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

Good morning, and welcome to our third 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. This presentation supplements our SEC filings and is provided solely for information purposes. Throughout the presentation, we make 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 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 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 third quarter, while total revenues grew 24.5% year-over-year, we reported a net loss of $3.4 million and adjusted EBITDA of $4.8 million. Tiptree's as exchanged book value per share ended at $9.67, down 2.6% from this point last year. The net loss for the quarter and the nine months and the decline in adjusted EBITDA over the prior year were primarily driven by negative unrealized mark to market of $11 million and $21 million respectively, on equity securities which are held in our insurance investment portfolio. These unrealized losses masked the overall positive performance of our underlying businesses. Normalized EBITDA and our operating businesses improved approximately 6% from a year-over-year perspective excluding these unrealized losses. As we’ve mentioned before, we’re focused on continuing to build a company that can generate a high portion of stable and repeatable earnings from operation. We evaluate the performance of our insurance portfolio on a total return basis, focusing on investments to 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 as we’ve seen this year. Our investment portfolio has grown to $364 million, a 20.6% increase from this time a year ago. Over the next 12 months, we anticipate the portfolio will continue to grow as we expand written premiums and fee revenues from longer duration productions. With regard to our insurance business, we are continuing to see growth across our product offerings. For the third quarter, gross written premiums were $209 million, up 15%, driven by growth in our credit protection and warranty products. Year-to-date, warranty written premiums were $83 million, an increase of 88% as we are seeing…

Thanks, Michael. On Page 4, we highlight the company's performance relative to last year. For the nine months ended September 30, 2017, we had a pretax loss of $10.1 million and adjusted EBITDA of $23.3 million. On the right-hand side of the page, we provide a bridge for both metrics. As indicated in the bridge, pretax income from operations was down slightly at $1.4 million below 2016, and adjusted EBITDA from operations was up $3.7 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, improved operating metrics in specialty finance and reductions in corporate costs. 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 the unrealized losses added $1.4 million driven by increases in portfolio assets. Offsetting the positive contributions from operations were 2.7 million of stock-based compensation, granted based on the improvements in underlying performance in prior years and which are accounted for over the vesting period. Several non-recurring items also impacted nine months pretax income. As we discussed in Q2 Reliance’s strong performance over the last 12 months drove an increase of $3 million related to an earn out granted to its selling shareholders at the time of acquisition which is paid in Tiptree shares calculated based on our book value per share. In 2016, we recorded realized gains on sales of certain equity positions primarily related to our liquidation of noncore assets which were also not repeated in 2017. Lastly, as Michael has already mentioned, the single largest contributor to our comparable year-over-year performance was the negative unrealized mark to market on equities in 2017…

Thanks, Sandra. To provide a quick graph our insurance business is focused on growing premiums or maintaining profitable underwriting standard. As our mix of business trends toward longer duration products, we expect our invested assets to grow accordingly and generate additional growth in investment income. 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. The sale of Siena continues our commitment to focus our capital on core asset and to divest non-core asset where we can achieve attractive return. We believe our efforts to better position the company for growth and enhance 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.

[Operator Instructions] Our first question comes from the line of John [Sykes] with Westford Capital, please proceed with your question.

Good morning guys and gals. Two questions, first is, on the subordinated notes that you sold they’re commercial lending for your bank loans what rate did you sell that for the year?

8.5% John, good morning.

And the vertical side, just for people like me who are little rusty, describe exactly what that is, is it the part of the equity or is it all non-equity side?

It’s top to bottom, so it starts with the – for senior and goes all the way down to the subordinated notes. And the subordinated notes represent top total stock is about 5%.

And John you can, this is Michael and thanks for the question John. You can think of that as really a pro-rata participation of loans portfolio, it’s about given that we’re taking from the top to bottom participation.

Thanks, that’s all my question.

Thank you. Our next question comes from the line of [Walter Schneir] with [Mac Partners], please proceed with your question.

Thank you. Given that this is a very sophisticated immensely oriented management team and given the discount to the asset value, I would like your top management’s view about why an aggressive stock buyback program at about two-thirds of asset value is not a top priority in enhancing shareholder value?

I will let Sandra start with that then I’ll let you. First thank you for the question and we always look to balance our objectives of growing which we think will also help achieve liquidity and ultimately achieve a more attractive stock for our shareholders. But we balance that also with the opportunity to buyback shares, each time we buyback shares we do release capital out of the balance sheet of the company. In the past two years, we’ve repurchased approximately 20% of the shares outstanding and so we currently have the authority from our Board of Directors to look for opportunities to buyback shares as long as we can do so ahead of official prices. So we’re always looking to buyback shares but we balance that with the opportunity to reallocate that capital to new investments and the objective of also growing our platform. Sandra, do you want to add anything to that.

No Michael, everything is appropriate.

To respond there is very little you’re investing in, which in very has a higher return than the share buyback, I know you bought back stock in the past little bit largely been oriented to take out in liquid in larger investors. It just seems to be an inconsistency in – the fact that you understand buyback in the fact that it’s relatively inactive on a day-to-day basis, is this more a ramp in anything else and I appreciate your response, thank you.

Thank you.

[Operator Instructions] There are no further questions at this time, I’d like to turn the call back over to Ms. Bell for any closing remarks.

Thank you Michelle, and thank you everyone for joining our call today, certainly if anyone has any questions please free to reach out to me directly. This concludes our third quarter call.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time, thank you for your participation and have a wonderful day.