Tiptree Inc. · NASDAQ:TIPT
Tiptree — Investor Presentation (November 2023)
22 slides from Tiptree's investor presentation, November 2023
Slide 1: Company Overview
Company Overview November 2023
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 Investment Underwriting Approach Specialty Fee-based Financials, Insurance Services Real Assets Think Like Patient Capital Owners Partner (33% insider ownership1) Capital allocation and investment management 1◼ Long-ter
Slide 4: LTM Operating Performance
LTM Operating Performance ($ in millions) Q3’23 Capital Allocation & Annual Performance Comparison Shareholder Total Return (as of September 30, 2023) Russell S&P Stockholders’ Tiptree Equity1 Adjusted Net Income2 2000 500 Q3’22 Q3’23 1 Year 57.5% 9.0% 21.6% Q3’23 Business Lines LTM LTM 3 Year 52.4%
Slide 5: 2023 Financial Results
2023 Financial Results ($ in millions, except per share information) Q3’22 Q3’23 Key Highlights – Q3’23 Q3'22 Q3'23 YTD YTD Total Revenues $363.5 $416.5 $1,028.2 $1,202.7 Revenues up 19%, excluding the impact of investment gains/losses Net income (loss) $14.2 $2.2 $(9.1) $7.1 • Growth in earned prem
Slide 6: Specialty Insurance Overview
01 Specialty Insurance Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, specialty insurer that focuses 91% 30% $392mm on niche insurance & capital-light fee business. 5-year Average Q3’23 LTM Q3’23 GAAP Combined Ratio Adjusted ROAE Equity ✓ Long standing track record of disciplined and stable underwriting 95%+ 25
Slide 8: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Lines of Business ✓ Diversified and complementary business mix focused on Q3’23 LTM underserved specialty insurance markets GWPPE(1) E&S $3.2Bn Insurance ✓ Agent-centric distribution model leveraging independent & 24
Slide 9: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees $1,513 $107 Other Income(1) 66 $1,269 44 378 $84 $986 321 $67 40 $703 261 $628 38 $43 $556 23 $490 26 106 187 1,069 $31 $33 23 95 102 905 $26 686 499 4
Slide 10: Investment Portfolio
Investment Portfolio ($ in millions) Asset Allocation Book yield 2.0% 3.2% Other Alternatives Equities 8% $1,239 2% Muni & ABS Cash & Equivalents 6% 36% $1,113 112 97 Corporate Bonds $1,239mm 14% Other investments Fixed Income, Government & Cash and equivalents Agency 34% 1,127 Liquid and Highly-Rat
Slide 11: Compelling Growth Story
Compelling Growth Story Maintain & expand existing business lines 1 Comprehensive offering in growth markets ◼ $2.3Bn UEP & Deferred Revenue ◼ Continued E&S market tailwinds – Total market estimated at $98Bn1 ◼ Target smaller lines with $2-10mm annual volume ◼ Growth in MGA, delegated underwriting a
Slide 12: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 13: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation ◼ Includes Tiptree’s non-insurance operations and investments Real Assets Cash & Gov't Real 26% Securities Assets Financials 48% 8% ◼ Acquire or invest in diverse companies outside the insurance 74% industry with our balance sheet c
Slide 14: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Equity Capital Allocation Key highlights $205.7 $182.2 2.6 $185.9 Mortgage $182.3 $166.0 11.0 ◼ Residential mortgage origination company licensed to sell and service with 94.1 3.7 29.1 Cash and U.S. Fannie/Freddie/Ginnie 26.0 $129.6 88.7 Government Securities 10
Slide 15: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Significant opportunities ahead to achieve value creation objectives at Fortegra Continue to focus on long-term shareholder value creation ✓ Invest in existing subsidiaries $79.7
Slide 16: Appendix
Appendix 03 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income We define adjusted net income as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related exp
Slide 18: Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin ($ in thousands, except per share information) Three Months Ended Septem ber 30, Nine Months Ended Septem ber 30, 2023 2022 2023 2022 Total Revenues $ 406,779 $ 327,028 $ 1,159,900 $ 903,388 Less: Net investment income (5,416) (3,632) (
Slide 19: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Tw elve Months ended Septem ber, 2023 Year Ended Decem ber 31, 2022 Year Ended Decem ber 31, 2021 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corporate Total
Slide 20: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income Year Ended Decem ber 31, 2020 Year Ended Decem ber 31, 2019 Tiptree Capital Tiptree Capital The footnotes below correspond to the tables above, under “—Adjusted Net Income - Non-GAAP and “— Insurance Mortgage Other Corporate Total Insurance Mortgage Oth
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, Luxury $ 310.1 $ 604.3 1.9x 25.3% Unrealized: Reliance, credit investment 161.5 - - - Real Assets R
Slide 22: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com