Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q3 2018 Earnings Presentation
21 slides from Tiptree's earnings presentation, Nov 5, 2018
Slide 1: Investor Presentation - Third Quarter 2018
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - THIRD QUARTER 2018 November 2018 Financial information for nine months ended September 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: Nine Month Financials Key Highlights
OVERVIEW Nine Month Financials Key highlights Revenue Specialty Insurance: þ $473.4 million Continuing to grow profitably • Gross written premiums year-to-date were $619.5 million, up 10.5%, driven by vs. prior year 10.0% growth in credit and other specialty programs • Net written premiums were $336
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers Q3'17 Q3'18 Q3'17 Q3'18 Positives: YTD YTD Total Revenues $ 144.9 $ 172.7 $ 430.4 $ 473.4 • Accounting pre-tax gain of $46.2 million from sale of Care for the nine month period Net income (loss
Slide 6: Tiptree Capital Allocation
TIPTREE CAPITAL ALLOCATION ($ in millions, except per share information) Q3'18 Operating EBITDA Total Q3'17 Q3'18 1 Business Lines Capital LTM LTM Key drivers of LTM performance Operating EBITDA return on total capital of 8.7%, Specialty Insurance $ 454.9 $ 51.6 $ 60.3 down 0.2% from prior year prim
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Financial Performance Highlights - Specialty Insurance
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q3'18 highlights & outlook Q3'17 Q3'18 Continuing to expand insurance and consumer program Q3'17 Q3'18 YTD YTD 1 product offerings with a focus on growth in written premiums Gross Written Premiums $209.2 $225.4 $560.6 $619.5 and stab
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $438.4 17.3 We actively manage our investment portfolio to achieve a balance of: 11.6 Other 32.8 $364.0 • Short-term liquidity to cover current claims obligations 4.0 Real Estate 23.1 84.9 • Enhanced risk-adjusted returns thro
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Financial Performance Highlights - Tiptree Capital + Corporate
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook + Corporate • Reduced exposure to credit market in 2017 $210.1 Cash of $45m 15.2 $193.6 • New investments of $35 million deployed into shipping, which we 16.1 $173.3 Marine/Other believe is at a more fav
Slide 12: Outlook
OUTLOOK ($ in millions) 2018 Highlights Book value per share1 ü Continue to execute on our growth initiatives while maintaining strong $10.77 underwriting standards $9.67 ü Finalized sale of Care to Invesque ü Simplified corporate structure eliminating two class share structure ü Returned $17.5 mill
Slide 13: Appendix
APPENDIX
Slide 14: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: EBITDA, Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - EBITDA, ADJUSTED & OPERATING EBITDA ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) attributable to Common Stockholders $ (618) $ (3,114) $ 23,768 $ (6,457) Add: net (loss) income attributable to nonco
Slide 16: Adjusted and Operating EBITDA - Three Months Ended September 30, 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Three Months Ended September 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 $ 5,732 $
Slide 17: Adjusted and Operating EBITDA - Nine Months Ended September 30, 2018
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Nine Months Ended September 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 $ 15,806 $
Slide 18: Adjusted and Operating EBITDA - Last Twelve Months
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Last Twelve Months Ended September 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 $ 19
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