Tiptree Inc. · NASDAQ:TIPT
Tiptree — 14th Annual Southwest IDEAS Investor Conference 2022
23 slides from Tiptree's conference presentation, Nov 16, 2022
Slide 1: Southwest IDEAS Conference
Southwest IDEAS Conference November 2022
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 Financials Investment U.S. Underwriting U.S Approach Warranty Europe Insurance Real Solutions Assets Think Like Patient Capital Owners Partner (33% insider ownership1) Capital allocation and investment management 1◼ Lon
Slide 4: LTM Operating Performance
LTM Operating Performance ($ in millions) Q3’22 Capital Allocation & Annual Performance Comparison Shareholder Total Return (as of September 30, 2022) Russell S&P Stockholders’ Tiptree Equity1 Adjusted Net Income2 2000 500 Q3’21 Q3’22 1 Year 9.0% (23.5)% (15.5)% Q3’22 Business Lines LTM LTM 3 Year 1
Slide 5: Financial Snapshot
Financial Snapshot ($ in millions) LTM Adjusted Net Income1 Sum of the Parts Pro-forma Value/TIPT SOTP Value diluted share4 $748 million2 $19.98 (Transaction multiple) $63.2 $65.7 $240 million3 $6.41 (Book value ex. NCI) Q3'21 Q3'22 Adj ROAE% 16.5% 14.3% $988 million $26.39 1) See the appendix for a
Slide 6: Specialty Insurance Overview
01 Specialty Insurance Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, specialty insurer that focuses 91% 26% $314mm on niche insurance & capital-light fee business. 5-year Average Q3’22 LTM Q3’22 GAAP Combined Ratio Adjusted ROAE Equity ✓ Combine underwriting and fee revenues to generate consistent 95% 25 years
Slide 8: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Revenue Mix Earned Premiums, ✓ Diversified product mix with emphasis on small premium- Net per-risk ecosystems & minimal catastrophic exposure 71% ✓ Products & services distributed through independent & Service & Adm
Slide 9: Distribution Strategy
Distribution Strategy Distribution Channels Our Approach INSURANCE WARRANTY ✓ We value a diverse set of agents & distribution partners Agents/Brokers Agents MGUs Retailers & Dealerships ✓ Actively avoid concentration risk Retail Agents Third-party Administrators ✓ We cross-sell multiple products to
Slide 10: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees $1,196 $80 Other Income(1) 43 $986 $67 40 288 261 $703 $628 38 $43 $556 23 $490 106 187 26 $31 $33 23 102 95 786 $26 686 499 478 428 372 2017 2018 2019
Slide 11: Investment Portfolio
Investment Portfolio ($ in millions) Asset Allocation Other investments $1,113 Fixed Income & Cash Other Alternatives 97 Equities 7% 2% Muni & ABS Cash & Equivalents $832 6% 34% Fixed Income ETFs 149 5% $1,113mm Corporate Bonds 1,017 14% 683 Government & Agency 32% Liquid and Highly-Rated Fixed Inco
Slide 12: Compelling Growth Story
Compelling Growth Story Maintain & expand existing business lines 1 Comprehensive offering in growth markets ◼ $2.0Bn UEP & Deferred Revenue ◼ Continued E&S market tailwinds – Total market estimated at $70Bn1 ◼ Target smaller lines with $2-10mm annual volume ◼ Ongoing European expansion Unearned Pre
Slide 13: The Fortegra Difference
The Fortegra Difference Fortegra is a specialty insurer. CONSISTENT CONSISTENT CONSISTENT Growth Profitability Risk Management We win new business because We combine underwriting & We maintain the business we of deep industry expertise & fee revenue to create win by expanding our agents’ breadth of
Slide 14: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 15: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation Real Assets ◼ Includes all of Tiptree’s non-insurance operations and investments Real 51% Assets 26% Financials ◼ Acquire or invest in diverse companies outside the insurance 74% Financials industry with our balance sheet capital 49
Slide 16: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Equity Capital Allocation Real Assets $205.7 Maritime transportation $182.2 2.6 $182.3 ◼ Investments in dry bulk and product tanker shipping sectors over 2018-2019 $166.0 11.0 Other 3.7 ◼ Completed exit of dry bulk investments in Q3’22 at 49% above book carrying
Slide 17: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Significant opportunities ahead to achieve value creation objectives at Fortegra ✓ Strategic partnership with Warburg Pincus is the first step toward our goal of demonstrating Fort
Slide 18: Appendix
Appendix 03 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 19: 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 20: Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin We define underwriting and fee revenues as total revenues from our Insurance segment ($ in thousands, except per share information) For the Year Ended Decem ber 31, excluding net investment income, net realized and unrealized gains (los
Slide 21: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Tw elve Ended Septem ber 30, 2022 Year Ended Decem ber 31, 2021 Year Ended Decem ber 31, 2020 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corporate Total Ins
Slide 22: 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 60.1 - - - Real Assets Re
Slide 23: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com
Tiptree — 14th Annual Southwest IDEAS Investor Conference 2022 on 6ix