Greetings and welcome to the Tiptree Inc. Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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 introduce your host Sandra Bell. Thank you Ms. Bell. You may begin.

Good morning and welcome to our second quarter 2020 earnings call. We are joined today by our Executive Chairman, Michael Barnes; and CEO, Jonathan Ilany. You can find the slides that accompany this review on our Investor Relations website. Please note that some of our comments today will contain forward-looking statements, based on our current view of our business and actual future results may differ materially. Please see our most recent SEC filings, which identify the principal risks and uncertainties that could affect future performance. Before I turn the call over to Michael, just a few additional housekeeping items. Today, we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's presentation. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our SEC filings, the appendix to our presentation and posted on our website. With that, I will turn the call over to Michael.

Thank you, Sandra, and good morning to everyone. We continue to live through extraordinary times, as the social distancing measures to combat COVID-19 are continuing to significantly impact global economies and financial markets. While financial market volatility and the resulting unrealized mark-to-market losses drove an 11.7% year-over-year decline in our book value, we are encouraged by our underlying business fundamentals and believe we are well positioned to move the company forward through these uncertain times. Our underlying operations remain quite resilient. And excluding mark-to-market, first half revenues were up 17% and operating EBITDA was $38 million, an increase of 50% from prior year. As Sandra will further detail, our capital and liquidity position remains strong. And our businesses and management teams have adapted well to the new environment, staying dedicated to serving our customers as well as looking for new opportunities. In Tiptree insurance, gross written premiums and equivalents of $694 million were up 23% over the prior year first half, driven by growth in our warranty and specialty programs. As expected, credit protection products experienced softness in the second quarter, driven by COVID-19 stimulus payments and the related reduction in consumer installment lending. This was offset by positive contributions from our warranty products, both from our recent acquisition and as volumes recovered from their April lows and growth in specialty products, from a combination of our continued focus on the market and the current hardening cycle. Insurance margins have held stable, with our year-to-date combined ratio consistent with prior periods at 92.6%. Our insurance products have very limited exposure to lines of business impacted by COVID-19, such as business interruption or other similar coverages. Hence, we experienced relative consistency through cycles. Within our insurance investment portfolio, we take a long-term view. Therefore, variability and the timing of investment gains…

Thank you, Michael. On page 4, we present the company's key metrics for the second quarter 2020 compared to the prior year period. Net income before non-controlling interest for the quarter was $4.4 million, a decrease of $7.8 million over the prior year, which was primarily driven by unrealized losses on our investment in Invesque. Excluding investment gains and losses, revenues for the quarter were up 15% driven by improvement in Tiptree Insurance top line results including revenues from our warranty acquisition. Operating EBITDA for the quarter was $22.2 million, up 75% from the prior year due to growth in Tiptree Insurance operations as well as positive contributions from Tiptree Capital, driven primarily by growth in volumes and margins in our mortgage business. Operating EBITDA for the year-to-date period was $38 million, up 50% from the prior year period. On the bottom of the page, we show a walk from operating EBITDA to total pretax income highlighting the key differences between the two metrics. Book value per share decreased to $9.97 year-over-year, driven primarily by unrealized mark-to-market losses and dividends paid, partially offset by share repurchases. We are comfortable with our capital position and believe we have sufficient liquidity to support our businesses. At quarter end, cash and cash equivalents were $80.6 million, $70 million of which is held outside the statutory insurance entities. In addition, subsequent to quarter end, we refinanced our revolving credit facility in our insurance business, extending the maturity for three years and upsizing the amount to $200 million. We expect to use the added capacity to support continued organic growth as well as bolt-on acquisitions. On page 5, we have added a slide highlighting certain KPI trends. Operating EBITDA in the first half of 2020 was up 50% over the prior year, reflecting the stability…

Thanks Sandra. As Tiptree continues to navigate this challenging time, I want to thank our talented group of employees for their disciplined focus on serving our customers and keeping our operations running smoothly. While the economic disruption of the pandemic has impacted our financial performance in the first half of 2020, we believe we are well-positioned to weather the current challenges and continue our focus on the long term. With that, we will open the line for questions.

Thank you Victor and thank you everyone for joining us today. Obviously if you have any questions please feel free to reach out to me directly. This concludes our conference call for the second quarter 2020.