Tiptree Inc. · NASDAQ:TIPT
Tiptree — FY2017 Earnings Presentation
19 slides from Tiptree's earnings presentation, Mar 14, 2018
Slide 1: Investor Presentation - 2017
March 2018 Financial information for year ended December 31, 2017 NASDAQ: TIPT INVESTOR PRESENTATION - 2017 Exhibit 99.2
Slide 2: Limitations on the Use of Information
1 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 subsidiarie
Slide 3: Overview & Financial Results: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: 2017 Performance Summary
3 Revenue $581.8 million 14.9% vs. prior year Adjusted EBITDA (1) $38.0 million vs. prior year of $78.9 million Book Value per share, as exchanged (1) $9.97 (1.7%) vs. 12/31/16 Net income $5.2 million vs. prior year of $32.3 million 2017 PERFORMANCE SUMMARY þ Net income for the year primarily driven
Slide 5: Financial Impact of Recently Announced Transactions
4 Key Metrics FINANCIAL IMPACT OF RECENTLY ANNOUNCED TRANSACTIONS ($ in millions) • Senior Living: Completed sale of real estate portfolio on Feb 1, 2018 þ Estimated $0.91 increase to book value per share þ Expected to be accretive to BVPS, EPS and cash earnings þ Combined with a larger, lower cost
Slide 6: Capital Allocation
5 $10.14 $0.27 $0.35 $0.07 $(0.42) $(0.19) $(0.13) $(0.12) $9.97 ($ in millions, except per share information) CAPITAL ALLOCATION (1) See the appendix for a reconciliation of Invested Capital, Total Capital and Normalized EBITDA. (2) Corporate debt includes secured corporate credit agreements and pr
Slide 7: Specialty Insurance - Performance Highlights
Year Ended December 31, 2017 SPECIALTY INSURANCE - PERFORMANCE HIGHLIGHTS
Slide 8: Specialty Insurance Performance
7 35.9 33.8 $27.0 24.6 $60.5 (6.8) Continuing to expand product offerings and focused on growth in written premiums • $560m of unearned premiums and deferred revenue, representing 19.9% year-over-year growth • Net written premiums grew by $81m, driven by increased retention in credit and warranty pr
Slide 9: Specialty Insurance - Investment Portfolio
8 2015 2016 2017 176.6 146.2 182.4 1.0 31.7 53.9 103.9 83.9 48.6 25.523.6 35.3 3.7 $181.3 4.0 $358.0 15.4 $396.4 • Net investments grew $38.5 million, or 10.8% from Q4'16 • Net portfolio income, ex. unrealized losses, of $15.5m, up $1.0m from prior year – Net investment income up year-over-year from
Slide 10: Tiptree Capital - Performance Highlights
Year Ended December 31, 2017 TIPTREE CAPITAL - PERFORMANCE HIGHLIGHTS
Slide 11: Tiptree Capital
10 Asset Management: Decline in pre-tax income driven by: • Reduced management fees as older vintage CLOs run-off • Distributions from credit investments decreased as we reduced our sub-note holdings, partially offset by $3.9m of gains Mortgage: $6.1m of Normalized EBITDA, down from 2016 due to mort
Slide 12: Outlook
11 Book value per share(1) as exchanged Adjusted EBITDA(1) OUTLOOK • Continued growth in specialty insurance operations – Growth in unearned premiums and deferred revenue of 19.9% in 2017 – Opportunity for inorganic growth through accretive acquisitions • Improvements in long-term, net investment in
Slide 13: Appendix
APPENDIX
Slide 14: EBITDA and Adjusted EBITDA Reconciliation
13 Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that use of these financial measures on a consolidated basis and for each segment provide supplemental information useful to investors as it is frequently used by the financial community to ana
Slide 15: EBITDA, Adjusted EBITDA and Normalized EBITDA Reconciliation
14 Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provide supplemental information useful to investors as it is fre
Slide 16: EBITDA, Adjusted EBITDA and Normalized EBITDA Reconciliation
15 Management uses EBITDA, Adjusted EBITDA and Normalized EBITDA, which are non-GAAP financial measures. The Company believes that consolidated EBITDA, Adjusted EBITDA and Normalized EBITDA on a consolidated basis and for each segment provide supplemental information useful to investors as it is fre
Slide 17: Non-GAAP Reconciliations - BVPS, Invested and Total Capital
16 Management evaluates the return on Invested Capital and Total Capital, which are non-GAAP financial measures, when making capital investment decisions. Invested capital represents its total cash investment, including any re-investment of earnings, and acquisition costs, net of tax. Total Capital
Slide 18: Non-GAAP Reconciliations - Specialty Insurance
17 NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table provides a reconciliation between as adjusted 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
Slide 19: Investment Portfolio Non-GAAP Measures
18 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 subject to different regulatory considerati