Slide 1: Investor Presentation – Third Quarter 2020
Investor Presentation – Third Quarter 2020 November 2020 Financial Information for the three and nine months ended September 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: Q3'20 Highlights
Q3’20 Highlights ($ in millions, except per share information) Overall Revenue $224.0 million Operating EBITDA of $31.9 million, up substantially driven by growth in insurance and mortgage operations 18.4% vs. prior year Quarterly total return of 4.3% driven by strong underlying operations; Year
Slide 5: Financial Results
Financial Results ($ in millions, except per share information) Q3'19 Q3'20 Q3'19 Q3'20 YTD YTD Key Highlights: Total Revenues $189.2 $224.0 $564.2 $552.9 YTD revenues up 16.9% (excluding investment gains and losses), driven by: Net income (loss) b/f NCI $(0.9) $14.7 $15.6 $(41.4) • Stable growth in
Slide 6: KPIs - Underlying Operations Remain Resilient
KPIs - Underlying Operations Remain Resilient ($ in millions) Tiptree Operating EBITDA1 Insurance Premiums & Equivalents2 Q3'20 up 25% Q3'20 YTD up 26% over PY, 7% $465 over PY, 10% ex. $1,176 ex. acquisition acquisition Quarterly Year-to-date 30 93 $372 82 $937 188 33 $787 61 $69.9 $295 44 104 Up 8
Slide 7: Operating Performance
Operating Performance ($ in millions) Q3'20 Capital Allocation & Annual Performance Comparison Q3'20 Last Twelve Month Highlights Tiptree Invested Equity Capital1,2 Operating EBITDA1 Operating EBITDA of $90.8m, up 53.4% from Q3 2019 Q3'19 Q3'20 • Return on average invested capital (ROAIC%) of 16.5%3
Slide 8: Insurance Highlights
A” FORTEGRA Insurance Highlights
Slide 9: Insurance – Financial Performance Highlights
Insurance – Financial Performance Highlights ($ in millions) Summary Financials1 Q3’20 Highlights & Outlook Q3'19 Q3'20 Q3'19 Q3'20 YTD YTD 1 Continuing growth through insurance and warranty program expansion Premiums & equivalents $371.7 $464.6 $936.7 $1,175.6 and onboarding new clients, with a foc
Slide 10: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) $611 Fixed Income Diversification 22 28 Other Fixed Income ETFs - $514 29 5 BBB and below - 1% 11% Cash & Equivalents - 27 Equities 19% $438 30 101 17 29 Corporate Bonds 2 A - 12% 33 99 56 • $527 million, AA rating 3 • ~1.7 year duration 85 25 Loans $52
Slide 11: Tiptree Capital Performance Highlights
_| TiptreeCapital Performance Highlights
Slide 12: Tiptree Capital – Financial Performance Highlights
Tiptree Capital – Financial Performance Highlights ($ in millions) Invested Capital1 Q3’20 Performance & Outlook1 $198.3 Seniors Housing (Invesque): $173.3 • Quarterly unrealized losses of $7.6m from negative share 29.4 price movement $148.9 35.7 • Invesque using excess liquidity from dividend suspe
Slide 13: Summary & Outlook
Summary & Outlook ($ in millions, except per share information) Q3’20 year-to-date highlights Operating EBITDA1 ✓ Resilient underlying operational performance in 2020 ✓ Continued execution on growth initiatives in our insurance operations $69.9 $42.6 ✓ Despite unrealized marks, capital and liquidity
Slide 14: Appendix: Non-GAAP Reconciliations
Non-GAAP Reconciliations • Operating EBITDA Appendix • • Book Value per share Invested and Total Capital • Insurance Underwriting Margin • Insurance Combined Ratio • Insurance Net Investments & Net Portfolio Income
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating EBITDA Management uses Operating EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA provides supplemental information useful to investors as it is frequently used by
Slide 16: Non-GAAP Reconciliations – Operating EBITDA
Non-GAAP Reconciliations – Operating EBITDA ($ in millions) Three Months Ended September30, Nine Months Ended September 30, 2020 2019 2020 2019 (1) Corporate debt interest expense includes interest expense from secured corporate Net income (loss) attributable to common stockholders $ 12.8 $ (1.5) $
Slide 17: Non-GAAP Reconciliations – Operating EBITDA
Non-GAAP Reconciliations – Operating EBITDA Trailing Twelve Months Ended September 30, 2020 Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Specialty Tiptree Corporate Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital Expenses Total
Slide 18: Non-GAAP Reconciliations – BVPS, Invested & Total Capital, Investment Portfolio
Non-GAAP Reconciliations – BVPS, Invested & Total Capital, Investment Portfolio ($ in millions, except per share information) As of September 30, 2020 2019 Management uses Book value per share, which is a non-GAAP financial measure. Management believes the use of this financial Total stockholders’ e
Slide 19: Non-GAAP Reconciliations – Combined Ratio, Underwriting Revenues & Margin
Non-GAAP Reconciliations – Combined Ratio, Underwriting Revenues & Margin ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, The following table provides a reconciliation between underwriting margin and pre-tax income. Revenues: 2020 2019 2020 2019 We generally limit th
Slide 20: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com