Tiptree Inc. · NASDAQ:TIPT
Tiptree — Investor Presentation (June 2017)
21 slides from Tiptree's investor presentation, Jun 6, 2017
Slide 1: Company Overview June 2017
COMPANY OVERVIEW June 2017 NASDAQ: TIPT
Slide 2: Disclaimers
DISCLAIMERS 1 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
Slide 3: Our Strategy
rofitable Insurer OUR STRATEGY 2 • Specialty focus - leader in credit insurance, with growing presence in warranty and other niche product lines • Consistent profitability - focus on short-tail, low volatility risks • Significant fee-based revenues - established technology platform and experience ha
Slide 4: Tiptree Today
TIPTREE TODAY 3 • $370 million in book value, $10.15 per share1 • $523 million book enterprise value2 • $1,043 million in unrestricted cash and total investments • $752 million total debt, $196 million corporate debt3 • Credit, warranty & program underwriter & administrator • $691 million gross writ
Slide 5: Evolution of Tiptree
• Listed on NASDAQ in 2013 • Acquired Fortegra Financial in 2014 • Enhanced management team with key hires • Made additional investments in our public company infrastructure • Re-oriented strategy to drive future growth • Strengthened Fortegra capital position resulting in A.M. Best upgrade to “A-”
Slide 6: Growing Value for Shareholders
GROWING VALUE FOR SHAREHOLDERS 5 ($ in millions, except per share information) 1 Tiptree BVPS plus dividends paid, see the appendix for a reconciliation of book value per share as exchanged. 2 Total annualized return from June 12, 2007 to December 2016 to original investors of Tiptree Financial Part
Slide 7: Closing the Valuation Gap
CLOSING THE VALUATION GAP 6 • Differentiated business model sets us apart from many of our insurance peers • Trading at ~30% discount to BVPS • 40-50% discount to specialty P&C insurance industry financial metrics4 Discounted ValuationBook vs. Market Value 1 See the appendix for a reconciliation of
Slide 8: Our Business
7 OUR BUSINESS
Slide 9: Specialty Insurance
SPECIALTY INSURANCE 8 Highlights • Leading underwriter and administrator of credit insurance and asset protection products and services • Nationwide presence and growing international footprint • “A-” financial strength rating from A.M. Best • 16% gross written premium CAGR from 2014-2016 • Adjusted
Slide 10: Insurance Investment Portfolio
INSURANCE INVESTMENT PORTFOLIO 9 Net Investments1 171 185 146 153 11 14 26 22 - 60 104 97 4 49 47 2 24 24 4 4 4 4 $186 $269 $352 $347 2014 2015 2016 1Q'17 Other - 1% Real Estate - 7% Equities - 14% Loans - 28% Cash - 6% Available for Sale Securities - 44% $0.0 $1.6 $10.0 $5.3 Unrealized gains (losse
Slide 11: Tiptree Balance Sheet & Third Party Capital Investments
TIPTREE BALANCE SHEET & THIRD PARTY CAPITAL INVESTMENTS 10 • We specialize in managing credit related assets on behalf of institutional investors • Expanding into other strategies and products • Tiptree holds investments in the subordinated notes of select CLOs we manage • Real estate investments fo
Slide 12: Tiptree Balance Sheet & Third Party Capital Performance
TIPTREE BALANCE SHEET & THIRD PARTY CAPITAL PERFORMANCE 11 Credit Senior Living Specialty Finance • Corporate credit investments via structured vehicles (CLOs and funds) • Strong track record of underlying loan performance provides for stable management fees and cash distributions • Earnings volatil
Slide 13: Looking Ahead
LOOKING AHEAD 12 1 See the appendix for a reconciliation of Book value per share, as exchanged and Adjusted EBITDA. Book value per share1 as exchanged plus dividends paid Adjusted EBITDA (1) $58.9 $58.4 $78.9 $75.4 2014 2015 2016 TTM 1 4 $9.00 $8.90 $10.14 $10.15 $1.75 $1.85 $1.95 $1.95 2014 2015 20
Slide 14: Appendix
APPENDIX 13
Slide 15: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 14 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that use of these financial measures on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used by the f
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 15 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA and Adjusted EBITDA on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used
Slide 17: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 16 Management uses Book value per share, as exchanged, which is a non-GAAP financial measure. As exchanged assumes full exchange of the limited partners units of TFP for Tiptree Class A common stock. Management believes the use of this financial measure provides supplemental
Slide 18: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 17 The following table provides a reconciliation between as adjusted underwriting margin and pre-tax income. We generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective commission agreements
Slide 19: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 18 The following table presents product specific revenue and expenses within the specialty insurance segment. We generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective commission agreements
Slide 20: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 19 The Company earns revenues from CLOs under management, whether consolidated or deconsolidated, which include fees earned for managing the CLOs, distributions received from the Company’s holdings of subordinated notes issued by the CLOs and realized and unrealized gains an
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