Slide 1: Investor Presentation – First Quarter 2021
Investor Presentation – First Quarter 2021 May 2021 Financial Information for the three months ended March 31, 2021
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: Q1'21 Highlights
Q1’21 Highlights ($ in millions, except per share information) Revenue Overall $294.7 million Adjusted net income2 of $13.2m, with a 13.7% adj ROAE2, driven by growth in insurance and mortgage operations. 127.3% vs. prior year Book value per share of $11.63, when combined with dividends of $0.16
Slide 4: Financial Results
Financial Results ($ in millions, except per share information) Q1’20 Q1’21 V% Key Highlights: Total Revenues $129.7 $294.7 127.3% Revenues up 127.3% over PY (25.6% ex. investment gains/losses) driven by: Net income (loss) b/f NCI $(60.6) $30.6 NM% • Continued growth in insurance underwriting & fee
Slide 5: KPIs – Underlying Operations Remain Resilient
KPIs – Underlying Operations Remain Resilient ($ in millions) Consolidated Adjusted Net Income1 Insurance Gross Written Premiums & Equivalents2 U.S. Insurance U.S. Warranty Solutions $505 ‘21 v ‘20 Quarterly Europe Warranty Solutions 16 $392 151 29% growth $13.2 13 Tiptree Capital 28% organic $0.6 -
Slide 6: Operating Performance
Operating Performance ($ in millions) Q1’21 Capital Allocation & Annual Performance Comparison Q1’21 Last Twelve Month Highlights Stockholders’ Equity1 Adjusted Net Income2 Adjusted net income of $57.7m, up 95.3% from Q1’20 Q1’20 Q1’21 • Adjusted return on average equity of 15.6%1 Q1’21 Business Lin
Slide 7: Q1'21 Insurance Performance Highlights
Q1’21 Insurance Performance Highlights
Slide 8: Insurance – Financial Performance Highlights
Insurance – Financial Performance Highlights ($ in millions) Summary Financials1 Q1’21 Highlights & Outlook Q1’20 Q1'21 V% 1 Continued growth through insurance and warranty program expansion Premiums & equivalents2 $392.4 $505.0 28.7% and onboarding new clients, with a focus on stable, improved prof
Slide 9: Diverse Portfolio of Insurance & Fee-Generating Services
Diverse Portfolio of Insurance & Fee-Generating Services Key Highlights Line of Business Diversified product mix with emphasis on small premium-per-risk U.S. Insurance ecosystems & short-tail liabilities 65% U.S. Warranty Solutions Products & services distributed through independent & retail 32% age
Slide 10: Compelling Growth Story
Compelling Growth Story A Maintain & Expand Existing Programs B New & Renewal Programs Addressable Market ◼ $1.3Bn UEP & Deferred Revenue ◼ ~95% persistency with insurance agents ◼ Excess & Surplus Insurance $56bn¹ ◼ Recent acquisitions to accelerate growth — Fortegra Specialty formed Q4’20 Unearned
Slide 11: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) Q1’21 Investment Mix Other investments $723 Fixed Income & Cash Other Alternatives Cash & Equivalents 17% 10% $588 167 Equities 6% 89 Government & $723m Agency Muni & ABS 29% 12% 499 556 Fixed Income ETFs Corporate Bonds 9% 17% Liquid and Highly-Rated F
Slide 12: Q1'21 Performance Highlights
Q1’21 Performance Highlights
Slide 13: Tiptree Capital – Financial Performance Highlights
Tiptree Capital – Financial Performance Highlights ($ in millions) Tiptree Capital Equity Q1’21 Performance & Outlook Mortgage: $184.5 $191.5 • Pre-tax income increased substantially over PY as a result of 3.8 5.5 improved volumes and margins driven by low interest rates and $156.6 39.7 Other 3.2 ho
Slide 14: Summary & Outlook
Summary & Outlook ($ in millions, except per share information) Adjusted Net Income1 Q1’21 Highlights ✓ Record quarter for Tiptree revenues and net income ✓ Strong growth in underlying operations in Q1’21 $13.2 $6.9 ✓ Continued execution on growth initiatives at insurance and mortgage businesses Q1'
Slide 15: Appendix
Non-GAAP Reconciliations • Insurance underwriting and fee revenue Appendix • • Insurance underwriting and fee margin Book Value per share • Adjusted net income 14
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income We define adjusted net income as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related exp
Slide 17: Non-GAAP Reconciliations – Underwriting and Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting and Fee Revenues & Margin Three Months Ended, ($ in thousands) March 31, We define underwriting and fee revenues as total revenues from our Insurance segment excluding net investment income, net realized and unrealized gains (losses). Underwriting and fee reve
Slide 18: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Tiptree Capital Tiptree Capital Corporate Corporate Insurance Mortgage Other Expenses Total Insurance Mortgage Other Expenses Total Income (loss) before taxes $ 21,528
Slide 19: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com