Tiptree Inc. · NASDAQ:TIPT
Tiptree — CFA Society of New York Insurance Conference 2021
22 slides from Tiptree's conference presentation, Nov 10, 2021
Slide 1: CFA Society of New York Insurance Conference
CFA Society of New York Insurance Conference November 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: Tiptree Overview
Tiptree Overview ($ in millions) Our Approach Value Focus on Oriented Profitable Financials Investment U.S. Europe Underwriting U.S Approach Warranty Warranty Insurance Real Solutions Solutions Assets Think Like Patient Capital Owners Partner (32% insider ownership1) Capital allocation and investmen
Slide 4: Insurance Company Overview
01 Insurance Company Overview
Slide 5: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, vertically integrated specialty insurer 91% 21% $295mm focusing on admitted and excess & surplus insurance programs, 5-year Average Q3’21 LTM Q3’21 GAAP and warranty solutions Combined Ratio Adjusted ROAE Equity 95% 25 years ✓ Unique & divers
Slide 6: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Line of Business ✓ Diversified product mix with emphasis on small premium- U.S. Insurance U.S. Warranty per-risk ecosystems & minimal catastrophic exposure 65% Solutions 31% ✓ Products & services distributed through
Slide 7: Distribution Strategy
Distribution Strategy Distribution Channels Our Approach INSURANCE WARRANTY ✓ We value a diverse set of agents & program partners Agents/Brokers Agents MGUs Retailers & Dealerships ✓ Actively avoid concentration risk Retail Agents Third-party Administrators Product Mix ✓ We cross-sell multiple produ
Slide 8: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net $910 $60 Service & Administrative Fees 25 Other Income(1) $703 253 $628 38 $43 $556 23 106 187 $490 26 $32 $33 23 102 95 $26 632 499 478 428 372 2017 2018 2019 2020 Q3'21 LTM 2017 2
Slide 9: Insurance Investment Portfolio
Insurance Investment Portfolio ($ in millions) Q3’21 Investment Mix Other investments $832 Fixed Income & Cash Other Alternatives Cash & Equivalents 9% 149 Equities 12% $651 9% Muni & ABS 133 6% Fixed Income ETFs $832mm 5% Government & Agency 37% 683 518 Corporate Bonds 22% Liquid and Highly-Rated F
Slide 10: Compelling Growth Story
Compelling Growth Story A Maintain & Expand Existing Programs B New & Renewal Programs Addressable Fortegra LTM Market GWPPE ◼ $1.6Bn UEP & Deferred Revenue ◼ ~95% persistency with insurance agents ◼ Excess & Surplus Insurance $56bn¹ $84mm — Fortegra Specialty formed Q4’20 Unearned Premiums & Deferr
Slide 11: The Fortegra Difference
The Fortegra Difference Fortegra is a specialty program insurer. CONSISTENT CONSISTENT CONSISTENT Growth Profitability Risk Management We win new business We marry underwriting & fee We maintain the business we because of the breadth of our revenue to create consistent win by expanding our agents’ u
Slide 12: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 13: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Strategy Equity Capital1 Adjusted Net Income1 ◼ Acquire or invest in diverse companies outside the insurance $206 industry with our balance sheet capital $180 $33 $34 $166 2 75 9 ◼ Invest in businesses that meet the following criteria: 82 76 $18 ✓ Strong and
Slide 14: Financials & Looking Ahead
01 03 Financials & Looking Ahead
Slide 15: Tiptree Snapshot
Tiptree Snapshot ($ in millions) Adjusted Net Income1 Tiptree Sum of the Parts PF SOTP Value Value/TIPT share $644 million2 $19.00 (Transaction multiple) $63.2 $45.9 $175 million $5.16 (Book value ex. NCI) Q3'20 LTM Q3'21 LTM Holding Company $68 million2 $2.00 (Book value) Shares outstanding 33.6 33
Slide 16: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Strategic partnership with Warburg Pincus is the first step toward our goal of demonstrating Fortegra’s intrinsic value ✓ Expect continued growth and consistent profitability Con
Slide 17: Appendix
Appendix 04 Non-GAAP Reconciliations • Insurance underwriting and fee revenue • Insurance underwriting and fee margin • Book value per share • Adjusted net income
Slide 18: 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 19: Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin
Non-GAAP Reconciliations – Underwriting & Fee Revenues & Margin ($ in thousands) For the Year Ended December 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 Q3’21 LT
Slide 20: Non-GAAP Reconciliations – Adj. Net Income and Adj. ROAE
Non-GAAP Reconciliations – Adj. Net Income and Adj. ROAE ($ in thousands) Trailing Twelve Months Ended September 30, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corpor
Slide 21: Tiptree Capital – Realized Investment IRR%
Tiptree Capital – Realized Investment IRR% ($ in millions) Invested Realized 1 Category Investments Capital Investment MOIC IRR % Financials Realized: MFCA, Telos, PFG, Siena, CLO sub-notes, hedges $ 305.0 $ 598.0 2.0x 25.6% Unrealized: Reliance, Luxury, credit investment 68.5 - - - Real Assets Real
Slide 22: TiptreeInc.
TiptreeInc. ir@tiptreeinc.com
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