Tiptree Inc. · NASDAQ:TIPT
Tiptree — FY2018 Earnings Presentation
20 slides from Tiptree's earnings presentation, Mar 13, 2019
Slide 1: Investor Presentation - 2018
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - 2018 March 2019 Financial information for year ended December 31, 2018
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 Results: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: Overview: 2018 Financials
OVERVIEW 2018 Financials 2018 performance objectives Revenue Grow insurance business while maintaining strong underwriting performance þ Gross written premiums of $868.1m, up 13.0%, with net written premiums of $466.8m, million $625.8 up 11.7%, driven by growth in credit and other specialty products
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers 2017 2018 V% Highlights: Total Revenues $ 581.8 $ 625.8 7.6 % • Pre-tax gain of $57.5 million from sale of Care Net income (loss) before NCI $ 5.2 $ 29.9 475.0 % • Growth in insurance underwrit
Slide 6: Capital Allocation
CAPITAL ALLOCATION ($ in millions, except per share information) Tiptree 1 Total Operating Equity BVPS Capital1 EBITDA1 2018 Highlights Business Lines 2018 2018 2018 2018 Operating EBITDA return on avg total capital of 8.4% • Specialty Insurance: 14.4% • Tiptree Capital: 8.0% Specialty Insurance2 $
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics 2018 highlights & outlook 2017 2018 Variance 1 Continuing to expand product offerings with a focus on Gross Written Premiums $ 768.3 $ 868.1 $ 99.8 growth in written premiums and stable profitability Revenue $ 479.0 $ 549.9 $ 70.9 •
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $463.2 180.5.0 We actively manage our investment portfolio to achieve a balance of: 29.4 Other $396.4 • Short-term liquidity to cover current claims obligations 15.4 $358.0 78.4 Real Estate 4.0 35.3 • Enhanced risk-adjusted re
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook • Continued reducing our exposure to credit markets which we $210.1 began in 2017 36.7 $182.0 $161.8 27.1 Specialty finance • Increased our exposure to real assets with $50 million & Other 37.3 deployed
Slide 12: Outlook
OUTLOOK ($ in millions) 2018 Highlights Book value per share1 ü 2018 total shareholder return of 9.6%2, including $19.2 million returned through buy-backs and dividends $9.97 $10.79 ü Continued execution on our growth initiatives in our insurance operations ü Re-positioned investments within Tiptree
Slide 13: Appendix
APPENDIX
Slide 14: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: EBITDA, Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - EBITDA, ADJUSTED & OPERATING EBITDA ($ in thousands) Year Ended December 31, 2018 2017 2016 Net income (loss) attributable to Common Stockholders $ 23,933 $ 3,604 $ 25,320 Add: net (loss) income attributable to noncontrolling interests 5,950 1,630 7,018 Less: net income fr
Slide 16: Adjusted and Operating EBITDA 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Year Ended December 31, 2018 Specialty Tiptree Corporate ($ in thousands) Insurance Capital (1) Expenses Total Pre-tax income/(loss) from continuing ops $ 18,560 $ (7,805) $ (30,551) $ (19,796) Pre-tax income/(loss) from discontinued ops — 57,
Slide 17: Adjusted and Operating EBITDA 2016
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Year Ended December 31, 2016 Specialty Tiptree Corporate ($ in thousands) Insurance Capital (1) Expenses Total Pre-tax income/(loss) from continuing ops $ 46,804 $ 37,142 $ (34,806) $ 49,140 Pre-tax income/(loss) from discontinued ops — (5,824
Slide 18: BVPS, Invested and Total Capital
NON-GAAP RECONCILIATIONS - BVPS, INVESTED AND TOTAL CAPITAL Management uses Book value per share, which is a non-GAAP financial measure. Prior to April 10, 2018, book value per share assumes full exchange of the limited partners units of TFP for Common Stock. Management believes the use of this fina
Slide 19: Specialty Insurance: Underwriting Margin Reconciliation
NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table provides a reconciliation between 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 agre
Slide 20: Specialty Insurance: Investment Portfolio
NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The investment portfolio consists of assets contributed by Tiptree, cash generated from operations, and from insurance premiums written. The investment portfolio of our regulated insurance companies, captive reinsurance company and warranty business are