Tiptree Inc. · NASDAQ:TIPT
Tiptree — 12th Annual East Coast IDEAS Investor Conference 2022
22 slides from Tiptree's conference presentation, Jun 22, 2022
Slide 1: East Coast IDEAS Conference
East Coast IDEAS Conference June 2022
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 (32% insider ownership1) Capital allocation and investmen
Slide 4: Operating Performance
Operating Performance ($ in millions) Q1’22 Capital Allocation & Annual Performance Comparison Shareholder Total Return (as of December 31, 2021) Russell S&P Stockholders’ Tiptree Equity1 Adjusted Net Income2 2000 500 Q1’21 Q1’22 1 Year 178.7% 14.8% 28.7% Q1’22 Business Lines LTM LTM 3 Year 37.7% 20
Slide 5: Tiptree Snapshot
Tiptree Snapshot ($ in millions) Adjusted Net Income1 Tiptree Sum of the Parts Pro-forma Value/TIPT SOTP Value diluted share4 $739 million2 $20.01 (Transaction multiple) $66.2 $57.7 $167 million $4.52 (Book value ex. NCI) LTM LTM Q1'21 Q1'22 $54 million3 $1.46 Holding Company (Book value) Adj ROAE%
Slide 6: Specialty Insurance Overview
01 Specialty Insurance Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, vertically integrated specialty insurer 91% 26% $294mm that focuses on niche insurance & capital-light fee business. 5-year Average Q1’22 LTM Q1’22 GAAP Combined Ratio Adjusted ROAE Equity ✓ Unique & diverse combination of underwriting & fee
Slide 8: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Revenue Mix Earned Premiums, ✓ Diversified product mix with emphasis on small premium- Net per-risk ecosystems & minimal catastrophic exposure 70% Service & ✓ Products & services distributed through independent & Adm
Slide 9: Distribution Strategy
Distribution Strategy Distribution Channels Our Approach INSURANCE WARRANTY ✓ We value a diverse set of agents & program partners Agents/Brokers Agents MGUs Retailers & Dealerships ✓ Actively avoid concentration risk Retail Agents Third-party Administrators ✓ We cross-sell multiple products to our c
Slide 10: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees Other Income(1) $1,062 $75 $986 41 $67 40 274 261 $703 $628 38 $43 $556 23 $490 106 187 26 $33 23 102 $32 95 $26 747 686 499 478 428 372 2017 2018 2019
Slide 11: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) Q1’22 Investment Mix Other investments Fixed Income & Cash $892 Other Alternatives 8% Cash & Equivalents 125 Equities 16% $723 6% Muni & ABS 8% 167 Fixed Income ETFs $892mm 6% Government & Agency 767 38% Corporate Bonds 556 18% Liquid and Highly-Rated F
Slide 12: Compelling Growth Story
Compelling Growth Story A Maintain & Expand Existing Programs B New & Renewal Programs Addressable Fortegra LTM Market GWPPE ◼ $1.7Bn UEP & Deferred Revenue ◼ ~95% persistency with insurance agents ◼ Excess & Surplus Insurance $56bn¹ $128mm — Fortegra Specialty formed Q4’20 Unearned Premiums & Defer
Slide 13: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 14: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation ◼ Includes all of Tiptree’s non-insurance operations and investments Real Real Assets Assets 60% 26% Financials Financials ◼ Acquire or invest in diverse companies outside the insurance 74% 40% industry with our balance sheet capita
Slide 15: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Equity Capital Allocation Real Assets $205.7 Maritime transportation $182.2 2.6 $182.3 ◼ Investments in dry bulk and product tanker shipping sectors over $166.0 $171.1 Other 11.0 2018-2019, which we believe has favorable long-term economic 3.7 10.3 94.1 26.0 29.
Slide 16: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Strategic partnership with Warburg Pincus is the first step toward our goal of demonstrating Fortegra’s intrinsic value ✓ Expect continued growth and consistent profitability Con
Slide 17: Appendix
Appendix 03 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 18: 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 19: Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting & 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 Q1’22 LT
Slide 20: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Twelve Months Ended March 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corporate Total Insurance Mor
Slide 21: 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 67.8 - - - Real Assets Real
Slide 22: TiptreeInc.
TiptreeInc. ir@tiptreeinc.com
Tiptree — 12th Annual East Coast IDEAS Investor Conference 2022 on 6ix