Tiptree Inc. · NASDAQ:TIPT
Tiptree — 16th Annual SOUTHWEST IDEAS Conference 2024
24 slides from Tiptree's conference presentation, Nov 20, 2024
Slide 1: Company Overview
Company Overview November 2024
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 Focus on Value Oriented Profitable Investment Growth Approach Specialty Fee-based Financials, Insurance Services Real Assets Think Like Patient Capital Owners Partner (34% insider ownership1) Capital allocation and investment management 1◼ Long-term focu
Slide 4: 17 Years of Value Creation
17 Years of Value Creation ($ in millions) Tiptree formed as a permanent capital Tiptree publicly listed vehicle (June 2007) on NASDAQ (TIPT) (July 2013) 2007 Shareholder Total Return (as of September 30, 2024) Strategy Russell S&P ◼ Experienced management team focused on insurance, asset Tiptree ma
Slide 5: Track Record of Realized IRRs in Excess of 20%
Track Record of Realized IRRs in Excess of 20% ($ in millions) Invested Realized Realized Current Capital Investments1 IRR%2 Insurance & $63 $150 23% Insurance Services Asset $176 $306 30% Management (including credit investments) + Cash and U.S. Government Securities Infrastructure & $408 $485 9% R
Slide 6: Continued Shareholder Value Creation
Continued Shareholder Value Creation ($ in millions) Adjusted Net Income1 Warburg LTM Transaction Peer Adj. NI Multiple Multiples $147 million1 13.5x2 10x – 30x6 37% year-over-year 70% diluted ownership3 (Median 16x) $86.7 growth $57.7 Book value $131 million4 100% ownership LTM Q3'23 LTM Q3'24 Adj
Slide 7: Specialty Insurance Overview
Specialty Insurance Overview
Slide 8: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, specialty insurer that focuses 91% 29% Q3’24 LTM $606mm on niche insurance & capital-light fee business. 5-year Average Q3’24 GAAP Adjusted ROAE2 Combined Ratio Equity 95%+ 25 years ✓ Long standing track record of disciplined and stable under
Slide 9: Underwriting & Fees Support Consistent & Sustainable Growth
Underwriting & Fees Support Consistent & Sustainable Growth Key Highlights Lines of Business ✓ Diversified and complementary business mix focused on Q3’24 LTM underserved specialty insurance markets GWPPE(1) $2.94Bn E&S ✓ Agent-centric distribution model leveraging independent & retail Insurance age
Slide 10: Highly Profitable and Growing
Highly Profitable and Growing ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees Other Income(1) $147 $1,909 85 $1,597 $116 417 73 $1,269 396 44 $84 $986 321 $67 40 $703 261 $628 1,407 $43 $556 38 $490 26 23 106 187 1,128 $31 $33
Slide 11: Compelling Financial Profile
Compelling Financial Profile 5-year Avg Adjusted ROAE1 and GWPPE CAGR 5-year Avg Combined Ratio and Vol of Combined Ratio 45% KNSL 0% 40% TRV 1% HIG Combined Ratio Standard Deviation 35% SIGI 2% FFH WRB 30% 3% Median: 3.5% GBLI CNA THG RLI 4% EG MKL CB GWP CAGR 25% CINF RNR ACGL AFG 5% FIHL KNSL 20%
Slide 12: Growing Investment Portfolio with Increasing Yields
Growing Investment Portfolio with Increasing Yields ($ in millions) Book yield 1.3% 2.7% 3.3% 4.1% Asset Allocation $1,497 Other Alternatives Equities $1,327 150 6% 4% Cash & Equivalents Muni & ABS 24% $1,154 136 5% 97 $910 $1,497mm 144 Other investments Corporate Bonds 1,347 34% 1,191 Fixed Income
Slide 13: Growth Drivers
Growth Drivers ($ in millions) Maintain & expand existing business lines 1 Comprehensive offering in growth markets ◼ $2.4Bn unearned premiums & deferred revenues ◼ Continued E&S market tailwinds – Total market estimated at $115Bn1 ◼ Target smaller lines with $5-15mm annual volume ◼ Growth in MGA, d
Slide 14: Tiptree Capital Financial Overview
TiptreeCapital Financial Overview
Slide 15: Tiptree Capital
Tiptree Capital ($ in millions) Capital Allocation Key highlights $182.3 $178.1 Mortgage 11.0 ◼ Residential mortgage origination company licensed to sell and service with 29.1 Fannie/Freddie/Ginnie $129.6 77.4 Cash and U.S. ◼ Scalable, technology enabled platform generating ~$1B annual volume 4.2 $1
Slide 16: Summary
Summary
Slide 17: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions) Adjusted Net Income¹ Significant opportunities ahead to achieve value creation objectives at Fortegra Continue to focus on long-term shareholder value ✓ Invest in existing subsidiaries $86.7 ✓ Seek new acquisition opportunities $
Slide 18: Appendix
Operating Performance Tiptree - Realized Investment IRR% Appendix Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 19: Operating Performance
Operating Performance ($ in millions) Q3’24 Capital Allocation & Annual Performance Comparison Q3’24 LTM Highlights Stockholders’ Overall: Equity Adjusted Net Income1 • Adjusted NI of $86.7mm; 20.2% adj ROAE Q3’24 Q3’23 LTM Q3’24 LTM Business Lines • $40.0mm investment in Fortegra by existing shareh
Slide 20: Tiptree - Realized Investment IRR%
Tiptree - Realized Investment IRR% ($ in millions) Invested Realized Q3'24 (1) Category Investments Capital Investment MOIC IRR % Equity (2) Insurance Realized: Philadelphia Financial Group 62.9 150.2 2.4x 23.4% 412.1 Unrealized: Fortegra Asset Management Realized: Telos, Credit investments & hedges
Slide 21: 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 22: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Tw elve Months Ended Septem ber 30, 2024 Year Ended Decem ber 31, 2023 Tiptree Capital Tiptree Capital The footnotes below correspond to the tables above, under “—Adjusted Net Income Insurance Mortgage Other Corporate Total Ins
Slide 23: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income Year Ended Decem ber 31, 2020 Year Ended Decem ber 31, 2019 The footnotes below correspond to the tables above, under “—Adjusted Net Tiptree Capital Tiptree Capital Income - Non-GAAP and “—Adjusted Return on Average Equity - Non- Insurance Mortgage Othe
Slide 24: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com
Tiptree — 16th Annual SOUTHWEST IDEAS Conference 2024 on 6ix