Greetings, and welcome to the Tiptree Inc. Second Quarter 2017 Financial Results Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the conference to your host, Sandra Bell, Chief Financial Officer. Thank you, you may begin.

Good morning, and welcome to our second quarter 2017 earnings call. We are joined today by our Executive Chairman, Michael Barnes; and CEO, Jonathan Ilany. We have posted the earnings release and presentation on our website at tiptreeinc.com. Our remarks today are qualified in their entirety by the disclaimers on Page 1 of the presentation. Prior to turning the call over to Michael, we 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 securities law, we undertake no obligation to update any forward-looking statements. We also use non-GAAP measures, which we believe provide supplemental information about our businesses 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 equivalents. With that, we will turn the call over to Michael, who will begin on Page 3 of the presentation.

Thanks, Sandra. Good morning, and thank you for joining our call today. For the second quarter, while total revenues grew 19.5% year-over-year, we reported a net loss of $5.3 million and adjusted EBITDA of $6.8 million. Tiptree's, as exchanged, book value per share ended at $9.87, up 2% from this point last year. The net loss for the quarter and the 6 months and the decline in adjusted EBITDA over the prior year were primarily driven by unrealized losses of $8.3 million and $10.1 million, respectively, on equity securities which are held within our insurance investment portfolio. The unrealized losses masked the overall positive performance of our underlined businesses. Excluding the unrealized gains on our equities in 2016 and unrealized losses in the current 6-month period, adjusted EBITDA at our operating businesses improved. Our primary focus, as always, is on continuing to build a company that can generate a high portion of stable and repeatable earnings from operations. In addition, we actively manage our insurance investment portfolio. We evaluate the performance of the portfolio on a total return basis, focusing on investments that provide cash flow from interest in dividends and the potential for capital gains over a long-term horizon. As a result, we may experience volatility on these positions from quarter-to-quarter. We've invested approximately 10% of the insurance portfolio in a concentrated group of equity securities, which we believe to be undervalued and, which in most cases, carry dividend yields that are attractive relative to our purchase price. From inception to date, we have received $4.2 million of dividends on our equity investments, partially offset by cumulative $2.5 million of unrealized losses. Our investment portfolio has grown to $346 million, a 12.7% increase from this time a year ago. Looking forward, over the next 12 months, while we would…

Thank you, Michael. On Page 4, we highlight the company's 6 months performance relative to last year. For the 6 months ended June 30, 2017, we had a pretax loss of $4.7 million and adjusted EBITDA of $18.6 million. On the right-hand side of the page, we have provided a bridge for both pretax income and adjusted EBITDA. While we reported a loss overall year-over-year, as indicated in the bridge, pretax income from operations was up $2.9 million over 2016, and adjusted EBITDA from operations was up $5.9 million. The primary drivers of the improvements included growth in warranty products in our insurance segment, the impact of acquisitions in our senior living operations, incentive management fees in asset management, improved operating metrics in specialty finance and reductions in corporate cost. We will go into these operating drivers in a bit more detail when we cover our segment operations later in the presentation. As you can see in the bridge, our insurance portfolio investment income, excluding unrealized losses on our equity securities, added 1.6 million to both pretax income and adjusted EBITDA, driven by increases in portfolio assets. Offsetting the positive contributions from operations and insurance portfolio and net investment income were 2.2 million of stock-based compensation, granted based on improvements in underlying performance in prior years. Performance and time vested stock compensation is accounted for over the vesting period, which under our compensation plan is generally a minimum of three years. Also impacting six months pretax income was an increase in the earn-out reliability of Reliance of 3.5 million. This item is added back to adjusted EBITDA, so it does not impact that metric's relative performance. As part of the acquisition consideration to the selling shareholders when we bought Reliance, we tied a portion of the purchase price to Reliance's…

Thanks, Sandra. We believe Tiptree is well positioned for the remainder of 2017 and beyond. Our insurance business is focused on growing premiums, while maintaining profitable underwriting standards. As our mix of business trends towards longer duration products, we expect our invested assets to grow. Our strategic objective is to leverage Tiptree's investment expertise to increase the total return of the insurance portfolio over the long term as the insurance business grows, while maintaining an attractive combined ratio. Our asset management business is stable. We are looking to further leverage our investment expertise to expand AUM as market conditions continue to improve, potentially into other asset classes. Our senior living pipeline remains strong. Our focus over the near term will be to drive occupancy rates to increases NOI and NOI margins. We believe our efforts to better position the company for growth and providing greater transparency into our investment and operating performance should allow investors to better understand Tiptree's intrinsic value. With that, we can open the line for questions.

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