Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q4 2019 Earnings Presentation
19 slides from Tiptree's earnings presentation, Mar 11, 2020
Slide 1: Investor Presentation - Fourth Quarter 2019
Exhibit 99.2 NASDAQ: TIPT Investor Presentation - Fourth Quarter 2019 March 2020 Financial information for the three months and year ended December 31, 2019
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 Highlights
Overview & Financial Highlights
Slide 4: Overview 2019 Financials
Overview 2019 Financials Continued execution against our 2019 objectives Revenue Consistent financial performance þ 3 $772.7 million Delivered year-to-date total return of 8.2% , through a combination of earnings, share buy-backs and dividends þ 23.5% vs. prior year Operating EBITDA of $63.6m, up 15
Slide 5: Financial Results
Financial Results ($ in millions, except per share information) Consolidated financial metrics Key drivers Q4'18 Q4'19 2018 2019 Highlights: • Stable growth in insurance underwriting income Total Revenues $152.4 $208.5 $625.8 $772.7 Net income (loss) before NCI $0.5 $4.6 $29.9 $20.1 • Consistent div
Slide 6: Capital Allocation
Capital Allocation ($ in millions, except per share information) 2019 financials by component 2019 Highlights Tiptree Total Operating Operating EBITDA of $63.6m, up 15.8% from 2018 1,2 1 Equity Capital EBITDA • Return on average total capital (ROATC%) of 9.4% Business Lines 2019 2019 2019 Tiptree In
Slide 7: Tiptree Insurance
Tiptreelnsurance
Slide 8: Tiptree Insurance - Financial Performance Highlights
Tiptree Insurance - Financial Performance Highlights ($ in millions) Financial metrics 2019 highlights & outlook Q4'18 Q4'19 2018 2019 1 Continuing to expand product offerings with a focus on growth and stable Gross Written Premiums $248.6 $279.2 $868.1 $1,015.3 profitability Revenue $137.2 $171.3 $
Slide 9: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) $539.9 Investment approach 40.3 2.2 Other investments $463.3 37.8 We manage our investment portfolio to achieve a balance of: 8.5 10.2 10.0 Real Estate 29.4 • Short-term liquidity to cover claims obligations $396.4 89.2 15.4 Equities 78.5 • Enhanced ris
Slide 10: Acquisition of Smart AutoCare Brings More Scale & Enhances Diversification
Acquisition of Smart AutoCare Brings More Scale & Enhances Diversification ($ in millions) Overview Substantial growth in premiums and equivalents Vehicle Service Contracts (VSCs) Smart AutoCare (SAC)1 designs, markets, and administers vehicle Guaranteed Asset Protection (GAP) protection products to
Slide 11: Tiptree Capital
TiptreeCapital
Slide 12: Tiptree Capital - Financial Performance Highlights
Tiptree Capital - Financial Performance Highlights ($ in millions) Invested Capital1 Recent developments & outlook • Repositioned our asset management operations by selling our CLO management $199.1 business $182.0 30.7 $161.8 28.0 • Increased our overall exposure to real assets in maritime transpor
Slide 13: Outlook
Outlook ($ in millions) 1 Operating EBITDA 2019 Highlights $63.6 2 ü Year-to-date shareholder return of 8.2% , including $14.4 million returned to shareholders $54.9 through buy-backs and dividends ü Strong execution on growth initiatives in our insurance operations ü Continued repositioning of inve
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 16: Non-GAAP Reconciliations - Adjusted and Operating EBITDA
Non-GAAP Reconciliations - Adjusted and Operating EBITDA ($ in millions) Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 (1) Corporate debt interest expense includes interest expense from secured corporate Net income (loss) attributable to Common Stockholders $ 4.2 $ 0.1
Slide 17: Non-GAAP Reconciliations - Adjusted and Operating EBITDA
Non-GAAP Reconciliations - Adjusted and Operating EBITDA Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 (1) Includes discontinued operations related to Care. For more Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital Expenses Total I
Slide 18: Non-GAAP Reconciliations - BVPS, Invested & Total Capital, Insurance Investment Portfolio
Non-GAAP Reconciliations - BVPS, Invested & Total Capital, Insurance Investment Portfolio ($ in millions, except per share information) As of December 31, Management uses Book value per share, which is a non-GAAP financial measure. Management believes the use of this financial measure 2019 2018 prov
Slide 19: Non-GAAP Reconciliations - Insurance Combined Ratio, Underwriting Revenues & Margin
Non-GAAP Reconciliations - Insurance Combined Ratio, Underwriting Revenues & Margin ($ in millions) Three Months Ended December 31, Year Ended December 31, The following table provides a reconciliation between underwriting margin and pre-tax income. We Revenues: 2019 2018 2019 2018 generally limit t