Greetings, and welcome to the Tiptree Inc. Fourth Quarter and Full Year 2017 Earnings 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, Miss Sandra Bell, Chief Financial Officer for Tiptree, Inc. Thank you, you may begin.

Good morning, and welcome to our 2017 year-end 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 uncertainty, 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 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 equivalent. With that, we will turn the call over to Michael.

Thanks, Sandra. Good morning, and thank you, for joining our call today. In 2017, we refined and advanced Tiptree’s strategic goals to expand our insurance business organically and through acquisitions with a focus on warranty products to maintain the combined ratio in the low to mid-90s, and we continued to build our insurance investment portfolio, which we believe will allow us to earn enhanced investment returns over the long-term when compared to market benchmark. In our insurance business, we took two key actions this year, which are designed to position the business to achieve our growth objectives. In October, we refinanced our senior credit facility, with the issuance of 40-year Junior Subordinated Notes, which will serve to support our organic growth initiatives. We also took steps to expand our insurance products into Europe. Beginning in 2016 and continuing in 2017, we initiated a review of our other business holdings, with the goal of simplifying our structure and redeploying our capital into areas where we believe we can drive the improved return. As previously announced, we sold our senior living business to Invesque effective February 1, 2018 for 16.6 million publically listed shares. This transaction will result in an estimated increase to book value of $0.91 per share as exchanged which will be recognized in the first quarter of 2018. We also expect the transaction to be accretive to both GAAP earnings and cash flow, as we effectively exchange GAAP depreciation and overhead cost for dividend income. The combined Invesque platform now has greater scale and more diversification. We expect this will also lead to better capital market access and a lower cost of capital to support Invesque’s future growth. We have confidence in the leadership and experience of the Invesque management team, and feel the senior living sector still has…

Thank you, Michael. On Page 4, we highlight the Company’s key metrics for 2017. Net income was $5.2 million, reflecting a $15.2 million net benefit from the new Tax Act. This benefit is due to the required remeasurement of our next deferred tax liability at the new lower corporate rate of 21%, effective January 1, 2018. We tend to have sizable deferred tax liabilities, related to the recognition of taxable income, and those are insurance and mortgage businesses. For the year, we had a pretax loss for non-controlling interest of $9.5 million, of which $3.3 million is from continuing operations and $6.2 million is from discontinued operations. Adjusted EBITDA ended the year at $38 million on a combined basis. Pretax income from continuing and discontinued operations declined a combined $52.8 million over 2016, and adjusted EBITDA was down $40.9 million. However, normalized EBITDA, which excludes stock-based compensation, realized and unrealized gains and losses and adjust for third-party non-controlling interest was slightly improved. Normalized EBITDA is a measure management considers when evaluating the ongoing earning capacity of our operations and our long-term return on invested capital. Our insurance company’s normalized EBITDA was up over 8%, supported by growth in both credit and warranty products. Corporate cost improved by $5.7 million as external audit fees and consulting expenses were substantially reduced. Interest expense was also reduced as we repaid a portion of our holding company indebtedness late in the year. Offsetting the growth in insurance and reduction in corporate expenses, where declines in distributions of $8.8 million, related to our CLO subordinated notes sale and lower management fees as our AUM declined. Our senior living business is now reported as discontinued operations. The $6.2 million pretax loss attributable to those operations is expected to be replaced in 2018 by approximately $12.1 million…

Thanks, Sandra. So to provide a quick summary. In 2017, we refined and advanced our strategic objectives to grow our insurance business by growing premium, both organically and through acquisition, while maintaining profitable underwriting standards. We expect to continue to grow our insurance investment portfolio, in line with the business and to leverage Tiptree’s investment expertise to increase the total return of the insurance portfolio over the long term. Within Tiptree Capital, our asset management and mortgage businesses are stable. We are looking to further expand AUM as market conditions continue to improve, potentially in the other asset classes. We have significant liquidity and a delevered balance sheet available to support our long-term growth objectives. We believe our strategic effort to better position the company for growth and stable operating performance, while continuing to simplifying our overall structure should allow investors to better understand Tiptree’s intrinsic value. With that, we can open the line for questions.

Thank you. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Ms. Bell, it seems there are no questions at this time. I’ll turn the floor back to you for any final comments.

Thank you, Melissa. And thanks, everyone for joining us today. If you have any further questions, please free to reach out to me directly. This includes our year-end conference call. Thank you.

Thank you. This concludes today’s call. You may disconnect your lines at this time. Thank you for your participation.