Tiptree Inc. · NASDAQ:TIPT
Tiptree — 14th Annual MIDWEST IDEAS Conference 2023
23 slides from Tiptree's conference presentation, August 2023
Slide 1: MIDWEST IDEAS Conference
MIDWEST IDEAS Conference August 2023
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: Financial Snapshot
Financial Snapshot ($ in millions) LTM Adjusted Net Income1 Sum of the Parts Pro-forma Value/TIPT SOTP Value diluted share4 $876 million2 $23.06 (Transaction multiple) $75.1 $67.0 $214 million3 $5.63 (Book value ex. NCI) Q2'22 Q2'23 Adj ROAE%1 14.4% 14.0% $1,090 million $28.69 1) See the appendix fo
Slide 5: LTM Operating Performance
LTM Operating Performance ($ in millions) Q2’23 Capital Allocation & Annual Performance Comparison Shareholder Total Return (as of June 30, 2023) Russell S&P Stockholders’ Tiptree Equity1 Adjusted Net Income2 2000 500 Q2’22 Q2’23 1 Year 43.0% 12.3% 19.6% Q2’23 Business Lines LTM LTM 3 Year 34.4% 10.
Slide 6: Specialty Insurance Overview
01 Specialty Insurance Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) 91% 28% $378mm ✓ Established, growing, specialty insurer that focuses 5-year Average Q2’23 LTM Q2’23 GAAP on niche insurance lines & capital-light services Combined Ratio Adjusted ROAE2 Equity 95%+ 25 years A- A.M. Best & ✓ Combine underwriting and fee revenues to g
Slide 8: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Revenue Mix ✓ Diversified product mix with emphasis on underserved specialty markets & minimal catastrophic exposure Earned Premiums, Net Service & Admin 71% Fees ✓ Products & services distributed through independent
Slide 9: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Revenue Streams Adjusted Net Income² Earned Premiums, Net $1,438 Service & Administrative Fees 61 $97 Other Income(1) $1,269 44 $84 361 $986 321 $67 40 261 $703 $628 38 $43 $556 23 $490 26 106 187 $33 23 102 1,016 $31 95 905 $26 686 499 478 372 428 2017 20
Slide 10: Investment Portfolio
Investment Portfolio ($ in millions) Book yield 1.2% 3.1% Asset Allocation $1,237 Other Alternatives Equities 8% Cash & Equivalents 114 2% Muni & ABS 25% $1,011 6% 84 Fixed Income ETFs 6% $1,237mm Corporate Bonds 14% 1,123 Other investments Government & 926 Fixed Income & Cash Agency 39% Liquid and
Slide 11: Compelling Growth Story
Compelling Growth Story Maintain & expand existing business lines 1 Comprehensive offering in growth markets ◼ $2.2Bn UEP & Deferred Revenue represents ◼ Continued E&S market tailwinds – total market estimated at $70Bn1 substantial future earnings potential ◼ Large and growing warranty services mark
Slide 12: Fortegra Summary & Outlook
Fortegra Summary & Outlook ($ in millions) LTM Adjusted LTM Adjusted Net Income1 ROAE %1 Q2’23 LTM Highlights 27.5% ✓ Record top-line premiums – $3.1Bn 26.1% Lift from ✓ Record Adjusted Net Income – $96.8mm 7.7% Services 8.5% offerings Outlook $96.8 • Expect continued growth and consistency of $80.0
Slide 13: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 14: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation Real ◼ Includes all of Tiptree’s non-insurance operations and investments Real Assets Assets 15% 26% ◼ Acquire or invest in diverse companies outside the insurance Financials industry with our balance sheet capital 74% 2015 Q2’23 $1
Slide 15: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Equity Capital Allocation Key highlights $205.7 $201.5 $182.2 2.6 Mortgage $182.3 $166.0 11.0 ◼ Residential mortgage origination company licensed to sell and service with 94.1 3.7 29.1 Cash and U.S. Fannie/Freddie/Ginnie 26.0 $129.6 102.3 Government Securities 1
Slide 16: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Significant opportunities to achieve value creation objectives at Fortegra ✓ Strategic partnership with Warburg Pincus is the first step toward our goal of demonstrating Fortegra’s
Slide 17: Appendix
Appendix 03 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income • Tiptree Capital – Realized Investment IRR%
Slide 18: 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 19: Non-GAAP Reconciliations – UW & Fee Revenues & Margin, BVPS
Non-GAAP Reconciliations – UW & Fee Revenues & Margin, BVPS ($ in thousands, except per share information) For the Year Ended Decem ber 31, We define underwriting and fee revenues as total revenues from our Insurance segment Q2'23 LTM 2022 2021 2020 excluding net investment income, net realized and
Slide 20: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Tw elve Months ended June 30, 2023 Year Ended Decem ber 31, 2022 Year Ended Decem ber 31, 2021 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corporate Total In
Slide 21: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income Year Ended Decem ber 31, 2020 Year Ended Decem ber 31, 2019 Tiptree Capital Tiptree Capital The footnotes below correspond to the tables above, under “—Adjusted Net Income - Non-GAAP Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corp
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 170.6 - - - Real Assets R
Slide 23: TiptreeInc.
TiptreeInc. ir@tiptreeinc.com