Greetings and welcome to the Tiptree Financial Incorporated Second Quarter 2016 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. It is now my pleasure to introduce your host, Ms. Sandra Bell, Chief Financial Officer of Tiptree. Thank you. You may begin.

Good morning. Welcome to our second quarter 2016 earnings call. I am joined today by our Executive Chairman, Michael Barnes. We have posted the earnings release and presentation on our website at tiptreefinancial.com. The presentation provides supplemental information to our prepared remarks, which we will refer to by page during the call. Our remarks today are qualified in their entirety by the disclaimers on page one of the presentation. Prior to turning the call over to Michael I just want to highlight a few of the key points. The presentation supplements our SEC filings and its provided solely for information purposes. Throughout the presentation there are 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 the securities laws, we undertake no obligation to update any forward-looking statements. We also use non-GAAP measures which we believe provide additional information useful to investors. As these measures are not GAAP, they should not be used as a substitute for our GAAP disclosures. The appendix provides a reconciliation of each of these non-GAAP measures to their GAAP equivalent. Having reviewed these disclaimers, let me turn the call over to Michael.

Thanks, Sandra. Good morning, everyone and thank you for joining us today. For the quarter, we continue to see positive trend across our businesses. On a consolidated basis, total revenues grew 32% year-over-year to $134 million, while contributing $7 million of net income and $17.4 million of adjusted EBITDA from continuing operation. Both of these operating metrics were up significantly versus comparable periods in 2015. We continue to execute against our strategic priorities. On Page 3 we summarize some of our key achievements for the second quarter. Fortegra continues to build positive momentum with another strong quarter. Insurance on warrantee net return premiums grew to $96 million for the first half, up 23% versus last year. Pretax income and adjusted EBITDA were $8.1 million and $11.4 million respectively, continuing the positive earnings trends from Q1. With A.M. Best upgrade with Fortegra’s CEO, Rick Kahlbaugh and his team expect to see steady growth through expanding product origination and adding client. In addition, we are focused on investing the excess premium flow to enhance the investment return. With our specialty finance segment, the mortgage business bounced back originating $432 million of volume up 30% over the first quarter. A stable housing market and low interest rate were key drivers for the increase as re-financings and the home selling season supported origination. Care, our senior housing business, contributed $15 million of revenues while expanding NOI margin as actions taken to improve property occupancy levels and stabilized cost are flowing through the bottom-line. The senior housing pipeline remains strong and we anticipate continued growth through new acquisitions and NOI improvements at existing properties. We recently closed our third managed property acquisition of the year on August 1, for $29 million. Our Telos asset management business continues to produce steady cash flow as we receive…

Thank you, Michael. As Michael mentioned our second quarter results were up across the Board with all our segment contributing. On a per share basis, earnings per Class A share both overall and from continuing operations was $0.17 per share. Earnings per Class A share from continuing operations were up $0.20 from the prior year while overall net income per Class A share decreased over the prior year due to $21 million or $0.50 per share of discontinued operations in the second quarter of 2015, of the amount, $16.3 million related to the gain on the sale of PFG. While total stockholder’s equity is down on absolute terms since yearend, primarily as a result of the block purchase that we executed the end of June, book value per Class A share grew $0.87 or 9.7% as a result of both earnings performance and the block purchase below book. Just a quick accounting note, the shares we bought back through the block purchase are held at subsidiary, but are treated as treasury shares under GAAP. These shares are being reserved for future uses, which range from potential acquisition currency to compensation. On Page 5, we've laid out the components of our first half 2016 operating performance, which mirrors the second quarter trend. In short, each of our segments were also up double-digits, the revenue, pre-tax income and adjusted EBITDA from continuing operations. In total, revenue has grown $75.5 million, pre-tax income from continuing operation was up $23.4 million and adjusted EBITDA from continuing operations increased by $20.8 million versus the first half of 2015. The high level themes are similar to the second quarter results, Fortegra's profits have increased driven by growth in written premiums, net revenues, investment income and margin expansion stemming from disciplined cost management. Our senior housing performance…

So to summarize Tiptree’s results for the quarter and the first half. We are pleased with our first half our performance given the significant improvement in all of our performance measures release the continuing operations versus the prior year. Our focus for our core business is to support growth of repeatable earning, and we are optimistic that we will continue to see growth in our core businesses through the remainder of this year. Our insurance sector was ahead of expectations and with the A.M. Best upgrade, we're optimistic that revenues will grow through increased product origination and returns on the investment pool. Our real sector made further acquisition to senior care facilities and continues to increase revenue in NOI. Our asset management sector is stable and in addition to CLOs, we're leveraging our strong performance and credit opportunities to assess the potential for raising additional capital in other fund vehicles for managed accounts. Our specialty finance sector had a strong second quarter. We are investing in the expansion of the existing business by increasing our loan officers which should yield improved production in the future. Our corporate and other sector pretax earnings were positive as the improved performance of our principal investment more than offset the growth at our company’s administrative expenses. And importantly for the second half of the year, we are focused on driving additional progress on this year's objective of exiting non-core underperforming asset we allocating that capital to existing core businesses and further building out our infrastructure. And now we're happy to take your question.

Thank you. The floor is now open for question [Operator Instructions]. Thank you. At this time I'd like to turn the floor back over to Ms. Bell for any closing comments.

Thank you, Donna. And thanks to everyone for joining us today. If you have any questions please feel free to reach out to me directly. We look forward to speaking with you again after the third quarter results are in. This concludes our conference call.

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