Greetings and welcome to the Tiptree Financial Incorporated Second Quarter 2015 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host to Julia Wyatt, Chief Operating Officer. Thank you. You may begin.

Good morning everyone. Welcome to Tiptree Financial’s second quarter 2015 earnings call. My name is Julia Wyatt and I'm Tiptree Financial’s Chief Operating Officer, and acted as a Principal Accounting Officer for the second quarter. With me today are Geoffrey Kauffman, Tiptree Financial’s Co-CEO; and Sandra Bell, our new Chief Financial Officer, who joined Tiptree on July 1. Before I turn it over to Geoffrey, let me take you through a change in format for this quarter’s call. In addition to our earnings announced, which was released prior to this call, we have posted a presentation on our website at www.tiptreefinancial.com to provide supplemental information to our prepared remarks, which we will refer to by page during the call. References to Tiptree or the Company mean Tiptree Operating Company, LLC the entity through which we conduct our operations and its consolidated subsidiaries, together with the standalone net assets held by Tiptree Financial Inc, the publicly traded entity that owns 77% of Tiptree Operating Company. References to Tiptree Financial mean Tiptree Financial Inc and exclude the non-controlling interests of Tiptree Operating Company. Let me pause for a moment for you to locate and open the presentation. Now that you have the presentation in front of you, please turn to Page 1 of the presentation, where I will walk you through our standard disclaimer. Please read disclosures in details as my remarks will simply highlight their contents. This presentation is qualified in its entirety by the content of the disclaimers on this page. This presentation is being provided as a supplement to our financial statements footnote and other disclosure filed with the SEC and is not an offer to purchase or sell securities. It is being provided solely for informational purposes and is not intended to change or update our disclosure document.…

Thank you, Julia. Good morning everyone. Before I dive into my prepared remarks, let me take a minute to highlight what we expect to cover on today’s call. First, we will highlight our results and the significant events that occurred in the quarter. Second, we will update you on industry and market factors that have impacted our performance year-to-date and then we expect to impact our results throughout the rest of this year and in next. Third, we will take you through our second quarter and first half financials and the key drivers of those results. And lastly, we will open the line to address any questions you may have. With that introduction, please turn to Page 3 of the presentation, where we highlight the significant events of the quarter by segment. On June 30, we completed our previously announced sale of PFG for a total of $150.1 million in proceeds. We’ve received $142.8 million in cash at the closing and will receive an additional $7.3 million over the next two year. We have recognized an after-tax gain of $16.3 million, which was recorded as part of our discontinued operation. For 2015, we have benefited from the full impact of our December acquisition of Fortegra growing demand for non-bank consumer finance and auto warranty and insurance products supported strong results for Fortegra with first half pre-tax income of $10.3 million. In our Specialty Finance segment, we completed our previously announced acquisition of Reliance First Capital on July 1. Reliance is expected to complement our existing Luxury Mortgage business. Home affordability and an improving economy have driven industrywide year-over-year increases in mortgage origination as seen in the increase in Luxury’s funded volume to $440 million, an improvement in its earnings. While Reliance’s results were obviously not included in our first half…

Thank you, Geoffrey. On Page 6, let’s begin with the dynamics of the U.S. economy of which I’m sure you are all very familiar. The U.S. economy has clearly stabilized and has been showing signs of improving fundamental. The U.S. consumer appears to be more confident as unemployment metrics continue to improve. The consumer confidence index is up, GDP continues on a positive trend, and businesses are beginning to increase their investments both through acquisition and organic initiative. We highlight the specific key economic factors impacting each of our businesses beginning with our insurance and insurance services segment on Page 8. As Geoffrey mentioned in earlier, we sold PFG at the end of the quarter while Tiptree did not make an explicit decision to trade Fortegra for PFG. The impact of the sale of one and the acquisition of the other has changed the dynamics of our insurance business significantly. We have transformed our business from one which requires growth capital in excess of Tiptree’s capacity to support it to one where the ability to scale and grow is commensurate with our access to capital. On Page 9, we highlight the market dynamics, which we believe are providing support to Fortegra’s growth trajectory. The growing consumer confidence, I mentioned earlier, is underpinning expansion of consumer credit, particularly from moderate income earners and in areas such as auto finance, consumer electronics, and consumer durable. Fortegra’s business model is leveraged to this improving economic picture as the provision of credit life insurance is an important component to supporting access to credit for modern income Americans while there is a growing demand for warranty and other insurance products in conjunction with sales of cars, consumer electronic, and big ticket items such as appliances. Our Specialty Finance segment has also benefited from macro economic…

Thank you, Sandra. I will begin by highlighting the key drivers of our consolidated results and then turn to our view of each of our segments. For my prepared remarks, I will be focusing primarily on Tiptree Operating Company as their results drive those of the public entity. On Page 17, we highlight our three months and six months consolidated results for Tiptree Operating Company and Tiptree Financial for the period ended June 30. As mentioned earlier, we reported net income before non-controlling interest of $19.8 million for the quarter, and $17.8 million for the first half of 2015. The $15.8 million increase in that metric in Q2 and $10.2 million for the year-to-date period were both driven by four key factors. One, the $16.3 million after-tax gain on the sale of PFG reported in discontinued operation; two, the inclusion of Fortegra’s earnings for the full period; three, the expansion of our real estate investment at Care; and four, realized losses on the sale of our subordinated notes in Telos 2 and 4. Growth in first half adjusted EBITDA from continuing operations was primarily driven by Fortegra’s positive results and the increase in Care’s portfolio of real estate investment. Just a quick note, as we move through an understanding of our financial results in more detail, much of the benefit from the historical ownership of the subordinated notes that we sold this quarter have actually been reported in previous period through distribution income. In addition, the earnings from the reinvested proceeds have yet to be reported in our current results and will flow through future periods. As a result, the current period results provide us with only a partial picture of the impact of these actions on shareholder value. Turning to Page 18, let’s walk through the financial results of…

Thanks, Julia. On Page 23, we wanted to highlight the key takeaways from the quarter and things to keep in mind going forward. As we move into the second half of 2015, we believe Tiptree is well positioned to take advantage of improvement in the U.S. economy. Investments made early in the third quarter have yet to contribute to our results. For example, Reliance closed on July 1. They originated $389 million in the first half of 2015. So Tiptree’s mortgage originations in the second half of the year should be materially higher than the first. Similarly, the T 7 warehouse is the first CLO warehouse this year and we anticipate positive contributions to earnings in the second half of 2015, similar to the warehouses in 2014. In conclusion, we are pleased with the results for the quarter and are confident that our strategic direction in taking advantage of these positive economic trends puts the company in a strong position to drive long-term shareholder value. Thank you and we will now open up the call for Q&A.

At this time, I’d like to turn the conference back over to Geoffrey Kauffman.

Thank you very much. With that we’d like to thank everyone for attending today’s call and for your continued interest in Tiptree. We’ll look forward to updating you further on our operations on our next earnings call.

Thank you. Ladies and gentleman, this concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.