Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q2 2020 Earnings Presentation
19 slides from Tiptree's earnings presentation, Aug 5, 2020
Slide 1: Investor Presentation - Second Quarter 2020
Exhibit 99.2 NASDAQ: TIPT Investor Presentation - Second Quarter 2020 August 2020 Financial information for the three and six months ended June 30, 2020
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: Overview & Financial Highlights
Overview & Financial Highlights
Slide 4: Overview YTD Financial Results
Overview YTD Financial Results Year-to-date 2020 highlights Revenue Overall þ $328.9 million Operating EBITDA of $38.0 million, up 50% driven by growth in insurance business and improved returns in Tiptree Capital þ (12.3)% vs. prior Cash and cash equivalents of $80.6 million as of June 30, 2020, of
Slide 5: Financial Results
Financial Results ($ in millions, except per share information) Consolidated financial metrics Key drivers Highlights: Q2'19 Q2'20 Q2'19 YTD Q2'20 YTD • YTD Revenues up 16.9%, excluding investment gains and losses, driven by Total Revenues $191.1 $199.2 $375.0 $328.9 improvement in Insurance top-lin
Slide 6: KPIs - Underlying Operations Remain Resilient
KPIs - Underlying Operations Remain Resilient ($ in millions, except per share information) 2 Tiptree Operating EBITDA1 Insurance Premiums & Equivalents 1H'20 up 1H'20 up $390 50% over $372 $362 25 23% over PY, 33 PY $310 $315 26 49 9% ex. $21.0 $22.2 $295 44 34 $304 Services/other 11 15 acquisition
Slide 7: Operating Performance and Capital Allocation
1H'20 up 50% over PY 45% (ex. Operating Performance acquisition) ($ in millions, except per share information) Q2'20 Capital Allocation & Annual Performance Comparison Q2'20 Last Twelve Month Highlights Tiptree Total 1 Operating EBITDA of $76.3m, up 35.5% from Q2 2019 Equity Capital1,2 Operating EBI
Slide 8: Tiptree Insurance
Tiptreelnsurance
Slide 9: Tiptree Insurance - Financial Performance Highlights
Tiptree Insurance - Financial Performance Highlights ($ in millions) Financial metrics Q2'20 Highlights & Outlook Q2'19 Q2'20 1 Continuing to expand through product offerings and onboarding new clients, Q2'19 Q2'20 YTD YTD with a focus on growth and stable profitability Gross Written Premiums $262.6
Slide 10: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) $545.7 Investment approach 118.8.2 $488.7 28.4 Other investments We manage our investment portfolio to achieve a balance of: 79.02 42.1 55.9 6.8 Real Estate • Short-term liquidity to cover claims obligations $410.1 47.8 17.0 23.5 14.6 Equities • Enhance
Slide 11: Tiptree Capital
TiptreeCapital
Slide 12: Tiptree Capital - Financial Performance Highlights
Tiptree Capital - Financial Performance Highlights ($ in millions) Invested Capital1 Q2'20 Highlights & Outlook Seniors Housing (Invesque): $177.5 • $58.4m of negative marks on common shares relating to COVID-19 $163.7 28.3 drove the YTD pre-tax loss $146.1 38.6 Specialty finance & • Recently announ
Slide 13: Summary & Outlook
Summary & Outlook ($ in millions) Operating EBITDA1 Q2'20 year-to-date highlights $38.0 ü Year-to-date returns negatively impacted by mark-to-market losses from broader market conditions, primarily senior housing $25.3 ü Resilient underlying operational performance in first half 2020 ü Continued exe
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating EBITDA Management uses Operating EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA provides supplemental information useful to investors as it is frequently used by
Slide 16: Non-GAAP Reconciliations - Operating EBITDA
Non-GAAP Reconciliations - Operating EBITDA ($ in millions) Three Months Ended June 30, Six Months Ended June 30, (1) Corporate debt interest expense includes interest expense from secured corporate credit agreements, junior subordinated notes and preferred trust securities. Interest 2020 2019 2020
Slide 17: Non-GAAP Reconciliations - Operating EBITDA
Non-GAAP Reconciliations - Operating EBITDA Trailing Twelve Months Ended June 30, 2020 Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (1) Corporate debt interest expense includes Specialty Tiptree Corporate Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) In
Slide 18: Non-GAAP Reconciliations - BVPS, Invested & Total Capital, Insurance Investment Portfolio
Non-GAAP Reconciliations - BVPS, Invested & Total Capital, Insurance Investment Portfolio ($ in millions, except per share information) As of June 30, Management uses Book value per share, which is a non-GAAP financial measure. Management believes the use of this financial measure 2020 2019 provides
Slide 19: Non-GAAP Reconciliations - Insurance Combined Ratio, Underwriting Revenues & Margin
Non-GAAP Reconciliations - Insurance Combined Ratio, Underwriting Revenues & Margin ($ in millions) Three Months Ended June 30, Six Months Ended June 30, The following table provides a reconciliation between underwriting margin and pre-tax income. We Revenues: 2020 2019 2020 2019 generally limit the