Tiptree Inc. has agreed to sell all membership interests of its mortgage subsidiary, Reliance First Capital, LLC, to Carrington Holding Company. The purchase price is based on 93.5 % of Reliance’s tangible book value at closing, with adjustments for specified items, and is expected to generate gross proceeds of approximately $51 million.
The transaction is part of Tiptree’s strategy to concentrate on its specialty insurance operations, primarily Fortegra, and its investment portfolio. By divesting the mortgage arm, the company will reduce exposure to the residential mortgage market and free capital for higher‑return opportunities.
Tiptree reported Q3 2025 results that included the sale announcement. Total revenue for the quarter was $540.3 million, a 9.3 % year‑over‑year increase driven by Fortegra growth. Net income attributable to common shareholders fell to $6.4 million from $11.9 million in Q3 2024, largely due to deal‑related expenses, while adjusted net income rose.
Carrington’s acquisition adds a direct‑to‑consumer retail channel to its mortgage platform. Reliance originates roughly $1 billion in mortgages annually, services more than 16,000 customers, and holds $3 billion in unpaid principal balance. The purchase complements Carrington’s existing retail, wholesale, and correspondent mortgage businesses.
The deal is subject to customary closing conditions, including regulatory approvals, and has an outside termination date of April 30 2026. Piper Sandler & Co. served as the exclusive financial advisor to Reliance.
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