Hagerty Announces LOI for New Fronting Arrangement with Markel; Hagerty Re to Assume 100% of the Premium
Hagerty (NYSE: HGTY), a specialty vehicle insurance provider, has announced a significant strategic move through a non-binding letter of intent with Markel. Under the proposed fronting arrangement, starting January 1, 2026, Hagerty will assume 100% of the underwriting and investment economics of its insurance business.
The agreement includes an initial 2% fronting fee to Markel, which will decrease based on policy volume. This evolution of their partnership, which began with Markel's acquisition of Essentia in 2013, aims to enhance Hagerty's profitability and operational control without disrupting existing policyholders.
Hagerty (NYSE: HGTY), fornitore di assicurazioni per veicoli speciali, ha annunciato una mossa strategica importante tramite una lettera di intenti non vincolante con Markel. Con il previsto accordo di fronting, a partire dal 1° gennaio 2026, Hagerty assumerà il 100% della sottoscrizione e dei risultati economici degli investimenti del suo business assicurativo.
L'accordo prevede una commissione iniziale del 2% per il fronting a favore di Markel, che diminuirà in base al volume delle polizze. Questa evoluzione della loro collaborazione, iniziata con l'acquisizione di Essentia da parte di Markel nel 2013, mira a migliorare la redditività e il controllo operativo di Hagerty senza arrecare disagi agli assicurati esistenti.
Hagerty (NYSE: HGTY), proveedor de seguros para vehículos especiales, ha anunciado un movimiento estratégico significativo mediante una carta de intención no vinculante con Markel. Bajo el acuerdo propuesto de fronting, a partir del 1 de enero de 2026, Hagerty asumirá el 100% de la suscripción y la economía de inversión de su negocio de seguros.
El acuerdo incluye una tarifa inicial de fronting del 2% para Markel, que disminuirá según el volumen de pólizas. Esta evolución de su asociación, que comenzó con la adquisición de Essentia por parte de Markel en 2013, busca mejorar la rentabilidad y el control operativo de Hagerty sin afectar a los asegurados actuales.
Hagerty (NYSE: HGTY)는 특수 차량 보험 제공업체로서 Markel과의 구속력 없는 의향서 체결을 통해 중요한 전략적 조치를 발표했습니다. 제안된 프론팅 계약에 따라 2026년 1월 1일부터 Hagerty는 보험 사업의 100% 인수 심사 및 투자 수익을 맡게 됩니다.
이 계약에는 Markel에 대한 초기 2% 프론팅 수수료가 포함되며, 이는 보험 증권 수량에 따라 감소합니다. 2013년 Markel이 Essentia를 인수하며 시작된 이 파트너십의 진화는 기존 보험 가입자에게 영향을 주지 않으면서 Hagerty의 수익성과 운영 통제력을 강화하는 것을 목표로 합니다.
Hagerty (NYSE : HGTY), fournisseur d'assurances pour véhicules spécialisés, a annoncé une étape stratégique importante via une lettre d'intention non contraignante avec Markel. Dans le cadre de l'accord de fronting proposé, à partir du 1er janvier 2026, Hagerty assumera 100 % de la souscription et des résultats financiers de son activité d'assurance.
L'accord prévoit une commission initiale de 2 % pour Markel, qui diminuera en fonction du volume des polices. Cette évolution de leur partenariat, initié par l'acquisition d'Essentia par Markel en 2013, vise à renforcer la rentabilité et le contrôle opérationnel de Hagerty sans perturber les assurés actuels.
Hagerty (NYSE: HGTY), ein Anbieter von Spezialfahrzeugversicherungen, hat einen bedeutenden strategischen Schritt durch einen unverbindlichen Absichtserklärung mit Markel angekündigt. Im Rahmen der vorgeschlagenen Fronting-Vereinbarung wird Hagerty ab dem 1. Januar 2026 100 % der Zeichnungs- und Anlageerträge seines Versicherungsgeschäfts übernehmen.
Die Vereinbarung sieht eine anfängliche 2 % Fronting-Gebühr für Markel vor, die sich je nach Policenvolumen verringert. Diese Weiterentwicklung ihrer Partnerschaft, die mit Markels Übernahme von Essentia im Jahr 2013 begann, zielt darauf ab, die Rentabilität und operative Kontrolle von Hagerty zu verbessern, ohne bestehende Versicherungsnehmer zu beeinträchtigen.
- Full control over 100% of premium from underwriting operations
- Expected improvement in profitability through reduced fronting fees
- Enhanced operational control while maintaining policyholder continuity
- Scalable fee structure with decreasing rates based on policy volume
- Initial 2% fronting fee payment required to Markel
- Subject to regulatory approval which could delay implementation
- Non-binding nature of the letter of intent presents execution risk
"Today's announcement marks the continued evolution of our highly successful partnership with Markel that began with their acquisition of Essentia in 2013. Under the newly proposed fronting arrangement, Hagerty will control
The company has posted a presentation about the proposed fronting arrangement to Hagerty's investor relations section of the company's corporate website. These slides are available at investor.hagerty.com.
About Hagerty, Inc.
Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in
Forward-Looking Statements
Some of the statements contained in this press release, including those regarding entering into the proposed fronting arrangement with Markel, its anticipated terms and the expected impacts to Hagerty's financial statements as a result of this proposed arrangement, constitute forward-looking statements within the meaning of the federal securities laws. The forward-looking statements contained in this press release reflect Hagerty's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances, many of which are beyond Hagerty's control, that may cause actual results and future events to differ significantly from those expressed in any forward-looking statement. These risks and uncertainties include, but are not limited to, Hagerty's ability to enter into and successfully implement the proposed fronting arrangement, the performance of Markel and Essentia under the new arrangement, and the impact of regulatory developments and other factors that may affect Hagerty's business, financial condition, and results of operations. For further discussion of these and other factors that could cause Hagerty's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in Hagerty's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on March 4, 2025, as updated by Hagerty's subsequent periodic reports filed with the Securities and Exchange Commission from time to time. While forward-looking statements reflect Hagerty's good faith beliefs, they are not guarantees of future performance or events. Any forward-looking statement speaks only as of the date hereof. Hagerty disclaims any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, future events, or other matters, except as required by law.
The newly proposed arrangement remains subject to the negotiation and execution of definitive documentation and the receipt of all required regulatory approvals, and there can be no assurance that the new arrangement will be completed on the terms described in this press release or at all.
More information can be found at newsroom.hagerty.com
Category: Financial
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SOURCE Hagerty
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