Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q2 2018 Earnings Presentation
21 slides from Tiptree's earnings presentation, Aug 6, 2018
Slide 1: Investor Presentation - Second Quarter 2018
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - SECOND QUARTER 2018 August 2018 Financial information for six months ended June 30, 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: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: Overview: First Half Financials Key Highlights
OVERVIEW First Half Financials Key highlights Revenue Specialty Insurance: þ $300.8 million Specialty Insurance executing on strategic initiatives • Gross written premiums year-to-date were $393.7 million, up 12.0%, driven by growth in vs. prior year 5.4% credit and other specialty programs • Net wr
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers Q2'17 Q2'18 Positives: Q2'17 Q2'18 YTD YTD • Accounting pre-tax gain of $46.2 million from sale of Care Total Revenues $ 139.2 $ 152.7 $ 285.4 $ 300.8 • Growth in insurance underwriting profita
Slide 6: Tiptree Capital Allocation
TIPTREE CAPITAL ALLOCATION ($ in millions, except per share information) Q2'18 Operating EBITDA Total Q2'17 Q2'18 1 Business Lines Capital LTM LTM Key drivers Operating EBITDA return on total capital of 8.9%, Specialty Insurance $ 448.4 $ 50.1 $ 57.8 down from prior year primarily driven by: - Under
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Performance Highlights
PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q2'18 highlights & outlook Q2'17 Q2'18 Q2'17 Q2'18 YTD YTD 1 Continuing to expand product offerings and geographic Gross Written Premiums $186.0 $193.5 $351.4 $393.7 markets with a focus on growth in written premiums Pre-tax income $(0.7) $8.7
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $410.1 We actively manage our investment portfolio to achieve a balance of: 17.0 Other 14.6 • Cash and liquid securities to cover near-term claims obligations $346.2 36.9 4.0 Real Estate $307.1 24.4 • Enhanced risk-adjusted re
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Performance Highlights
PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook 3 + Corporate • Completed sale of Care in Q1 to Invesque for 16.4m shares $210.1 $201.1 Cash of $62m 15.2 15.8 • Liquidity from recent sales available for growth opportunities $163.7 74.6 102.7 Other3 21.5 130.0 C
Slide 12: Outlook
OUTLOOK ($ in millions) First Half Highlights Book value per share1 ü Insurance company continues to execute on its growth initiatives $10.74 $9.87 ü Finalized sale of Care to Invesque ü Simplified corporate structure Looking ahead Q2'17 Q2'18 • Continue to focus on growth in specialty insurance ope
Slide 13: Appendix
APPENDIX
Slide 14: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: EBITDA, Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - EBITDA, ADJUSTED & OPERATING EBITDA ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) attributable to Common Stockholders $ 826 $ (4,443) $ 24,386 $ (3,343) Add: net (loss) income attributable to noncontrolling int
Slide 16: Adjusted and Operating EBITDA - Three Months Ended June 30, 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Three Months Ended June 30, 2018 Tiptree Capital Specialty Asset Discontinued Corporate ($ in thousands) Insurance Management Mortgage Other Operations(1) Tiptree Capital Expenses Total Pre-tax income/(loss) from continuing ops $ 8,731 $ (614)
Slide 17: Adjusted and Operating EBITDA - Six Months Ended June 30, 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Six Months Ended June 30, 2018 Tiptree Capital Specialty Asset Discontinued Corporate ($ in thousands) Insurance Management Mortgage Other Operations(1) Tiptree Capital Expenses Total Pre-tax income/(loss) from continuing ops $ 10,074 $ 278 $
Slide 18: Adjusted and Operating EBITDA - Last Twelve Months Ended June 30, 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Last Twelve Months Ended June 30, 2018 Tiptree Capital Specialty Asset Discontinued Corporate ($ in thousands) insurance Management Mortgage Other Operations(1) Tiptree Capital Expenses Total Pre-tax income/(loss) from continuing ops $ 11,409
Slide 19: 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 20: Specialty Insurance: Underwriting Margin Reconciliation
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 21: Specialty Insurance: Investment Portfolio
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