Tiptree Inc. · NASDAQ:TIPT
Tiptree — 13th Annual Midwest IDEAS Investor Conference 2022
22 slides from Tiptree's conference presentation, August 2022
Slide 1: Midwest IDEAS Conference
Midwest IDEAS Conference August 2022
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 (34% insider ownership1) Capital allocation and investmen
Slide 4: LTM Operating Performance
LTM Operating Performance ($ in millions) Q2’22 Capital Allocation & Annual Performance Comparison Shareholder Total Return (as of December 31, 2021) Russell S&P Stockholders’ Tiptree Adjusted Net Income2 2000 500 Equity1 1 Year 178.7% 14.8% 28.7% Q2’22 Q2’21 Q2’22 Business Lines LTM LTM 3 Year 37.7
Slide 5: Financial Snapshot
Financial Snapshot ($ in millions) LTM Adjusted Net Income1 Sum of the Parts Pro-forma Value/TIPT SOTP Value diluted share4 $744 million2 $19.85 (Transaction multiple) $67.0 $60.3 $235 million3 $6.27 (Book value ex. NCI) Q2'21 Q2'22 Adj ROAE% 16.0% 14.4% $979 million $26.12 1) See the appendix for a
Slide 6: Specialty Insurance Overview
01 Specialty Insurance Overview
Slide 7: Fortegra Overview
Fortegra Overview ($ in millions) ✓ Established, growing, specialty insurer that focuses 91% 26% $325mm on niche insurance & capital-light fee business. 5-year Average Q2’22 LTM Q2’22 GAAP Combined Ratio Adjusted ROAE Equity ✓ Unique & diverse combination of underwriting & fee revenues 95% 25 years
Slide 8: Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth
Insurance & Fee Revenue Mix Supports Consistent & Sustainable Growth Key Highlights Revenue Mix Earned Premiums, ✓ Diversified product mix with emphasis on small premium- Net per-risk ecosystems & minimal catastrophic exposure 70% ✓ Products & services distributed through independent & Service & Adm
Slide 9: Distribution Strategy
Distribution Strategy Distribution Channels Our Approach INSURANCE WARRANTY ✓ We value a diverse set of agents & program partners Agents/Brokers Agents MGUs Retailers & Dealerships ✓ Actively avoid concentration risk Retail Agents Third-party Administrators ✓ We cross-sell multiple products to our c
Slide 10: Fortegra Financial Snapshot
Fortegra Financial Snapshot ($ in millions) Total Revenues by Revenue Stream Adjusted Net Income² Earned Premiums, Net Service & Administrative Fees $1,117 $80 Other Income(1) 43 $986 $67 40 288 261 $703 $628 38 $43 $556 23 $490 106 187 26 $33 23 102 $32 95 786 $26 686 499 478 428 372 2017 2018 2019
Slide 11: Investment Portfolio
Investment Portfolio ($ in millions) Asset Allocation Other investments Fixed Income & Cash $1,011 Equities Other Alternatives 6% 2% Cash & Equivalents 84 Muni & ABS 26% $815 6% Fixed Income ETFs 191 6% $1,011mm Corporate Bonds 926 17% Government & 623 Agency 37% Liquid and Highly-Rated Fixed Income
Slide 12: Compelling Growth Story
Compelling Growth Story A Maintain & Expand Existing Programs B New & Renewal Programs Addressable Fortegra LTM Market GWPPE ◼ $1.8Bn UEP & Deferred Revenue ◼ ~95% persistency with insurance agents ◼ Excess & Surplus Insurance $56bn¹ $110mm — Fortegra Specialty formed Q4’20 Unearned Premiums & Defer
Slide 13: Tiptree Capital Overview
01 02 Tiptree Capital Overview
Slide 14: Tiptree Capital Overview
Tiptree Capital Overview ($ in millions) Overview Equity Allocation ◼ Includes all of Tiptree’s non-insurance operations and investments Real Real Assets Assets 62% 26% Financials Financials ◼ Acquire or invest in diverse companies outside the insurance 74% 38% industry with our balance sheet capita
Slide 15: Tiptree Capital Today
Tiptree Capital Today ($ in millions) Equity Capital Allocation Real Assets $205.7 Maritime transportation $182.2 2.6 $182.3 ◼ Investments in dry bulk and product tanker shipping sectors over $166.0 11.0 $160.0 Other 2018-2019 3.7 29.1 2.6 94.1 26.0 17.5 ◼ Initiated exit of dry bulk investments in Q
Slide 16: Well Positioned to Deliver on Long-Term Objectives
Well Positioned to Deliver on Long-Term Objectives ($ in millions, except per share information) Adjusted Net Income¹ Significant opportunities ahead to achieve value creation objectives at Fortegra ✓ Strategic partnership with Warburg Pincus is the first step toward our goal of demonstrating Fort
Slide 17: Appendix
Appendix 03 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 Q2’22 LT
Slide 20: Non-GAAP Reconciliations – Adjusted Net Income
Non-GAAP Reconciliations – Adjusted Net Income ($ in thousands) Trailing Twelve Months Ended June 30, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Tiptree Capital Tiptree Capital Tiptree Capital Insurance Mortgage Other Corporate Total Insurance Mortgage Other Corporate Total Insur
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 60.2 - - - Real Assets Real
Slide 22: Tiptree Inc.
TiptreeInc. ir@tiptreeinc.com
Tiptree — 13th Annual Midwest IDEAS Investor Conference 2022 on 6ix