Tiptree Inc. · NASDAQ:TIPT
Tiptree — 11th Annual East Coast IDEAS Investor Conference (June 2021)
23 slides from Tiptree's conference presentation, June 2021
Slide 1: East Coast IDEAS Conference
East Coast IDEAS Conference June 2021
Slide 2: Disclaimers
Disclaimers LIMITATIONS ON THE USE OF INFORMATION This presentation has been prepared by Tiptree Inc. and its consolidated subsidiaries (“Tiptree", "the Company" or "we”) solely for informational purposes, and not for the purpose of updating any information or forecast with respect to Tiptree, its s
Slide 3: Tiptree Overview
Tiptree Overview ($ in millions) Our Approach Value Focus on Oriented Profitable Financials Investment U.S. Europe Underwriting U.S Approach Warranty Warranty Insurance Real Solutions Solutions Assets Think Like Patient Capital Owners Partner (33% insider ownership1) Capital allocation and investmen
Slide 4: Positioned for Continued Growth
Positioned for Continued Growth ($ in millions) Q1’21 Capital Allocation & Annual Performance Comparison Q1’21 Last Twelve Month Highlights Stockholders’ Equity1 Adjusted Net Income2 Adjusted net income of $57.7m, up 95.3% from Q1’20 Q1’20 Q1’21 • Adjusted return on average equity of 15.6%1 Q1’21 Bu
Slide 5: KPIs ― Continued Growth in Underlying Operations
KPIs ― Continued Growth in Underlying Operations ($ in millions) Consolidated Adjusted Net Income1 Insurance Gross Written Premiums & Equivalents2 U.S. Insurance U.S. Warranty Solutions $505 ‘21 v ‘20 Quarterly Europe Warranty Solutions 16 $392 151 29% growth $13.2 13 Tiptree Capital 28% organic $0.
Slide 6: Insurance Company Overview
01 Insurance Company Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) Established, growing, vertically integrated specialty 91% 17% $274mm insurer that focuses on niche insurance & capital-light fee 5-year Average Q1’21 LTM Q1’21 GAAP business. Combined Ratio Adjusted ROAE Equity Unique & diverse combination of underwriting and fee 95
Slide 8: Diverse Portfolio of Insurance & Fee-Generating Services
Diverse Portfolio of Insurance & Fee-Generating Services Key Highlights Line of Business Diversified product mix with emphasis on small premium-per-risk U.S. Insurance ecosystems & short-tail liabilities 65% U.S. Warranty Solutions Products & services distributed through independent & retail 32% age
Slide 9: Distribution Strategy
Distribution Strategy Distribution Channels Our Approach INSURANCE WARRANTY We value a diverse set of agents & program partners Agents/Brokers Agents MGUs Retailers & Dealerships Actively avoid concentration risk Retail Agents Third-party Administrators We cross-sell multiple products to our custome
Slide 10: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net $47 Service & Administrative Fees $739 Other Income(1) $703 ‘21 v ‘17 $43 ‘21 v ‘17 34 38 $628 13% CAGR 21% CAGR 23 201 $556 11% organic $33 18% organic 187 $32 26 106 CAGR CAGR $49
Slide 11: Track Record of Consistent & Profitable Growth
Track Record of Consistent & Profitable Growth Track Record of Growth Profitable Underwriting Gross Written Premiums & Premium Equivalents Annual Growth Rate Combined Ratio vs. Peers 96% 93% 92% 92% 93% 92% 20% CAGR 29% 2017-2020 13% 2017 2018 2019 2020 '17-'20 '17-'20 Small Cap Large Cap 13% 13% Pe
Slide 12: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) Q1’21 Investment Mix Other investments $723 Fixed Income & Cash Other Alternatives Cash & Equivalents 17% 10% $588 167 Equities 6% 89 Government & $723m Agency Muni & ABS 29% 12% 499 556 Fixed Income ETFs Corporate Bonds 9% 17% Liquid and Highly-Rated F
Slide 13: Compelling Growth Story
Compelling Growth Story A Maintain & Expand Existing Programs B New & Renewal Programs Addressable Market ◼ $1.3Bn UEP & Deferred Revenue ◼ ~95% persistency with insurance agents ◼ Excess & Surplus Insurance $56bn¹ ◼ Recent acquisitions to accelerate growth — Fortegra Specialty formed Q4’20 Unearned
Slide 14: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 15: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation ◼ Includes all of Tiptree’s non-insurance operations and investments Real Real Assets Assets 26% Financials 60% Financials ◼ Acquire or invest in diverse companies outside the insurance 74% 40% industry with our balance sheet capita
Slide 16: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Tiptree Capital Equity Real Assets Senior living - Invesque publicly traded shares2 $191.5 ◼ 17.0m shares of Invesque, a seniors housing focused investment $184.5 platform, received in Feb’18 from our sale of Care 3.8 5.5 $156.6 39.7 Other 3.2 97.5 44.3 Seniors
Slide 17: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Grow insurance business ✓ Grow written premiums while maintaining underwriting standards $57.7 $51.4 ✓ Successfully launch and grow specialty E&S lines $27.6 $21.4 $22.3 ✓ Continue
Slide 18: Appendix
Appendix 03 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income We define adjusted net income as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related exp
Slide 20: Non-GAAP Reconciliations – Underwriting and Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting and Fee Revenues & Margin ($ in thousands) For the Year Ended December 31, We define underwriting and fee revenues as total revenues from our Insurance segment excluding net investment income, net realized and unrealized gains (losses). Underwriting and Q1’21
Slide 21: Non-GAAP Reconciliations – Adjusted Net Income and Adjusted ROAE
Non-GAAP Reconciliations – Adjusted Net Income and Adjusted ROAE ($ in thousands) Trailing Twelve Months Ended March 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Co
Slide 22: Tiptree Capital – Realized Investment IRR%
Tiptree Capital – Realized Investment IRR% ($ in millions) Invested Realized 1 Category Investments Capital Investment MOIC IRR % Financials Realized: MFCA, Telos, PFG, Siena, CLO sub-notes, hedges $ 305.0 $ 598.0 2.0x 25.6% Unrealized: Reliance, Luxury, credit investment 76.1 - - - Real Assets Real
Slide 23: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com
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