Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q3 2019 Earnings Presentation
20 slides from Tiptree's earnings presentation, Nov 6, 2019
Slide 1: Investor Presentation - Third Quarter 2019
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - THIRD QUARTER 2019 November 2019 Financial information for the three and nine months ended September 30, 2019
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: Year-to-date Financials Key Highlights
OVERVIEW Year-to-date Financials Key highlights Revenue Specialty Insurance $564.2 million þ Year-to-date gross written premiums of $736.1m, up 18.8%, with net written premiums of 19.2% vs. prior year $434.8m, up 29.2%, driven by growth in credit protection and warranty programs þ Insurance investme
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers Highlights: Q3'18 Q3'19 Q3'18 Q3'19 YTD YTD • Continued, stable growth in insurance underwriting results Total Revenues $172.6 $189.2 $473.4 $564.2 • Consistent earnings from Invesque dividends
Slide 6: Capital Allocation
CAPITAL ALLOCATION ($ in millions, except per share information) Tiptree 1 Total Operating Q3'19 LTM Highlights Equity BVPS Capital1 EBITDA1 Operating EBITDA of $59.2 up 3.7% from Q3 2018 LTM Q3'19 • Return on average total capital of 8.8% Business Lines Q3'19 Q3'19 Q3'19 LTM • Specialty Insurance:
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q3'19 year-to-date highlights & outlook Q3'18 Q3'19 Q3'18 Q3'19 Continuing to expand product offerings with a focus on YTD YTD 1 growth in written premiums and stable profitability Gross Written Premiums $225.4 $275.1 $619.5 $736.1 R
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $513.7 23.0 We actively manage our investment portfolio to achieve a balance of: 4.3 30.3 Other $438.3 16.5 • Short-term liquidity to cover current claims obligations 17.2 11.6 Real Estate • Enhanced risk-adjusted returns thro
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook • Repositioned our asset management operations by selling our $193.6 $198.3 CLO management business $173.3 29.4 38.2 • Increased our exposure to real assets with $73.9 million 31.6 Specialty finance depl
Slide 12: Outlook
OUTLOOK ($ in millions) Q3'19 Highlights Book value per share1 ü Year-to-date shareholder return of 7.0%2, including $13.1 million returned $10.77 $11.43 to shareholders through buy-backs and dividends ü Strong execution on growth initiatives in our insurance operations ü Continued repositioning of
Slide 13: Appendix
APPENDIX
Slide 14: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED & OPERATING EBITDA ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) attributable to Common Stockholders $ (1.5) $ (0.6) $ 14.2 $ 23.8 Add: net (loss) income attributable to noncontrolling intere
Slide 16: Adjusted and Operating EBITDA: Three Months Ended September 30
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital Expenses Total Insurance Capital Expenses Total Pre-tax income/(loss) from co
Slide 17: Adjusted and Operating EBITDA: Trailing Twelve Months
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Trailing Twelve Months Ended September 30, 2019 Trailing Twelve Months Ended September 30, 2018 Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital Expenses Total Insurance Capital Expenses Total Pre-tax i
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