Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q1 2019 Earnings Presentation
19 slides from Tiptree's earnings presentation, May 6, 2019
Slide 1: Investor Presentation - First Quarter 2019
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - FIRST QUARTER 2019 May 2019 Financial information for three months ended March 31, 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: Key Quarterly Highlights
OVERVIEW Financial Results Key quarterly highlights Revenue Overall þ 3 $183.9 million Delivered quarterly return of 3.1% , driven by earnings and share buy-backs 24.2% vs. prior year • Repurchased 1,472,730 shares for $9.1m at an average 40% discount to book þ Increased our quarterly dividend for t
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers Q1'18 Q1'19 V% Highlights: Total Revenues $ 148.1 $ 183.9 24.2 % • Growth in insurance underwriting results Net income (loss) before NCI $ 29.0 $ 4.3 (85.2)% • Consistent earnings from dividend
Slide 6: Capital Allocation
CAPITAL ALLOCATION ($ in millions, except per share information) Tiptree 1 Total Operating Equity BVPS Capital1 EBITDA1 Q1'19 LTM Highlights Q1'19 Q1'19 Q1'19 Q1'19 Operating EBITDA return on avg total capital of 8.9% Business Lines LTM • Specialty Insurance: 14.3% • Tiptree Capital: 9.0% Specialty
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q1'19 highlights & outlook Q1'18 Q1'19 V% 1 Continuing to expand product offerings with a focus on Gross Written Premiums $ 200.7 $ 198.4 (1.1)% growth in written premiums and stable profitability Revenue $ 130.0 $ 154.6 18.9 % • $66
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $462.4 98.9 We actively manage our investment portfolio to achieve a balance of: 27.0 Other $399.7 • Short-term liquidity to cover current claims obligations 16.7 16.8 71.6 Real Estate $347.1 • Enhanced risk-adjusted returns t
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook • Repositioned our asset management operations by selling our $210.1 CLO management contracts and agreeing to invest $75m in 36.7 $175.9 seed capital with Corvid Peak (formerly Tricadia) $151.4 27.3 Spec
Slide 12: Outlook
OUTLOOK ($ in millions) Q1'19 Highlights Book value per share1 ü Quarterly shareholder return of 3.1%2, including $9.1 million returned to $10.59 $11.12 shareholders through buy-backs ü Increased quarterly dividend for third consecutive year ü Continued execution on our growth initiatives in our ins
Slide 13: Appendix
APPENDIX
Slide 14: Non-GAAP Reconciliations: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: Non-GAAP Reconciliations - Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED & OPERATING EBITDA ($ in millions) Three Months Ended March 31, 2019 2018 Net income (loss) attributable to Common Stockholders $ 3.9 $ 23.6 Add: net (loss) income attributable to noncontrolling interests 0.4 5.4 Less: net income from discontinued operations — 34.
Slide 16: Non-GAAP Reconciliations - Adjusted and Operating EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital (1) Expenses Total Insurance Capital (1) Expenses Total Pre-tax income/(loss) from co
Slide 17: Non-GAAP Reconciliations - 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 18: Non-GAAP Reconciliations - Specialty Insurance
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 19: Non-GAAP Reconciliations - Specialty Insurance
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