
|
|
|||
Consolidated income tax expense (benefit)
|
(2,224
|
)
|
|
(1,537
|
)
|
|
5,926
|
|
|||
Consolidated depreciation and amortization expense
|
15,645
|
|
|
14,166
|
|
|
15,408
|
|
|||
EBITDA from discontinued operations
|
$
|
22,491
|
|
|
$
|
17,033
|
|
|
$
|
44,309
|
|
Asset based interest expense
(1)
|
(13,068
|
)
|
|
(8,691
|
)
|
|
(6,796
|
)
|
|||
Non-recurring expenses
(4)
|
1,158
|
|
|
2,127
|
|
|
1,579
|
|
|||
Adjusted EBITDA from discontinued operations
|
$
|
10,581
|
|
|
$
|
10,469
|
|
|
$
|
39,092
|
|
Total Adjusted EBITDA
|
$
|
37,988
|
|
|
$
|
78,916
|
|
|
$
|
58,419
|
|
(1)
|
The consolidated asset-based interest expense is subtracted from EBITDA to arrive at Adjusted EBITDA. This includes interest expense associated with asset-specific debt at subsidiaries in the specialty insurance, asset management, mortgage and other operations.
|
(2)
|
Following the purchase accounting adjustments, current period expenses associated with deferred costs were more favorably stated and current period income associated with deferred revenues were less favorably stated. Thus, the purchase accounting effect related to Fortegra increased EBITDA above what the historical basis of accounting would have generated. The impact of this purchase accounting adjustments have been reversed to reflect an adjusted EBITDA without such purchase accounting effect.
|
(3)
|
For Reliance, within our mortgage operations, Adjusted EBITDA excludes the impact of changes in contingent earn-outs. For our specialty insurance operations, depreciation and amortization on senior living real estate that is within net investment income is added back to Adjusted EBITDA.
|
(4)
|
Acquisition, start-up and disposition costs including legal, taxes, banker fees and other costs. Also includes payments pursuant to a separation agreement, dated as of November 10, 2015.
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
Specialty insurance
|
|
Asset Management
|
|
Mortgage
|
|
Other
|
|
Discontinued Operations
(1)
|
|
Tiptree Capital
|
|
Corporate Expenses
|
|
Total
|
||||||||||||||||
Pre-tax income/(loss) from continuing ops
|
$
|
5,404
|
|
|
$
|
14,245
|
|
|
$
|
2,090
|
|
|
$
|
4,001
|
|
|
$
|
—
|
|
|
$
|
20,336
|
|
|
$
|
(29,070
|
)
|
|
$
|
(3,330
|
)
|
Pre-tax income/(loss) from discontinued ops
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,222
|
)
|
|
(6,222
|
)
|
|
—
|
|
|
(6,222
|
)
|
||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest expense
|
15,072
|
|
|
12
|
|
|
1,034
|
|
|
4,632
|
|
|
13,068
|
|
|
18,746
|
|
|
4,812
|
|
|
38,630
|
|
||||||||
Depreciation and amortization expenses
|
12,799
|
|
|
—
|
|
|
548
|
|
|
246
|
|
|
15,645
|
|
|
16,439
|
|
|
248
|
|
|
29,486
|
|
||||||||
EBITDA
|
$
|
33,275
|
|
|
$
|
14,257
|
|
|
$
|
3,672
|
|
|
$
|
8,879
|
|
|
$
|
22,491
|
|
|
$
|
49,299
|
|
|
$
|
(24,010
|
)
|
|
$
|
58,564
|
|
EBITDA adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific debt interest
|
(7,046
|
)
|
|
(12
|
)
|
|
(1,034
|
)
|
|
(4,632
|
)
|
|
(13,068
|
)
|
|
(18,746
|
)
|
|
—
|
|
|
(25,792
|
)
|
||||||||
Effects of purchase accounting
|
(1,433
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,433
|
)
|
||||||||
Non-cash fair value adjustments
|
508
|
|
|
—
|
|
|
3,039
|
|
|
—
|
|
|
—
|
|
|
3,039
|
|
|
—
|
|
|
3,547
|
|
||||||||
Non-recurring expenses
|
1,657
|
|
|
—
|
|
|
—
|
|
|
679
|
|
|
1,158
|
|
|
1,837
|
|
|
(392
|
)
|
|
3,102
|
|
||||||||
Adjusted EBITDA
|
$
|
26,961
|
|
|
$
|
14,245
|
|
|
$
|
5,677
|
|
|
$
|
4,926
|
|
|
$
|
10,581
|
|
|
$
|
35,429
|
|
|
$
|
(24,402
|
)
|
|
$
|
37,988
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
Specialty insurance
|
|
Asset Management
|
|
Mortgage
|
|
Other
|
|
Discontinued Operations
(1)
|
|
Tiptree Capital
|
|
Corporate Expenses
|
|
Total
|
||||||||||||||||
Pre-tax income/(loss) from continuing ops
|
$
|
46,804
|
|
|
$
|
25,264
|
|
|
$
|
4,882
|
|
|
$
|
6,996
|
|
|
$
|
—
|
|
|
$
|
37,142
|
|
|
$
|
(34,806
|
)
|
|
$
|
49,140
|
|
Pre-tax income/(loss) from discontinued ops
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,824
|
)
|
|
(5,824
|
)
|
|
—
|
|
|
(5,824
|
)
|
||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest expense
|
9,244
|
|
|
746
|
|
|
1,195
|
|
|
5,095
|
|
|
8,691
|
|
|
15,727
|
|
|
4,730
|
|
|
29,701
|
|
||||||||
Depreciation and amortization expenses
|
13,184
|
|
|
—
|
|
|
512
|
|
|
358
|
|
|
14,166
|
|
|
15,036
|
|
|
248
|
|
|
28,468
|
|
||||||||
EBITDA
|
$
|
69,232
|
|
|
$
|
26,010
|
|
|
$
|
6,589
|
|
|
$
|
12,449
|
|
|
$
|
17,033
|
|
|
$
|
62,081
|
|
|
$
|
(29,828
|
)
|
|
$
|
101,485
|
|
EBITDA adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific debt interest
|
(3,652
|
)
|
|
(746
|
)
|
|
(1,195
|
)
|
|
(4,899
|
)
|
|
(8,691
|
)
|
|
(15,531
|
)
|
|
—
|
|
|
(19,183
|
)
|
||||||||
Effects of purchase accounting
|
(5,054
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,054
|
)
|
||||||||
Non-cash fair value adjustments
|
—
|
|
|
—
|
|
|
1,277
|
|
|
—
|
|
|
1,416
|
|
|
2,693
|
|
|
—
|
|
|
2,693
|
|
||||||||
Non-recurring expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
711
|
|
|
711
|
|
|
(1,736
|
)
|
|
(1,025
|
)
|
||||||||
Adjusted EBITDA
|
$
|
60,526
|
|
|
$
|
25,264
|
|
|
$
|
6,671
|
|
|
$
|
7,550
|
|
|
$
|
10,469
|
|
|
$
|
49,954
|
|
|
$
|
(31,564
|
)
|
|
$
|
78,916
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
|
|
||||||||||||||||||||||||
($ in thousands)
|
Specialty insurance
|
|
Asset Management
|
|
Mortgage
|
|
Other
|
|
Discontinued Operations
(1)
|
|
Tiptree Capital
|
|
Corporate Expenses
|
|
Total
|
||||||||||||||||
Pre-tax income/(loss) from continuing ops
|
$
|
32,012
|
|
|
$
|
(6,753
|
)
|
|
$
|
2,464
|
|
|
$
|
3,475
|
|
|
$
|
—
|
|
|
$
|
(814
|
)
|
|
$
|
(34,102
|
)
|
|
$
|
(2,904
|
)
|
Pre-tax income/(loss) from discontinued ops
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,535
|
)
|
|
(9,535
|
)
|
|
—
|
|
|
(9,535
|
)
|
||||||||
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest expense
|
6,968
|
|
|
539
|
|
|
436
|
|
|
3,121
|
|
|
6,796
|
|
|
10,892
|
|
|
5,631
|
|
|
23,491
|
|
||||||||
Depreciation and amortization expenses
|
29,673
|
|
|
—
|
|
|
242
|
|
|
518
|
|
|
14,546
|
|
|
15,306
|
|
|
145
|
|
|
45,124
|
|
||||||||
EBITDA
|
$
|
68,653
|
|
|
$
|
(6,214
|
)
|
|
$
|
3,142
|
|
|
$
|
7,114
|
|
|
$
|
11,807
|
|
|
$
|
15,849
|
|
|
$
|
(28,326
|
)
|
|
$
|
56,176
|
|
EBITDA adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific debt interest
|
(1,138
|
)
|
|
(539
|
)
|
|
(436
|
)
|
|
(2,952
|
)
|
|
(6,796
|
)
|
|
(10,723
|
)
|
|
—
|
|
|
(11,861
|
)
|
||||||||
Effects of purchase accounting
|
(24,166
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,166
|
)
|
||||||||
Non-cash fair value adjustments
|
—
|
|
|
—
|
|
|
(1,300
|
)
|
|
—
|
|
|
—
|
|
|
(1,300
|
)
|
|
—
|
|
|
(1,300
|
)
|
||||||||
Non-recurring expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,579
|
|
|
1,579
|
|
|
5,489
|
|
|
7,068
|
|
||||||||
Adjusted EBITDA
|
$
|
43,349
|
|
|
$
|
(6,753
|
)
|
|
$
|
1,406
|
|
|
$
|
4,162
|
|
|
$
|
6,590
|
|
|
$
|
5,405
|
|
|
$
|
(22,837
|
)
|
|
$
|
25,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, except per share information)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Total stockholders’ equity
|
$
|
396,774
|
|
|
$
|
390,144
|
|
|
$
|
397,694
|
|
Less non-controlling interest - other
|
19,203
|
|
|
20,636
|
|
|
15,576
|
|
|||
Total stockholders’ equity, net of non-controlling interests - other
|
$
|
377,571
|
|
|
$
|
369,508
|
|
|
$
|
382,118
|
|
Total Class A shares outstanding
(1)
|
29,805
|
|
|
28,388
|
|
|
34,900
|
|
|||
Total Class B shares outstanding
|
8,049
|
|
|
8,049
|
|
|
8,049
|
|
|||
Total shares outstanding
|
37,854
|
|
|
36,437
|
|
|
42,949
|
|
|||
Book value per share, as exchanged
|
$
|
9.97
|
|
|
$
|
10.14
|
|
|
$
|
8.90
|
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Total stockholders’ equity
|
$
|
396,774
|
|
|
$
|
390,144
|
|
|
$
|
397,694
|
|
Less non-controlling interest - other
|
19,203
|
|
|
20,636
|
|
|
15,576
|
|
|||
Total stockholders’ equity, net of non-controlling interests - other
|
$
|
377,571
|
|
|
$
|
369,508
|
|
|
$
|
382,118
|
|
Plus Specialty Insurance accumulated depreciation and amortization, net of tax
|
36,088
|
|
|
28,497
|
|
|
21,010
|
|
|||
Plus Care accumulated depreciation and amortization - discontinued operations, net of tax and NCI
|
30,521
|
|
|
21,528
|
|
|
13,545
|
|
|||
Plus acquisition costs
|
8,427
|
|
|
7,311
|
|
|
6,412
|
|
|||
Invested Capital
|
$
|
452,607
|
|
|
$
|
426,844
|
|
|
$
|
423,085
|
|
Plus corporate debt
|
$
|
188,500
|
|
|
$
|
199,000
|
|
|
$
|
175,000
|
|
Total Capital
|
$
|
641,107
|
|
|
$
|
625,844
|
|
|
$
|
598,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
($ in thousands)
|
GAAP
|
|
Non-GAAP adjustments
|
|
Non-GAAP - Adjusted
|
||||||||||||||||||||||||||||||
Revenues:
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
Net earned premiums
|
$
|
371,700
|
|
|
$
|
229,436
|
|
|
$
|
166,265
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
371,700
|
|
|
$
|
229,436
|
|
|
$
|
166,265
|
|
Service and administrative fees
|
95,160
|
|
|
109,348
|
|
|
106,525
|
|
|
968
|
|
|
5,638
|
|
|
19,518
|
|
|
96,128
|
|
|
114,986
|
|
|
126,043
|
|
|||||||||
Ceding commissions
|
8,770
|
|
|
24,784
|
|
|
43,217
|
|
|
53
|
|
|
416
|
|
|
3,410
|
|
|
8,823
|
|
|
25,200
|
|
|
46,627
|
|
|||||||||
Other income
|
3,552
|
|
|
2,859
|
|
|
8,361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,552
|
|
|
2,859
|
|
|
8,361
|
|
|||||||||
Less underwriting expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policy and contract benefits
|
123,959
|
|
|
106,784
|
|
|
86,312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,959
|
|
|
106,784
|
|
|
86,312
|
|
|||||||||
Commission expense
|
241,835
|
|
|
147,253
|
|
|
105,751
|
|
|
2,309
|
|
|
10,745
|
|
|
45,166
|
|
|
244,144
|
|
|
157,998
|
|
|
150,917
|
|
|||||||||
Underwriting Margin - Non-GAAP
|
$
|
113,388
|
|
|
$
|
112,390
|
|
|
$
|
132,305
|
|
|
$
|
(1,288
|
)
|
|
$
|
(4,691
|
)
|
|
$
|
(22,238
|
)
|
|
$
|
112,100
|
|
|
$
|
107,699
|
|
|
$
|
110,067
|
|
Less operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Employee compensation and benefits
|
41,300
|
|
|
37,937
|
|
|
38,786
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,300
|
|
|
37,937
|
|
|
38,786
|
|
|||||||||
Other expenses
|
38,596
|
|
|
32,964
|
|
|
31,386
|
|
|
144
|
|
|
363
|
|
|
1,928
|
|
|
38,740
|
|
|
33,327
|
|
|
33,314
|
|
|||||||||
Combined Ratio
|
92.9
|
%
|
|
87.9
|
%
|
|
77.9
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93.2
|
%
|
|
89.5
|
%
|
|
87.4
|
%
|
|||||||||
Plus investment revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net investment income
|
16,286
|
|
|
12,981
|
|
|
5,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,286
|
|
|
12,981
|
|
|
5,455
|
|
|||||||||
Net realized and unrealized gains
|
(16,503
|
)
|
|
14,762
|
|
|
1,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,503
|
)
|
|
14,762
|
|
|
1,065
|
|
|||||||||
Less other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest expense
|
15,072
|
|
|
9,244
|
|
|
6,968
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,072
|
|
|
9,244
|
|
|
6,968
|
|
|||||||||
Depreciation and amortization expenses
|
12,799
|
|
|
13,184
|
|
|
29,673
|
|
|
(185
|
)
|
|
(3,282
|
)
|
|
(19,320
|
)
|
|
12,614
|
|
|
9,902
|
|
|
10,353
|
|
|||||||||
Pre-tax income (loss)
|
$
|
5,404
|
|
|
$
|
46,804
|
|
|
$
|
32,012
|
|
|
$
|
(1,247
|
)
|
|
$
|
(1,772
|
)
|
|
$
|
(4,846
|
)
|
|
$
|
4,157
|
|
|
$
|
45,032
|
|
|
$
|
27,166
|
|
($ in thousands)
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Total Investments
|
$
|
454,032
|
|
|
$
|
472,800
|
|
|
$
|
308,965
|
|
Investment portfolio debt
(1)
|
(111,459
|
)
|
|
(146,544
|
)
|
|
(54,011
|
)
|
|||
Cash and cash equivalents
|
38,095
|
|
|
26,020
|
|
|
13,909
|
|
|||
Restricted cash
(2)
|
24,219
|
|
|
12,133
|
|
|
2,166
|
|
|||
Receivable due from brokers
(3)
|
259
|
|
|
2,027
|
|
|
3,058
|
|
|||
Liability due to brokers
(3)
|
(8,669
|
)
|
|
(8,457
|
)
|
|
—
|
|
|||
Net investments - Non-GAAP
|
$
|
396,477
|
|
|
$
|
357,979
|
|
|
$
|
274,087
|
|
($ in thousands)
|
|
Corporate Debt outstanding as of December 31,
|
|
Interest expense for the year ended December 31,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Specialty insurance
|
|
$
|
160,000
|
|
|
$
|
140,500
|
|
|
$
|
8,026
|
|
|
$
|
5,592
|
|
Corporate
|
|
28,500
|
|
|
58,500
|
|
|
4,812
|
|
|
4,730
|
|
||||
Total
|
|
$
|
188,500
|
|
|
$
|
199,000
|
|
|
$
|
12,838
|
|
|
$
|
10,322
|
|
($ in thousands)
|
Year ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Operating activities - (excluding VIEs)
|
$
|
49,873
|
|
|
$
|
45,274
|
|
|
$
|
(34,463
|
)
|
Operating activities - VIEs
|
(2,954
|
)
|
|
(8,631
|
)
|
|
25,008
|
|
|||
Total cash provided by (used in) operating activities
|
46,919
|
|
|
36,643
|
|
|
(9,455
|
)
|
|||
|
|
|
|
|
|
||||||
Investing activities
|
|
|
|
|
|
||||||
Investing activities - (excluding VIEs)
|
(19,640
|
)
|
|
(244,491
|
)
|
|
(251,408
|
)
|
|||
Investing activities - VIEs
|
225,317
|
|
|
(75,494
|
)
|
|
33,613
|
|
|||
Total cash provided by (used in) investing activities
|
205,677
|
|
|
(319,985
|
)
|
|
(217,795
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities
|
|
|
|
|
|
||||||
Financing activities - (excluding VIEs)
|
28,987
|
|
|
77,525
|
|
|
235,090
|
|
|||
Financing activities - VIEs
|
(223,393
|
)
|
|
199,427
|
|
|
8,573
|
|
|||
Total cash provided by (used in) financing activities
|
(194,406
|
)
|
|
276,952
|
|
|
243,663
|
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash
|
$
|
58,190
|
|
|
$
|
(6,390
|
)
|
|
$
|
16,413
|
|
($ in thousands)
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
|
Total
|
||||||||||
Corporate Debt
|
$
|
28,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160,000
|
|
|
$
|
188,500
|
|
Asset Based
|
60,727
|
|
|
5,449
|
|
|
101,428
|
|
|
—
|
|
|
167,604
|
|
|||||
Total Debt
|
$
|
89,227
|
|
|
$
|
5,449
|
|
|
$
|
101,428
|
|
|
$
|
160,000
|
|
|
$
|
356,104
|
|
Operating lease obligations
(2)
|
4,599
|
|
|
15,043
|
|
|
8,861
|
|
|
11,342
|
|
|
39,845
|
|
|||||
Total
|
$
|
93,826
|
|
|
$
|
20,492
|
|
|
$
|
110,289
|
|
|
$
|
171,342
|
|
|
$
|
395,949
|
|
(1)
|
See Note —
(12) Debt, net
, in the accompanying consolidated financial statements for additional information.
|
(2)
|
Minimum rental obligation for Tiptree, Reliance, Luxury and Fortegra office leases. The total rent expense for the Company for the
year ended December 31, 2017
and
2016
was $6.8 million and $6.3 million, respectively.
|
a)
|
Quoted prices for similar assets or liabilities in active markets;
|
b)
|
Quoted prices for identical or similar assets or liabilities in nonactive markets;
|
c)
|
Pricing models whose inputs are observable for substantially the full term of the asset or liability; and
|
d)
|
Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.
|
•
|
Note —
(10) Derivative Financial Instruments and Hedging
|
•
|
Note —
(11) Assets and Liabilities of Consolidated CLOs
|
•
|
Note —
(23) Commitments and Contingencies
|
|
|
|
|
As of December 31,
|
||||||
Investments
|
|
Business
|
|
2017
|
|
2016
|
||||
Subordinated notes and related participations in management fees
|
|
Asset Management
|
|
$
|
—
|
|
|
$
|
57,317
|
|
Levered loan fund
|
|
Specialty Insurance
|
|
157,661
|
|
|
175,558
|
|
||
Non-performing loans
|
|
Specialty Insurance
|
|
37,666
|
|
|
74,923
|
|
||
|
|
|
|
$
|
195,327
|
|
|
$
|
307,798
|
|
|
|
|
|
As of December 31,
|
||||||
Investments
|
|
Business
|
|
2017
|
|
2016
|
||||
Equity securities
|
|
Specialty Insurance
|
|
$
|
25,536
|
|
|
$
|
48,612
|
|
Subordinated notes and related participations in management fees
|
|
Asset Management
|
|
—
|
|
|
57,317
|
|
||
Total
|
|
|
|
$
|
25,536
|
|
|
$
|
105,929
|
|
|
Page
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Investments:
|
|
|
|
||||
Available for sale securities, at fair value
|
$
|
182,448
|
|
|
$
|
146,171
|
|
Loans, at fair value
|
258,173
|
|
|
373,089
|
|
||
Loans at amortized cost, net
|
—
|
|
|
113,138
|
|
||
Equity securities, trading, at fair value
|
25,536
|
|
|
48,612
|
|
||
Other investments
|
59,142
|
|
|
47,724
|
|
||
Total investments
|
525,299
|
|
|
728,734
|
|
||
Cash and cash equivalents
|
110,667
|
|
|
49,786
|
|
||
Restricted cash
|
31,570
|
|
|
24,472
|
|
||
Notes and accounts receivable, net
|
186,422
|
|
|
153,638
|
|
||
Reinsurance receivables
|
352,967
|
|
|
296,234
|
|
||
Deferred acquisition costs
|
147,162
|
|
|
126,608
|
|
||
Goodwill
|
91,562
|
|
|
92,767
|
|
||
Intangible assets, net
|
64,017
|
|
|
73,658
|
|
||
Other assets
|
31,584
|
|
|
31,489
|
|
||
Assets of consolidated CLOs
|
—
|
|
|
989,495
|
|
||
Assets held for sale
|
448,492
|
|
|
323,169
|
|
||
Total assets
|
$
|
1,989,742
|
|
|
$
|
2,890,050
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Debt, net
|
$
|
346,081
|
|
|
$
|
554,870
|
|
Unearned premiums
|
503,446
|
|
|
414,960
|
|
||
Policy liabilities and unpaid claims
|
112,003
|
|
|
103,391
|
|
||
Deferred revenue
|
56,745
|
|
|
52,254
|
|
||
Reinsurance payable
|
90,554
|
|
|
70,588
|
|
||
Other liabilities and accrued expenses
|
121,321
|
|
|
124,241
|
|
||
Liabilities of consolidated CLOs
|
—
|
|
|
931,969
|
|
||
Liabilities held for sale
|
362,818
|
|
|
247,633
|
|
||
Total liabilities
|
$
|
1,592,968
|
|
|
$
|
2,499,906
|
|
Commitments and contingencies (see Note 23)
|
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding
|
$
|
—
|
|
|
$
|
—
|
|
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 35,003,004 and 34,983,616 shares issued and outstanding, respectively
|
35
|
|
|
35
|
|
||
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 8,049,029 and 8,049,029 shares issued and outstanding, respectively
|
8
|
|
|
8
|
|
||
Additional paid-in capital
|
295,582
|
|
|
297,391
|
|
||
Accumulated other comprehensive income (loss), net of tax
|
966
|
|
|
555
|
|
||
Retained earnings
|
38,079
|
|
|
37,974
|
|
||
Class A common stock held by subsidiaries, 5,197,551 and 6,596,000 shares, respectively
|
(34,585
|
)
|
|
(42,524
|
)
|
||
Class B common stock held by subsidiaries, 8,049,029 and 8,049,029 shares, respectively
|
(8
|
)
|
|
(8
|
)
|
||
Total Tiptree Inc. stockholders’ equity
|
300,077
|
|
|
293,431
|
|
||
Non-controlling interests - TFP
|
77,494
|
|
|
76,077
|
|
||
Non-controlling interests - Other
|
19,203
|
|
|
20,636
|
|
||
Total stockholders’ equity
|
396,774
|
|
|
390,144
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,989,742
|
|
|
$
|
2,890,050
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Earned premiums, net
|
$
|
371,700
|
|
|
$
|
229,436
|
|
|
$
|
166,265
|
|
Service and administrative fees
|
95,160
|
|
|
109,348
|
|
|
106,525
|
|
|||
Ceding commissions
|
8,770
|
|
|
24,784
|
|
|
43,217
|
|
|||
Net investment income
|
16,286
|
|
|
12,981
|
|
|
5,455
|
|
|||
Net realized and unrealized gains (losses)
|
47,607
|
|
|
87,300
|
|
|
31,469
|
|
|||
Other revenue
|
42,275
|
|
|
42,574
|
|
|
39,400
|
|
|||
Total revenues
|
581,798
|
|
|
506,423
|
|
|
392,331
|
|
|||
Expenses:
|
|
|
|
|
|
||||||
Policy and contract benefits
|
123,959
|
|
|
106,784
|
|
|
86,312
|
|
|||
Commission expense
|
241,835
|
|
|
147,253
|
|
|
105,751
|
|
|||
Employee compensation and benefits
|
115,949
|
|
|
115,612
|
|
|
89,331
|
|
|||
Interest expense
|
25,562
|
|
|
21,010
|
|
|
16,695
|
|
|||
Depreciation and amortization
|
13,841
|
|
|
14,302
|
|
|
30,578
|
|
|||
Other expenses
|
74,439
|
|
|
72,576
|
|
|
59,679
|
|
|||
Total expenses
|
595,585
|
|
|
477,537
|
|
|
388,346
|
|
|||
Other income:
|
|
|
|
|
|
||||||
Income attributable to consolidated CLOs
|
24,903
|
|
|
53,577
|
|
|
23,613
|
|
|||
Expenses attributable to consolidated CLOs
|
14,446
|
|
|
33,323
|
|
|
30,502
|
|
|||
Net income (loss) attributable to consolidated CLOs
|
10,457
|
|
|
20,254
|
|
|
(6,889
|
)
|
|||
Total other income
|
10,457
|
|
|
20,254
|
|
|
(6,889
|
)
|
|||
Income (loss) before taxes from continuing operations
|
(3,330
|
)
|
|
49,140
|
|
|
(2,904
|
)
|
|||
Less: provision (benefit) for income taxes
|
(12,562
|
)
|
|
12,515
|
|
|
(753
|
)
|
|||
Net income (loss) from continuing operations
|
9,232
|
|
|
36,625
|
|
|
(2,151
|
)
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income (loss) before taxes from discontinued operations
|
(6,222
|
)
|
|
(5,824
|
)
|
|
1,260
|
|
|||
Gain on sale of discontinued operations
|
—
|
|
|
—
|
|
|
27,220
|
|
|||
Less: Provision (benefit) for income taxes
|
(2,224
|
)
|
|
(1,537
|
)
|
|
17,527
|
|
|||
Net income (loss) from discontinued operations
|
(3,998
|
)
|
|
(4,287
|
)
|
|
10,953
|
|
|||
Net income (loss) before non-controlling interests
|
5,234
|
|
|
32,338
|
|
|
8,802
|
|
|||
Less: net income (loss) attributable to non-controlling interests - TFP
|
748
|
|
|
6,432
|
|
|
2,630
|
|
|||
Less: net income (loss) attributable to non-controlling interests - Other
|
882
|
|
|
586
|
|
|
393
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
3,604
|
|
|
$
|
25,320
|
|
|
$
|
5,779
|
|
|
|
|
|
|
|
||||||
Net income (loss) per Class A common share:
|
|
|
|
|
|
||||||
Basic, continuing operations, net
|
$
|
0.22
|
|
|
$
|
0.88
|
|
|
$
|
(0.01
|
)
|
Basic, discontinued operations, net
|
(0.10
|
)
|
|
(0.09
|
)
|
|
0.18
|
|
|||
Basic earnings per share
|
$
|
0.12
|
|
|
$
|
0.79
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
||||||
Diluted, continuing operations, net
|
0.21
|
|
|
0.86
|
|
|
(0.01
|
)
|
|||
Diluted, discontinued operations, net
|
(0.10
|
)
|
|
(0.08
|
)
|
|
0.18
|
|
|||
Diluted earnings per share
|
$
|
0.11
|
|
|
$
|
0.78
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
||||||
Weighted average number of Class A common shares:
|
|
|
|
|
|
||||||
Basic
|
29,134,190
|
|
|
31,721,449
|
|
|
33,202,681
|
|
|||
Diluted
|
37,306,632
|
|
|
31,766,674
|
|
|
33,202,681
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per common share
|
$
|
0.12
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
Net income (loss) before non-controlling interests
|
$
|
5,234
|
|
|
$
|
32,338
|
|
|
$
|
8,802
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) arising during the period
|
806
|
|
|
289
|
|
|
(134
|
)
|
|||
Related tax (expense) benefit
|
(284
|
)
|
|
(103
|
)
|
|
43
|
|
|||
Reclassification of (gains) losses included in net income
|
(435
|
)
|
|
(1,026
|
)
|
|
99
|
|
|||
Related tax expense (benefit)
|
153
|
|
|
362
|
|
|
(35
|
)
|
|||
Unrealized gains (losses) on available-for-sale securities, net of tax
|
240
|
|
|
(478
|
)
|
|
(27
|
)
|
|||
|
|
|
|
|
|
||||||
Interest rate swaps (cash flow hedges):
|
|
|
|
|
|
||||||
Unrealized gains (losses) on interest rate swaps
|
282
|
|
|
2,210
|
|
|
(326
|
)
|
|||
Related tax (expense) benefit
|
(92
|
)
|
|
(658
|
)
|
|
112
|
|
|||
Reclassification of (gains) losses included in net income
|
184
|
|
|
121
|
|
|
274
|
|
|||
Related tax expense (benefit)
|
(59
|
)
|
|
(25
|
)
|
|
(95
|
)
|
|||
Unrealized (losses) gains on interest rate swaps from cash flow hedges, net of tax
|
315
|
|
|
1,648
|
|
|
(35
|
)
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax
|
555
|
|
|
1,170
|
|
|
(62
|
)
|
|||
Comprehensive income (loss)
|
5,789
|
|
|
33,508
|
|
|
8,740
|
|
|||
Less: Comprehensive income (loss) attributable to non-controlling interests - TFP
|
842
|
|
|
6,560
|
|
|
2,630
|
|
|||
Less: Comprehensive income (loss) attributable to non-controlling interests - Other
|
932
|
|
|
962
|
|
|
393
|
|
|||
Comprehensive income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
4,015
|
|
|
$
|
25,986
|
|
|
$
|
5,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
Par Value
|
|
Additional paid in capital
|
|
Accumulated
other comprehensive income (loss) |
|
Retained
earnings |
|
Common Stock held by subsidiaries
|
|
Total stockholders’ equity to Tiptree Inc.
|
|
Non-controlling
interests - TFP |
|
Non-controlling
interests - Other |
|
Total stockholders' equity
|
||||||||||||||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
|
|
|
|
Class A Shares
|
|
Class A Amount
|
|
Class B Shares
|
|
Class B Amount
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Balance at December 31, 2014
|
31,830,174
|
|
|
9,770,367
|
|
|
$
|
32
|
|
|
$
|
10
|
|
|
$
|
271,090
|
|
|
$
|
(49
|
)
|
|
$
|
13,379
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
284,462
|
|
|
$
|
90,144
|
|
|
$
|
27,015
|
|
|
$
|
401,621
|
|
Stock-based compensation to directors, employees and other persons for services rendered
|
299,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|
—
|
|
|
—
|
|
|
2,357
|
|
|||||||||||||
Class A shares issued and Class B shares redeemed due to TFP unit redemptions
|
1,721,338
|
|
|
(1,721,338
|
)
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(12
|
)
|
|
—
|
|
|
(62
|
)
|
|||||||||||||
Non-controlling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
302
|
|
|
302
|
|
|||||||||||||
Non-controlling interest distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(934
|
)
|
|
(730
|
)
|
|
(1,664
|
)
|
|||||||||||||
Non-controlling interest tax distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,313
|
)
|
|
—
|
|
|
(5,313
|
)
|
|||||||||||||
Purchase of majority ownership of subsidiary
|
1,625,000
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
11,958
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,960
|
|
|
—
|
|
|
1,861
|
|
|
13,821
|
|
|||||||||||||
Shares purchased under stock purchase plan
|
(576,090
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3,981
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,982
|
)
|
|
—
|
|
|
—
|
|
|
(3,982
|
)
|
|||||||||||||
Reduction in non-controlling interest due to PFG disposition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,765
|
)
|
|
(7,765
|
)
|
|||||||||||||
Net changes in non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,639
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,627
|
|
|
(17,237
|
)
|
|
(5,500
|
)
|
|
(7,110
|
)
|
|||||||||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,313
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,313
|
)
|
|
—
|
|
|
—
|
|
|
(3,313
|
)
|
|||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,779
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,779
|
|
|
2,630
|
|
|
393
|
|
|
8,802
|
|
|||||||||||||
Balance at December 31, 2015
|
34,899,833
|
|
|
8,049,029
|
|
|
$
|
35
|
|
|
$
|
8
|
|
|
$
|
297,063
|
|
|
$
|
(111
|
)
|
|
$
|
15,845
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
312,840
|
|
|
$
|
69,278
|
|
|
$
|
15,576
|
|
|
$
|
397,694
|
|
||
Stock-based compensation to directors and employees
|
197,296
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,102
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,102
|
|
|
—
|
|
|
—
|
|
|
2,102
|
|
|||||||||||||
Shares issued to settle contingent consideration
|
101,845
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
550
|
|
|
—
|
|
|
—
|
|
|
550
|
|
|||||||||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
666
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
666
|
|
|
128
|
|
|
376
|
|
|
1,170
|
|
|||||||||||||
Non-controlling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,452
|
|
|
6,452
|
|
|||||||||||||
Non-controlling interest distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(803
|
)
|
|
(2,195
|
)
|
|
(2,998
|
)
|
|||||||||||||
Shares purchased under stock purchase plan
|
(215,358
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,230
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,230
|
)
|
|
—
|
|
|
—
|
|
|
(1,230
|
)
|
|
Number of Shares
|
|
Par Value
|
|
Additional paid in capital
|
|
Accumulated
other comprehensive income (loss) |
|
Retained
earnings |
|
Common Stock held by subsidiaries
|
|
Total stockholders’ equity to Tiptree Inc.
|
|
Non-controlling
interests - TFP |
|
Non-controlling
interests - Other |
|
Total stockholders' equity
|
||||||||||||||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
|
|
|
|
Class A Shares
|
|
Class A Amount
|
|
Class B Shares
|
|
Class B Amount
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Shares acquired by subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,596,000
|
)
|
|
(42,524
|
)
|
|
(8,049,029
|
)
|
|
(8
|
)
|
|
(42,532
|
)
|
|
—
|
|
|
—
|
|
|
(42,532
|
)
|
|||||||||||||
Net changes in non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,094
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,094
|
)
|
|
1,042
|
|
|
(159
|
)
|
|
(211
|
)
|
|||||||||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,191
|
)
|
|
—
|
|
|
—
|
|
|
(3,191
|
)
|
|||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,320
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,320
|
|
|
6,432
|
|
|
586
|
|
|
32,338
|
|
|||||||||||||
Balance at December 31, 2016
|
34,983,616
|
|
|
8,049,029
|
|
|
$
|
35
|
|
|
$
|
8
|
|
|
$
|
297,391
|
|
|
$
|
555
|
|
|
$
|
37,974
|
|
|
(6,596,000
|
)
|
|
$
|
(42,524
|
)
|
|
(8,049,029
|
)
|
|
$
|
(8
|
)
|
|
$
|
293,431
|
|
|
$
|
76,077
|
|
|
$
|
20,636
|
|
|
$
|
390,144
|
|
||
Amortization of share-based incentive compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,139
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,139
|
|
|
—
|
|
|
3,346
|
|
|
5,485
|
|
|||||||||||||
Vesting of share-based incentive compensation
|
19,388
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(588
|
)
|
|
—
|
|
|
—
|
|
|
131,483
|
|
|
854
|
|
|
—
|
|
|
—
|
|
|
266
|
|
|
—
|
|
|
|
|
266
|
|
||||||||||||||
Shares issued to settle contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
—
|
|
|
756,046
|
|
|
4,914
|
|
|
—
|
|
|
—
|
|
|
4,838
|
|
|
—
|
|
|
—
|
|
|
4,838
|
|
|||||||||||||
Issuance of common stock for cash upon exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,371
|
)
|
|
—
|
|
|
—
|
|
|
1,510,920
|
|
|
9,471
|
|
|
—
|
|
|
—
|
|
|
8,100
|
|
|
—
|
|
|
—
|
|
|
8,100
|
|
|||||||||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
94
|
|
|
50
|
|
|
555
|
|
|||||||||||||
Non-controlling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
2,464
|
|
|
2,464
|
|
||||||||||||||
Non-controlling interest distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(966
|
)
|
|
(2,002
|
)
|
|
(2,968
|
)
|
|||||||||||||
Shares acquired by subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,000,000
|
)
|
|
(7,300
|
)
|
|
—
|
|
|
—
|
|
|
(7,300
|
)
|
|
—
|
|
|
—
|
|
|
(7,300
|
)
|
|||||||||||||
Net changes in non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,913
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,913
|
)
|
|
1,541
|
|
|
(6,173
|
)
|
|
(6,545
|
)
|
|||||||||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,499
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,499
|
)
|
|
—
|
|
|
—
|
|
|
(3,499
|
)
|
|||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,604
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,604
|
|
|
748
|
|
|
882
|
|
|
5,234
|
|
|||||||||||||
Balance at December 31, 2017
|
35,003,004
|
|
|
8,049,029
|
|
|
$
|
35
|
|
|
$
|
8
|
|
|
$
|
295,582
|
|
|
$
|
966
|
|
|
$
|
38,079
|
|
|
(5,197,551
|
)
|
|
$
|
(34,585
|
)
|
|
(8,049,029
|
)
|
|
$
|
(8
|
)
|
|
$
|
300,077
|
|
|
$
|
77,494
|
|
|
$
|
19,203
|
|
|
$
|
396,774
|
|
|
Year ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income (loss) available to common stockholders
|
$
|
3,604
|
|
|
$
|
25,320
|
|
|
$
|
5,779
|
|
Net income (loss) attributable to non-controlling interests - TFP
|
748
|
|
|
6,432
|
|
|
2,630
|
|
|||
Net income (loss) attributable to non-controlling interests - Other
|
882
|
|
|
586
|
|
|
393
|
|
|||
Net income (loss)
|
5,234
|
|
|
32,338
|
|
|
8,802
|
|
|||
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
|
|
|
|
|
||||||
Net realized and unrealized (gains) losses
|
(47,607
|
)
|
|
(87,300
|
)
|
|
(31,318
|
)
|
|||
Net (gain) on sale of subsidiary
|
(1,944
|
)
|
|
—
|
|
|
(15,619
|
)
|
|||
Net unrealized loss (gain) on interest rate swaps
|
—
|
|
|
22
|
|
|
—
|
|
|||
Realized (gain) on cash flow hedge
|
(877
|
)
|
|
—
|
|
|
(852
|
)
|
|||
Change in fair value of contingent consideration
|
3,192
|
|
|
(313
|
)
|
|
(2,503
|
)
|
|||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
699
|
|
|||
Non cash compensation expense
|
6,560
|
|
|
2,584
|
|
|
443
|
|
|||
Amortization/accretion of premiums and discounts
|
1,316
|
|
|
1,386
|
|
|
2,596
|
|
|||
Depreciation and amortization expense
|
29,992
|
|
|
28,543
|
|
|
46,724
|
|
|||
Provision for doubtful accounts
|
1,019
|
|
|
1,719
|
|
|
933
|
|
|||
Amortization of deferred financing costs
|
2,770
|
|
|
2,037
|
|
|
1,441
|
|
|||
Loss on extinguishment of debt
|
1,163
|
|
|
—
|
|
|
—
|
|
|||
Deferred tax expense (benefit)
|
(11,249
|
)
|
|
6,447
|
|
|
(17,107
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Mortgage loans originated for sale
|
(1,592,726
|
)
|
|
(1,767,622
|
)
|
|
(1,137,623
|
)
|
|||
Proceeds from the sale of mortgage loans originated for sale
|
1,658,646
|
|
|
1,833,273
|
|
|
1,139,333
|
|
|||
(Increase) decrease in notes and accounts receivable
|
(48,085
|
)
|
|
(13,692
|
)
|
|
(33,500
|
)
|
|||
(Increase) decrease in reinsurance receivables
|
(53,256
|
)
|
|
(35,185
|
)
|
|
(88,232
|
)
|
|||
(Increase) decrease in deferred acquisition costs
|
(20,554
|
)
|
|
(3,540
|
)
|
|
(50,361
|
)
|
|||
(Increase) decrease in other assets
|
(4,849
|
)
|
|
(253
|
)
|
|
(6,339
|
)
|
|||
Increase (decrease) in unearned premiums
|
87,880
|
|
|
25,261
|
|
|
89,873
|
|
|||
Increase (decrease) in policy liabilities and unpaid claims
|
5,729
|
|
|
22,728
|
|
|
5,009
|
|
|||
Increase (decrease) in deferred revenue
|
4,082
|
|
|
(7,182
|
)
|
|
17,099
|
|
|||
Increase (decrease) in reinsurance payable
|
19,966
|
|
|
4,748
|
|
|
45,253
|
|
|||
Increase (decrease) in other liabilities and accrued expenses
|
3,471
|
|
|
(725
|
)
|
|
(9,214
|
)
|
|||
Operating activities from consolidated CLOs
|
(2,954
|
)
|
|
(8,631
|
)
|
|
25,008
|
|
|||
Net cash provided by (used in) operating activities
|
46,919
|
|
|
36,643
|
|
|
(9,455
|
)
|
|||
|
|
|
|
|
|
||||||
Investing Activities:
|
|
|
|
|
|
||||||
Purchases of investments
|
(219,955
|
)
|
|
(269,894
|
)
|
|
(382,502
|
)
|
|||
Proceeds from sales and maturities of investments
|
296,855
|
|
|
205,141
|
|
|
86,363
|
|
|||
(Increase) decrease in loans owned, at amortized cost, net
|
(37,166
|
)
|
|
(62,024
|
)
|
|
(16,710
|
)
|
|||
Purchases of real estate capital expenditures
|
(1,141
|
)
|
|
(5,679
|
)
|
|
(2,165
|
)
|
|||
Proceeds from the sale of real estate
|
14,035
|
|
|
5,376
|
|
|
92
|
|
|||
Purchases of corporate fixed assets
|
(1,747
|
)
|
|
(1,480
|
)
|
|
(4,066
|
)
|
|||
Proceeds from the sale of subsidiaries
|
14,089
|
|
|
—
|
|
|
142,837
|
|
|||
Proceeds from notes receivable
|
50,175
|
|
|
36,891
|
|
|
44,342
|
|
|||
Issuance of notes receivable
|
(41,861
|
)
|
|
(44,860
|
)
|
|
(32,645
|
)
|
|||
(Increase) decrease in restricted cash
|
(7,098
|
)
|
|
(5,694
|
)
|
|
(11,047
|
)
|
|||
Deposits returned for future real estate acquisitions
|
—
|
|
|
—
|
|
|
(125
|
)
|
|||
Business and asset acquisitions, net of cash and deposits
|
(85,826
|
)
|
|
(102,268
|
)
|
|
(78,057
|
)
|
|||
Distributions from equity method investments
|
—
|
|
|
—
|
|
|
2,275
|
|
|||
Investing activities from consolidated CLOs
|
225,317
|
|
|
(75,494
|
)
|
|
33,613
|
|
|||
Net cash provided by (used in) investing activities
|
205,677
|
|
|
(319,985
|
)
|
|
(217,795
|
)
|
|||
|
|
|
|
|
|
|
Year ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Financing Activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(3,499
|
)
|
|
(3,191
|
)
|
|
(3,313
|
)
|
|||
Non-controlling interest contributions
|
2,464
|
|
|
3,339
|
|
|
2,163
|
|
|||
Non-controlling interest distributions
|
(2,224
|
)
|
|
(2,998
|
)
|
|
(6,977
|
)
|
|||
Change in non-controlling interest
|
—
|
|
|
—
|
|
|
(2,953
|
)
|
|||
Payment of debt issuance costs
|
(9,588
|
)
|
|
(3,830
|
)
|
|
(1,865
|
)
|
|||
Proceeds from borrowings and mortgage notes payable
|
1,857,571
|
|
|
2,085,142
|
|
|
1,442,756
|
|
|||
Principal paydowns of borrowings and mortgage notes payable
|
(1,816,537
|
)
|
|
(1,957,183
|
)
|
|
(1,190,739
|
)
|
|||
Proceeds from the exercise of options for common stock
|
8,100
|
|
|
—
|
|
|
—
|
|
|||
Repurchases of common stock
|
(7,300
|
)
|
|
(43,754
|
)
|
|
(3,982
|
)
|
|||
Financing activities from consolidated CLOs
|
(223,393
|
)
|
|
199,427
|
|
|
8,573
|
|
|||
Net cash provided by (used in) financing activities
|
(194,406
|
)
|
|
276,952
|
|
|
243,663
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
58,190
|
|
|
(6,390
|
)
|
|
16,413
|
|
|||
Cash and cash equivalents – beginning of period
|
49,786
|
|
|
60,677
|
|
|
52,053
|
|
|||
Cash and cash equivalents – beginning of period - held for sale
|
13,224
|
|
|
8,723
|
|
|
934
|
|
|||
Cash and cash equivalents – end of period
|
121,200
|
|
|
63,010
|
|
|
69,400
|
|
|||
Less: Reclassification of cash to assets held for sale
|
10,533
|
|
|
13,224
|
|
|
8,723
|
|
|||
Cash and cash equivalents – end of period
|
$
|
110,667
|
|
|
$
|
49,786
|
|
|
$
|
60,677
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
||||||
Cash paid during the period for interest expense
|
$
|
34,113
|
|
|
$
|
27,164
|
|
|
$
|
55,077
|
|
Cash paid during the period for income taxes
|
$
|
5,049
|
|
|
$
|
6,176
|
|
|
$
|
38,739
|
|
|
|
|
|
|
|
||||||
Supplemental Schedule of Non-Cash Investing and Financing Activities:
|
|
|
|
|
|
||||||
Assets of consolidated CLOs deconsolidated due to sale and redemption
|
$
|
765,603
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities of consolidated CLOs deconsolidated due to sale and redemption
|
$
|
729,597
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate acquired through asset acquisition
|
$
|
8,178
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Seller provided financing related to the sale of Siena
|
$
|
11,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Intangible assets related to in-place leases acquired through asset acquisition
|
$
|
2,049
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Settlement of contingent consideration payable with Class A common stock
|
$
|
4,838
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt assumed through acquisitions
|
$
|
7,585
|
|
|
$
|
—
|
|
|
$
|
52,836
|
|
Acquired real estate properties through, or in lieu of, foreclosure of the related loan
|
$
|
15,033
|
|
|
$
|
15,132
|
|
|
$
|
2,289
|
|
Re-issuance of notes payable to third party upon deconsolidation of CLOs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,728
|
|
Recognized contingent consideration at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,200
|
|
Issuance of common stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,960
|
|
•
|
Fair value of financial assets and liabilities, including, but not limited to, securities, loans and derivatives
|
•
|
Value of acquired assets and liabilities;
|
•
|
Carrying value of goodwill and other intangibles, including estimated amortization period and useful lives;
|
•
|
Reserves for unpaid losses and loss adjustment expenses, estimated future claims and losses, potential litigation and other claims;
|
•
|
Valuation of contingent share issuances for compensation and purchase consideration, including estimates of number of shares and vesting schedules;
|
•
|
Revenue recognition including, but not limited to, the timing and amount of insurance premiums, service, administration fees, and loan origination fees; and
|
•
|
Other matters that affect the reported amounts and disclosure of contingencies in the consolidated financial statements
|
|
As of December 31,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Assets
|
Care
|
Luxury
|
Total
|
|
Care
|
||||||||
Investments:
|
|
|
|
|
|
||||||||
Loans, at fair value
|
$
|
—
|
|
$
|
57,255
|
|
$
|
57,255
|
|
|
$
|
—
|
|
Loans at amortized cost, net
|
700
|
|
—
|
|
700
|
|
|
700
|
|
||||
Real estate, net of accumulated depreciation of $26,823 and $17,765
(1)
|
347,303
|
|
—
|
|
347,303
|
|
|
285,778
|
|
||||
Other investments
|
1,853
|
|
677
|
|
2,530
|
|
|
1,388
|
|
||||
Total Investments
|
349,856
|
|
57,932
|
|
407,788
|
|
|
287,866
|
|
||||
Cash and cash equivalents
|
8,316
|
|
2,217
|
|
10,533
|
|
|
13,224
|
|
||||
Notes and accounts receivable, net
|
5,318
|
|
263
|
|
5,581
|
|
|
3,862
|
|
||||
Intangible assets, net of accumulated amortization of $26,944 and $20,413
|
17,417
|
|
—
|
|
17,417
|
|
|
11,820
|
|
||||
Other assets
|
6,508
|
|
665
|
|
7,173
|
|
|
6,397
|
|
||||
Assets held for sale
|
$
|
387,415
|
|
$
|
61,077
|
|
$
|
448,492
|
|
|
$
|
323,169
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
||||||||
Debt, net
|
$
|
296,868
|
|
$
|
53,835
|
|
$
|
350,703
|
|
|
$
|
238,139
|
|
Other liabilities and accrued expenses
|
10,693
|
|
1,422
|
|
12,115
|
|
|
9,494
|
|
||||
Liabilities held for sale
|
$
|
307,561
|
|
$
|
55,257
|
|
$
|
362,818
|
|
|
$
|
247,633
|
|
|
Year ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Revenues:
|
Care
|
|
Care
|
|
Care
|
PFG
|
Total
|
||||||||||
Service and administrative fees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
25,385
|
|
$
|
25,385
|
|
Separate account fees
|
—
|
|
|
—
|
|
|
—
|
|
12,706
|
|
12,706
|
|
|||||
Net realized and unrealized gains (losses)
|
—
|
|
|
—
|
|
|
(194
|
)
|
151
|
|
(43
|
)
|
|||||
Rental and related revenue
|
74,386
|
|
|
59,636
|
|
|
45,372
|
|
—
|
|
45,372
|
|
|||||
Other revenue
|
1,583
|
|
|
1,095
|
|
|
950
|
|
2,217
|
|
3,167
|
|
|||||
Total revenues
|
75,969
|
|
|
60,731
|
|
|
46,128
|
|
40,459
|
|
86,587
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
||||||||||
Policy and contract benefits
|
—
|
|
|
—
|
|
|
—
|
|
7,765
|
|
7,765
|
|
|||||
Commission expense
|
—
|
|
|
—
|
|
|
—
|
|
1,723
|
|
1,723
|
|
|||||
Employee compensation and benefits
|
30,215
|
|
|
24,000
|
|
|
18,479
|
|
9,086
|
|
27,565
|
|
|||||
Interest expense
|
13,068
|
|
|
8,691
|
|
|
6,796
|
|
5,226
|
|
12,022
|
|
|||||
Depreciation and amortization
|
15,645
|
|
|
14,166
|
|
|
14,546
|
|
862
|
|
15,408
|
|
|||||
Other expenses
|
23,263
|
|
|
19,698
|
|
|
15,842
|
|
5,002
|
|
20,844
|
|
|||||
Total expenses
|
82,191
|
|
|
66,555
|
|
|
55,663
|
|
29,664
|
|
85,327
|
|
|||||
Net income (loss) before taxes from discontinued operations
|
(6,222
|
)
|
|
(5,824
|
)
|
|
(9,535
|
)
|
10,795
|
|
1,260
|
|
|||||
Gain on sale of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
27,220
|
|
27,220
|
|
|||||
Less: provision (benefit) for income taxes
|
(2,224
|
)
|
|
(1,537
|
)
|
|
2,130
|
|
15,397
|
|
17,527
|
|
|||||
Net income (loss) from discontinued operations
|
$
|
(3,998
|
)
|
|
$
|
(4,287
|
)
|
|
$
|
(11,665
|
)
|
$
|
22,618
|
|
$
|
10,953
|
|
|
Year ended December 31,
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
Care
|
|
Care
|
|
Care
|
PFG
|
Total
|
||||||||||
Net cash provided by (used in):
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
16,805
|
|
|
$
|
15,595
|
|
|
$
|
16,859
|
|
$
|
(6,198
|
)
|
$
|
10,661
|
|
Investing activities
(1)
|
(74,325
|
)
|
|
(96,679
|
)
|
|
(86,755
|
)
|
11,866
|
|
(74,889
|
)
|
|||||
Financing activities
|
50,569
|
|
|
74,155
|
|
|
59,018
|
|
(5,000
|
)
|
54,018
|
|
|||||
Net cash flows provided by discontinued operations
|
$
|
(6,951
|
)
|
|
$
|
(6,929
|
)
|
|
$
|
(10,878
|
)
|
$
|
668
|
|
$
|
(10,210
|
)
|
(1)
|
Amount excludes
$7,765
of non-controlling interests sold in connection with the sale of PFG in 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
||||||||||||||
|
Specialty insurance
|
|
Asset management
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||||
Total revenue
|
$
|
478,965
|
|
|
$
|
9,741
|
|
|
$
|
56,571
|
|
|
$
|
36,521
|
|
|
$
|
581,798
|
|
Total expense
|
(473,561
|
)
|
|
(5,953
|
)
|
|
(54,481
|
)
|
|
(32,520
|
)
|
|
(566,515
|
)
|
|||||
Net income (loss) attributable to consolidated CLOs
|
—
|
|
|
10,457
|
|
|
—
|
|
|
—
|
|
|
10,457
|
|
|||||
Corporate expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,070
|
)
|
|||||
Net income (loss) before taxes from continuing operations
|
$
|
5,404
|
|
|
$
|
14,245
|
|
|
$
|
2,090
|
|
|
$
|
4,001
|
|
|
$
|
(3,330
|
)
|
Less: provision (benefit) for income taxes
|
|
|
|
|
|
|
|
|
(12,562
|
)
|
|||||||||
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
(3,998
|
)
|
|||||||||
Net income (loss) before non-controlling interests
|
|
|
|
|
|
|
|
|
$
|
5,234
|
|
||||||||
Less: net income (loss) attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
1,630
|
|
|||||||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
|
|
|
|
|
|
|
|
$
|
3,604
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
||||||||||||||
|
Specialty insurance
|
|
Asset management
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||||
Total revenue
|
$
|
394,170
|
|
|
$
|
13,114
|
|
|
$
|
56,294
|
|
|
$
|
42,845
|
|
|
$
|
506,423
|
|
Total expense
|
(347,366
|
)
|
|
(8,104
|
)
|
|
(51,412
|
)
|
|
(35,849
|
)
|
|
(442,731
|
)
|
|||||
Net income (loss) attributable to consolidated CLOs
|
—
|
|
|
20,254
|
|
|
—
|
|
|
—
|
|
|
20,254
|
|
|||||
Corporate expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,806
|
)
|
|||||
Net income (loss) before taxes from continuing operations
|
$
|
46,804
|
|
|
$
|
25,264
|
|
|
$
|
4,882
|
|
|
$
|
6,996
|
|
|
$
|
49,140
|
|
Less: provision (benefit) for income taxes
|
|
|
|
|
|
|
|
|
12,515
|
|
|||||||||
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
|
(4,287
|
)
|
||||||||
Net income (loss) before non-controlling interests
|
|
|
|
|
|
|
|
|
$
|
32,338
|
|
||||||||
Less: net income (loss) attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
7,018
|
|
|||||||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
|
|
|
|
|
|
|
|
$
|
25,320
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
||||||||||||||
|
Specialty insurance
|
|
Asset management
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||||
Total revenue
|
$
|
330,888
|
|
|
$
|
6,770
|
|
|
$
|
22,934
|
|
|
$
|
31,739
|
|
|
$
|
392,331
|
|
Total expense
|
(298,876
|
)
|
|
(6,634
|
)
|
|
(20,470
|
)
|
|
(28,264
|
)
|
|
(354,244
|
)
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
||||||||||||||
|
Specialty insurance
|
|
Asset management
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||||
Net income (loss) attributable to consolidated CLOs
|
—
|
|
|
(6,889
|
)
|
|
—
|
|
|
—
|
|
|
(6,889
|
)
|
|||||
Corporate expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,102
|
)
|
|||||
Net income (loss) before taxes from continuing operations
|
$
|
32,012
|
|
|
$
|
(6,753
|
)
|
|
$
|
2,464
|
|
|
$
|
3,475
|
|
|
$
|
(2,904
|
)
|
Less: provision (benefit) for income taxes
|
|
|
|
|
|
|
|
|
(753
|
)
|
|||||||||
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
10,953
|
|
|||||||||
Net income (loss) before non-controlling interests
|
|
|
|
|
|
|
|
|
$
|
8,802
|
|
||||||||
Less: net income (loss) attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
3,023
|
|
|||||||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
|
|
|
|
|
|
|
|
$
|
5,779
|
|
|
As of December 31, 2017
|
||||||||||||||
|
Amortized cost
|
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair value
|
||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
48,399
|
|
|
$
|
20
|
|
|
$
|
(474
|
)
|
|
$
|
47,945
|
|
Obligations of state and political subdivisions
|
47,211
|
|
|
190
|
|
|
(420
|
)
|
|
46,981
|
|
||||
Corporate securities
|
62,125
|
|
|
195
|
|
|
(345
|
)
|
|
61,975
|
|
||||
Asset backed securities
|
23,369
|
|
|
182
|
|
|
(58
|
)
|
|
23,493
|
|
||||
Certificates of deposit
|
896
|
|
|
—
|
|
|
—
|
|
|
896
|
|
||||
Equity securities
|
595
|
|
|
10
|
|
|
(17
|
)
|
|
588
|
|
||||
Obligations of foreign governments
|
562
|
|
|
9
|
|
|
(1
|
)
|
|
570
|
|
||||
Total
|
$
|
183,157
|
|
|
$
|
606
|
|
|
$
|
(1,315
|
)
|
|
$
|
182,448
|
|
|
|
|
|
|
|
|
|
||||||||
|
As of December 31, 2016
|
||||||||||||||
|
Amortized cost
|
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair value
|
||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
27,149
|
|
|
$
|
27
|
|
|
$
|
(377
|
)
|
|
$
|
26,799
|
|
Obligations of state and political subdivisions
|
57,425
|
|
|
107
|
|
|
(598
|
)
|
|
56,934
|
|
||||
Corporate securities
|
58,769
|
|
|
204
|
|
|
(402
|
)
|
|
58,571
|
|
||||
Asset backed securities
|
1,459
|
|
|
1
|
|
|
—
|
|
|
1,460
|
|
||||
Certificates of deposit
|
895
|
|
|
—
|
|
|
—
|
|
|
895
|
|
||||
Equity securities
|
818
|
|
|
3
|
|
|
(37
|
)
|
|
784
|
|
||||
Obligations of foreign governments
|
733
|
|
|
3
|
|
|
(8
|
)
|
|
728
|
|
||||
Total
|
$
|
147,248
|
|
|
$
|
345
|
|
|
$
|
(1,422
|
)
|
|
$
|
146,171
|
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
Less Than or Equal to One Year
|
|
More Than One Year
|
||||||||||||||||||
|
Fair value
|
|
Gross
unrealized losses |
|
# of Securities
|
|
Fair value
|
|
Gross unrealized losses
|
|
# of Securities
|
||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
37,918
|
|
|
$
|
(291
|
)
|
|
115
|
|
|
$
|
7,584
|
|
|
$
|
(183
|
)
|
|
56
|
|
Obligations of state and political subdivisions
|
24,165
|
|
|
(135
|
)
|
|
96
|
|
|
7,294
|
|
|
(285
|
)
|
|
48
|
|
||||
Corporate securities
|
37,573
|
|
|
(179
|
)
|
|
295
|
|
|
6,568
|
|
|
(166
|
)
|
|
127
|
|
||||
Asset-backed securities
|
1,297
|
|
|
(58
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
295
|
|
|
(15
|
)
|
|
3
|
|
|
63
|
|
|
(2
|
)
|
|
2
|
|
||||
Obligations of foreign governments
|
371
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
101,619
|
|
|
$
|
(679
|
)
|
|
512
|
|
|
$
|
21,509
|
|
|
$
|
(636
|
)
|
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of December 31, 2016
|
||||||||||||||||||||
|
Less Than or Equal to One Year
|
|
More Than One Year
|
||||||||||||||||||
|
Fair value
|
|
Gross
unrealized losses |
|
# of Securities
|
|
Fair value
|
|
Gross unrealized losses
|
|
# of Securities
|
||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
$
|
20,979
|
|
|
$
|
(376
|
)
|
|
115
|
|
|
$
|
16
|
|
|
$
|
(1
|
)
|
|
5
|
|
Obligations of state and political subdivisions
|
41,639
|
|
|
(597
|
)
|
|
170
|
|
|
1,334
|
|
|
(1
|
)
|
|
3
|
|
||||
Corporate securities
|
29,856
|
|
|
(400
|
)
|
|
279
|
|
|
253
|
|
|
(2
|
)
|
|
3
|
|
||||
Asset-backed securities
|
706
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
736
|
|
|
(35
|
)
|
|
5
|
|
|
19
|
|
|
(2
|
)
|
|
2
|
|
||||
Obligations of foreign governments
|
338
|
|
|
(8
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
94,254
|
|
|
$
|
(1,416
|
)
|
|
574
|
|
|
$
|
1,622
|
|
|
$
|
(6
|
)
|
|
13
|
|
|
As of
|
||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Due in one year or less
|
$
|
26,399
|
|
|
$
|
26,363
|
|
|
$
|
22,846
|
|
|
$
|
22,833
|
|
Due after one year through five years
|
86,287
|
|
|
85,852
|
|
|
66,063
|
|
|
65,841
|
|
||||
Due after five years through ten years
|
41,442
|
|
|
41,085
|
|
|
49,036
|
|
|
48,381
|
|
||||
Due after ten years
|
5,065
|
|
|
5,067
|
|
|
7,026
|
|
|
6,872
|
|
||||
Asset-backed securities
|
23,369
|
|
|
23,493
|
|
|
1,459
|
|
|
1,460
|
|
||||
Total
|
$
|
182,562
|
|
|
$
|
181,860
|
|
|
$
|
146,430
|
|
|
$
|
145,387
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Fair value of restricted investments for special deposits required by state insurance departments
|
$
|
6,101
|
|
|
$
|
10,111
|
|
Fair value of restricted investments in trust pursuant to reinsurance agreements
|
10,175
|
|
|
7,573
|
|
||
Total fair value of restricted investments
|
$
|
16,276
|
|
|
$
|
17,684
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Purchases of available for sale securities
|
$
|
117,735
|
|
|
$
|
24,652
|
|
|
$
|
75,275
|
|
|
|
|
|
|
|
||||||
Proceeds from maturities, calls and prepayments of available for sale securities
|
$
|
32,157
|
|
|
$
|
27,859
|
|
|
$
|
39,062
|
|
|
|
|
|
|
|
||||||
Gains (losses) realized on maturities, calls and prepayments of available for sale securities
|
$
|
5
|
|
|
$
|
87
|
|
|
$
|
(62
|
)
|
|
|
|
|
|
|
||||||
Gross proceeds from sales of available for sale securities
|
$
|
48,252
|
|
|
$
|
66,891
|
|
|
$
|
20,353
|
|
|
|
|
|
|
|
||||||
Gains (losses) realized on sales of available for sale securities
|
$
|
430
|
|
|
$
|
938
|
|
|
$
|
4
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||
|
Fair value
|
|
Unpaid principal balance (UPB)
|
|
Fair value exceeds / (below) UPB
|
|
Fair value
|
|
Unpaid principal balance (UPB)
|
|
Fair value exceeds / (below) UPB
|
||||||||||||
Loans, at fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate loans
(2)
|
$
|
157,661
|
|
|
$
|
157,834
|
|
|
$
|
(173
|
)
|
|
$
|
175,558
|
|
|
$
|
176,808
|
|
|
$
|
(1,250
|
)
|
Mortgage loans held for sale
(1)
|
62,846
|
|
|
60,764
|
|
|
2,082
|
|
|
121,439
|
|
|
118,162
|
|
|
3,277
|
|
||||||
Non-performing loans
(3)
|
37,666
|
|
|
52,872
|
|
|
(15,206
|
)
|
|
74,923
|
|
|
113,892
|
|
|
(38,969
|
)
|
||||||
Other loans receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,169
|
|
|
1,169
|
|
|
—
|
|
||||||
Total loans, at fair value
|
$
|
258,173
|
|
|
$
|
271,470
|
|
|
$
|
(13,297
|
)
|
|
$
|
373,089
|
|
|
$
|
410,031
|
|
|
$
|
(36,942
|
)
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Corporate loans
|
$
|
154,279
|
|
|
$
|
175,365
|
|
Mortgage loans held for sale
(1)
|
62,212
|
|
|
117,734
|
|
||
Non-performing loans
|
30,703
|
|
|
60,409
|
|
||
Total fair value of loans pledged as collateral
|
$
|
247,194
|
|
|
$
|
353,508
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Loans at amortized cost, net
|
|
|
|
||||
Asset backed loans and other loans, net
(1)
|
$
|
—
|
|
|
$
|
114,333
|
|
Less: Allowance for loan losses
|
—
|
|
|
1,195
|
|
||
Total l
oans at amortized cost, net
|
$
|
—
|
|
|
$
|
113,138
|
|
|
|
|
|
||||
Net deferred loan origination fees included in asset backed loans
|
$
|
—
|
|
|
$
|
5,244
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Pledged as collateral
|
$
|
—
|
|
|
$
|
119,558
|
|
|
|
|
|
||||
Loans receivable, net
|
$
|
—
|
|
|
$
|
113,138
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Other investments
|
|
|
|
||||
Real estate, net
(1) (2)
|
19,226
|
|
|
10,279
|
|
||
Foreclosed residential real estate property
|
16,056
|
|
|
13,366
|
|
||
Seller financing
(3)
|
11,275
|
|
|
—
|
|
||
Derivative assets
|
5,013
|
|
|
19,148
|
|
||
Debentures
|
4,163
|
|
|
3,957
|
|
||
Other
(2)
|
3,409
|
|
|
974
|
|
||
Total other investments
|
$
|
59,142
|
|
|
$
|
47,724
|
|
•
|
Interest income, and dividends related to available for sale securities, at fair value;
|
•
|
Interest income related to loans, at fair value;
|
•
|
Dividend income from equity securities, trading, at fair value;
|
•
|
Rental and related revenue from real estate, net; and
|
•
|
Earnings from other investments.
|
|
Year Ended December 31,
|
||||||||||
Net investment income
|
2017
|
|
2016
|
|
2015
|
||||||
Available for sale securities, at fair value
|
$
|
3,490
|
|
|
$
|
3,075
|
|
|
$
|
3,166
|
|
Loans, at fair value
|
11,073
|
|
|
7,999
|
|
|
2,426
|
|
|||
Equity securities, trading, at fair value
|
2,043
|
|
|
2,981
|
|
|
369
|
|
|||
Other investments
|
1,366
|
|
|
468
|
|
|
286
|
|
|||
Total investment income
|
17,972
|
|
|
14,523
|
|
|
6,247
|
|
|||
Less: investment expenses
|
1,686
|
|
|
1,542
|
|
|
792
|
|
|||
Net investment income
|
$
|
16,286
|
|
|
$
|
12,981
|
|
|
$
|
5,455
|
|
|
Year Ended December 31,
|
||||||||||
Net realized and unrealized gains (losses)
|
2017
|
|
2016
|
|
2015
|
||||||
Net realized gains (losses)
|
$
|
64,425
|
|
|
$
|
70,811
|
|
|
32,088
|
|
|
Net unrealized gains (losses)
|
(16,818
|
)
|
|
16,489
|
|
|
(619
|
)
|
|||
Net realized and unrealized gains (losses)
|
$
|
47,607
|
|
|
$
|
87,300
|
|
|
$
|
31,469
|
|
|
Year Ended December 31,
|
|||||||||
|
2017
|
|
2016
|
|
2015
|
|||||
Net realized gain on sale of mortgage loans
(1)
|
$
|
64,296
|
|
|
$
|
68,181
|
|
|
33,849
|
|
|
|
|
|
|
|
|||||
Cumulative net unrealized gains (losses) on equity securities, trading, at fair value held at the reporting date
|
$
|
(23,753
|
)
|
|
$
|
6,032
|
|
|
256
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Premium financing program
(1)
|
$
|
12,225
|
|
|
$
|
20,615
|
|
Other
|
—
|
|
|
298
|
|
||
Notes receivable, net
|
$
|
12,225
|
|
|
$
|
20,913
|
|
Accounts and premiums receivable, net
|
59,946
|
|
|
45,041
|
|
||
Retrospective commissions receivable
|
68,064
|
|
|
59,175
|
|
||
Trust receivables
|
29,060
|
|
|
10,074
|
|
||
Other receivables
(2)
|
17,127
|
|
|
18,435
|
|
||
Total
|
$
|
186,422
|
|
|
$
|
153,638
|
|
|
Direct amount
|
|
Ceded to other companies
|
|
Assumed from other companies
|
|
Net amount
|
|
Percentage of amount - assumed to net
|
|||||||||
For the Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums written:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
63,196
|
|
|
$
|
32,358
|
|
|
$
|
2,011
|
|
|
$
|
32,849
|
|
|
6.1
|
%
|
Accident and health insurance
|
119,227
|
|
|
79,278
|
|
|
3,247
|
|
|
43,196
|
|
|
7.5
|
%
|
||||
Property and liability insurance
|
553,111
|
|
|
238,614
|
|
|
27,480
|
|
|
341,977
|
|
|
8.0
|
%
|
||||
Total premiums written
|
735,534
|
|
|
350,250
|
|
|
32,738
|
|
|
418,022
|
|
|
7.8
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
61,780
|
|
|
30,567
|
|
|
1,942
|
|
|
33,155
|
|
|
5.9
|
%
|
||||
Accident and health insurance
|
111,124
|
|
|
76,549
|
|
|
3,198
|
|
|
37,773
|
|
|
8.5
|
%
|
||||
Property and liability insurance
|
486,913
|
|
|
201,576
|
|
|
15,435
|
|
|
300,772
|
|
|
5.1
|
%
|
||||
Total premiums earned
|
$
|
659,817
|
|
|
$
|
308,692
|
|
|
$
|
20,575
|
|
|
$
|
371,700
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums written:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
65,152
|
|
|
$
|
34,044
|
|
|
$
|
2,522
|
|
|
$
|
33,630
|
|
|
7.5
|
%
|
Accident and health insurance
|
116,861
|
|
|
79,396
|
|
|
3,335
|
|
|
40,800
|
|
|
8.2
|
%
|
||||
Property and liability insurance
|
505,147
|
|
|
257,677
|
|
|
15,270
|
|
|
262,740
|
|
|
5.8
|
%
|
||||
Total premiums written
|
687,160
|
|
|
371,117
|
|
|
21,127
|
|
|
337,170
|
|
|
6.3
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
61,921
|
|
|
30,015
|
|
|
2,543
|
|
|
34,449
|
|
|
7.4
|
%
|
||||
Accident and health insurance
|
112,847
|
|
|
79,754
|
|
|
3,262
|
|
|
36,355
|
|
|
9.0
|
%
|
||||
Property and liability insurance
|
496,418
|
|
|
343,820
|
|
|
6,034
|
|
|
158,632
|
|
|
3.8
|
%
|
||||
Total premiums earned
|
$
|
671,186
|
|
|
$
|
453,589
|
|
|
$
|
11,839
|
|
|
$
|
229,436
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums written:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
67,416
|
|
|
$
|
36,826
|
|
|
$
|
3,000
|
|
|
$
|
33,590
|
|
|
8.9
|
%
|
Accident and health insurance
|
124,862
|
|
|
88,342
|
|
|
3,095
|
|
|
39,615
|
|
|
7.8
|
%
|
||||
Property and liability insurance
|
480,533
|
|
|
378,744
|
|
|
7,102
|
|
|
108,891
|
|
|
6.5
|
%
|
||||
Total premiums written
|
672,811
|
|
|
503,912
|
|
|
13,197
|
|
|
182,096
|
|
|
7.2
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
57,203
|
|
|
25,739
|
|
|
3,011
|
|
|
34,475
|
|
|
8.7
|
%
|
||||
Accident and health insurance
|
112,474
|
|
|
78,954
|
|
|
3,051
|
|
|
36,571
|
|
|
8.3
|
%
|
||||
Property and liability insurance
|
416,986
|
|
|
325,176
|
|
|
3,409
|
|
|
95,219
|
|
|
3.6
|
%
|
||||
Total premiums earned
|
$
|
586,663
|
|
|
429,869
|
|
|
$
|
9,471
|
|
|
$
|
166,265
|
|
|
5.7
|
%
|
|
Direct amount
|
|
Ceded to other companies
|
|
Assumed from other companies
|
|
Net amount
|
|
Percentage of amount - assumed to net
|
|||||||||
For the Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||||||||
Losses Incurred
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
33,068
|
|
|
$
|
18,388
|
|
|
$
|
879
|
|
|
$
|
15,559
|
|
|
5.6
|
%
|
Accident and health insurance
|
17,512
|
|
|
14,421
|
|
|
752
|
|
|
3,843
|
|
|
19.6
|
%
|
||||
Property and liability insurance
|
198,484
|
|
|
118,262
|
|
|
8,915
|
|
|
89,137
|
|
|
10.0
|
%
|
||||
Total losses incurred
|
249,064
|
|
|
151,071
|
|
|
10,546
|
|
|
108,539
|
|
|
9.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Member benefit claims
(1)
|
|
15,420
|
|
|
|
||||||||||||
|
Total policy and contract benefits
|
|
$
|
123,959
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|||||||||
Losses Incurred
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
32,574
|
|
|
$
|
16,945
|
|
|
$
|
1,184
|
|
|
$
|
16,813
|
|
|
7.0
|
%
|
Accident and health insurance
|
19,250
|
|
|
16,339
|
|
|
871
|
|
|
3,782
|
|
|
23.0
|
%
|
||||
Property and liability insurance
|
219,538
|
|
|
158,520
|
|
|
3,337
|
|
|
64,355
|
|
|
5.2
|
%
|
||||
Total losses incurred
|
271,362
|
|
|
191,804
|
|
|
5,392
|
|
|
84,950
|
|
|
6.3
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Member benefit claims
(1)
|
|
21,834
|
|
|
|
||||||||||||
|
Total policy and contract benefits
|
|
$
|
106,784
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
For the Year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||||||||
Losses Incurred
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
27,583
|
|
|
$
|
12,468
|
|
|
$
|
1,163
|
|
|
$
|
16,278
|
|
|
7.1
|
%
|
Accident and health insurance
|
16,613
|
|
|
13,555
|
|
|
860
|
|
|
3,918
|
|
|
21.9
|
%
|
||||
Property and liability insurance
|
132,775
|
|
|
98,700
|
|
|
2,297
|
|
|
36,372
|
|
|
6.3
|
%
|
||||
Total losses incurred
|
176,971
|
|
|
124,723
|
|
|
4,320
|
|
|
56,568
|
|
|
7.6
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Member benefit claims
(1)
|
|
29,744
|
|
|
|
||||||||||||
|
Total policy and contract benefits
|
|
$
|
86,312
|
|
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Prepaid reinsurance premiums:
|
|
|
|
||||
Life
(1)
|
$
|
65,218
|
|
|
$
|
64,621
|
|
Accident and health
(1)
|
56,729
|
|
|
53,999
|
|
||
Property
(2)
|
131,735
|
|
|
94,091
|
|
||
Total
|
253,682
|
|
|
212,711
|
|
||
|
|
|
|
||||
Ceded claim reserves:
|
|
|
|
||||
Life
|
2,988
|
|
|
2,929
|
|
||
Accident and health
|
9,575
|
|
|
10,435
|
|
||
Property
|
61,406
|
|
|
49,917
|
|
||
Total ceded claim reserves recoverable
|
73,969
|
|
|
63,281
|
|
||
Other reinsurance settlements recoverable
|
25,316
|
|
|
20,242
|
|
||
Reinsurance receivables
|
$
|
352,967
|
|
|
$
|
296,234
|
|
(1)
|
Including policyholder account balances ceded.
|
(2)
|
The
December 31, 2016
amount includes a non-cash transaction, as part of a reinsurance contract cancellation that resulted in a reduction of
$92,854
in reinsurance receivable, offset by an increase of
$88,857
in assets and a decrease of
$3,997
in liabilities.
|
|
As of
|
||
|
December 31, 2017
|
||
Total of the three largest receivable balances from unrelated reinsurers
|
$
|
81,939
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||||||||||
|
|
|
Tiptree Capital
|
|
|
|
|
|
Tiptree Capital
|
|
|
||||||||||||||||||||
|
Specialty insurance
|
|
Mortgage
|
|
Other
|
|
Total
|
|
Specialty insurance
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||||||||||
Customer relationships
|
$
|
50,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,500
|
|
|
$
|
50,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,500
|
|
Accumulated amortization
|
(12,081
|
)
|
|
—
|
|
|
—
|
|
|
(12,081
|
)
|
|
(4,614
|
)
|
|
—
|
|
|
—
|
|
|
(4,614
|
)
|
||||||||
Trade names
|
6,500
|
|
|
800
|
|
|
—
|
|
|
7,300
|
|
|
6,500
|
|
|
800
|
|
|
—
|
|
|
7,300
|
|
||||||||
Accumulated amortization
|
(2,182
|
)
|
|
(200
|
)
|
|
—
|
|
|
(2,382
|
)
|
|
(1,484
|
)
|
|
(120
|
)
|
|
—
|
|
|
(1,604
|
)
|
||||||||
Software licensing
|
8,500
|
|
|
640
|
|
|
—
|
|
|
9,140
|
|
|
8,500
|
|
|
640
|
|
|
—
|
|
|
9,140
|
|
||||||||
Accumulated amortization
|
(5,242
|
)
|
|
(228
|
)
|
|
—
|
|
|
(5,470
|
)
|
|
(3,542
|
)
|
|
(137
|
)
|
|
—
|
|
|
(3,679
|
)
|
||||||||
Insurance policies and contracts acquired
|
36,500
|
|
|
—
|
|
|
—
|
|
|
36,500
|
|
|
36,500
|
|
|
—
|
|
|
—
|
|
|
36,500
|
|
||||||||
Accumulated amortization
|
(35,433
|
)
|
|
—
|
|
|
—
|
|
|
(35,433
|
)
|
|
(34,184
|
)
|
|
—
|
|
|
—
|
|
|
(34,184
|
)
|
||||||||
Insurance licensing agreements
(1)
|
13,761
|
|
|
—
|
|
|
—
|
|
|
13,761
|
|
|
13,000
|
|
|
—
|
|
|
—
|
|
|
13,000
|
|
||||||||
Leases in place
(2)
|
2,324
|
|
|
—
|
|
|
—
|
|
|
2,324
|
|
|
1,317
|
|
|
—
|
|
|
—
|
|
|
1,317
|
|
||||||||
Accumulated amortization
|
(142
|
)
|
|
—
|
|
|
—
|
|
|
(142
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
||||||||
Intangible assets, net
|
63,005
|
|
|
1,012
|
|
|
—
|
|
|
64,017
|
|
|
72,475
|
|
|
1,183
|
|
|
—
|
|
|
73,658
|
|
||||||||
Goodwill
|
89,854
|
|
|
1,708
|
|
|
—
|
|
|
91,562
|
|
|
89,854
|
|
|
1,708
|
|
|
1,205
|
|
|
92,767
|
|
||||||||
Total goodwill and intangible assets, net
|
$
|
152,859
|
|
|
$
|
2,720
|
|
|
$
|
—
|
|
|
$
|
155,579
|
|
|
$
|
162,329
|
|
|
$
|
2,891
|
|
|
$
|
1,205
|
|
|
$
|
166,425
|
|
|
|
|
Tiptree Capital
|
|
|
||||||||||
|
Specialty insurance
|
|
Mortgage
|
|
Other
|
|
Total
|
||||||||
Balance at December 31, 2014
|
$
|
89,854
|
|
|
$
|
—
|
|
|
$
|
1,904
|
|
|
$
|
91,758
|
|
Goodwill acquired in 2015
|
—
|
|
|
1,708
|
|
|
—
|
|
|
1,708
|
|
||||
Goodwill impairment charges
|
—
|
|
|
—
|
|
|
(699
|
)
|
|
(699
|
)
|
||||
Balance at December 31, 2015
|
$
|
89,854
|
|
|
$
|
1,708
|
|
|
$
|
1,205
|
|
|
$
|
92,767
|
|
Balance at December 31, 2016
|
$
|
89,854
|
|
|
$
|
1,708
|
|
|
$
|
1,205
|
|
|
$
|
92,767
|
|
Goodwill divested
(1)
|
—
|
|
|
—
|
|
|
(1,205
|
)
|
|
(1,205
|
)
|
||||
Balance at December 31, 2017
|
$
|
89,854
|
|
|
$
|
1,708
|
|
|
$
|
—
|
|
|
$
|
91,562
|
|
|
|
|
|
|
|
|
|
||||||||
Accumulated impairments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
699
|
|
|
$
|
699
|
|
|
Specialty insurance
|
|
Mortgage
|
|
Total
(1)
|
||||||
Balance at December 31, 2014
|
$
|
110,847
|
|
|
$
|
—
|
|
|
$
|
110,847
|
|
Intangible assets acquired in 2015
|
—
|
|
|
1,440
|
|
|
1,440
|
|
|||
Less: amortization expense
|
(28,170
|
)
|
|
(86
|
)
|
|
(28,256
|
)
|
|||
Balance at December 31, 2015
|
82,677
|
|
|
1,354
|
|
|
84,031
|
|
|||
Intangible assets acquired in 2016
|
1,317
|
|
|
—
|
|
|
1,317
|
|
|||
Less: amortization expense
|
(11,519
|
)
|
|
(171
|
)
|
|
(11,690
|
)
|
|||
Balance at December 31, 2016
|
$
|
72,475
|
|
|
$
|
1,183
|
|
|
$
|
73,658
|
|
Intangible assets acquired in 2017
|
1,768
|
|
|
—
|
|
|
1,768
|
|
|||
Less: amortization expense
|
(11,238
|
)
|
|
(171
|
)
|
|
(11,409
|
)
|
|||
Balance at December 31, 2017
|
$
|
63,005
|
|
|
$
|
1,012
|
|
|
$
|
64,017
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Amortization expense on intangible assets
|
$
|
11,409
|
|
|
$
|
11,690
|
|
|
$
|
28,256
|
|
|
As of December 31, 2017
|
||||||||||||||
|
Specialty insurance (VOBA)
|
|
Specialty insurance (other)
|
|
Mortgage
|
|
Total
|
||||||||
2018
|
$
|
465
|
|
|
$
|
9,271
|
|
|
$
|
171
|
|
|
$
|
9,907
|
|
2019
|
217
|
|
|
7,703
|
|
|
171
|
|
|
8,091
|
|
||||
2020
|
123
|
|
|
5,221
|
|
|
171
|
|
|
5,515
|
|
||||
2021
|
82
|
|
|
4,445
|
|
|
171
|
|
|
4,698
|
|
||||
2022
|
54
|
|
|
3,789
|
|
|
126
|
|
|
3,969
|
|
||||
2023 and thereafter
|
126
|
|
|
17,748
|
|
|
202
|
|
|
18,076
|
|
||||
Total
|
$
|
1,067
|
|
|
$
|
48,177
|
|
|
$
|
1,012
|
|
|
$
|
50,256
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||
|
Notional
values |
|
Asset
derivatives |
|
Liability
derivatives |
|
Notional
values |
|
Asset
derivatives |
|
Liability
derivatives |
||||||||||||
Credit risk:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit derivatives sold protection
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297,612
|
|
|
$
|
28,731
|
|
|
$
|
—
|
|
Credit derivatives bought protection
|
—
|
|
|
—
|
|
|
—
|
|
|
298,173
|
|
|
—
|
|
|
14,501
|
|
||||||
Sub-total
|
—
|
|
|
—
|
|
|
—
|
|
|
595,785
|
|
|
28,731
|
|
|
14,501
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency risk:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forward contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
965
|
|
|
—
|
|
|
3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate risk:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments
|
190,645
|
|
|
4,808
|
|
|
—
|
|
|
203,815
|
|
|
4,872
|
|
|
—
|
|
||||||
Forward delivery contracts
|
71,152
|
|
|
30
|
|
|
—
|
|
|
66,731
|
|
|
—
|
|
|
84
|
|
||||||
TBA mortgage backed securities
|
197,000
|
|
|
175
|
|
|
117
|
|
|
249,750
|
|
|
1,678
|
|
|
269
|
|
||||||
Interest rate swaps
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|
—
|
|
|
397
|
|
||||||
Sub-total
|
458,797
|
|
|
5,013
|
|
|
117
|
|
|
555,296
|
|
|
6,550
|
|
|
750
|
|
||||||
Total
|
$
|
458,797
|
|
|
$
|
5,013
|
|
|
$
|
117
|
|
|
$
|
1,152,046
|
|
|
$
|
35,281
|
|
|
$
|
15,254
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Derivatives subject to netting arrangements:
|
|
|
|
||||
Credit default swap indices sold protection
|
$
|
—
|
|
|
$
|
28,731
|
|
Credit default swap indices bought protection
|
—
|
|
|
(14,501
|
)
|
||
Gross assets recognized
|
—
|
|
|
14,230
|
|
||
Cash collateral
|
—
|
|
|
(1,632
|
)
|
||
Net assets recognized (included in other investments)
|
$
|
—
|
|
|
$
|
12,598
|
|
|
|
|
As of December 31,
|
||||||
|
Balance Sheet Location
|
|
2017
|
|
2016
|
||||
Derivatives designated as cash flow hedging instruments:
|
|
|
|
|
|
||||
Notional value
|
|
|
$
|
—
|
|
|
$
|
35,000
|
|
Fair value of interest rate swap
(1)
|
Other investments
|
|
$
|
—
|
|
|
$
|
—
|
|
Fair value of interest rate swap
(1)
|
Other liabilities and accrued expenses
|
|
$
|
—
|
|
|
$
|
397
|
|
Unrealized gain (loss), net of tax, on the fair value of interest rate swaps
|
AOCI
|
|
$
|
2,074
|
|
|
$
|
1,759
|
|
|
|
|
|
|
|
||||
Variable rate on interest rate swap
|
|
|
N/A
|
|
0.96
|
%
|
|||
|
|
|
|
|
|
||||
Fixed rate on interest rate swap
|
|
|
N/A
|
|
3.47
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Gains (losses) recognized in AOCI on the derivative-effective portion
|
$
|
282
|
|
|
$
|
2,210
|
|
|
$
|
(326
|
)
|
|
|
|
|
|
|
||||||
(Gains) losses reclassified from AOCI into income-effective portion
|
$
|
184
|
|
|
$
|
121
|
|
|
$
|
274
|
|
|
|
|
|
|
|
||||||
Gains (losses) recognized in income on the derivative-ineffective portion
|
$
|
—
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
45,589
|
|
Loans, at fair value
(1)
|
—
|
|
|
928,240
|
|
||
Other assets
|
—
|
|
|
15,666
|
|
||
Total assets of consolidated CLOs
|
$
|
—
|
|
|
$
|
989,495
|
|
Liabilities:
|
|
|
|
||||
Debt
|
$
|
—
|
|
|
$
|
912,034
|
|
Other liabilities and accrued expenses
|
—
|
|
|
19,935
|
|
||
Total liabilities of consolidated CLOs
|
$
|
—
|
|
|
$
|
931,969
|
|
|
|
|
|
||||
Net
|
$
|
—
|
|
|
$
|
57,526
|
|
(1)
|
The unpaid principal balance for these loans is
$952,225
and the difference between their fair value and UPB is
$23,985
at
December 31, 2016
.
|
Beneficial interests:
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Subordinated notes and related participations in subordinated management fees
|
$
|
—
|
|
|
$
|
56,820
|
|
Accrued management fees
|
—
|
|
|
706
|
|
||
Total beneficial interests
|
$
|
—
|
|
|
$
|
57,526
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Income:
|
|
|
|
|
|
||||||
Net realized and unrealized gains (losses)
|
$
|
2,364
|
|
|
$
|
1,865
|
|
|
$
|
(27,569
|
)
|
Interest income
|
22,539
|
|
|
51,712
|
|
|
51,182
|
|
|||
Total income
|
24,903
|
|
|
53,577
|
|
|
$
|
23,613
|
|
||
Expenses:
|
|
|
|
|
|
||||||
Interest expense
|
13,386
|
|
|
31,033
|
|
|
$
|
29,143
|
|
||
Other expense
|
1,060
|
|
|
2,290
|
|
|
1,359
|
|
|||
Total expense
|
14,446
|
|
|
33,323
|
|
|
30,502
|
|
|||
Net income (loss) attributable to consolidated CLOs
|
$
|
10,457
|
|
|
$
|
20,254
|
|
|
$
|
(6,889
|
)
|
Economic interests:
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Distributions received
|
$
|
5,757
|
|
|
$
|
14,825
|
|
|
$
|
14,676
|
|
Realized and unrealized gains (losses) on subordinated notes held by the Company, net
|
3,559
|
|
|
2,510
|
|
|
(25,696
|
)
|
|||
Total
|
9,316
|
|
|
17,335
|
|
|
(11,020
|
)
|
|||
Management fee income
|
1,141
|
|
|
2,919
|
|
|
4,131
|
|
|||
Total economic interests
|
$
|
10,457
|
|
|
$
|
20,254
|
|
|
$
|
(6,889
|
)
|
|
|
|
|
|
|
Maximum borrowing capacity as of
|
|
As of December 31,
|
||||||||
Debt Type
|
|
Stated maturity date
|
|
Stated interest rate or range of rates
|
|
December 31, 2017
|
|
2017
|
|
2016
|
||||||
Corporate debt
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured corporate credit agreements
|
|
September 2018 - December 2018
|
|
LIBOR + 1.00% to 6.50%
|
|
$
|
155,000
|
|
|
$
|
28,500
|
|
|
$
|
164,000
|
|
Junior subordinated notes
|
|
October 2057
|
|
8.50%
|
|
125,000
|
|
|
125,000
|
|
|
—
|
|
|||
Preferred trust securities
|
|
June 2037
|
|
LIBOR + 4.10%
|
|
35,000
|
|
|
35,000
|
|
|
35,000
|
|
|||
Total corporate debt
|
|
|
|
|
|
|
|
188,500
|
|
|
199,000
|
|
||||
Asset based debt
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset based revolving financing
(2) (3)
|
|
September 2018 - August 2022
|
|
LIBOR + 2.25% to 5.75%
|
|
215,000
|
|
|
118,794
|
|
|
250,557
|
|
|||
Residential mortgage warehouse borrowings
(4)
|
|
March 2018 - August 2018
|
|
LIBOR + 2.50% to 3.25%
|
|
76,000
|
|
|
48,810
|
|
|
101,402
|
|
|||
Total asset based debt
|
|
|
|
|
|
|
|
167,604
|
|
|
351,959
|
|
||||
Subordinated debt
|
|
|
|
|
|
|
|
|
—
|
|
|
8,500
|
|
|||
Preferred notes payable
|
|
|
|
|
|
|
|
—
|
|
|
1,232
|
|
||||
Total debt, face value
|
|
|
|
|
|
|
|
356,104
|
|
|
560,691
|
|
||||
Unamortized discount, net
|
|
|
|
|
|
|
|
(191
|
)
|
|
(435
|
)
|
||||
Unamortized deferred financing costs
|
|
|
|
|
|
|
|
(9,832
|
)
|
|
(5,386
|
)
|
||||
Total debt, net
|
|
|
|
|
|
|
|
$
|
346,081
|
|
|
$
|
554,870
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Interest expense on debt
|
$
|
25,597
|
|
|
$
|
20,913
|
|
|
$
|
17,132
|
|
|
December 31, 2017
|
||
2018
|
$
|
94,676
|
|
2019
|
—
|
|
|
2020
|
—
|
|
|
2021
|
—
|
|
|
2022
|
101,428
|
|
|
Thereafter
|
160,000
|
|
|
Total
|
$
|
356,104
|
|
|
As of December 31, 2017
|
||||||||||||||
|
Quoted prices in
active markets
Level 1
|
|
Other significant
observable inputs
Level 2
|
|
Significant unobservable inputs
Level 3
|
|
Fair value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities, at fair value:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
541
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
588
|
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
—
|
|
|
47,945
|
|
|
—
|
|
|
47,945
|
|
||||
Obligations of state and political subdivisions
|
—
|
|
|
46,981
|
|
|
—
|
|
|
46,981
|
|
||||
Obligations of foreign governments
|
—
|
|
|
570
|
|
|
—
|
|
|
570
|
|
||||
Certificates of deposit
|
896
|
|
|
—
|
|
|
—
|
|
|
896
|
|
||||
Asset backed securities
|
—
|
|
|
23,493
|
|
|
—
|
|
|
23,493
|
|
||||
Corporate securities
|
—
|
|
|
61,975
|
|
|
—
|
|
|
61,975
|
|
||||
Total available for sale securities
|
1,437
|
|
|
180,964
|
|
|
47
|
|
|
182,448
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loans, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|||||
Corporate loans
|
—
|
|
|
40,925
|
|
|
116,736
|
|
|
157,661
|
|
||||
Mortgage loans held for sale
|
—
|
|
|
62,846
|
|
|
—
|
|
|
62,846
|
|
||||
Non-performing loans
|
—
|
|
|
—
|
|
|
37,666
|
|
|
37,666
|
|
||||
Total loans, at fair value
|
—
|
|
|
103,771
|
|
|
154,402
|
|
|
258,173
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Equity securities, trading, at fair value
|
25,536
|
|
|
—
|
|
|
—
|
|
|
25,536
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Forward delivery contracts
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
4,808
|
|
|
4,808
|
|
||||
TBA mortgage backed securities
|
—
|
|
|
175
|
|
|
—
|
|
|
175
|
|
||||
Total derivative assets
|
—
|
|
|
205
|
|
|
4,808
|
|
|
5,013
|
|
||||
CLOs
|
—
|
|
|
—
|
|
|
3,409
|
|
|
3,409
|
|
||||
Debentures
|
—
|
|
|
4,163
|
|
|
—
|
|
|
4,163
|
|
||||
Total other investments, at fair value
|
—
|
|
|
4,368
|
|
|
8,217
|
|
|
12,585
|
|
||||
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
||||||||||||||
|
Quoted prices in
active markets
Level 1
|
|
Other significant
observable inputs
Level 2
|
|
Significant unobservable inputs
Level 3
|
|
Fair value
|
||||||||
Total
|
$
|
26,973
|
|
|
$
|
289,103
|
|
|
$
|
162,666
|
|
|
$
|
478,742
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
TBA mortgage backed securities
|
$
|
—
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
117
|
|
Total derivative liabilities (included in other liabilities and accrued expenses)
|
—
|
|
|
117
|
|
|
—
|
|
|
117
|
|
||||
Contingent consideration payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
117
|
|
|
As of December 31, 2016
|
||||||||||||||
|
Quoted prices in
active markets
Level 1
|
|
Other significant
observable inputs
Level 2
|
|
Significant unobservable inputs
Level 3
|
|
Fair value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities, at fair value:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
736
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
784
|
|
U.S. Treasury securities and obligations of U.S. government authorities and agencies
|
—
|
|
|
26,799
|
|
|
—
|
|
|
26,799
|
|
||||
Obligations of state and political subdivisions
|
—
|
|
|
56,934
|
|
|
—
|
|
|
56,934
|
|
||||
Obligations of foreign governments
|
—
|
|
|
728
|
|
|
—
|
|
|
728
|
|
||||
Certificates of deposit
|
895
|
|
|
—
|
|
|
—
|
|
|
895
|
|
||||
Asset backed securities
|
—
|
|
|
1,460
|
|
|
—
|
|
|
1,460
|
|
||||
Corporate bonds
|
—
|
|
|
58,571
|
|
|
—
|
|
|
58,571
|
|
||||
Total available for sale securities, at fair value
|
1,631
|
|
|
144,492
|
|
|
48
|
|
|
146,171
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loans, at fair value:
|
|
|
|
|
|
|
|
||||||||
Corporate loans
|
—
|
|
|
46,352
|
|
|
129,206
|
|
|
175,558
|
|
||||
Mortgage loans held for sale
(1)
|
—
|
|
|
121,439
|
|
|
—
|
|
|
121,439
|
|
||||
Non-performing loans
|
—
|
|
|
—
|
|
|
74,923
|
|
|
74,923
|
|
||||
Other loans receivable
|
—
|
|
|
—
|
|
|
1,169
|
|
|
1,169
|
|
||||
Total loans, at fair value
|
—
|
|
|
167,791
|
|
|
205,298
|
|
|
373,089
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Equity securities, trading, at fair value
|
48,612
|
|
|
—
|
|
|
—
|
|
|
48,612
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
4,872
|
|
|
4,872
|
|
||||
TBA mortgage backed securities
|
—
|
|
|
1,678
|
|
|
—
|
|
|
1,678
|
|
||||
Credit derivatives
|
—
|
|
|
12,598
|
|
|
—
|
|
|
12,598
|
|
||||
Total derivative assets
|
—
|
|
|
14,276
|
|
|
4,872
|
|
|
19,148
|
|
||||
CLOs
|
—
|
|
|
—
|
|
|
974
|
|
|
974
|
|
||||
Debentures
|
—
|
|
|
3,957
|
|
|
—
|
|
|
3,957
|
|
||||
Total other investments, at fair value
|
—
|
|
|
18,233
|
|
|
5,846
|
|
|
24,079
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total financial instruments attributable to non-CLOs included in consolidated assets
|
50,243
|
|
|
330,516
|
|
|
211,192
|
|
|
591,951
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial instruments included in assets of consolidated CLOs:
|
|
|
|
|
|
|
|
||||||||
Loans, at fair value
|
—
|
|
|
342,370
|
|
|
585,870
|
|
|
928,240
|
|
||||
Total financial instruments included in assets of consolidated CLOs
|
—
|
|
|
342,370
|
|
|
585,870
|
|
|
928,240
|
|
||||
Total
|
$
|
50,243
|
|
|
$
|
672,886
|
|
|
$
|
797,062
|
|
|
$
|
1,520,191
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
(1)
|
$
|
—
|
|
|
$
|
397
|
|
|
$
|
—
|
|
|
$
|
397
|
|
|
As of December 31, 2016
|
||||||||||||||
|
Quoted prices in
active markets
Level 1
|
|
Other significant
observable inputs
Level 2
|
|
Significant unobservable inputs
Level 3
|
|
Fair value
|
||||||||
Forward delivery contracts
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
||||
TBA mortgage backed securities
|
—
|
|
|
269
|
|
|
—
|
|
|
269
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Total derivative liabilities (included in other liabilities and accrued expenses)
|
—
|
|
|
753
|
|
|
—
|
|
|
753
|
|
||||
Contingent consideration payable
|
—
|
|
|
—
|
|
|
1,852
|
|
|
1,852
|
|
||||
Preferred notes payable
|
—
|
|
|
—
|
|
|
1,232
|
|
|
1,232
|
|
||||
Total financial instruments attributable to Non-CLOs included in consolidated liabilities
|
—
|
|
|
753
|
|
|
3,084
|
|
|
3,837
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial instruments included in liabilities of consolidated CLOs:
|
|
|
|
|
|
|
|
||||||||
Notes payable of CLOs
|
—
|
|
|
—
|
|
|
912,034
|
|
|
912,034
|
|
||||
Total financial instruments included in liabilities of consolidated CLOs
|
—
|
|
|
—
|
|
|
912,034
|
|
|
912,034
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
753
|
|
|
$
|
915,118
|
|
|
$
|
915,871
|
|
|
Year Ended December 31,
|
||||||||||||||
|
2017
|
|
2016
(3)
|
||||||||||||
|
Non-CLO assets
|
|
CLO assets
|
|
Non-CLO assets
|
|
CLO assets
|
||||||||
Balance at January 1,
|
$
|
211,192
|
|
|
$
|
585,870
|
|
|
$
|
239,944
|
|
|
$
|
520,892
|
|
Net realized gains (losses)
|
8,835
|
|
|
(1,668
|
)
|
|
5,440
|
|
|
159
|
|
||||
Net unrealized gains (losses)
|
923
|
|
|
89
|
|
|
5,334
|
|
|
25,994
|
|
||||
Origination of IRLC
|
73,554
|
|
|
—
|
|
|
53,083
|
|
|
—
|
|
||||
Purchases
|
64,718
|
|
|
76,123
|
|
|
147,920
|
|
|
222,218
|
|
||||
Sales
(1)
|
(102,725
|
)
|
|
(193,205
|
)
|
|
(76,196
|
)
|
|
(154,524
|
)
|
||||
Issuances
|
683
|
|
|
675
|
|
|
2,179
|
|
|
2,074
|
|
||||
Transfer into Level 3
(2)
|
—
|
|
|
17,601
|
|
|
23,184
|
|
|
7,619
|
|
||||
Transfer adjustments (out of) Level 3
(2)
|
(9,089
|
)
|
|
(23,427
|
)
|
|
(18,872
|
)
|
|
(142,660
|
)
|
||||
Deconsolidation of CLOs due to sale
|
2,817
|
|
|
(462,058
|
)
|
|
—
|
|
|
—
|
|
||||
Conversion to real estate owned
|
(15,033
|
)
|
|
—
|
|
|
(15,132
|
)
|
|
—
|
|
||||
Conversion to mortgage held for sale
|
(72,519
|
)
|
|
—
|
|
|
(51,594
|
)
|
|
—
|
|
||||
Warehouse transfer to CLO
|
—
|
|
|
—
|
|
|
(104,098
|
)
|
|
104,098
|
|
||||
Transfer to assets held for sale
|
(690
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at December 31,
|
$
|
162,666
|
|
|
$
|
—
|
|
|
$
|
211,192
|
|
|
$
|
585,870
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in unrealized gains (losses) included in earnings related to assets still held at period end
|
$
|
3,809
|
|
|
$
|
—
|
|
|
$
|
3,597
|
|
|
$
|
16,276
|
|
(1)
|
Included within the CLO assets amount are sales related to the liquidation of a consolidated CLO during the
year ended December 31, 2017
.
|
(2)
|
All transfers are deemed to occur at end of period. Transfers between Level 2 and 3 were a result of subjecting third-party pricing on both CLO and Non-CLO assets to various liquidity, depth, bid-ask spread and benchmarking criteria as well as assessing the availability of observable inputs affecting their fair valuation.
|
(3)
|
Items within the Level 3 rollforward have been restated to reflect assets purchased during a period as purchases rather than transfers. The presentation of gross origination of IRLC’s and gross conversion to mortgage held for sale have also been restated to show the break out from net realized and unrealized gains and losses, conversion to real estate owned, and transfers out of Level 3 assets. These changes have no impact on the total amount of Level 3 assets.
|
|
Year Ended December 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Non-CLO liabilities
|
|
CLO liabilities
|
|
Non-CLO liabilities
|
|
CLO liabilities
|
||||||||
Balance at January 1,
|
$
|
3,084
|
|
|
$
|
912,034
|
|
|
$
|
2,498
|
|
|
$
|
683,827
|
|
Net unrealized (gains) losses
|
—
|
|
|
(1,377
|
)
|
|
(314
|
)
|
|
25,823
|
|
||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
225,000
|
|
||||
Settlements
(1)
|
(4,838
|
)
|
|
(155,194
|
)
|
|
(377
|
)
|
|
—
|
|
||||
Dispositions
|
—
|
|
|
(49,011
|
)
|
|
—
|
|
|
(22,616
|
)
|
||||
FV adjustment
|
1,754
|
|
|
—
|
|
|
1,277
|
|
|
—
|
|
||||
Deconsolidation of CLOs due to sale
|
—
|
|
|
(706,452
|
)
|
|
—
|
|
|
—
|
|
||||
Balance at December 31,
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,084
|
|
|
$
|
912,034
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in unrealized (gains) losses included in earnings related to liabilities still held at period end
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(314
|
)
|
|
$
|
53,880
|
|
(1)
|
Included within the CLO liabilities amount are settlements related to the liquidation of a consolidated CLO during the
year ended December 31, 2017
.
|
|
Fair Value as of
|
|
|
|
|
|
Actual or Range
(Weighted average)
|
||||||||
Assets
|
December 31, 2017
|
|
December 31, 2016
|
|
Valuation technique
|
|
Unobservable input(s)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Interest rate lock commitments
|
$
|
4,808
|
|
|
$
|
4,872
|
|
|
Internal model
|
|
Pull through rate
|
|
50% - 95%
|
|
45% - 95%
|
NPLs
|
37,666
|
|
|
74,923
|
|
|
Discounted cash flow
|
|
See table below
(1)
|
|
See table below
|
|
See table below
|
||
Total
|
$
|
42,474
|
|
|
$
|
79,795
|
|
|
|
|
|
|
|
|
|
(1)
|
Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics, such as location and value of underlying collateral, affect the loan resolution timeline. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value.
|
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||
Unobservable inputs
|
|
High
|
|
Low
|
|
Average
(1)
|
|
High
|
|
Low
|
|
Average
(1)
|
Discount rate
|
|
30.0%
|
|
16.0%
|
|
23.5%
|
|
30.0%
|
|
16.0%
|
|
22.9%
|
Loan resolution time-line (Years)
|
|
2.3
|
|
0.5
|
|
1.3
|
|
2.3
|
|
0.5
|
|
1.2
|
Value of underlying properties
|
|
$1,775
|
|
$40
|
|
$306
|
|
$1,800
|
|
$32
|
|
$234
|
Holding costs
|
|
22.0%
|
|
5.3%
|
|
7.6%
|
|
24.1%
|
|
5.4%
|
|
8.3%
|
Liquidation costs
|
|
16.8%
|
|
8.4%
|
|
9.4%
|
|
25.0%
|
|
8.5%
|
|
9.6%
|
Note rate
|
|
6.0%
|
|
3.0%
|
|
4.8%
|
|
6.0%
|
|
3.0%
|
|
4.8%
|
Secondary market transaction prices/UPB
|
|
88.5%
|
|
75.5%
|
|
83.4%
|
|
88.5%
|
|
75.5%
|
|
83.7%
|
(1)
|
Weighted based on value of underlying properties (excluding the value of underlying properties line item).
|
|
Fair Value as of
|
|
|
|
|
|
Actual or Range (Weighted average)
|
||||||||
Liabilities
(1)
|
December 31, 2017
|
|
December 31, 2016
|
|
Valuation technique
|
|
Unobservable input(s)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Contingent consideration payable - Reliance
(2)
|
$
|
—
|
|
|
$
|
1,800
|
|
|
Cash Flow model
(3)
|
|
Forecast EBITDA
|
|
$1,300 - $6,400
|
|
$951 - $6,005
|
|
|
|
Book value growth rate
|
|
N/A
|
|
5.0%
|
||||||||
|
|
|
Asset volatility
|
|
N/A
|
|
1.4% - 23.7%
|
||||||||
Contingent consideration payable - Luxury
|
—
|
|
|
52
|
|
|
Cash Flow model
|
|
Projected cash available for distribution
|
|
N/A
|
|
$1,059 - $1,316
|
||
Preferred notes payable
|
—
|
|
|
1,232
|
|
|
Cash Flow model
|
|
Discount rate
|
|
N/A
|
|
12.0%
|
||
Total
|
$
|
—
|
|
|
$
|
3,084
|
|
|
|
|
|
|
|
|
|
(1)
|
Not included in this table are the debt obligations of consolidated CLOs, measured and leveled on the basis of the fair value of the (more observable) financial assets of the consolidated CLOs. See Note—
(11) Assets and Liabilities of Consolidated CLOs
.
|
|
As of December 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||
|
Level within
fair value
hierarchy
|
|
Fair value
|
|
Carrying value
|
|
Level within
fair value
hierarchy
|
|
Fair value
|
|
Carrying value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notes and accounts receivable, net
|
2
|
|
$
|
12,225
|
|
|
$
|
12,225
|
|
|
2
|
|
$
|
24,870
|
|
|
$
|
24,870
|
|
Total assets
|
|
|
$
|
12,225
|
|
|
$
|
12,225
|
|
|
|
|
$
|
24,870
|
|
|
$
|
24,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt, net
|
3
|
|
$
|
356,537
|
|
|
$
|
355,913
|
|
|
3
|
|
$
|
559,024
|
|
|
$
|
559,024
|
|
Total liabilities
|
|
|
$
|
356,537
|
|
|
$
|
355,913
|
|
|
|
|
$
|
559,024
|
|
|
$
|
559,024
|
|
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Policy liabilities and unpaid claims balance as of January 1
|
$
|
103,391
|
|
|
$
|
80,663
|
|
Less : liabilities of policy-holder accounts balances, gross
|
(17,417
|
)
|
|
(19,037
|
)
|
||
Less : non-insurance warranty benefit claim liabilities
|
(91
|
)
|
|
(116
|
)
|
||
Gross liabilities for unpaid losses and loss adjustment expenses
|
85,883
|
|
|
61,510
|
|
||
Less : reinsurance recoverable on unpaid losses - short duration
|
(63,112
|
)
|
|
(42,341
|
)
|
||
Less : other lines, gross
|
(208
|
)
|
|
(163
|
)
|
||
Net balance as of January 1, short duration
|
22,563
|
|
|
19,006
|
|
||
|
|
|
|
||||
Incurred (short duration) related to:
|
|
|
|
||||
Current year
|
103,306
|
|
|
84,178
|
|
||
Prior years
|
3,347
|
|
|
(1,599
|
)
|
||
Total incurred
|
106,653
|
|
|
82,579
|
|
||
|
|
|
|
||||
Paid (short duration) related to:
|
|
|
|
||||
Current year
|
84,493
|
|
|
62,989
|
|
||
Prior years
|
22,254
|
|
|
16,033
|
|
||
Total paid
|
106,747
|
|
|
79,022
|
|
||
|
|
|
|
||||
Net balance as of December 31, short duration
|
22,469
|
|
|
22,563
|
|
||
Plus : reinsurance recoverable on unpaid losses - short duration
|
73,778
|
|
|
63,112
|
|
||
Plus : other lines, gross
|
224
|
|
|
208
|
|
||
Gross liabilities for unpaid losses and loss adjustment expenses
|
96,471
|
|
|
85,883
|
|
||
Plus : liabilities of policy-holder accounts balances, gross
|
15,474
|
|
|
17,417
|
|
||
Plus : non-insurance warranty benefit claim liabilities
|
58
|
|
|
91
|
|
||
Policy liabilities and unpaid claims balance as of December 31,
|
$
|
112,003
|
|
|
$
|
103,391
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Total incurred
|
$
|
106,653
|
|
|
$
|
82,579
|
|
|
$
|
55,427
|
|
Other lines incurred
|
123
|
|
|
277
|
|
|
296
|
|
|||
Unallocated loss adjustment expense
|
1,763
|
|
|
2,094
|
|
|
845
|
|
|||
Total losses incurred
|
$
|
108,539
|
|
|
$
|
84,950
|
|
|
$
|
56,568
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
|||
Years
|
1
|
2
|
3
|
Short duration
|
75.4%
|
25.0%
|
1.2%
|
|
As of December 31,
|
||
|
2017
|
||
Net outstanding liabilities:
|
|
||
Short duration
|
$
|
22,469
|
|
Insurance lines other than short-duration
|
33
|
|
|
Total liabilities for unpaid losses and loss adjustment expenses, net of reinsurance
|
22,502
|
|
|
|
|
||
Reinsurance recoverable on unpaid losses and loss adjustment expenses:
|
|
||
Short duration
|
73,778
|
|
|
Other insurance lines
|
191
|
|
|
Total reinsurance recoverable on unpaid losses and loss adjustment expenses
|
73,969
|
|
|
|
|
||
Total gross liability for unpaid losses and loss adjustment expenses
|
96,471
|
|
|
Liabilities of policy-holder accounts balances, gross
|
15,474
|
|
|
Non-insurance warranty benefit claim liabilities
|
58
|
|
|
Total policy liabilities and unpaid claims
|
$
|
112,003
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Due from brokers
|
$
|
261
|
|
|
$
|
2,027
|
|
Furniture, fixtures and equipment, net
|
4,304
|
|
|
5,837
|
|
||
Prepaid expenses
|
7,297
|
|
|
4,743
|
|
||
Accrued interest receivable
|
2,248
|
|
|
1,888
|
|
||
Management fee receivable
|
2,247
|
|
|
4,308
|
|
||
Other fee receivable
|
—
|
|
|
5,022
|
|
||
Income tax receivable
|
9,588
|
|
|
4,842
|
|
||
Other
|
5,639
|
|
|
2,822
|
|
||
Total other assets
|
$
|
31,584
|
|
|
$
|
31,489
|
|
|
Year Ended December 31,
|
|||||||||
|
2017
|
|
2016
|
|
2015
|
|||||
Depreciation expense related to furniture, fixtures and equipment
|
$
|
2,555
|
|
|
$
|
2,531
|
|
|
2,098
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Accounts payable and accrued expenses
|
$
|
52,032
|
|
|
$
|
60,777
|
|
Deferred tax liabilities, net
|
22,744
|
|
|
32,296
|
|
||
Due to brokers
|
8,669
|
|
|
8,457
|
|
||
Commissions payable
|
14,185
|
|
|
7,466
|
|
||
Accrued interest payable
|
3,393
|
|
|
1,533
|
|
||
Escrow payable
|
6,753
|
|
|
1,508
|
|
||
Derivative liabilities, at fair value
|
117
|
|
|
753
|
|
||
Other liabilities
|
13,428
|
|
|
11,451
|
|
||
Total other liabilities and accrued expenses
|
$
|
121,321
|
|
|
$
|
124,241
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Interest income
|
$
|
16,229
|
|
|
$
|
18,809
|
|
|
$
|
12,317
|
|
Loan fee income
|
11,602
|
|
|
13,217
|
|
|
9,373
|
|
|||
Management fee income
|
8,314
|
|
|
9,400
|
|
|
6,524
|
|
|||
Gain on sale of subsidiary
(1)
|
1,994
|
|
|
—
|
|
|
—
|
|
|||
Other
|
4,136
|
|
|
1,148
|
|
|
11,186
|
|
|||
Total other revenue
|
$
|
42,275
|
|
|
$
|
42,574
|
|
|
$
|
39,400
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Professional fees
|
$
|
16,245
|
|
|
$
|
21,923
|
|
|
$
|
20,471
|
|
General and administrative
|
14,800
|
|
|
14,567
|
|
|
12,918
|
|
|||
Premium taxes
|
11,658
|
|
|
8,244
|
|
|
4,468
|
|
|||
Mortgage origination expenses
|
8,822
|
|
|
8,079
|
|
|
3,960
|
|
|||
Rent and related
|
10,379
|
|
|
10,115
|
|
|
9,282
|
|
|||
Loss on extinguishment of debt
|
1,163
|
|
|
—
|
|
|
—
|
|
|||
Other
|
11,372
|
|
|
9,648
|
|
|
8,580
|
|
|||
Total other expense
|
$
|
74,439
|
|
|
$
|
72,576
|
|
|
$
|
59,679
|
|
|
Dividends per share for
|
||||||
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
First Quarter
|
$
|
0.030
|
|
|
$
|
0.025
|
|
Second Quarter
|
0.030
|
|
|
0.025
|
|
||
Third Quarter
|
0.030
|
|
|
0.025
|
|
||
Fourth Quarter
|
0.030
|
|
|
0.025
|
|
||
Total cash dividends declared
|
$
|
0.120
|
|
|
$
|
0.100
|
|
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Ordinary dividends
|
$
|
—
|
|
|
$
|
3,081
|
|
Extraordinary dividends
|
—
|
|
|
532
|
|
||
Total dividends
|
$
|
—
|
|
|
$
|
3,613
|
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Combined statutory capital and surplus of the Company's insurance company subsidiaries
|
$
|
105,989
|
|
|
$
|
100,920
|
|
|
|
|
|
||||
Required minimum statutory capital and surplus
|
$
|
19,200
|
|
|
$
|
17,200
|
|
|
|
|
|
||||
Amount available for ordinary dividends of the Company's insurance company subsidiaries
|
$
|
10,115
|
|
|
$
|
9,049
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income of statutory insurance companies
|
$
|
9,135
|
|
|
$
|
12,369
|
|
|
$
|
10,805
|
|
|
Unrealized gains (losses) on
|
|
|
|
Amount attributable to noncontrolling interests
|
|
|
||||||||||||||||
|
Available for sale securities
|
|
Interest rate swaps
(1)
|
|
Total AOCI
|
|
TFP
|
|
Other
|
|
Total AOCI to Tiptree Inc.
|
||||||||||||
Balance at December 31, 2014
|
$
|
(195
|
)
|
|
$
|
146
|
|
|
$
|
(49
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
Other comprehensive (losses) before reclassifications
|
(91
|
)
|
|
(214
|
)
|
|
(305
|
)
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
||||||
Amounts reclassified from AOCI
|
64
|
|
|
179
|
|
|
243
|
|
|
—
|
|
|
—
|
|
|
243
|
|
||||||
Period change
|
(27
|
)
|
|
(35
|
)
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Balance at December 31, 2015
|
$
|
(222
|
)
|
|
$
|
111
|
|
|
$
|
(111
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(111
|
)
|
Other comprehensive income (losses) before reclassifications
|
186
|
|
|
1,552
|
|
|
1,738
|
|
|
(128
|
)
|
|
(376
|
)
|
|
1,234
|
|
||||||
Amounts reclassified from AOCI
|
(664
|
)
|
|
96
|
|
|
(568
|
)
|
|
—
|
|
|
—
|
|
|
(568
|
)
|
||||||
Period change
|
(478
|
)
|
|
1,648
|
|
|
1,170
|
|
|
(128
|
)
|
|
(376
|
)
|
|
666
|
|
||||||
Balance at December 31, 2016
|
$
|
(700
|
)
|
|
$
|
1,759
|
|
|
$
|
1,059
|
|
|
$
|
(128
|
)
|
|
$
|
(376
|
)
|
|
$
|
555
|
|
Other comprehensive income (losses) before reclassifications
|
522
|
|
|
190
|
|
|
712
|
|
|
(94
|
)
|
|
(50
|
)
|
|
568
|
|
||||||
Amounts reclassified from AOCI
|
(282
|
)
|
|
125
|
|
|
(157
|
)
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
||||||
Period change
|
240
|
|
|
315
|
|
|
555
|
|
|
(94
|
)
|
|
(50
|
)
|
|
411
|
|
||||||
Balance at December 31, 2017
|
$
|
(460
|
)
|
|
$
|
2,074
|
|
|
$
|
1,614
|
|
|
$
|
(222
|
)
|
|
$
|
(426
|
)
|
|
$
|
966
|
|
|
Year Ended December 31,
|
Affected line item in consolidated statement of operations
|
||||||||||
Components of AOCI
|
2017
|
|
2016
|
|
2015
|
|||||||
Unrealized gains (losses) on available for sale securities
|
$
|
435
|
|
|
$
|
1,026
|
|
|
$
|
(99
|
)
|
Net realized and unrealized gains (losses)
|
Related tax (expense) benefit
|
(153
|
)
|
|
(362
|
)
|
|
35
|
|
Provision for income tax
|
|||
Net of tax
|
$
|
282
|
|
|
$
|
664
|
|
|
(64
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on interest rate swaps
|
$
|
(184
|
)
|
|
$
|
(121
|
)
|
|
(274
|
)
|
Interest expense
|
|
Related tax (expense) benefit
|
59
|
|
|
25
|
|
|
95
|
|
Provision for income tax
|
|||
Net of tax
|
$
|
(125
|
)
|
|
$
|
(96
|
)
|
|
(179
|
)
|
|
2013 Equity Plan
|
Number of shares
(1)
|
|
Available for issuance as of December 31, 2014
|
1,930,979
|
|
Awards issued and granted
|
(354,978
|
)
|
Awards forfeited
|
6,338
|
|
Available for issuance as of December 31, 2015
|
1,582,339
|
|
Awards issued and granted
|
(620,689
|
)
|
Available for issuance as of December 31, 2016
|
961,650
|
|
Awards granted
|
(954,291
|
)
|
Awards rolled into 2017 Equity Plan
|
(7,359
|
)
|
Available for issuance as of December 31, 2017
|
—
|
|
|
|
|
2017 Equity Plan
|
Number of shares
(1)
|
|
Available for issuance as of December 31, 2016
|
—
|
|
Available from 2017 Equity Plan
(1) (2)
|
6,100,000
|
|
Awards granted
|
(82,988
|
)
|
Available for issuance as of December 31, 2017
|
6,017,012
|
|
|
Number of shares issuable
|
|
Weighted average grant date fair value
|
|||
Unvested units as of December 31, 2014
|
12,126
|
|
|
7.18
|
|
|
Granted
|
143,599
|
|
|
7.68
|
|
|
Vested
|
(21,064
|
)
|
|
7.51
|
|
|
Forfeited
|
(6,338
|
)
|
|
6.88
|
|
|
Unvested units as of December 31, 2015
|
128,323
|
|
|
$
|
7.68
|
|
Granted
|
369,452
|
|
|
5.71
|
|
|
Vested
|
(197,958
|
)
|
|
6.13
|
|
|
Unvested units as of December 31, 2016
|
299,817
|
|
|
$
|
6.27
|
|
Granted
(1)
|
466,652
|
|
|
6.60
|
|
|
Vested
|
(167,587
|
)
|
|
6.43
|
|
|
Unvested units as of December 31, 2017
|
598,882
|
|
|
$
|
6.48
|
|
|
Grant date fair value of equity shares issuable
|
||
Unvested balance as of December 31, 2014
|
$
|
—
|
|
Granted
|
874
|
|
|
Unvested balance as of December 31, 2015
|
874
|
|
|
Granted
|
7,339
|
|
|
Vested
|
(97
|
)
|
|
Fair value adjustment
|
119
|
|
|
Unearned
|
(146
|
)
|
|
Unvested balance as of December 31, 2016
|
$
|
8,089
|
|
Granted
|
2,669
|
|
|
Vested
|
(2,436
|
)
|
|
Grant value adjustment
(1)
|
(210
|
)
|
|
Performance Assumption Adjustment
|
680
|
|
|
Unearned
|
—
|
|
|
Unvested balance as of December 31, 2017
|
$
|
8,792
|
|
Valuation Input
|
|
Year Ended December 31, 2017
|
|||
|
|
Assumption
|
|
Average
|
|
Historical volatility
|
|
47.20
|
%
|
|
N/A
|
Risk-free rate
|
|
2.44
|
%
|
|
N/A
|
Dividend yield
|
|
1.80
|
%
|
|
N/A
|
Expected term (years)
|
|
|
|
6.5
|
|
Options outstanding
|
|
Weighted average exercise price (in dollars per stock option)
|
|
Weighted average grant date value (in dollars per stock option)
|
|
Options exercisable
|
||||||
Balance, December 31, 2015
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Granted
|
251,237
|
|
|
5.69
|
|
|
2.62
|
|
|
—
|
|
||
Balance, December 31, 2016
|
251,237
|
|
|
$
|
5.69
|
|
|
$
|
2.62
|
|
|
—
|
|
Granted
|
570,627
|
|
|
6.65
|
|
|
2.91
|
|
|
—
|
|
||
Balance, December 31, 2017
|
821,864
|
|
|
$
|
6.36
|
|
|
$
|
2.82
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average remaining contractual term at December 31, 2017 (in years)
|
8.8
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Employee compensation and benefits
|
$
|
6,560
|
|
|
$
|
2,441
|
|
|
$
|
304
|
|
Professional fees
(1)
|
—
|
|
|
143
|
|
|
133
|
|
|||
Income tax benefit
|
(2,316
|
)
|
|
(912
|
)
|
|
(154
|
)
|
|||
Net stock-based compensation expense
|
$
|
4,244
|
|
|
$
|
1,672
|
|
|
$
|
283
|
|
(1)
|
Professional fees consist of the value of restricted stock units and options granted to our Executive Chairman providing services to the Company under the TSA. See
(21) Related Party Transactions
.
|
|
As of December 31,
|
||||||
|
2017
|
||||||
|
Stock options
|
|
Restricted stock awards and RSUs
|
||||
Unrecognized compensation cost related to non-vested awards
|
$
|
1,643
|
|
|
$
|
7,871
|
|
Weighted - average recognition period (in years)
|
2.9
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Current tax expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
(1,559
|
)
|
|
$
|
6,268
|
|
|
$
|
20,008
|
|
State
|
246
|
|
|
455
|
|
|
2,350
|
|
|||
Total current tax expense (benefit)
|
(1,313
|
)
|
|
6,723
|
|
|
22,358
|
|
|||
|
|
|
|
|
|
||||||
Deferred tax expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
(13,755
|
)
|
|
6,736
|
|
|
(21,633
|
)
|
|||
State
|
2,506
|
|
|
(944
|
)
|
|
(1,478
|
)
|
|||
Total deferred tax (benefit)
|
(11,249
|
)
|
|
5,792
|
|
|
(23,111
|
)
|
|||
Total income tax expense (benefit) from continuing operations
|
$
|
(12,562
|
)
|
|
$
|
12,515
|
|
|
$
|
(753
|
)
|
|
|
|
|
|
|
||||||
Income tax (benefit) from discontinued operations
|
(2,224
|
)
|
|
(1,537
|
)
|
|
17,527
|
|
|||
Total tax expense (benefit)
|
$
|
(14,786
|
)
|
|
$
|
10,978
|
|
|
$
|
16,774
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Income (loss) before income taxes from continuing operations
|
$
|
(3,330
|
)
|
|
$
|
49,140
|
|
|
$
|
(2,904
|
)
|
Federal statutory income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|||
Expected federal income tax expense at 35%
|
(1,166
|
)
|
|
17,199
|
|
|
(1,016
|
)
|
|||
Effect of change in U.S. federal tax rate effective 2018
|
(15,238
|
)
|
|
—
|
|
|
—
|
|
|||
Effect of Reliance contingent liability valuation
|
1,018
|
|
|
446
|
|
|
(637
|
)
|
|||
Effect of state income tax expense, net of federal benefit
|
219
|
|
|
(18
|
)
|
|
(48
|
)
|
|||
Effect of permanent differences
|
(144
|
)
|
|
228
|
|
|
58
|
|
|||
Effect of changes in valuation allowance
|
2,314
|
|
|
(641
|
)
|
|
(1,142
|
)
|
|||
Effect of change in tax status
|
—
|
|
|
(4,044
|
)
|
|
—
|
|
|||
Effect of deferred true-ups
|
(5
|
)
|
|
118
|
|
|
(897
|
)
|
|||
Effect of income (loss) allocated to non-controlling interests
|
(400
|
)
|
|
(380
|
)
|
|
2,331
|
|
|||
Effect of return-to-accrual and other items
|
840
|
|
|
(393
|
)
|
|
598
|
|
|||
Tax (benefit) on income from continuing operations
|
$
|
(12,562
|
)
|
|
$
|
12,515
|
|
|
$
|
(753
|
)
|
|
|
|
|
|
|
||||||
Effective tax rate
|
377.2
|
%
|
|
25.5
|
%
|
|
25.9
|
%
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
20,018
|
|
|
$
|
22,741
|
|
Unrealized losses
|
4,647
|
|
|
8,513
|
|
||
Accrued expenses
|
3,059
|
|
|
6,790
|
|
||
Unearned premiums
|
11,300
|
|
|
15,326
|
|
||
Deferred revenue
|
4,682
|
|
|
5,899
|
|
||
Other deferred tax assets
|
2,007
|
|
|
3,669
|
|
||
Total deferred tax assets
|
45,713
|
|
|
62,938
|
|
||
Less: Valuation allowance
|
(4,303
|
)
|
|
(1,991
|
)
|
||
Total net deferred tax assets
|
41,410
|
|
|
60,947
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Property
|
6,504
|
|
|
5,845
|
|
||
Unrealized gains
|
4,700
|
|
|
10,855
|
|
||
Other deferred tax liabilities
|
769
|
|
|
363
|
|
||
Deferred acquisition cost
|
32,423
|
|
|
46,425
|
|
||
Advanced commissions
|
14,265
|
|
|
16,438
|
|
||
Intangibles
|
5,493
|
|
|
13,317
|
|
||
Total deferred tax liabilities
|
64,154
|
|
|
93,243
|
|
||
Net deferred tax liability
|
$
|
22,744
|
|
|
$
|
32,296
|
|
|
As of December 31, 2017
|
||||||||||||||||||
|
Less than one year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
|
Total
|
||||||||||
Operating lease obligations
(1)
|
$
|
4,599
|
|
|
$
|
15,043
|
|
|
$
|
8,861
|
|
|
$
|
11,342
|
|
|
$
|
39,845
|
|
Total
|
$
|
4,599
|
|
|
$
|
15,043
|
|
|
$
|
8,861
|
|
|
$
|
11,342
|
|
|
$
|
39,845
|
|
(1)
|
Minimum rental obligations for Tiptree, Luxury, Reliance and Fortegra office leases.
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Rent expense for office leases
|
$
|
6,816
|
|
|
$
|
6,322
|
|
|
$
|
5,721
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income (loss) from continuing operations
|
$
|
9,232
|
|
|
$
|
36,625
|
|
|
$
|
(2,151
|
)
|
Less:
|
|
|
|
|
|
||||||
Net income (loss) attributable to non-controlling interests
|
2,603
|
|
|
8,370
|
|
|
(1,715
|
)
|
|||
Net income allocated to participating securities
|
123
|
|
|
252
|
|
|
—
|
|
|||
Net income (loss) from continuing operations attributable to Tiptree Inc. Class A common shares
|
6,506
|
|
|
28,003
|
|
|
(436
|
)
|
|||
|
|
|
|
|
|
||||||
Net income (loss) from discontinued operations
|
(3,998
|
)
|
|
(4,287
|
)
|
|
10,953
|
|
|||
Less:
|
|
|
|
|
|
||||||
Net income (loss) from discontinued operations attributable to non-controlling interests
|
(973
|
)
|
|
(1,352
|
)
|
|
4,738
|
|
|||
Net income allocated to participating securities
|
(56
|
)
|
|
(28
|
)
|
|
—
|
|
|||
Net income (loss) from discontinued operations attributable to Tiptree Inc. Class A common shares
|
(2,969
|
)
|
|
(2,907
|
)
|
|
6,215
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common shares - basic
|
$
|
3,537
|
|
|
$
|
25,096
|
|
|
$
|
5,779
|
|
Effect of Dilutive Securities:
|
|
|
|
|
|
||||||
Securities of subsidiaries
|
(128
|
)
|
|
(279
|
)
|
|
—
|
|
|||
Adjustments to income relating to exchangeable interests, net of tax
|
736
|
|
|
—
|
|
|
—
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common shares - diluted
|
$
|
4,145
|
|
|
$
|
24,817
|
|
|
$
|
5,779
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - basic
|
29,134,190
|
|
|
31,721,449
|
|
|
33,202,681
|
|
|||
Weighted average number of incremental shares of Tiptree Inc. Class A common stock issuable from exchangeable interests and contingent considerations
|
8,172,442
|
|
|
45,225
|
|
|
—
|
|
|||
Weighted average number of shares of Tiptree Inc. Class A common stock outstanding - diluted
|
37,306,632
|
|
|
31,766,674
|
|
|
33,202,681
|
|
|||
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
$
|
0.22
|
|
|
$
|
0.88
|
|
|
$
|
(0.01
|
)
|
Net income (loss) from discontinued operations
|
(0.10
|
)
|
|
(0.09
|
)
|
|
0.18
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common shares
|
$
|
0.12
|
|
|
$
|
0.79
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
$
|
0.21
|
|
|
$
|
0.86
|
|
|
$
|
(0.01
|
)
|
Net income (loss) from discontinued operations
|
(0.10
|
)
|
|
(0.08
|
)
|
|
0.18
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common shares
|
$
|
0.11
|
|
|
$
|
0.78
|
|
|
$
|
0.17
|
|
|
2017
(1)
|
||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Total revenues
|
$
|
146,189
|
|
|
$
|
139,245
|
|
|
$
|
144,936
|
|
|
$
|
151,428
|
|
Total expenses
|
146,066
|
|
|
147,045
|
|
|
151,414
|
|
|
151,060
|
|
||||
Total other income
|
3,915
|
|
|
2,895
|
|
|
2,583
|
|
|
1,064
|
|
||||
Income (loss) before taxes from continuing operations
|
4,038
|
|
|
(4,905
|
)
|
|
(3,895
|
)
|
|
1,432
|
|
||||
Less: provision (benefit) for income taxes
|
1,568
|
|
|
(1,305
|
)
|
|
(1,541
|
)
|
|
(11,284
|
)
|
||||
Net income (loss) from continuing operations
|
2,470
|
|
|
(3,600
|
)
|
|
(2,354
|
)
|
|
12,716
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) before taxes from discontinued operations
|
(1,530
|
)
|
|
(2,294
|
)
|
|
(1,535
|
)
|
|
(863
|
)
|
||||
Less: Provision (benefit) for income taxes
|
(402
|
)
|
|
(570
|
)
|
|
(511
|
)
|
|
(741
|
)
|
||||
Net income (loss) from discontinued operations
|
(1,128
|
)
|
|
(1,724
|
)
|
|
(1,024
|
)
|
|
(122
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before non-controlling interests
|
1,342
|
|
|
(5,324
|
)
|
|
(3,378
|
)
|
|
12,594
|
|
||||
Less: net income (loss) attributable to non-controlling interests
|
242
|
|
|
(881
|
)
|
|
(264
|
)
|
|
2,533
|
|
||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
1,100
|
|
|
$
|
(4,443
|
)
|
|
$
|
(3,114
|
)
|
|
$
|
10,061
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per Class A common share:
|
|
|
|
|
|
|
|
||||||||
Basic, continuing operations, net
|
$
|
0.07
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.34
|
|
Basic, discontinued operations, net
|
(0.03
|
)
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
(0.01
|
)
|
||||
Basic earnings per share
|
$
|
0.04
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted, continuing operations, net
|
$
|
0.06
|
|
|
$
|
(0.11
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.32
|
|
Diluted, discontinued operations, net
|
(0.03
|
)
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
(0.01
|
)
|
||||
Diluted earnings per share
|
$
|
0.03
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of Class A common shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
28,424,824
|
|
|
28,832,975
|
|
|
29,455,462
|
|
|
29,804,802
|
|
||||
Diluted
|
36,749,956
|
|
|
28,832,975
|
|
|
29,455,462
|
|
|
37,853,831
|
|
|
2016
(1)
|
||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Total revenues
|
$
|
116,848
|
|
|
$
|
117,542
|
|
|
$
|
116,465
|
|
|
$
|
155,568
|
|
Total expenses
|
109,119
|
|
|
110,253
|
|
|
108,474
|
|
|
149,691
|
|
||||
Total other income
|
1,105
|
|
|
4,912
|
|
|
4,032
|
|
|
10,205
|
|
||||
Income (loss) before taxes from continuing operations
|
8,834
|
|
|
12,201
|
|
|
12,023
|
|
|
16,082
|
|
||||
Less: provision (benefit) for income taxes
|
(1,301
|
)
|
|
3,921
|
|
|
3,532
|
|
|
6,363
|
|
||||
Net income (loss) from continuing operations
|
10,135
|
|
|
8,280
|
|
|
8,491
|
|
|
9,719
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) before taxes from discontinued operations
|
(3,859
|
)
|
|
(1,155
|
)
|
|
(473
|
)
|
|
(337
|
)
|
||||
Less: Provision (benefit) for income taxes
|
(1,138
|
)
|
|
104
|
|
|
180
|
|
|
(683
|
)
|
||||
Net income (loss) from discontinued operations
|
(2,721
|
)
|
|
(1,259
|
)
|
|
(653
|
)
|
|
346
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before non-controlling interests
|
7,414
|
|
|
7,021
|
|
|
7,838
|
|
|
10,065
|
|
||||
Less: net income (loss) attributable to non-controlling interests
|
1,859
|
|
|
888
|
|
|
1,933
|
|
|
2,338
|
|
||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
5,555
|
|
|
$
|
6,133
|
|
|
$
|
5,905
|
|
|
$
|
7,727
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per Class A common share:
|
|
|
|
|
|
|
|
||||||||
Basic, continuing operations, net
|
$
|
0.21
|
|
|
$
|
0.20
|
|
|
$
|
0.22
|
|
|
$
|
0.26
|
|
Basic, discontinued operations, net
|
(0.05
|
)
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
0.01
|
|
||||
Basic earnings per share
|
$
|
0.16
|
|
|
$
|
0.18
|
|
|
$
|
0.20
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted, continuing operations, net
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
Diluted, discontinued operations, net
|
(0.04
|
)
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
0.01
|
|
||||
Diluted earnings per share
|
$
|
0.16
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of Class A common shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
34,976,485
|
|
|
34,456,096
|
|
|
29,143,470
|
|
|
28,374,850
|
|
||||
Diluted
|
35,084,505
|
|
|
34,528,977
|
|
|
37,230,650
|
|
|
36,630,783
|
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Management’s Report on Internal Control over Financial Reporting
|
(c)
|
Changes in Internal Control over Financial Reporting
|
The following documents are filed as a part of this Form 10-K:
|
|
(a)(1) All Financial Statements
|
|
|
|
Index to Financial Statements:
|
Page
|
Exhibit No.
|
|
Description
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.4
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
Exhibit No.
|
|
Description
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
|
10.15
|
|
|
|
|
|
10.16
|
|
|
|
|
|
16.1
|
|
Exhibit No.
|
|
Description
|
|
|
|
21.1
|
|
|
23.1
|
|
|
23.2
|
|
|
31.1
|
|
|
31.2
|
|
|
31.3
|
|
|
32.1
|
|
|
32.2
|
|
|
32.3
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document*
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document*
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document*
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
|
|
|
Tiptree Inc.
|
|
Date:
|
March 14, 2018
|
|
By:/s/ Jonathan Ilany
|
|
|
|
|
Jonathan Ilany
|
|
|
|
|
Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Jonathan Ilany
Jonathan Ilany
|
|
Chief Executive Officer and Director (Principal Executive Officer)
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Sandra Bell
Sandra Bell
|
|
Chief Financial Officer (Principal Financial Officer)
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Timothy Schott
Timothy Schott
|
|
Principal Accounting Officer (Principal Accounting Officer)
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Michael G. Barnes
Michael G. Barnes
|
|
Executive Chairman and Director
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Paul M. Friedman
Paul M. Friedman
|
|
Director
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Lesley Goldwasser
Lesley Goldwasser |
|
Director
|
|
March 14, 2018
|
|
|
|
|
|
/s/ John E. Mack
John E. Mack |
|
Director
|
|
March 14, 2018
|
|
|
|
|
|
/s/ Bradley E. Smith
Bradley E. Smith
|
|
Director
|
|
March 14, 2018
|
TIPTREE INC.
|
|||||||||||
PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME
|
|||||||||||
(All Amounts in Thousands)
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues
|
|
|
|
|
|
||||||
Interest income
(1)
|
$
|
417
|
|
|
$
|
29
|
|
|
$
|
—
|
|
Other income
|
5
|
|
|
—
|
|
|
118
|
|
|||
Total revenues
|
422
|
|
|
29
|
|
|
118
|
|
|||
|
|
|
|
|
|
||||||
Expenses
|
|
|
|
|
|
||||||
Other expenses
|
—
|
|
|
—
|
|
|
31
|
|
|||
Total expenses
|
—
|
|
|
—
|
|
|
31
|
|
|||
|
|
|
|
|
|
||||||
Equity in earnings (losses) of subsidiaries, net of tax
(1)
|
6,370
|
|
|
29,111
|
|
|
(9,051
|
)
|
|||
|
|
|
|
|
|
||||||
Income (loss) before taxes from continuing operations
|
6,792
|
|
|
29,140
|
|
|
(8,964
|
)
|
|||
Less: provision (benefit) for income taxes
|
163
|
|
|
885
|
|
|
(8,528
|
)
|
|||
Net income (loss) from continuing operations
|
$
|
6,629
|
|
|
$
|
28,255
|
|
|
$
|
(436
|
)
|
|
|
|
|
|
|
||||||
Discontinued operations:
|
|
|
|
|
|
||||||
Income from discontinued operations, net of tax and non-controlling interest
|
(3,025
|
)
|
|
(2,935
|
)
|
|
(3,009
|
)
|
|||
Gain on sale of discontinued operations, net of tax and non-controlling interest
|
—
|
|
|
—
|
|
|
9,224
|
|
|||
Discontinued operations, net of tax and non-controlling interest
|
(3,025
|
)
|
|
(2,935
|
)
|
|
6,215
|
|
|||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
3,604
|
|
|
$
|
25,320
|
|
|
$
|
5,779
|
|
TIPTREE INC.
|
|||||||
PARENT COMPANY ONLY CONDENSED BALANCE SHEETS
|
|||||||
(All Amounts in Thousands)
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
||||
Investment in subsidiaries
(1)
|
$
|
300,916
|
|
|
$
|
286,349
|
|
Cash and cash equivalents
|
565
|
|
|
—
|
|
||
Notes receivable
(1)
|
5,306
|
|
|
5,306
|
|
||
Other assets
|
9,304
|
|
|
3,015
|
|
||
Total assets
|
$
|
316,091
|
|
|
$
|
294,670
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Other liabilities
|
$
|
16,014
|
|
|
$
|
1,239
|
|
Total liabilities
|
$
|
16,014
|
|
|
$
|
1,239
|
|
Stockholders' Equity
|
|
|
|
||||
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding
|
$
|
—
|
|
|
$
|
—
|
|
Common stock - Class A: $0.001 par value, 200,000,000 shares authorized, 35,0003,004 and 34,983,616 shares issued and outstanding, respectively
|
35
|
|
|
35
|
|
||
Common stock - Class B: $0.001 par value, 50,000,000 shares authorized, 8,049,029 and 8,049,029 shares issued and outstanding, respectively
|
8
|
|
|
8
|
|
||
Additional paid-in capital
|
295,582
|
|
|
297,391
|
|
||
Accumulated other comprehensive income (loss), net of tax
|
966
|
|
|
555
|
|
||
Retained earnings
|
38,079
|
|
|
37,974
|
|
||
Class A common stock held by subsidiaries, 5,197,551 and 6,596,000 shares, respectively
|
(34,585
|
)
|
|
(42,524
|
)
|
||
Class B common stock held by subsidiaries, 8,049,029 and 8,049,029 shares, respectively
|
(8
|
)
|
|
(8
|
)
|
||
Total stockholders’ equity
|
300,077
|
|
|
293,431
|
|
||
Total liabilities and stockholders' equity
|
$
|
316,091
|
|
|
$
|
294,670
|
|
TIPTREE INC.
|
|||||||||||
PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS
|
|||||||||||
(All Amounts in Thousands)
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income (loss) attributable to Tiptree Inc. Class A common stockholders
|
$
|
3,604
|
|
|
$
|
25,320
|
|
|
$
|
5,779
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||||||
Equity in earnings of subsidiaries
(1)
|
(3,345
|
)
|
|
(26,176
|
)
|
|
2,836
|
|
|||
Changes in operating assets and liabilities
|
|
|
|
|
|
||||||
Changes in other operating assets and liabilities
|
3,805
|
|
|
4,030
|
|
|
(5,566
|
)
|
|||
Net cash provided by (used in) operating activities
|
4,064
|
|
|
3,174
|
|
|
3,049
|
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(3,499
|
)
|
|
(3,191
|
)
|
|
(3,313
|
)
|
|||
Net cash provided by (used in) financing activities
|
(3,499
|
)
|
|
(3,191
|
)
|
|
(3,313
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
565
|
|
|
(17
|
)
|
|
(264
|
)
|
|||
Cash and cash equivalents at beginning of period
|
—
|
|
|
17
|
|
|
281
|
|
|||
Cash and cash equivalents at end of period
|
$
|
565
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
|
|
|
|
|
||||||
Cash paid for income taxes
|
$
|
3,669
|
|
|
$
|
14
|
|
|
$
|
20,510
|
|
Name of Participant:
|
[●]
|
Number of Shares subject to the Option:
|
[●]
|
Grant Date:
|
[●], 20
[●]
|
Exercise Price Per Share:
|
$[●]
|
Expiration Date
|
The earlier to occur of:
(i) [•], 20[●]; and
(ii) the date of the termination of the Participant’s service with the Company for Cause or the Participant’s voluntarily termination of service with the Company (other than as a result of the Participant’s Retirement).
|
TIPTREE INC.
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
ACKNOWLEDGED AND AGREED
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
Name of Participant:
|
[●]
|
Number of Restricted Stock Units (“
RSUs
”):
|
[●]
|
Grant Date
|
[DATE]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIPTREE INC.
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
ACKNOWLEDGED AND AGREED
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
Name of Participant:
|
[●]
|
Number of Restricted Stock Units (“
RSUs
”):
|
[●]
|
Grant Date
|
[DATE]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TIPTREE INC.
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
ACKNOWLEDGED AND AGREED
|
||
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
Title:
|
|
|
|
Name
(1)
|
|
|
|
|
Jurisdiction of Incorporation or Organization
|
|
|
|||
Operating Company
|
|
|
|
|
|
|||||
|
Tiptree Operating Company, LLC (81% owned)
|
Delaware
|
|
|
|
|
||||
Specialty Insurance
|
|
|
|
|
|
|||||
|
Caroline Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Blue Ridge Indemnity Company
|
|
|
Wisconsin
|
|
|
|
|
||
|
Fortegra Financial Corporation
|
|
|
Delaware
|
|
|
|
|
||
|
Fortegra Europe & Limited
|
|
|
England & Wales (UK)
|
|
|
|
|||
|
LOTS Intermediate Company
|
|
|
Delaware
|
|
|
|
|
||
|
4Warranty Corporation
|
|
|
Florida
|
|
|
|
|
||
|
Auto Knight Motor Club, Inc.
|
|
|
California
|
|
|
|
|
||
|
Bankers Life of Louisiana
|
|
|
Louisiana
|
|
|
|
|
||
|
Continental Car Club, Inc.
|
Tennessee
|
|
|
|
|
||||
|
CRC Reassurance Company, LTD.
|
|
Turks & Caicos Islands, BWI
|
|
|
|
||||
|
Digital Leash, LLC (d/b/a ProtectCELL)
|
|
Florida
|
|
|
|
|
|||
|
Insurance Company of the South
|
|
Georgia
|
|
|
|
||||
|
Life of the South Insurance Company
|
|
Georgia
|
|
|
|
||||
|
LOTS Reassurance Company
|
|
Turks & Caicos Islands, BWI
|
|
|
|
||||
|
LOTSolutions, Inc.
|
|
Georgia
|
|
|
|
||||
|
LOTSolutions Florida LLC
|
|
Florida
|
|
|
|
||||
|
Lyndon Southern Insurance Company
|
|
Delaware
|
|
|
|
||||
|
Pacific Benefits Group Northwest, LLC
|
|
Oregon
|
|
|
|
||||
|
Response Indemnity Company of California
|
|
California
|
|
|
|
||||
|
South Bay Acceptance Corporation
|
|
California
|
|
|
|
||||
|
South Bay Financial Services, LLC
|
|
Delaware
|
|
|
|
||||
|
Southern Financial Life Insurance Company (85% owned)
|
Kentucky
|
|
|
|
|||||
|
Telos Credit Opportunities Fund, L.P.
|
|
Delaware
|
|
|
|
||||
|
Telos COF I, LLC
|
|
Delaware
|
|
|
|
||||
|
The Service Doc, Inc. 4Warranty Corporation
|
|
Florida
|
|
|
|
||||
|
United Motor Club of America, Inc.
|
|
Kentucky
|
|
|
|
||||
|
Winsted Parent Holdings LLC
|
Delaware
|
|
|
|
|
||||
|
Winsted Intermediate Holdings LLC
|
Delaware
|
|
|
|
|
||||
|
Winsted Funding, LLC
|
Delaware
|
|
|
|
|
||||
|
Winsted Funding Trust Pledgor, LLC
|
Delaware
|
|
|
|
|
||||
|
Winsted REO, LLC
|
Delaware
|
|
|
|
|
||||
|
Winsted REO II, LLC
|
Delaware
|
|
|
|
|
||||
Asset Management
|
|
|
|
|
|
|
|
|
||
|
Muni Capital Management LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Telos Asset Management, LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Tiptree Asset Management Company, LLC
|
Delaware
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|||
Specialty Finance
|
|
|
|
|
|
|||||
|
Luxury Mortgage Corp. (67.5% owned)
|
|
Delaware
|
|
|
|
|
|||
|
Reliance Holdings LLC
|
|
Delaware
|
|
|
|
|
|||
|
Reliance First Capital, LLC
|
|
Delaware
|
|
|
|
|
|||
|
Siena Capital Finance Acquisition Corp.
|
|
Delaware
|
|
|
|
|
|||
Corporate and Other
|
|
|
|
|
|
|
|
|||
|
Tiptree Direct Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
TCO GP LLC
|
|
|
Delaware
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations
|
|
|
|
|
|
|
|
|||
|
Care Investment Trust LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Bridges Care Services of Arlington LLC (80%)
|
|
Delaware
|
|
|
|
|
|||
|
Calamar Investco, LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care Cal Holdings LLC
|
Delaware
|
|
|
|
|
||||
|
Care Cal JV LLC (75% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Arlington OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Arlington PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Bel Air PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Berryville LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Chesapeake PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Cockeysville PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Fredericksburg LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Glassboro PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Hagerstown PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Harrisburg PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL JV Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Oak Ridge OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Oak Ridge PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL OpCo Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Ops LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Richmond OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Richmond PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Stafford LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL OpCo Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL OpCo II LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Lansdale OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE Lansdale Mezzco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE Lansdale Holdco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL RE II LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care GSL Lansdale PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Belle Reve OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Belle Reve PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Cardinal Village OpCo LLC (80%)
|
|
Delaware
|
|
|
|
|
|||
|
Care HSL Cardinal Village PropCo LLC (80%)
|
|
Delaware
|
|
|
|
|
|||
|
Care HSL Heritage Hill OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Heritage Hill PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Newtown OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Newtown PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL OpCo LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL OpCo Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL OpCo II LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
|
Care HSL RE II LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Newtown Holdco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Newtown Mezzco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL TRS Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Holdings III LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Holdings III LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE III LLC (90% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL OpCo Holdings III LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL OpCo III LLC (90% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Harleysville Mezzco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL RE Harleysville Holdco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Harleysville PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care HSL Harleysville OpCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE LLC (90% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL Bartlett PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE II LLC (90% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL Winchester PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE Holdings III LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE PM Mezzco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE PM Holdco LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL RE III LLC (95%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL Palmerton PropCo LLC (95%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care ISL Macungie PropCo LLC (95%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Eatonton OpCo LLC (65%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Eatonton PropCo LLC (65%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care PSL Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PSL Park Terrace PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PSL RE LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PSL Seneca Lake PropCo LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Easley OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Easley PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Gaffney OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Gaffney PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL JV Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL OpCo Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL OpCo Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL OPS II LLC (65% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL OPS LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL RE Holdings III LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Port Royal OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Port Royal PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL RE Holdings II LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL RE II LLC (65% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL RE LLC (80% owned)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Summerville OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Summerville PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care RSL Tampa OpCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
|
Care RSL Tampa PropCo LLC (80%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF RE LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Calhoun PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Chatsworth PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Decatur PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Fairburn PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Jasper PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Cartersville PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care SNF Stone Mountain PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
N.A. Realty Investco, LLC (75%)
|
|
|
Delaware
|
|
|
|
|
||
|
RM1B Holdings, L.L.C. (75%)
|
|
|
New York
|
|
|
|
|
||
|
RM2 Holdings, L.L.C. (75%)
|
|
|
New York
|
|
|
|
|
||
|
Care PHSL Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL RE Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL OpCo Holdings LLC
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL RE LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL OPS LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL Fayetteville PropCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
||
|
Care PHSL Fayetteville OpCo LLC (90%)
|
|
|
Delaware
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of Tiptree Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 14, 2018
|
|
/s/ Michael Barnes
|
|
|
|
Michael Barnes
|
|
|
|
Executive Chairman
|
1.
|
I have reviewed this Annual Report on Form 10-K of Tiptree Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 14, 2018
|
|
/s/ Jonathan Ilany
|
|
|
|
Jonathan Ilany
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Tiptree Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 14, 2018
|
|
/s/ Sandra Bell
|
|
|
|
Sandra Bell
|
|
|
|
Chief Financial Officer
|
|
/s/ Michael Barnes
|
Michael Barnes
|
Executive Chairman
|
|
/s/ Jonathan Ilany
|
Jonathan Ilany
|
Chief Executive Officer
|
|
/s/ Sandra Bell
|
Sandra Bell
|
Chief Financial Officer
|