Leaf Group Ltd's Business Segments

OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) is referred to in this report as “OMH” or, collectively with its subsidiaries, whether directly or indirectly owned.

As one of the nation’s largest consumer finance companies, we:

provide responsible personal loan products;

offer credit and non-credit insurance;

pursue strategic acquisitions of loan portfolios; and

pursue acquisitions of companies and/or establish joint ventures.

As part of our acquisition strategy, on November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC, (“Independence”) completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for $4.5 billion in cash (the “OneMain Acquisition”). OMFH, collectively with its subsidiaries, is referred to in this report as “OneMain”. OMH and its subsidiaries (other than OneMain) is referred to in this report as “Springleaf”.

Leaf Group Ltd offers a diverse suite of segments, products, and services primarily oriented toward addressing the financial needs of its customers. Below is an extensive description of these offerings:

Personal Loan Portfolio
Leaf Group Ltd operates a robust personal loan portfolio characterized by high-yielding assets that have demonstrated resilience even under challenging market conditions. The company’s personal loans can be categorized into two main types: secured and unsecured loans.

1. Secured Personal Loans:
- Characteristics: These loans are fully amortizing, fixed-rate, non-revolving credit options secured by titled personal property, such as automobiles, or other consumer goods.
- Performance: The assets in this portfolio have exhibited strong performance metrics, affirming the soundness of the lending strategy.

2. Unsecured Personal Loans:
- These loans are not backed by collateral but offer a different risk profile and can attract various demographics seeking financing for personal expenses.

Direct Auto Loan Program
Launched to enhance the existing product mix, Leaf Group Ltd’s direct auto loan program has seen significant growth since its inception in mid-2014.

- Purpose: The auto loan product provides customers with tailored solutions to:
- Finance the purchase of a new or used vehicle.
- Refinance existing auto loans held at other financial institutions.
- Tap into the equity in their current vehicles to consolidate debt or fund home improvements.

- Features:
- Loan Size: The typical loan amount ranges from $6,000 to $25,000.
- Term Length: The maximum term for repayment is generally five years.
- Collateral: Each auto loan is secured by the borrower’s vehicle, offering an added layer of security for the lender.

- Integration with Core Operations: The auto loan products are reported within the core personal loans segment, effectively integrated into the overarching Core Consumer Operations framework.

Credit Insurance Policies
Leaf Group Ltd provides a variety of credit insurance options that protect both borrowers and lenders. These policies are designed to cover financial liabilities in various scenarios:

1. Credit Life Insurance:
- This policy insures a borrowers life for an amount typically equal to the outstanding balance of the loan. In the event of the borrowers death, the insurer pays the lender the owed amount.

2. Credit Disability Insurance:
- This insurance covers scheduled monthly loan payments if the borrower becomes disabled due to illness or injury.

3. Credit Involuntary Unemployment Insurance:
- This coverage provides for the borrower’s loan payments during periods of involuntary unemployment.

4. Credit-Related Property and Casualty Insurance:
- Designed to safeguard the collateral securing a finance receivable, this policy protects the lenders interest in the asset.

Non-Credit Insurance Products
Apart from credit insurance, Leaf Group Ltd also offers voluntary non-credit insurance policies:
- Traditional Level Term Life Policies: These policies require minimal underwriting and provide life insurance coverage independent of the credit products.

Ancillary Products and Services
In addition to financial products, Leaf Group Ltd engages in partnerships to provide membership plans for home and auto services through an unaffiliated company:
- Home and Auto Membership Plans: While not classified as insurance products, these plans provide customers with various benefits. Leaf Group does not bear any risk of loss regarding these plans, and income from these offerings is recorded under other revenues.

Conclusion
Through this comprehensive array of personal loans, auto loans, various types of credit insurance, non-credit insurance products, and ancillary service offerings, Leaf Group Ltd effectively meets a wide spectrum of customer financial needs while ensuring risk management through structured lending and insurance solutions. This diverse portfolio positions Leaf Group Ltd as a versatile player in the financial services industry.