12th Annual East Coast IDEAS Investor Conference
Disclaimers
LIMITATIONS ON THE USE OF INFORMATION
This presentation has been prepared by
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND PROJECTIONS
This document contains "forward-looking statements" which involve risks, uncertainties and contingencies, many of which are beyond Tiptree's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "should," "target," "will," "view," "confident," or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about Tiptree's plans, objectives, expectations and intentions. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond the company's control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled "Risk Factors" in Tiptree's Annual Report on Form 10-K, and as described in the Tiptree's other filings with the
In light of the risks and uncertainties inherent in all projections, the inclusion of forward-looking statements and projections in this presentation should not be considered as a representation by us or any other person that our objectives or plans will be achieved. Numerous factors, including those described in Tiptree's Annual Report on Form 10‐K or in Tiptree's other filings with the
MARKET AND INDUSTRY DATA
Certain market data and industry data used in this presentation were obtained from reports of governmental agencies and industry publications and surveys.
NOT AN OFFER OR A SOLICIATION
This document does not constitute an offer or invitation for the sale or purchase of securities or to engage in any other transaction with Tiptree, its subsidiaries or its affiliates. The information in this document is not targeted at the residents of any particular country or jurisdiction and is not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
NON-GAAP MEASURES
In this document, financial measures derived from consolidated financial data are sometimes used but not presented in the financial statements prepared in accordance with
1
Tiptree Overview
($ in millions)
Our Approach
Focus on |
Value |
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Oriented |
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Profitable |
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Investment |
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Underwriting |
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Approach |
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Think Like |
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Owners |
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Partner |
(32% insider |
ownership1)
1◼ Long-term focus on total shareholder retuwhile generating consistent earnings
2◼ Strong track record of returning capital to shareholders
3◼ Diversified capital allocation strategy with Fortegra as our largest operating business
Metrics2
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Financials |
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Warranty |
Warranty |
Real |
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Insurance |
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Solutions |
Solutions |
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Assets |
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Capital allocation and investment management
$294mm equity |
$892mm investment |
$171mm equity |
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$75mm Adj. Net Income2 |
portfolio |
$21mm Adj. Net Income |
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Stable, predictable |
Consistent, profitable |
Investments in |
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loss exposures |
underwriting |
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operating companies |
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Diversified sources |
High-quality |
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of earnings |
investment portfolio |
Select opportunistic |
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Substantial fee-based |
Active management |
investments |
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revenues |
of reinsurance |
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Combines specialty insurance with investment management to drive attractive risk-adjusted returns |
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2 |
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1 |
As of |
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2 |
Operating metrics represent Q1'22 last twelve months (LTM). See appendix for reconciliation of non-GAAP measures. |
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Operating Performance
($ in millions)
Q1'22 Capital Allocation & Annual Performance Comparison
Shareholder Total Retu(as of
Business Lines
Insurance
- Underwriting & fees
- Investments
Corporate
Total Tiptree
Adjusted ROAE%
Stockholders'
Equity1
Q1'22
Adjusted Net Income2
Q1'21 Q1'22
LTM LTM
15.7% 17.0%
Tiptree |
Russell |
S&P |
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2000 |
500 |
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1 Year |
178.7% |
14.8% |
28.7% |
3 Year |
37.7% |
20.0% |
26.0% |
5 Year |
19.4% |
12.0% |
18.5% |
From Jun'073 |
9.7% |
8.6% |
10.5% |
Q1'22 LTM Highlights
Insurance:26.4% Adj. ROAE
- Growth in insurance underwriting and fee revenues
- Combined ratio improvement
$200 million investment fromWarburg Pincus , providing growth capital and validating underlying value of Fortegra
- Increase in charter rates from shipping investments
- Strong returns in mortgage business
1 Represents total stockholders' equity. Total stockholders' equity net of non-controlling interests was
3 At inception in 2007, book value per share was
3
Tiptree Snapshot
($ in millions)
Adjusted Net Income1
LTM |
LTM |
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Q1'21 |
Q1'22 |
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Adj ROAE% |
15.6% |
17.0% |
Tiptree Sum of the Parts |
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Pro-forma |
Value/TIPT |
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SOTP Value |
diluted share4 |
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$739 million2 |
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(Transaction multiple) |
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(Book value ex. NCI)
Holding Company |
$54 million3 |
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(Book value) |
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1) |
See the appendix for a reconciliation of Non-GAAP measures including Adjusted Net Income. |
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2) |
Estimated Based on |
4 |
3) |
Pro-forma Q1'22 Tiptree holdco book equity of |
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4) |
Diluted shares as of |
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Attachments
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The National Security Group, Inc.’s Special Meeting of the Stockholders
Patent Issued for Financial planning engine (USPTO 11348168): The Northwestern Mutual Life Insurance Company
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