Greetings and welcome to Tiptree Financial Third Quarter 2016 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. It is now my pleasure to turn the call over to your host, Sandra Bell, Chief Financial Officer. Thank you. You may begin.

Good morning and welcome to our third quarter 2016 earnings call. I am joined today by our Executive Chairman, Michael Barnes and CEO, Jonathan Ilany. We have posted the earnings release and presentation on our website at tiptreefinancial.com. Our remarks today are qualified in their entirety by the disclaimers on page one of the presentation. Prior to turning the call over to Michael, I just want to highlight a few of the key disclosures. This presentation supplements our SEC filings and is provided solely for information purposes. Throughout the presentation, there are forward-looking statements. Our businesses are subject to risks and uncertainties which are outlined in our SEC filings, and which could impact our expectations of future results. Except as required by the securities laws, we undertake no obligation to update any forward-looking statements. We also use non-GAAP measures which we believe provide additional information about our business and are useful to investors. As these measures are not GAAP, they should not be used as a substitute for GAAP disclosures. The appendix provides a reconciliation of each of these measures to their GAAP equivalent. Now, let me turn the call over to Michael.

Thanks, Sandra. Good morning, everyone and thank you for joining us today. For the quarter, we continue to see positive trends across our businesses. On a consolidated basis, total revenues for the quarter grew 11% year-over-year to 134 million, while contributing nearly 8 million of net income and 20 million of adjusted EBITDA from continuing operations. Both of these financial metrics were up significantly versus comparable periods in 2015. As we have mentioned before, our focus in our core businesses is to support growth and repeatable earning and we are pleased to see that trend has continued in the third quarter. On page 3, we summarize some of our key achievements. Fortegra, our specialty insurance subsidiary, continues to have a strong year. For the nine month, insurance and warranty written premiums grew to 540 million, up 8% versus the prior year. Net written business was 152 million, which was an increase of 16%, reflecting a modest uptick in the underwriting risk that we are choosing to retain. At Fortegra, we remain focused on growing underwriting profit through increasing net written premiums, fee earnings and income from investing the excess premium flow. For the quarter, we also had strong contributions from our real estate, credit and mortgage businesses. Care, our senior’s housing business, contributed nearly 16 million of revenues, while expanding NOI margins, as actions we have taken to improve property occupancy levels and stabilize costs continue to show positive results. In August, we closed our third acquisition of the year for a total consideration of 29 million, which brought our total aggregate purchase price of Care’s portfolio to nearly 318 million. The senior housing pipeline remains strong and we anticipate continued growth through new acquisition and through NOI improvements at existing properties. Our Telos asset management business continues to produce…

Thank you, Michael. Let me quickly cover the highlights before we transition to the detailed performance review. For the quarter, Tiptree reported net income from continuing operations of 7.8 million, up 14.2 million over the third quarter last year. On a per share basis, earnings per class A share were $0.19, up $0.32 versus third quarter 2015. The year-over-year improvement was a result of increased earnings in our asset management, real estate and specialty finance segments as well as the increased revenues from principal investments that Michael just mentioned. This was partially offset by declines in Fortegra net revenues due to pressures in the mobile protection products. Year-to-date earnings per share were $0.53, up 83% from 2015. On page 6, we’ve laid out the components of our year-to-date 2016 operating performance. As you look at the chart, each segment has contributed significant top line growth and increases in profitability. In total, revenue has grown 89 million; pretax income from continuing operations was up 39 million and adjusted EBITDA from continuing operations increased by 36 million versus the 9 months in 2015. The high level themes are similar to prior quarters. Fortegra’s profits have increased, driven by growth in written premium, investment income and margin expansions stemming from disciplined cost control. Our senior housing performance is up, as NOI margins have improved at existing properties and acquisitions have increased our overall revenues. While depreciation and amortization from acquisitions initially dampens profits as the portfolio grows. Improvements in volumes and margins in the mortgage business along with growth in CMS loan portfolio drove positive results in specialty finance and principal investments are up substantially, primarily driven by realized and unrealized gains as well as improved earnings as a result of growth in investments in the Credit Opportunities Fund and NPL, all of…

We are very encouraged by results to the first three quarters of 2016. Our performance relative to 2015 is quite favorable even when taking into consideration the previous year's gain on discontinued operation. We remain focused on growing repeatable earnings in our core businesses. Our insurance sector was ahead of expectation and we believe that net revenues will continue to grow through increased product origination and return on the investment pool. Our real estate sector made further acquisitions of senior care facilities and continues to increase revenue and NOI. Our asset management sector is stable and in addition to CLOs, we are optimistic that leveraging our performance in the credit opportunities fund will allow us to raise additional capital in other fund vehicles or managed account. And importantly, we remain focused on driving additional progress on this year’s objective of exiting non-core underperforming assets, we allocating that capital to existing core businesses and further building out our infrastructure. With that we would like to open the line for question.

[Operator Instructions] Our first question comes from Andrew Cowen with Badge Investment Partners. Please proceed with your question.

Just two quick questions. Going back to the CLO and assets management business, did I hear that right, it’s about 17 million of repeatable fees and income year to date?

Did you have a second question Andrew, before I’d…

The second question is, what’s the [indiscernible] in the insurance business?

$225 million.

So the answer to the second question, Andrew, is $225 million regarding the flow of our insurance business that we are now overseeing and investing. With regard to the first question, I'm going to turn that to Sandra to answer the question. And the question just to repeat is the repeatable earnings in our asset management business as well as CLO investment that we see as linked to our asset.

If you turn to page 10, we’d break down the pretax income and loss on attributable to the CLO business. And when we talk about the repeatable earnings, it’s the management fees and distributions. That's where you get in the range of that $17 million on…

Definitely is great number. Do you guys have released the average yields you're earning on the float [ph] or is that's something you don’t talk about?

We generally don’t reveal what the average yield is on the float, take it, incorporate it as part of decrease overall on capital and incorporated into the returns of the Tiptree. So you'll see that in the bottom line as Tiptree as we increase return on capital. Sandra, do you have anything to add to that?

I just will point out that there is a line item in the insurance company that’s called investment income and you can the growth in that year-over-year. So that will give you an idea of the trend and the relative yield.

Okay, I see that. That’s actually very helpful, thank you, Sandra. And great job on the buybacks guys, keep them up. It looks like we got still plenty of sellers out there with stupid low prices.

\ Thank you Andrew, I think your focus on our objective of creating repeatable income, I think you picked up on that accurately. Share buyback, we’ll pursue opportunistically, I think we’ve been fortunate with share buyback that we've done. And with regard to float that has been a priority coming into this year of Jonathan Ilany and myself to not only increase float but to increase the return on float and we see positive trends in that. Thank you for your comments very, very appreciative.

[Operator Instructions] Ladies and gentlemen, we have reached the end of our question-and-answer session, I would now like to turn the call back to Sandra Bell for closing comment.

Thank you and thanks everyone for joining us today. If you have any questions, please feel free to reach out to me directly. We look forward to speaking with you again after the fourth quarter results are in. This concludes our conference call.

This concludes today's call, thank you for your participation. You may disconnect your lines at this time.