Welcome to the Tiptree Inc. Third Quarter 2022 Earnings Conference Call [Operator Instructions]. I would now like to turn the conference over to Scott McKinney, Deputy CFO. Please go ahead.

Good morning, and welcome to our third quarter 2022 earnings call. We are joined today by our Executive Chairman, Michael Barnes; CEO, Jonathan Ilany; and CFO, Sandra Bell. A copy of our earnings release and investor presentation are on our website, tiptreeinc.com. 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. During the call this morning, we will discuss non-GAAP financial measures, which are described in more detail in our 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'll turn the call over to Michael.

Thank you, Scott, and good morning to everyone. Before we dive into the quarter, I'm sure you've all seen the announcement that our CFO, Sandra Bell will be retiring at the end of March next year. Along with the rest of the Board, I want to personally thank Sandra for her leadership and contributions to Tiptree over the past several years. Sandra has been an integral part of our senior management team since joining us in 2015. She has built a top-notch finance organization that is well-positioned for the future. Taking over from Sandra will be Scott McKinney, our current Deputy CFO. Scott has been with us for many years, has a deep understanding of our businesses and is well-qualified and prepared to take on his new responsibilities. Both Jonathan and I, as well as the Board of Directors are excited to welcome Scott to his new role. Sandra and Scott have worked well together over many years and will ensure a smooth transition over the coming months. Moving to the quarter. I plan to give a brief update, and then we'll let Sandra walk through the financial highlights. When we set out our plans for 2022, we had several key objectives in mind: first, closing the investment in Fortegra with our new partner, Warburg Pincus. -- second, continue to execute on the growth plan at Fortegra, including looking at ways to potentially accelerate the growth profile, all while maintaining the company's excellent underwriting track record. Third, generate solid returns on capital deployed within our businesses in Tiptree Capital. Burginkusan Fortegra closed in June. Fortegra is quickly putting the fresh capital to work with substantial growth in E&S premiums. We remain focused on growing both the specialty insurance and service contract businesses. While we expect most of the growth to…

Thank you, Michael. On Page 3 of the presentation, we highlight Tiptree's key financial metrics compared to the prior year period. For the quarter, net income was $14.2 million, driven primarily by the gain on the sale of the dry bulk vessels and improved performance in our insurance business. Excluding investment gains and losses, revenues were up 18% for the quarter, driven by growth in insurance operations and increases in shipping revenues. Adjusted net income for the quarter was $19.4 million, representing a 14.8% annualized adjusted return on average equity. Contributions from our shipping and insurance businesses were more than offset by the year-over-year decline in our mortgage business. Book value per share of $10.68 decreased by 0.3% compared to the prior quarter and 4.7% over the prior year as a result of unrealized losses on our fixed income security driven by the higher rate environment and the strengthening U.S. dollar. This was in part offset by the closing of the investment in Fortegra in the second quarter. The transaction with Warburg Pincus resulted in a $63 million pretax gain to Tiptree's equity, which was partially offset by $38 million of tax expense related to the tax deconsolidation of Fortegra. As a reminder, this deferred tax liability is only due if and when we decide to sell any of our Fortegra shares. Turning to Page 5. We highlight Fortegra's results for the quarter. where we continue to see strong momentum. For the third quarter, the business produced record quarterly premiums and equivalents of $761 million, which was up 29% year-over-year driven by growth in excess and surplus and warranty lines. deferred revenues and unearned premiums, which represent future earnings potential, stood at $2 billion, up 26% year-over-year. The combined ratio remained stable at 91.5%. Operating efficiencies contributed to an improved…

Thanks, Sandra. While markets have been volatile, we are pleased with the operating performance of our businesses this year. Fortegra continues to post record premiums and deliver attractive returns. The pipeline of new opportunities remains robust and specialty market conditions remain favorable. For the past several years, the contributions from the investment portfolio have been modest given the short duration and low-interest rate environment. As we look forward, we see significant opportunities to create value from a combination of underwriting income and fees as well as investment profitability. And finally, we remain focused on deploying capital with the objective of long-term shareholder value appreciation. With that, we will open the line for questions.

Thank you. And thanks, everyone, for joining us today. If you have any questions, please feel free to reach out to me directly. And this concludes our conference call this morning. Thank you.