Tiptree Inc. · NASDAQ:TIPT
Tiptree — 15th Annual MIDWEST IDEAS Conference 2024
24 slides from Tiptree's conference presentation, Aug 28, 2024
Slide 1: Company Overview
Company Overview August 2024
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 Growth 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-term focu
Slide 4: 17 Years of Value Creation
17 Years of Value Creation ($ in millions) Tiptree formed as a permanent capital Tiptree publicly vehicle (June 2007) listed on NASDAQ (TIPT) (July 2013) 2007 Shareholder Total Return (as of June 30, 2024) Strategy Russell S&P ◼ Experienced management team focused on insurance, asset Tiptree managem
Slide 5: Track Record of Realized IRRs in Excess of 20%
Track Record of Realized IRRs in Excess of 20% ($ in millions) Invested Realized Realized Current Capital Investments1 IRR%2 Insurance & $63 $150 23% Insurance Services Asset $176 $306 30% Management (including credit investments) + Cash and U.S. Government Securities Infrastructure & $408 $485 9% R
Slide 6: Continued Shareholder Value Creation
Continued Shareholder Value Creation ($ in millions) Adjusted Net Income1 Warburg LTM Transaction Peer Adj. NI Multiple Multiples $137 million1 13.5x2 10x – 32x6 $76.7 42% year-over-year 70% diluted (Median 17x) growth ownership3 $55.2 Book value $116 million4 100% ownership LTM Q2'23 LTM Q2'24 Adj
Slide 7: Specialty Insurance Overview
Specialty Insurance Overview
Slide 8: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, specialty insurer that focuses 91% 30% Q2’24 LTM $549mm on niche insurance & capital-light fee business. 5-year Average Adjusted Q2’24 GAAP Combined Ratio ROAE2 Equity 95%+ 25 years ✓ Long standing track record of disciplined and stable under
Slide 9: Underwriting & Fees Support Consistent & Sustainable Growth
Underwriting & Fees Support Consistent & Sustainable Growth Key Highlights Lines of Business ✓ Diversified and complementary business mix focused on Q2’24 LTM underserved specialty insurance markets GWPPE(1) $2.85Bn E&S ✓ Agent-centric distribution model leveraging independent & Insurance retail age
Slide 10: Highly Profitable and Growing
Highly Profitable and Growing ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees Other Income(1) $137 $1,839 78 $1,597 $116 73 422 $1,269 396 44 $84 $986 321 $67 40 $703 261 $628 $43 $556 38 1,338 $490 23 187 1,128 $33 26 106 $31
Slide 11: Growing Investment Portfolio with Increasing Yields
Growing Investment Portfolio with Increasing Yields ($ in millions) Asset Allocation Book yield 1.3% 2.7% 3.3% 4.1% Other Alternatives Equities $1,387 5% 5% $1,327 Muni & ABS Cash & Equivalents 128 5% 33% $1,154 136 97 $910 $1,387mm 144 Corporate Bonds 28% Other investments 1,191 1,258 Fixed Income
Slide 12: Growth Drivers
Growth Drivers ($ in millions) Maintain & expand existing business lines 1 Comprehensive offering in growth markets ◼ $2.4Bn unearned premiums & deferred revenues ◼ Continued E&S market tailwinds – Total market estimated at $115Bn1 ◼ Target smaller lines with $2-10mm annual volume ◼ Growth in MGA, d
Slide 13: Compelling Financial Profile
Compelling Financial Profile 5-year Avg Adjusted ROAE1 and GWPPE CAGR 5-year Avg Combined Ratio and Vol of Combined Ratio 45% KNSL 0% 40% TRV 1% Combined Ratio Standard Deviation HIG 35% SIGI 2% FFH WRB 30% 3% Median: 3.5% GBLI CNA THG RLI CB GWP CAGR 25% 4% EG MKL RNR ACGL CINF AFG 5% FIHL KNSL 20%
Slide 14: Financial Overview
TiptreeCapital Financial Overview
Slide 15: Tiptree Capital
Tiptree Capital ($ in millions) Capital Allocation Key highlights $182.3 $178.1 Mortgage 11.0 ◼ Residential mortgage origination company licensed to sell and service with 29.1 Fannie/Freddie/Ginnie $129.6 77.4 Cash and U.S. $116.5 ◼ Scalable, technology enabled platform generating ~$1B annual volume
Slide 16: Summary
Summary
Slide 17: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions) Adjusted Net Income¹ Significant opportunities ahead to achieve value creation objectives at Fortegra Continue to focus on long-term shareholder value ✓ Invest in existing subsidiaries $76.7 $61.6 $61.9 ✓ Seek new acquisition opp
Slide 18: Appendix
Operating Performance Tiptree - Realized Investment IRR% Appendix Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 19: Operating Performance
Operating Performance ($ in millions) Q2’24 Capital Allocation & Annual Performance Comparison Q2’24 LTM Highlights Stockholders’ Overall: Equity Adjusted Net Income1 • Adjusted NI of $76.7mm; 18.3% adj ROAE Q2’24 Q2’23 Q2’24 Business Lines LTM LTM • $40.0mm investment in Fortegra by existing shareh
Slide 20: Tiptree - Realized Investment IRR%
Tiptree - Realized Investment IRR% ($ in millions) Invested Realized Q2'24 (1) Category Investments Capital Investment MOIC IRR % Equity (2) Insurance Realized: Philadelphia Financial Group 62.9 150.2 2.4x 23.4% 367.6 Unrealized: Fortegra Asset Management Realized: Telos, Credit investments & hedges
Slide 21: 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 22: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Tw elve Months Ended June 30, 2024 Year Ended Decem ber 31, 2023 Tiptree Capital Tiptree Capital The footnotes below correspond to the tables above, under “—Adjusted Net Insurance Mortgage Other Corporate Total Insurance Mortga
Slide 23: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income Year Ended Decem ber 31, 2020 Year Ended Decem ber 31, 2019 The footnotes below correspond to the tables above, under “—Adjusted Tiptree Capital Tiptree Capital Net Income - Non-GAAP and “—Adjusted Return on Average Equity - Insurance Mortgage Other Cor
Slide 24: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com