Tiptree Inc. · NASDAQ:TIPT
Tiptree — Barclays Global Financial Services Conference 2022
17 slides from Tiptree's conference presentation, Sep 12, 2022
Slide 1: The Fortegra Group – Barclays Global Financial Services Conference
The Fortegra Group Barclays Global Financial Services Conference September 12, 2022 Presenters: Rick Kahlbaugh and Michael Grasher Proprietary & Confidential 2022
Slide 2: Disclaimer
Disclaimer BASIS OF PRESENTATION AND LIMITATIONS ON THE USE OF INFORMATION – The Fortegra Group, Inc. (“Fortegra”) reports a non-controlling interest in certain operating subsidiaries that are not wholly owned. Unless otherwise noted, all information is of Fortegra on a consolidated basis before non
Slide 3: The Fortegra Difference
The Fortegra Difference CONSISTENT CONSISTENT CONSISTENT Growth Profitability Risk Management We win new business because We marry underwriting & fee We maintain the business we of deep industry expertise & revenue to create consistent win by expanding our agents’ breadth of underwriting & profitabi
Slide 4: Company Highlights
Company Highlights ($ in millions) Operating Principles Key Highlights 91% 26% 5-Year Average Q2’22 TTM We underwrite and administer niche or mid- Combined Ratio Adjusted ROAE (1) market specialty risks utilizing agent distribution 13% 18% Q2’22 TTM Net Income CAGR(2) ROAE Combining underwriting and
Slide 5: Lines of Business: Insurance & Fee Revenue Mix
Lines of Business: Insurance & Fee Revenue Mix U.S. INSURANCE 65% $1,532M U.S. NON-INSURANCE 29% $697M Q2’22 TTM GWPPE(1) $2.4Bn EUROPE INSURANCE 6% $130M Fee revenues from our Non-Insurance business results in an 8.5% increase to our consolidated ROAE(2) ____________________ (1) Q2’22 TTM gross wri
Slide 6: Diverse Products & Distribution Network
Diverse Products & Distribution Network Agents/ MGAs Retailers & Third-Party Brokers MGUs Dealerships Administrators Casualty Lines - Commercial • • U.S. Insurance Property Lines - Commercial • • 65% Niche Personal Lines • • European Insurance Automotive Warranty Products • • • 6% Consumer Good Warr
Slide 7: Smaller Program Focused
Smaller Program Focused Specialty Program Distribution, by Program Size(1) Program Highlights Diverse set of agents & program partners with knowledge advantage 77% Target smaller programs < $10M Agent risk participation aligns interests Agent driven one-to-many distribution ecosystem 15% Partner Dis
Slide 8: Growth Strategy
Growth Strategy SEE MORE WIN MORE GROW MORE Comprehensive offering Proven track record of winning We make our partners in growing markets new business & keeping it better Continued E&S market tailwinds, Underwriters with long-standing Value-added services create Fortegra Specialty formed Q4 ’20 rela
Slide 9: Financial Review
Financial Review Proprietary & Confidential 2022 | pg. 9
Slide 10: Key Financial Metrics
Key Financial Metrics ($ in millions) Total Revenues Earned Premiums, Net Service & Admin Fees Other Income(1) $1,117 43 $986 40 288 261 $703 $628 38 $556 23 26 106 187 $490 23 102 95 786 686 499 478 372 428 2017 2018 2019 2020 2021 Q2'22 TTM Strong cash flows have allowed for continued investment i
Slide 11: Key Financial Metrics
Key Financial Metrics ($ in millions) Historical Adj. Net income(1) Disciplined underwriting, complemented by fee revenues and a prudent cost structure, results in continued profitable growth $80 $67 $43 $31 $33 $26 2017 2018 2019 2020 2021 Q2'22 TTM Combined Ratio 93% 92% 92% 92% 91% 90% __________
Slide 12: Unearned Premium & Deferred Revenue
Unearned Premium & Deferred Revenue ($ in millions) UEPR & Deferred Revenues by Product Highlights U.S. Insurance U.S. Warranty 30% compound average growth rate reflects Europe Solutions continued volume growth in multi-year $1,812 programs such as credit insurance and $1,659 125 warranty 113 Unearn
Slide 13: Investment Portfolio
Investment Portfolio Professionally managed Muni & ABS Corporate ETFs & Mutual 6% by Corvid Peak Asset Securities Funds Management 17% 6% Equity Securities 2% Average Other S&P Rating Investments AA+ Total Portfolio 6% at 6/30/2022 Fixed Income $1,011M Duration 2.6 Years Government & Cash & Cash Age
Slide 14: Key Financial Metrics
Key Financial Metrics ($ in millions) Adjusted Net Income(1) ROAE Sum of the Parts TOTAL ADJUSTED $80 26.1% } ROAE(1) 22.2% $67 Lift from 8.5% Non-insurance 7.9% 14.3% 17.6% } Insurance 2021 Q2'22 TTM 2021 Q2’22 TTM ____________________ Proprietary & Confidential 2022 | pg. 14 (1) See appendix for r
Slide 15: FORTEGRA
AX FORTEGRA FORTITUDE + INTEGRITY
Slide 16: Appendix
Appendix Proprietary & Confidential 2022 | pg. 16
Slide 17: Appendix
Appendix 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 expenses, stock-ba
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