Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q1 2018 Earnings Presentation
20 slides from Tiptree's earnings presentation, May 7, 2018
Slide 1: Investor Presentation - First Quarter 2018
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - FIRST QUARTER 2018 May 2018 Financial information for three months ended March 31, 2018
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
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: Overview: Key Highlights
OVERVIEW Financial Results Key highlights Revenue Specialty Insurance: þ Specialty Insurance executing on strategic initiatives $148.1 million • Continued global expansion with increasing presence in Europe and Asia 1.3% vs. prior year • Gross written premiums $201m, up 21.3%, driven by growth acros
Slide 5: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS ($ in millions, except per share information) Financial metrics Key drivers Q1'17 Q1'18 $V Positives: Total Revenues $ 146.2 $ 148.1 $ 1.9 • Accounting pre-tax gain from sale of Care of $46.2 million Net income (loss) before NCI 1.3 29.0 27.7 • Growth in insurance unde
Slide 6: Specialty Insurance
SPECIALTY INSURANCE
Slide 7: Specialty Insurance Performance Highlights
PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q1'18 highlights & outlook Q1'17 Q1'18 Variance Gross Written Premiums $165.4 $200.7 $35.3 1 Continuing to expand product offerings and geographic markets with a focus on growth in written premiums Pre-tax income $4.8 $1.3 $(3.5) Adjusted EBIT
Slide 8: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $399.7 We actively manage our investment portfolio to achieve a balance of: 16.7 16.8 Other $347.1 • Cash and liquid securities to cover near-term claims obligations 4.0 34.3 24.4 Real Estate • Enhanced risk-adjusted returns t
Slide 9: Tiptree Capital
TIPTREE CAPITAL
Slide 10: Tiptree Capital Performance Highlights
PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook • Completed sale of Care to Invesque for a net 16.4m shares4 $210.1 + Corporate 15.2 $190.8 Cash of $50m 16.1 • Liquidity from recent sales available for growth opportunities 74.6 $147.3 Other 110.9 21.5 3 112.2 C
Slide 11: Outlook
OUTLOOK ($ in millions) Book value per share1 Highlights as exchanged ü Insurance company continues to execute on its growth initiatives ü $10.15 $10.59 Finalized sale of Care to Invesque ü Simplified corporate structure Looking ahead Q1'17 Q1'18 • Continue to focus on growth in specialty insurance
Slide 12: Appendix
APPENDIX
Slide 13: EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS - EBITDA AND ADJUSTED EBITDA Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that use of these financial measures on a consolidated basis and for each segment provide supplemental information useful to investors as it i
Slide 14: Adjusted and Normalized EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED AND NORMALIZED EBITDA Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provide su
Slide 15: Adjusted and Normalized EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED AND NORMALIZED EBITDA Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provide su
Slide 16: LTM Adjusted and Normalized EBITDA
NON-GAAP RECONCILIATIONS - LTM ADJUSTED AND NORMALIZED EBITDA Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provid
Slide 17: LTM Adjusted and Normalized EBITDA
NON-GAAP RECONCILIATIONS - LTM ADJUSTED AND NORMALIZED EBITDA Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provid
Slide 18: BVPS, Invested and Total Capital
NON-GAAP RECONCILIATIONS - BVPS, INVESTED AND TOTAL CAPITAL Management uses Book value per share, as exchanged, which is a non-GAAP financial measure. As exchanged assumes full exchange of the limited partners units of TFP for Tiptree Class A common stock. Management believes the use of this financi
Slide 19: Specialty Insurance
NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table provides a reconciliation between as adjusted 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 com
Slide 20: 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