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GREENWICH, Conn. - Tiptree Inc. (NASDAQ:TIPT) announced plans to divest two key business units in separate transactions worth approximately $1.7 billion, according to a press release issued Friday. The company, currently trading at $17.58 and with a market cap of $659.25 million, appears undervalued according to InvestingPro analysis.
The investment company has agreed to sell its insurance business, Fortegra, for $1.65 billion, with Tiptree expecting to receive approximately $1.12 billion in gross proceeds. The transaction, announced on September 26, is pending regulatory approvals with an anticipated closing in mid-2026.
Additionally, Tiptree revealed it has reached an agreement to sell its mortgage business, Reliance First Capital, for 93.5% of tangible book value, representing estimated gross proceeds of $51 million as of September 30. This transaction is expected to close in the first quarter of 2026.
Following both divestitures, Tiptree estimates its pro-forma book value will be approximately $930 million, after accounting for taxes and transaction expenses.
For the third quarter ended September 30, Tiptree reported revenues of $540.3 million, up 9.3% from the same period last year. However, net income attributable to common stockholders decreased to $6.4 million from $11.9 million in the prior-year quarter, primarily due to deal-related expenses and an increase in the Fortegra Additional Warrant liability.
On an adjusted basis, which excludes certain one-time expenses and non-cash items, the company reported net income of $28.8 million for the quarter, representing a 3.2% increase from the third quarter of 2024.
The company also declared a dividend of $0.06 per share payable on November 24 to stockholders of record as of November 17.
Tiptree's announcement was based on information contained in its quarterly financial results press release.
In other recent news, DB Insurance Co., Ltd. has announced its agreement to acquire The Fortegra Group, Inc., a U.S.-based specialty insurer, for approximately $1.65 billion in cash. This acquisition will be funded with internal resources from DB Insurance. The transaction represents the largest U.S. market entry by a Korean non-life insurer. The deal is expected to close in mid-2026, pending approval from Tiptree stockholders and regulatory authorities. This move marks a significant expansion effort by DB Insurance into the U.S. market. The acquisition is part of a strategic initiative to broaden their international footprint. These recent developments highlight DB Insurance's commitment to growth and diversification.
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