Tiptree Inc. · NASDAQ:TIPT
Tiptree — Merger or Acquisition (December 2019)
12 slides from Tiptree's merger presentation, Dec 17, 2019
Slide 1: Acquisition of Smart AutoCare
NASDAQ: TIPT ACQUISITION OF SMART AUTOCARE December 2019
Slide 2: Disclaimers: Limitations on the Use of Information
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: The Acquisition
THE ACQUISITION 2
Slide 4: Accelerates Our Growth in Auto Warranty Sector: Transaction Overview
ACCELERATES OUR GROWTH IN AUTO WARRANTY SECTOR Transaction Overview Strategic rationale Acquisition of Smart AutoCare (“SAC”)1, a growing Fee income business generating strong cash flow in service contract and warranty administrator for ~8.3x non-regulated subsidiaries modified cash EBITDA2 Im
Slide 5: Smart AutoCare Brings More Scale and Enhances Diversification
SMART AUTOCARE BRINGS MORE SCALE AND ENHANCES DIVERSIFICATION ($ in millions) Overview Substantial growth in premiums and equivalents Vehicle Service Contracts (VSCs) SAC designs, markets, and administers vehicle protection Guaranteed Asset Protection (GAP) $184 products to auto dealerships across
Slide 6: Executing on the Strategic Plan
EXECUTING ON THE STRATEGIC PLAN 5
Slide 7: Building on the Fortegra Foundation
BUILDING ON THE FORTEGRA FOUNDATION 1981- 2015- 2019+ 2014 2018 . Fortegra was founded as a . Strategically acquired by Tiptree, . Expanded into Europe provider of credit protection establishing Tiptree Insurance products . Acquired majority interest in . Re-gained A.M. Best “A-” rating Defend, a pa
Slide 8: Creating a Broader Insurance Platform
CREATING A BROADER INSURANCE PLATFORM ($ in millions) Market: Insurance International Warranty Acquired or Acquired YE 2014 Entered in 2018 Acquired YE 2019 entered: Lead brand: Fortegra Fortegra Europe Smart AutoCare Defend Premiums & Equivalents1 $1,105m $25m $201m • Credit insurance • Vehicle ser
Slide 9: Warranty and Service Contracts – Our Growth Focus
WARRANTY AND SERVICE CONTRACTS – OUR GROWTH FOCUS ($ in millions) Written premiums & premium equivalents Strategy Auto $483 Fortegra entered the warranty market in 2007 as a natural 10 Consumer electronics, appliances & furniture extension of credit protection business given common Mobile Phones 1
Slide 10: Why the Vehicle Protection Market?
WHY THE VEHICLE PROTECTION MARKET? Strong opportunities for growth within U.S. and European markets U.S. vehicle warranty market $35B U.S. vehicle warranty market, with international growth opportunities After Point of Vehicle Highly fragmented with 100+ providers Sale 7% New Cars 46% $35B Use
Slide 11: Well Positioned to Deliver on Long-Term Objectives
WELL POSITIONED TO DELIVER ON LONG-TERM OBJECTIVES Grow specialty insurance Continue growth in written premiums while maintaining underwriting standards Expand Internationally Integrate and grow Smart AutoCare Continue to pursue bolt-on acquisition opportunities Focus on growing and impr
Slide 12: Tiptree Inc.
Tiptreelnc.