Hagerty raises 2026 net income outlook to $48M–$60M
HGTY had 1.9 million policies in force, up 18% year over year, against a stated 3.0 million goal for 2030.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Hagerty, Inc. reported third-quarter 2026 revenue of $354.2 million, down 9.5% year over year, and net income of $36.3 million, compared with $46.2 million. Written premium rose 15.5% to $386.0 million, while Adjusted EBITDA, a non-GAAP measure, increased 63.5% to $97.1 million.
For the nine months ended September 30, 2026, revenue was $1,020.9 million, down 7.1%, and net income was $31.6 million, versus $120.7 million. Nine-month net income included $188.9 million of pre-tax Markel Fronting Arrangement transitional costs. Adjusted EBITDA increased 42.5% to $256.7 million, and operating cash flow rose 48% to $280.1 million.
Effective January 1, 2026, the Markel Fronting Arrangement raised Hagerty Re’s U.S. quota share from 80% to 100%; related commission revenue and ceding commission expense are eliminated in consolidation, affecting reported revenue. Hagerty raised its 2026 net income outlook to $48 million–$60 million, including approximately $199 million of pre-tax transitional costs, and its Adjusted EBITDA outlook to $305 million–$315 million.
3 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointYear-to-date Adjusted EBITDA increased 42.5% to $256.7 million.
- Moderate pointYear-to-date Written Premium grew 17.7% to $1,099.4 million.
- Moderate pointOperating cash flow increased 48% to $280.1 million year to date.
Negative
- Moderate pointYear-to-date reported revenue fell 7.1% amid the Markel transition.
- Moderate pointNine-month net income declined 73.8% to $31.6 million.
Filing Explained
The Markel transition charge is tied to pre-2026 policies and is expected to fall to about $10 million in Q4 as those terms run off.
In its third-quarter filing, Hagerty reports that the Markel arrangement, in effect since
At
The
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter total revenue: $354.2 million
Third-quarter net income: $36.3 million
Nine-month total revenue: $1,020.9 million
+5 more
8 metrics
Third-quarter total revenue
$354.2 million
Three months ended September 30, 2026; down 9.5% year over year
Third-quarter net income
$36.3 million
Three months ended September 30, 2026; compared with $46.2 million in 2025
Nine-month total revenue
$1,020.9 million
Nine months ended September 30, 2026; down 7.1% year over year
Nine-month net income
$31.6 million
Nine months ended September 30, 2026; down 73.8% year over year and includes $188.9 million of pre-tax transitional costs
Nine-month Written Premium
$1,099.4 million
Nine months ended September 30, 2026; increased 17.7% year over year
Nine-month Adjusted EBITDA
$256.7 million
Nine months ended September 30, 2026; non-GAAP measure, increased 42.5% year over year
Cash flow from operating activities
$280.1 million
Nine months ended September 30, 2026; increased 48% year over year
Revised 2026 outlook
Net income: $48 million–$60 million; Adjusted EBITDA: $305 million–$315 million
Net income outlook includes approximately $199 million of pre-tax transitional costs
Key Terms
Markel Fronting Arrangement, quota share, Hagerty Re Combined Ratio, deferred ceding commissions
4 terms
Markel Fronting Arrangement financial
"under the Markel Fronting Arrangement"
Hagerty Re Combined Ratio financial
"Hagerty Re Combined Ratio was 85.2%"
deferred ceding commissions financial
"amortization of deferred ceding commissions paid to Markel"
Earnings Snapshot
Third-quarter total revenue: $354.2 million · Guidance included
Three and nine months ended September 30, 2026
Third-quarter total revenue
$354.2 million
-9.5% year over year
Third-quarter net income
$36.3 million
-21.4% year over year
Nine-month net income
$31.6 million
-73.8% year over year
Nine-month Adjusted EBITDA
$256.7 million
+42.5% year over year
Guidance
Revised 2026 outlook: net income of $48 million–$60 million, including approximately $199 million of pre-tax Markel Fronting Arrangement transitional costs, and Adjusted EBITDA of $305 million–$315 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HGTY's third-quarter 2026 financial results?
Revenue was $354.2 million, down 9.5% year over year; net income was $36.3 million, compared with $46.2 million; and Adjusted EBITDA, a non-GAAP measure, was $97.1 million, up 63.5%.
What is HGTY's 2026 financial outlook?
Hagerty's revised outlook is net income of $48 million–$60 million, including approximately $199 million of pre-tax transitional costs, and Adjusted EBITDA of $305 million–$315 million. The outlook also includes written premium growth of 16%–17% and a total revenue change of (8)%–(7)%.
Why did HGTY's reported revenue decline in 2026?
Under the Markel Fronting Arrangement, assuming control of the Essentia book requires eliminating commission revenue and associated ceding commission expense in consolidation. Hagerty reported elimination of $138 million of commission and fee revenue in the third quarter and $385 million year to date.
What was HGTY's year-to-date Hagerty Re combined ratio?
Hagerty Re's combined ratio was 85.2% for the nine months ended September 30, 2026, compared with 89.3% in the prior-year period. The 2026 figure includes $32 million of lower estimated losses: $26 million for the current accident year and $6 million for the 2025 accident year.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition
On November 3, 2026, Hagerty, Inc. (the "Company") announced its financial results for the fiscal quarter ended September 30, 2026 by issuing a letter to its stockholders and a press release. The Company will also be holding a conference call on November 3, 2026 to discuss its financial results for the three and nine months ended September 30, 2026. The full text of the Company's letter to its stockholders and press release are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
ITEM 7.01 Regulation FD Disclosure
On November 3, 2026, the Company posted to the investor relations page of its website an investor presentation expected to be used by the Company in connection with certain future presentations to investors and others. A copy of the investor presentation is attached as Exhibit 99.3 to this Current Report on Form 8-K.
The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company's investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.
The information contained in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Letter to Stockholders, dated November 3, 2026 | |||||||
| 99.2 | Press Release, dated November 3, 2026 | |||||||
| 99.3 | Investor Presentation, dated November 3, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HAGERTY, INC. | ||||||||
| /s/ Diana M. Chafey | ||||||||
Date: November 3, 2026 | Diana M. Chafey | |||||||
| Chief Legal Officer | ||||||||
STOCKHOLDER LETTER Q3 2026
While many of our members in North America are closing their garages for the winter, the action in the car collecting world moves indoors. For Hagerty, that means Broad Arrow’s Wynn Concours auction in Las Vegas, and Zoute and Zurich auctions in Europe. If you haven’t been to Zoute, think of it as Monterey Car Week with a European flair. The streets are full of iconic cars including Ferrari F40s and Mercedes-Benz 300 SL Gullwings, and the sidewalks teem with young enthusiasts snapping photos to post online. If you have never been to a live auction, here is what it is like. The room and the tents around it are filled with carefully curated cars. People from dozens of countries mingle, enjoying the food, drink and entertainment while they wait. Behind the scenes, our Broad Arrow specialists are answering questions from interested bidders in person and on the phone. When the auctioneers take the rostrum, the room goes quiet. Bidders know it won’t be easy to win the car of their dreams, especially given the prices some of the best supercars and hypercars have fetched over the past year. But the thrill of the hunt is half the fun, and they are keen for the opening gavel. Some will walk away triumphant, while others will walk away disappointed, but we hope that all will have enjoyed the experience. At our second Zoute auction in early October, the hammer fell on €36 million worth of cars, including a LaFerrari, McLaren P1 and Porsche 918 Spyder. Sales were up 35% from last year and there were a lot of new, young faces in the crowd, starting collections of their own. That’s the auction room. Now to the quarter. The Third Quarter Insurance is the core of Hagerty, and we are firing on all cylinders. We delivered year- to-date written premium gains of 18% and added more than 400,000 new members since January as State Farm conversions Dear Hagerty Stockholders, Members and One Team Hagerty, STOCKHOLDER LETTER Growing With Purpose ON THE COVER: A 1983 Porsche 911SC cruising along Pennsylvania Route 144, Hagerty’s 2026 Road of the Year. PHOTOGRAPHER: CAMERON NEVEAU HAGERTY Q3 2026 | 2
HAGERTY Q3 2026 | 3 ramp up. Adjusted EBITDA jumped 43% over the first nine months, and we raised our full- year outlook again, due in part to favorable loss trends in physical damage and liability. That makes 15 consecutive quarters of growth on the measures that matter most to us, and I believe it keeps us on pace to reach our 2030 goal of 3 million policies in force. How are we growing so quickly? I believe the answer is simple: we have created a household brand and business model that has gained share, year after year, in both strong markets and softer ones. Members tell us they like what they get from Hagerty. Our Member experience ratings average 4.93 out of 5 stars, and our Net Promoter Score is over 80, almost twice the industry benchmark. Retention is above 88%, and it would be even higher if not for members selling their cars, our biggest source of attrition. Those sales can also work in our favor. When a member sells through Broad Arrow, we earn a commission and get to introduce Hagerty to the new owner. Pricing and insuring these cars well depends on what we know. Hagerty Drivers Club magazine reaches more than two million readers per issue, so we know what members are reading. Our Hagerty Valuation Tools are widely used for pricing collectible vehicles. And with the cars we insure, we can see what they are worth and how values are shifting in real time. The Market and Broad Arrow The Zoute results in Europe follow what we saw at Monterey Car Week, when total sales across all auction houses reached an all- time high of $756 million. Modern supercars and hypercars made up nearly half of that. I have seen strong demand push values higher before, and I want to be careful about how much we read into recent trends. Markets have peaks and troughs, and a record August does not mean every auction ahead will look the same. Given the surge in prices at the top end in 2026, I would not be surprised to see them take a breather at some point. What gives me confidence over the long run is who is showing up. Gen X, millennial and Gen Z buyers want the supercars and JDM cars they grew up admiring, the way Baby Boomers went after 1960s European race cars and American muscle cars. I believe that these generational changes should support the collector car market for a long time as they gravitate toward more modern, higher-value cars. I think about the 918 Spyder that Broad Arrow sold this year. The original owner bought it new, never titled it to anyone else and serviced it at every interval. Any of the established houses would have taken it. But we won the business with the seller based on trust, deal structuring, and our track record, including what we accomplished at Amelia and Villa d’Este earlier this year. The Piëch BMW M5 and Mercedes-Benz 300 SL Gullwing from the ex-Valkenburg collection came to us in a similar way. A lot of our future policyholders first meet us at an auction. The person who just bought a Ferrari LaFerrari needs to insure it, wants to know what it is worth, and is looking for other people who care about cars as much as they do. That is where the rest of Hagerty comes in. The car gets insured with us, the owner joins the Hagerty Drivers Club, and when it is time for their next car, they come full circle, back to Broad Arrow. One validation that the model is working came this summer, when Barrett-Jackson, one of the best-known names in the auction world, named us its official insurance partner. More Time for Members Our Member Service Center team now gets to spend more of its day on the conversations that need a person. After each member call, our representatives used to write a summary by hand for future reference. Today, AI handles that
automatically, and the time goes back to the work only our people can do: assisting a member who is stuck on the side of the road and needs a flatbed, helping a new member understand why Guaranteed Value coverage matters, or building the kind of relationship that turns a first-time buyer at a Broad Arrow auction into a 20-year Hagerty member. It also means we can keep adding policies without simply asking the team to work harder. Much of this comes from practical changes and efficiencies through technology investments that took administrative work off One Team Hagerty’s plates and gave that time back to member engagement. We have made great progress over the last four years, and I know the work is never done. We are always looking for more ways to serve members better and make our team’s work easier. The Road Ahead Route 66 turned 100 this year, a century since America established its most iconic ribbon of asphalt and dared people to see what was around the next bend. That spirit never left. Today, there are 67 million Americans who have raised their hand to say they love cars, for the way they look and sound, and for the memories that come with them. Our own insurance book tells us that $19 billion in collector car transactions flowed through our members’ hands over the last year. We now protect 3.1 million vehicles across the U.S., Canada and the U.K., and the target market in the U.S. alone is 36 million. I believe that leaves us a long runway. People organize their weekends and friendships around these cars, and often a good part of their identity, too. There are fathers and sons rebuilding a car together in the garage, as my father and I did with our 1967 Porsche 911 S, a first-generation immigrant who saved for a decade to buy the muscle car she first saw on an American TV show as a child, and a Gen X buyer who finally found a clean Toyota Supra, the one he could never afford in college. I am optimistic about the road ahead. We intend to keep growing the insurance business through steady share gains and new partnerships, keep investing in technology that gives our people more time with members, and keep building out the collector car community, from auction rooms in Europe to the driveways of first-time classic car owners across North America. Thank you, as always, to One Team Hagerty for making these results possible. Onward and upward! McKeel Hagerty CEO and Chairman HAGERTY Q3 2026 | 4 McKeel Hagerty (left) with the 1967 Porsche 911S that he and his father Frank Hagerty, co-founder of Hagerty, bought for $500 in 1981 and restored together.
For Immediate Release
Hagerty Reports Third Quarter 2026 Results
Increases 2026 Growth Outlook
Year-to-date 2026 Highlights:
•Strong underlying operational performance with record increase in Members, Written Premium, and Earned Premium
•Written Premium grew 18% year-over-year to $1,099 million
•Added a record 402,000 new members during the first nine months of 2026, with 18% policy in force growth to 1.9 million members
•Earned Premium increased 42% to $757 million
•Combined ratio for Hagerty Re of 85.2%, including $32 million of lower estimated losses, with $26 million related to the current accident year and $6 million for the 2025 accident year
•Transition to Markel Fronting Arrangement on January 1, 2026 resulted in decrease to reported revenue as previously disclosed
•Net Income of $32 million, including $189 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $121 million in the prior year period
•Adjusted EBITDA (a non-GAAP measure) increased 43% to $257 million, compared to $180 million in the prior year period
•Cash Flow from Operating Activities increased 48% to $280 million
•Increased 2026 Profit Outlook – Net Income range of $48–$60 million and Adjusted EBITDA range of $305–$315 million
TRAVERSE CITY, MI, November 3, 2026 /PRNewswire/ – Hagerty, Inc. (NYSE: HGTY) makes it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love — through specialty vehicle insurance, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world's largest membership community of car lovers. Today the company announced financial results for the three and nine months ended September 30, 2026.
"Third quarter results marked the continuation of the excellent business momentum from the first half of 2026. We grew written premium 18% during the first nine months as we added a record 402,000 new members. Net Income was $32 million and Adjusted EBITDA grew 43% to $257 million, reflecting strong written premium growth combined with the move to controlling 100% of the economics under the new Markel Fronting Arrangement. Given the strength of our results and current trajectory, we are again increasing our expectations for full year 2026," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"We have built one of the most engaging membership models in the automotive world. This differentiated approach powers sustained written premium growth from adding new members, deepening relationships and creating opportunities to sell other products and services. The Hagerty ecosystem is delivering, with record sales at Monterey car week and an 83% increase in auction sales so far this year," added Mr. Hagerty.
1
THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS
•Third quarter 2026 Written Premium increased 16% year-over-year to $386 million, and year-to-date 2026 Written Premium increased 18% year-over-year to $1,099 million
•Third quarter 2026 Earned Premium increased 42% year-over-year to $265 million, and year-to-date 2026 Earned Premium increased 42% year-over-year to $757 million
•Driven by the Markel Fronting Arrangement which increased Hagerty Re’s U.S. quota share from 80% to 100% (including in-force policies written in 2025), as well as growth in subject premiums written by our MGA subsidiaries
•Policies in Force Retention was 88.2% as of September 30, 2026 compared to 88.6% in the prior year period, and Policies in Force count increased 18% year-over-year to 1.9 million
•Third quarter 2026 MGA+ reporting unit Commission and fee revenue increased 16% to $160 million, and year-to-date 2026 MGA+ reporting unit Commission and fee revenue increased 17% year-over-year to $447 million, reflecting organic growth in the Essentia and State Farm books of business
•Assuming control of the Essentia book through the Markel Fronting Arrangement on January 1, 2026 requires the elimination of $138 million of Commission and fee revenue in the third quarter of 2026 and $385 million in the year-to-date period in the Condensed Consolidated Statements of Operations
•On a consolidated basis, third quarter 2026 Commission and fee revenue decreased 84% year-over-year to $22 million, and year-to-date 2026 Commission and fee revenue decreased 84% year-over-year to $62 million
•Third quarter 2026 Marketplace revenue decreased 6% year-over-year to $32 million, and year-to-date 2026 Marketplace revenue increased 8% year-over-year to $97 million
•83% year-to-date growth in auction sales was offset by lower inventory sales
•Third quarter 2026 Membership and other revenue increased 2% year-over-year to $22 million, and year-to-date 2026 Membership and other revenue increased 4% year-over-year to $65 million
•Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to over 977,000
•Third quarter 2026 Net investment income increased 25% year-over-year to $13 million, and year-to-date 2026 Net investment income increased 19% year-over-year to $34 million
•Third quarter 2026 Total Revenue decreased 9% year-over-year to $354 million, and year-to-date 2026 Total Revenue decreased 7% year-over-year to $1,021 million, reflecting the transition to the Markel Fronting Arrangement
•Third quarter 2026 Hagerty Re Loss Ratio was 32.6% compared to 42.0% in the prior year period, and year-to-date 2026 Hagerty Re Loss Ratio was 37.8% compared to 42.1% in the prior year period
•Third quarter 2026 Hagerty Re Combined Ratio was 79.7% compared to 89.6% in the prior year period, and year-to-date 2026 Hagerty Re Combined Ratio was 85.2% compared to 89.3% in the prior year period
•Third quarter 2026 Hagerty Re Loss and Combined Ratios were helped by a $26 million reduction to our estimate of loss and loss adjustment expenses for the current accident year recorded in the third quarter, and year-to-date also includes a $6 million reduction to our estimate of 2025 accident year losses recorded in the first quarter of 2026
2
•Third quarter 2026 Policy acquisition costs, net decreased 29% to $62 million, and year-to-date 2026 Policy acquisition costs, net were flat at $248 million. This variance is a result of a change in the composition of expenses following the transition of our business under the Markel Fronting Arrangement, partially offset by growth in earned premium.
•The transition to the Markel Fronting Arrangement and adoption of Article 7 reporting standards for insurance companies reclassified certain costs among expense captions on the Condensed Consolidated Statements of Operations, reducing period-over-period comparability of individual captions without affecting total expenses. Beginning in 2026, following our assumption of control over the Essentia book of business, operating costs incurred by our U.S. MGA subsidiary in support of risk-taking activities are classified within Underwriting and other insurance expenses, versus Selling, general, and administrative expenses
•Together, third quarter 2026 Underwriting and other insurance expenses and Selling, general, and administrative expenses within the Insurance segment decreased 13% to $121 million, and year-to-date 2026 decreased 11% to $347 million. This decrease was primarily a result of the deferral of costs incurred by our MGA subsidiary for the successful acquisition or renewal of insurance policies issued under the Markel Fronting Arrangement. In 2025, these costs were expensed as incurred
•Third quarter 2026 Income before taxes of $41 million, including $36 million of Markel Fronting Arrangement transitional costs, and year-to-date 2026 Income before taxes of $23 million, including $189 million of Markel Fronting Arrangement transitional costs
•Third quarter 2026 Net Income of $36 million, including $36 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $46 million in the prior year period, and year-to-date 2026 Net Income of $32 million, compared to Net Income of $121 million in the prior year period, including $189 million of pre-tax Markel Fronting Arrangement transitional costs
•Third quarter 2026 Adjusted EBITDA (a non-GAAP measure) increased 64% year-over-year to $97 million, compared to $59 million in the prior year period, and year-to-date 2026 Adjusted EBITDA increased 43% year-over-year to $257 million, compared to $180 million in the prior year period
•Third quarter 2026 Basic and Diluted Earnings Per Share were both $0.08, and year-to-date 2026 Basic and Diluted Earnings Per Share were $0.00
•Third quarter 2026 Adjusted Diluted Earnings Per Share (a non-GAAP measure) was $0.10, and year-to-date 2026 Adjusted Diluted Earnings Per Share was $0.05
•Year-to-date 2026 Cash Flow from Operating Activities increased 48% to $280 million
•As of September 30, the Company had $461 million of unrestricted cash and $247 million of total debt, $103 million of which was back leverage for Broad Arrow Capital’s portfolio of loans collateralized by collector cars
The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Non-GAAP Financial Measures at the end of this press release.
3
INCREASED 2026 OUTLOOK - COMPOUNDING GROWTH
We believe 2026 is on track to be another great year of underlying profit growth for Hagerty as our team executes on our long-term plan to deliver compounding premium growth through investing in our long-term competitive advantages with our member-centric approach. As of January 1, 2026, we moved to a 100% quota share arrangement with our long-term partner, Markel, where we retain 100% of the premium and risk from our high-quality, historically low volatility underwriting. We also remain focused on delivering this growth more efficiently through the benefits of scale, continued cost discipline, and investments in our technology platform.
•For full year 2026, Hagerty anticipates:
◦Written Premium growth of 16%–17%
◦Total Revenue change of (8)%–(7)%, as Markel-related commission revenue is eliminated under the Markel Fronting Arrangement1
◦Net Income of $48 million–$60 million, including ~$199 million of Markel Fronting Arrangement transitional costs2
◦Adjusted EBITDA of $305 million–$315 million
Prior 2026 Outlook1 ($) | Revised 2026 Outlook ($) | |||||||||||||||||||||||||||||||
| in thousands | 2025 Results | Low End | High End | Low End | High End | |||||||||||||||||||||||||||
| Total Written Premium | $1,193,548 | $1,385,000 | $1,397,000 | $1,385,000 | $1,397,000 | |||||||||||||||||||||||||||
Total Revenue2 | $1,456,389 | $1,325,000 | $1,340,000 | $1,340,000 | $1,354,000 | |||||||||||||||||||||||||||
Net Income3, 4 | $149,225 | $18,000 | $30,000 | $48,000 | $60,000 | |||||||||||||||||||||||||||
Adjusted EBITDA5 | $236,791 | $270,000 | $280,000 | $305,000 | $315,000 | |||||||||||||||||||||||||||
1 Prior 2026 Outlook shared on the Company’s second quarter earnings call on August 5th, 2026.
2 Revenue guidance reflects the accounting impact of the Markel Fronting Arrangement. Beginning in 2026, we now control the Essentia book of business with the benefit of our MGA services received by Hagerty Re and not Essentia. As a result, commission revenue and the associated ceding commission expense for policies issued through the Markel Fronting Arrangement are now eliminated in consolidation. Although we expect the arrangement to result in increased profitability (as reflected in Adjusted EBITDA), reported commission revenue and ceding commission expense will be significantly lower than prior periods, affecting period-to-period comparability. 2025 commission revenue associated with our alliance agreement with Markel was $437 million and 2025 ceding commission expense related to the Company’s reinsurance quota share agreement with Markel was $344 million.
3 The projected Net Income includes approximately $199 million of pre-tax transitional costs related to the Markel Fronting Arrangement representing deferred ceding commissions paid to Markel for policies written prior to January 1, 2026, which will be fully amortized ratably over the remaining term of those policies throughout 2026. This amortization will decline to approximately $10 million in Q4 2026 as 2025 policies expire. Excluding these transitional costs, we expect 2026 to reflect underlying profitability improvement.
4 Full year 2025 Net Income includes (i) the benefit from the $42 million release of a portion of our valuation allowance, partially offset by a $32 million loss related to the change in value of the TRA liability; and (ii) a $21 million reduction in reserves in the fourth quarter, primarily related to favorable development for the 2024 accident year and improvement in current accident year experience.
5 See section “Key Performance Indicators and Non-GAAP Financial Measures” below for additional information regarding this non-GAAP financial measure.
4
Conference Call Details
Hagerty will hold a conference call to discuss the financial results on Tuesday, November 3, 2026 10:00 am Eastern Time. A webcast of the conference call, including its Investor Presentation highlighting third quarter 2026 financial results, will be available on Hagerty’s investor relations website at investor.hagerty.com. To dial-in for the conference call, please register using the link found here to receive your unique dial-in and PIN. Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investor.hagerty.com following the call.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding Hagerty’s future operating results and financial position, Hagerty’s business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and Hagerty’s objectives for future operations. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negatives of these expressions, are intended to identify forward-looking statements.
Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in forward-looking statements. These factors include, among other things, Hagerty’s ability to: (i) compete effectively within Hagerty’s industry and attract and retain insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with Hagerty’s insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages, or other issues with Hagerty’s technology platforms or use of third-party services; (v) accelerate the adoption of Hagerty’s membership and marketplace products and services, as well as any new insurance programs and products offered; (vi) successfully implement the fronting arrangement consummated with Markel and realize the anticipated benefits while also managing the increased exposure to underwriting volatility, catastrophes, reinsurance counterparty risk, and legal, compliance, and regulatory risks resulting from the shift to Hagerty Re assuming 100% of the risk for policies written through this arrangement; (vii) underwrite and price new products, including Enthusiast+, consistent with expected loss ratios and risk tolerances; (viii) execute Broad Arrow’s private sale, auction, and financing strategies; (ix) complete acquisitions or investments on the expected terms or timeline, or at all, and realize the benefits of such acquisitions and investments, including expected earnings enhancements and synergies, including those anticipated from the recently completed acquisition of Bennetts Motorcycling Services Limited; (x) manage the cyclical nature of the insurance business and broader macroeconomic conditions, including inflation, interest rates, and potential recessionary pressures; (xi) achieve Hagerty’s investment objectives and avoid losses in the investment portfolio; (xii) address unexpected increases in the frequency or severity of claims, including catastrophe losses; and (xiii) comply with numerous laws and regulations applicable to Hagerty’s business, including without limitation state, federal, and foreign laws relating to insurance and rate increases, privacy and cybersecurity, marketing and advertising, digital services, accounting matters, tax, anti-money laundering, and economic sanctions.
The forward-looking statements in this release represent Hagerty’s views as of the date hereof. You should not rely on forward-looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. This press release should be read in conjunction with the information included in filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand Hagerty’s reported financial results and business outlook for future periods. In addition, this press release contains certain “non-GAAP financial measures”. The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided under the heading “Key Performance Indicators and Non-GAAP Financial Measures” below.
5
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is a company built by drivers for drivers, protecting 3.1 million vehicles in the United States, Canada and the UK. We make it easier and more enjoyable for car enthusiasts to drive and celebrate the vehicles they love through innovative vehicle insurance products, live and digital auctions, engaging media and events, and the Hagerty Drivers Club, the world’s largest membership community of car lovers.
For more information, please visit www.hagerty.com or www.newsroom.hagerty.com. Never Stop Driving®.
Hagerty Investor: Investor@hagerty.com
Hagerty Media: Press@hagerty.com
Category: Financial
Source: Hagerty
6
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| Three months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||
| REVENUES: | in thousands (except percentages and per share amounts) | |||||||||||||||||||||||||
| Earned premium, net | $ | 265,113 | $ | 187,039 | $ | 78,074 | 41.7 | % | ||||||||||||||||||
| Commission and fee revenue | 21,586 | 137,103 | (115,517) | (84.3) | % | |||||||||||||||||||||
| Marketplace revenue | 32,164 | 34,356 | (2,192) | (6.4) | % | |||||||||||||||||||||
| Membership and other revenue | 21,908 | 21,496 | 412 | 1.9 | % | |||||||||||||||||||||
| Net investment income | 12,720 | 10,152 | 2,568 | 25.3 | % | |||||||||||||||||||||
| Net investment gains | 751 | 1,271 | (520) | (40.9) | % | |||||||||||||||||||||
| Total revenue | 354,242 | 391,417 | (37,175) | (9.5) | % | |||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||
| Losses and loss adjustment expenses, net | 90,261 | 78,626 | 11,635 | 14.8 | % | |||||||||||||||||||||
| Policy acquisition costs, net | 62,214 | 87,411 | (25,197) | (28.8) | % | |||||||||||||||||||||
| Underwriting and other insurance expenses | 66,716 | 1,500 | 65,216 | N/M | ||||||||||||||||||||||
| Selling, general, and administrative expenses | 92,766 | 178,140 | (85,374) | (47.9) | % | |||||||||||||||||||||
| Interest expense and other, net | 886 | 32,403 | (31,517) | (97.3) | % | |||||||||||||||||||||
| Total expenses | 312,843 | 378,080 | (65,237) | (17.3) | % | |||||||||||||||||||||
| INCOME BEFORE TAXES | 41,399 | 13,337 | 28,062 | N/M | ||||||||||||||||||||||
| Income tax (expense) benefit | (5,130) | 32,834 | (37,964) | (115.6) | % | |||||||||||||||||||||
| NET INCOME | 36,269 | 46,171 | (9,902) | (21.4) | % | |||||||||||||||||||||
| Net income attributable to non-controlling interest | (26,058) | (25,323) | (735) | (2.9) | % | |||||||||||||||||||||
| Accretion of Series A Convertible Preferred Stock | (1,826) | (1,903) | (77) | (4.0) | % | |||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ | 8,385 | $ | 18,945 | $ | (10,560) | (55.7) | % | ||||||||||||||||||
| Earnings per share of Class A Common Stock: | ||||||||||||||||||||||||||
| Basic | $ | 0.08 | $ | 0.18 | ||||||||||||||||||||||
| Diluted | $ | 0.08 | $ | 0.11 | ||||||||||||||||||||||
| Weighted average shares of Class A Common Stock outstanding: | ||||||||||||||||||||||||||
| Basic | 106,097 | 96,167 | ||||||||||||||||||||||||
| Diluted | 107,800 | 347,240 | ||||||||||||||||||||||||
N/M = Not meaningful
7
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| Nine months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||
| REVENUES: | in thousands (except percentages and per share amounts) | |||||||||||||||||||||||||
| Earned premium, net | $ | 756,711 | $ | 534,179 | $ | 222,532 | 41.7 | % | ||||||||||||||||||
| Commission and fee revenue | 61,686 | 380,677 | (318,991) | (83.8) | % | |||||||||||||||||||||
| Marketplace revenue | 97,474 | 90,328 | 7,146 | 7.9 | % | |||||||||||||||||||||
| Membership and other revenue | 65,396 | 63,102 | 2,294 | 3.6 | % | |||||||||||||||||||||
| Net investment income | 33,986 | 28,626 | 5,360 | 18.7 | % | |||||||||||||||||||||
| Net investment gains | 5,641 | 2,150 | 3,491 | 162.4 | % | |||||||||||||||||||||
| Total revenue | 1,020,894 | 1,099,062 | (78,168) | (7.1) | % | |||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||
| Losses and loss adjustment expenses, net | 298,889 | 224,969 | 73,920 | 32.9 | % | |||||||||||||||||||||
| Policy acquisition costs, net | 247,777 | 247,682 | 95 | — | % | |||||||||||||||||||||
| Underwriting and other insurance expenses | 189,251 | 4,079 | 185,172 | N/M | ||||||||||||||||||||||
| Selling, general, and administrative expenses | 260,447 | 483,812 | (223,365) | (46.2) | % | |||||||||||||||||||||
| Interest expense and other, net | 1,836 | 39,038 | (37,202) | (95.3) | % | |||||||||||||||||||||
| Total expenses | 998,200 | 999,580 | (1,380) | (0.1) | % | |||||||||||||||||||||
| INCOME BEFORE TAXES | 22,694 | 99,482 | (76,788) | (77.2) | % | |||||||||||||||||||||
| Income tax (expense) benefit | 8,871 | 21,184 | (12,313) | (58.1) | % | |||||||||||||||||||||
| NET INCOME | 31,565 | 120,666 | (89,101) | (73.8) | % | |||||||||||||||||||||
| Net income attributable to non-controlling interest | (25,565) | (80,474) | 54,909 | 68.2 | % | |||||||||||||||||||||
| Accretion of Series A Convertible Preferred Stock | (5,804) | (5,653) | 151 | 2.7 | % | |||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ | 196 | $ | 34,539 | $ | (34,343) | (99.4) | % | ||||||||||||||||||
| Earnings per share of Class A Common Stock: | ||||||||||||||||||||||||||
| Basic | $ | 0.00 | $ | 0.35 | ||||||||||||||||||||||
| Diluted | $ | 0.00 | $ | 0.29 | ||||||||||||||||||||||
| Weighted average shares of Class A Common Stock outstanding: | ||||||||||||||||||||||||||
| Basic | 102,995 | 92,326 | ||||||||||||||||||||||||
| Diluted | 102,995 | 346,672 | ||||||||||||||||||||||||
N/M = Not meaningful
8
Hagerty, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
| September 30, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| ASSETS | in thousands (except share amounts) | |||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost: $639,905 and $687,813 as of September 30, 2026 and December 31, 2025, respectively) | $ | 620,823 | $ | 696,271 | ||||||||||
| Equity securities, at fair value | 84,103 | 34,871 | ||||||||||||
| Total investments | 704,926 | 731,142 | ||||||||||||
| Cash and cash equivalents | 460,796 | 160,177 | ||||||||||||
| Restricted cash and cash equivalents | 132,767 | 138,823 | ||||||||||||
| Accounts receivable | 27,519 | 98,872 | ||||||||||||
| Premiums receivable | 125,223 | 180,529 | ||||||||||||
| Deferred acquisition costs, net | 75,516 | 179,224 | ||||||||||||
| Reinsurance recoverables | 17,061 | 15,296 | ||||||||||||
| Prepaid reinsurance premiums | 53,025 | 21,950 | ||||||||||||
| Notes receivable | 168,110 | 113,887 | ||||||||||||
| Intangible assets, net | 90,483 | 88,915 | ||||||||||||
| Goodwill | 114,134 | 114,164 | ||||||||||||
| Deferred tax assets | 86,318 | 43,011 | ||||||||||||
| Other assets | 223,556 | 207,986 | ||||||||||||
| TOTAL ASSETS | $ | 2,279,434 | $ | 2,093,976 | ||||||||||
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Accounts payable and accrued expenses | $ | 122,101 | $ | 111,947 | ||||||||||
| Advance premiums | 44,006 | 28,287 | ||||||||||||
| Due to insurers | 19,047 | 94,930 | ||||||||||||
| Losses payable and reserves for unpaid losses and loss adjustment expenses | 232,132 | 264,204 | ||||||||||||
| Unearned premiums | 642,769 | 412,058 | ||||||||||||
| Ceding commissions payable | 4,545 | 86,165 | ||||||||||||
| Debt, net | 246,398 | 177,907 | ||||||||||||
| Contract liabilities | 51,560 | 46,450 | ||||||||||||
| Deferred tax liability | 308 | 23,489 | ||||||||||||
| Tax receivable agreement liability | 62,858 | 39,829 | ||||||||||||
| Other liabilities | 101,491 | 61,684 | ||||||||||||
| TOTAL LIABILITIES | 1,527,215 | 1,346,950 | ||||||||||||
| Commitments and Contingencies | — | — | ||||||||||||
| TEMPORARY EQUITY | ||||||||||||||
Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of September 30, 2026 and December 31, 2025) 1 | 86,822 | 86,618 | ||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||
Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 120,569,434 and 100,706,893 issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) | 12 | 10 | ||||||||||||
Class V Common Stock, $0.0001 par value (300,000,000 authorized, 223,078,245 and 241,552,156 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) | 22 | 24 | ||||||||||||
| Additional paid-in capital | 659,683 | 623,013 | ||||||||||||
| Accumulated earnings (deficit) | (396,960) | (402,960) | ||||||||||||
| Accumulated other comprehensive income (loss) | (5,498) | 1,229 | ||||||||||||
| Total stockholders' equity | 257,259 | 221,316 | ||||||||||||
| Non-controlling interest | 408,138 | 439,092 | ||||||||||||
| Total equity | 665,397 | 660,408 | ||||||||||||
| TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | $ | 2,279,434 | $ | 2,093,976 | ||||||||||
1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.
9
Hagerty, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Nine months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES: | in thousands | ||||||||||
| Net income | $ | 31,565 | $ | 120,666 | |||||||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Loss on disposals of equipment, software, and other assets | 2,947 | 1,440 | |||||||||
| Expense related to TRA Liability | — | 32,275 | |||||||||
| Depreciation and amortization | 29,213 | 27,734 | |||||||||
| Provision for deferred taxes | (33,718) | (34,413) | |||||||||
| Impairment of operating lease right-of-use assets | 2,057 | — | |||||||||
| Share-based compensation expense | 14,926 | 14,627 | |||||||||
| Non-cash lease expense | 6,279 | 6,590 | |||||||||
| Net investment gains | (5,641) | (2,150) | |||||||||
| (Accretion) amortization of discount and premium, net | (1,821) | (3,489) | |||||||||
| Amortization of gain on loss portfolio transfer | (4,478) | — | |||||||||
| Other | 472 | 1,681 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts and premiums receivable | 118,273 | (118,634) | |||||||||
| Deferred acquisition costs, net | 103,708 | (36,030) | |||||||||
| Reinsurance recoverables | (1,765) | (5,903) | |||||||||
| Prepaid reinsurance premiums | (31,075) | (5,674) | |||||||||
| Advance premiums | 15,772 | 12,656 | |||||||||
| Due to insurers | (75,556) | 49,927 | |||||||||
| Losses payable and reserves for unpaid losses and loss adjustment expenses | (32,072) | 9,800 | |||||||||
| Unearned premiums | 230,711 | 81,855 | |||||||||
| Ceding commissions payable | (81,620) | 30,084 | |||||||||
| Other assets and liabilities, net | (8,032) | 6,843 | |||||||||
| Net Cash Provided by Operating Activities | 280,145 | 189,885 | |||||||||
| INVESTING ACTIVITIES: | |||||||||||
| Capital expenditures | (23,564) | (18,499) | |||||||||
Acquisitions, net of cash acquired, and other investments | (701) | (2,125) | |||||||||
| Issuance of notes receivable | (119,687) | (49,095) | |||||||||
| Collection of notes receivable | 72,538 | 14,832 | |||||||||
| Purchases of fixed maturity securities | (302,630) | (223,055) | |||||||||
| Purchases of equity securities | (79,300) | (10,565) | |||||||||
| Proceeds from maturities and sales of fixed maturity securities | 352,660 | 163,369 | |||||||||
| Proceeds from sales of equity securities | 35,395 | 911 | |||||||||
| Other investing activities | (751) | 1,421 | |||||||||
| Net Cash Used in Investing Activities | (66,040) | (122,806) | |||||||||
| FINANCING ACTIVITIES: | |||||||||||
| Repayments of debt | (80,950) | (170,673) | |||||||||
| Proceeds from debt, net of issuance costs | 150,605 | 240,701 | |||||||||
| Proceeds from loss portfolio transfer | 50,500 | — | |||||||||
| Claims payments made from loss portfolio transfer | (16,876) | — | |||||||||
| Distributions paid to non-controlling interest unit holders | (11,132) | (30,547) | |||||||||
| Payment of Series A Convertible Preferred Stock dividends | (5,600) | (5,600) | |||||||||
| Funding of TRA Liability payments | (1,545) | (223) | |||||||||
| Funding of employee tax obligations upon vesting of share-based payments | (4,845) | (3,536) | |||||||||
| Other financing activities | 309 | 289 | |||||||||
| Net Cash Provided by Financing Activities | 80,466 | 30,411 | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (8) | 2,312 | |||||||||
| Change in cash and cash equivalents and restricted cash and cash equivalents | 294,563 | 99,802 | |||||||||
Beginning cash and cash equivalents and restricted cash and cash equivalents | 299,000 | 232,845 | |||||||||
Ending cash and cash equivalents and restricted cash and cash equivalents | $ | 593,563 | $ | 332,647 | |||||||
10
Key Performance Indicators and Non-GAAP Financial Measures
Key Performance Indicators
The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain financial measures prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
| Three months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||
| GAAP Financial Measures | dollars in thousands (except per share amounts) | |||||||||||||||||||||||||
Total revenue 1 | $ | 354,242 | $ | 391,417 | $ | (37,175) | (9.5) | % | ||||||||||||||||||
| Income before taxes | $ | 41,399 | $ | 13,337 | $ | 28,062 | N/M | |||||||||||||||||||
| Net income | $ | 36,269 | $ | 46,171 | $ | (9,902) | (21.4) | % | ||||||||||||||||||
| Net income attributable to Class A Common Stockholders | $ | 8,385 | $ | 18,945 | $ | (10,560) | (55.7) | % | ||||||||||||||||||
| Basic earnings per share ("EPS") | $ | 0.08 | $ | 0.18 | $ | (0.10) | (55.6) | % | ||||||||||||||||||
| Diluted EPS | $ | 0.08 | $ | 0.11 | $ | (0.03) | (27.3) | % | ||||||||||||||||||
| Non-GAAP Financial Measures | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 97,051 | $ | 59,351 | $ | 37,700 | 63.5 | % | ||||||||||||||||||
| Adjusted Net Income | $ | 35,618 | $ | 33,540 | $ | 2,078 | 6.2 | % | ||||||||||||||||||
| Adjusted Diluted EPS | $ | 0.10 | $ | 0.09 | $ | 0.01 | 11.1 | % | ||||||||||||||||||
| Insurance Operational Metrics | ||||||||||||||||||||||||||
| Total Written Premium | $ | 385,972 | $ | 334,048 | $ | 51,924 | 15.5 | % | ||||||||||||||||||
| Net Assumed Premium | $ | 306,495 | $ | 217,883 | $ | 88,612 | 40.7 | % | ||||||||||||||||||
| Hagerty Re Loss Ratio | 32.6 | % | 42.0 | % | (9.4) | % | N/M | |||||||||||||||||||
| Hagerty Re Combined Ratio | 79.7 | % | 89.6 | % | (9.9) | % | N/M | |||||||||||||||||||
New Business Count — Insurance | 123,321 | 114,513 | 8,808 | 7.7 | % | |||||||||||||||||||||
| Marketplace Operational Metrics | ||||||||||||||||||||||||||
| Aggregate Auction Sales | $ | 111,610 | $ | 67,500 | $ | 44,110 | 65.3 | % | ||||||||||||||||||
| Net Auction Sales | $ | 102,497 | $ | 61,771 | $ | 40,726 | 65.9 | % | ||||||||||||||||||
| Private Sales | $ | 99,910 | $ | 53,124 | $ | 46,786 | 88.1 | % | ||||||||||||||||||
| BAC Average Loan Portfolio | $ | 154,638 | $ | 97,106 | $ | 57,532 | 59.2 | % | ||||||||||||||||||
N/M = Not meaningful
1 Total Revenue for the three months ended September 30, 2025 has been recast to include "Net investment income" and "Net investment gains" as components of revenue in accordance with the Article 7 reporting standards adopted in 2025. Total revenue as previously presented in accordance with Article 5 was $380 million for the three months ended September 30, 2025.
11
| Nine months ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||
| GAAP Financial Measures | dollars in thousands (except per share amounts) | |||||||||||||||||||||||||
Total revenue 1 | $ | 1,020,894 | $ | 1,099,062 | $ | (78,168) | (7.1) | % | ||||||||||||||||||
| Income before taxes | $ | 22,694 | $ | 99,482 | $ | (76,788) | (77.2) | % | ||||||||||||||||||
| Net income | $ | 31,565 | $ | 120,666 | $ | (89,101) | (73.8) | % | ||||||||||||||||||
| Net income attributable to Class A Common Stockholders | $ | 196 | $ | 34,539 | $ | (34,343) | (99.4) | % | ||||||||||||||||||
| Basic EPS | $ | 0.00 | $ | 0.35 | $ | (0.35) | (100.0) | % | ||||||||||||||||||
| Diluted EPS | $ | 0.00 | $ | 0.29 | $ | (0.29) | (100.0) | % | ||||||||||||||||||
| Non-GAAP Financial Measures | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 256,741 | $ | 180,147 | $ | 76,594 | 42.5 | % | ||||||||||||||||||
| Adjusted Net Income | $ | 16,286 | $ | 102,342 | $ | (86,056) | (84.1) | % | ||||||||||||||||||
| Adjusted Diluted EPS | $ | 0.05 | $ | 0.28 | $ | (0.23) | (82.1) | % | ||||||||||||||||||
| Insurance Operational Metrics | ||||||||||||||||||||||||||
| Total Written Premium | $ | 1,099,420 | $ | 934,360 | $ | 165,060 | 17.7 | % | ||||||||||||||||||
| Net Assumed Premium | $ | 956,993 | $ | 610,137 | $ | 346,856 | 56.8 | % | ||||||||||||||||||
| Hagerty Re Loss Ratio | 37.8 | % | 42.1 | % | (4.3) | % | N/M | |||||||||||||||||||
| Hagerty Re Combined Ratio | 85.2 | % | 89.3 | % | (4.1) | % | N/M | |||||||||||||||||||
New Business Count — Insurance | 402,168 | 257,694 | 144,474 | 56.1 | % | |||||||||||||||||||||
| Marketplace Operational Metrics | ||||||||||||||||||||||||||
| Aggregate Auction Sales | $ | 351,435 | $ | 192,244 | $ | 159,191 | 82.8 | % | ||||||||||||||||||
| Net Auction Sales | $ | 320,307 | $ | 174,821 | $ | 145,486 | 83.2 | % | ||||||||||||||||||
| Private Sales | $ | 180,876 | $ | 221,569 | $ | (40,693) | (18.4) | % | ||||||||||||||||||
| BAC Average Loan Portfolio | $ | 145,860 | $ | 80,374 | $ | 65,486 | 81.5 | % | ||||||||||||||||||
N/M = Not meaningful
1 Total Revenue for the nine months ended September 30, 2025 has been recast to include "Net investment income" and "Net investment gains" as components of revenue in accordance with the Article 7 reporting standards adopted in 2025. Total revenue as previously presented in accordance with Article 5 was $1,068 million for the nine months ended September 30, 2025.
| September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||
| Insurance Operational Metrics | dollars in thousands | |||||||||||||||||||||||||
| Policies in Force | 1,909,254 | 1,617,231 | 292,023 | 18.1 | % | |||||||||||||||||||||
| Policies in Force Retention | 88.2 | % | 88.6 | % | (0.4) | % | N/M | |||||||||||||||||||
| Vehicles in Force | 3,105,819 | 2,739,037 | 366,782 | 13.4 | % | |||||||||||||||||||||
| HDC Paid Member Count | 977,456 | 920,725 | 56,731 | 6.2 | % | |||||||||||||||||||||
| Marketplace Operational Metrics | ||||||||||||||||||||||||||
| BAC Loan Portfolio Balance | $ | 162,254 | $ | 100,055 | $ | 62,199 | 62.2 | % | ||||||||||||||||||
N/M = Not meaningful
Adjusted EBITDA
We define EBITDA as consolidated Net income, excluding Interest expense and other, net, Income tax expense (benefit), and Depreciation and amortization. We define Adjusted EBITDA as EBITDA, further adjusted to (i) exclude net investment gains and losses; (ii) deduct interest expense related to the State Farm Term Loan; (iii) exclude share-based compensation expense; and when applicable, exclude (iv) restructuring, impairment and related charges; (v) gains, losses and impairments related to divestitures; and (vi) certain other unusual items, such as Markel Fronting Arrangement transitional costs incurred during the three and nine months ended September 30, 2026.
12
How This Measure is Useful
When used in conjunction with GAAP financial measures, Adjusted EBITDA is a supplemental measure of operating performance that we believe is a useful measure to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted EBITDA to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe the presentation of Adjusted EBITDA provides securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Limitations of the Usefulness of This Measure
Adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted EBITDA should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to Net income (loss), the most directly comparable GAAP measure, is presented below.
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| in thousands | ||||||||||||||||||||||||||
| Net income | $ | 36,269 | $ | 46,171 | $ | 31,565 | $ | 120,666 | ||||||||||||||||||
Interest expense and other, net 1 | 886 | 32,403 | 1,836 | 39,038 | ||||||||||||||||||||||
| Income tax expense (benefit) | 5,130 | (32,834) | (8,871) | (21,184) | ||||||||||||||||||||||
| Depreciation and amortization | 9,791 | 9,413 | 29,213 | 27,734 | ||||||||||||||||||||||
| EBITDA | 52,076 | 55,153 | 53,743 | 166,254 | ||||||||||||||||||||||
| Net investment gains | (751) | (1,271) | (5,641) | (2,150) | ||||||||||||||||||||||
Interest expense related to State Farm Term Loan 2 | (515) | (515) | (1,545) | (1,545) | ||||||||||||||||||||||
| Share-based compensation expense | 5,216 | 5,089 | 14,926 | 14,627 | ||||||||||||||||||||||
Markel Fronting Arrangement transitional costs 3 | 35,836 | — | 188,905 | — | ||||||||||||||||||||||
Other unusual items 4 | 5,189 | 895 | 6,353 | 2,961 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 97,051 | $ | 59,351 | $ | 256,741 | $ | 180,147 | ||||||||||||||||||
1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.
2 Interest expense related to the State Farm Term Loan is charged against Adjusted EBITDA as it is directly attributable to the operations of Hagerty Re.
3 Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, $36 million in the third quarter of 2026, and we expect it to decline to approximately $10.0 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.
4 For the nine months ended September 30, 2026, other unusual items includes: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to the acquisition of Bennetts, as well as the 2026 THG Unit Exchange and related secondary offering; and (iv) additional severance expenses associated with the actions taken in the fourth quarter of 2025. For the nine months ended September 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the 2025 THG Unit Exchange and related secondary offering, and certain material severance expenses.
As a result of our transition to Article 7 reporting standards, Net investment income is reported as a component of revenue and is no longer an adjustment in our reconciliation from Net income to Adjusted EBITDA. In addition, interest expense related to the State Farm Term Loan is now deducted from Adjusted EBITDA as it is directly attributable to Hagerty Re, which generates a significant portion of our net investment income. The following table presents a reconciliation of Adjusted EBITDA as presented in the prior period in accordance with Article 5, to the current presentation in accordance with Article 7:
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| Three months ended | Nine months ended | ||||||||||
| September 30, 2025 | September 30, 2025 | ||||||||||
| in thousands | |||||||||||
| Prior presentation of Adjusted EBITDA | $ | 49,714 | $ | 153,066 | |||||||
| Net investment income | 10,152 | 28,626 | |||||||||
| Interest expense related to State Farm Term Loan | (515) | (1,545) | |||||||||
| Current presentation of Adjusted EBITDA | $ | 59,351 | $ | 180,147 | |||||||
The following table reconciles Adjusted EBITDA for the year ended December 31, 2026 Outlook to the most directly comparable GAAP measure, which is Net income:
| 2026 Low | 2026 High | |||||||||||||
| in thousands | ||||||||||||||
| Net income | $ | 48,000 | $ | 60,000 | ||||||||||
Interest expense and other, net 1 | 2,000 | 2,000 | ||||||||||||
| Income tax benefit | (11,000) | (13,000) | ||||||||||||
| Depreciation and amortization | 40,000 | 40,000 | ||||||||||||
| Share-based compensation expense | 21,000 | 21,000 | ||||||||||||
Other unusual items 2 | 6,000 | — | 6,000 | |||||||||||
Markel Fronting Arrangement transitional costs 3 | 199,000 | 199,000 | ||||||||||||
| Adjusted EBITDA | $ | 305,000 | $ | 315,000 | ||||||||||
1 Excludes interest expense related to the BAC Credit Facility, which is recorded within "Selling, general, and administrative expenses" in the Condensed Consolidated Statements of Operations.
2 Other unusual items include: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to the acquisition of Bennetts, as well as the 2026 THG Unit Exchange and related secondary offering; and (iv) additional severance expenses associated with the actions taken in the fourth quarter of 2025.
3 Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, $36 million in the third quarter of 2026, and we expect it to decline to approximately $10.0 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement.
Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income represents Net income attributable to Class A Common Stockholders, assuming the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, adjusted to exclude (i) net investment gains and losses; and when applicable, (ii) expense related to the TRA Liability; (iii) restructuring, impairment and related charges; (iv) gains, losses, and impairments related to divestitures; and (v) certain other unusual items. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average shares of Class A Common Stock outstanding, assuming the full exchange, conversion, or vesting of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, Adjusted Net Income and Adjusted Diluted EPS are supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted Net Income and Adjusted Diluted EPS to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe these measures provide securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and results of operations that may not otherwise be apparent when relying solely on GAAP measures. By assuming the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock, we believe these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Class A Common Stockholders driven by increases in Hagerty, Inc.'s ownership in THG, which is unrelated to our operating performance, and excludes items that are unusual or may not be indicative of our ongoing performance.
14
Limitations of the Usefulness of These Measures
Adjusted Net Income and Adjusted Diluted EPS may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted Net Income and Adjusted Diluted EPS should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. While these measures are useful in evaluating our performance, they assume the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, which has not occurred and may not occur. Further, the adjustments made to arrive at Adjusted Net Income exclude certain expenses and income that may recur in the future. Adjusted Net Income and Adjusted Diluted EPS should be evaluated in conjunction with our GAAP financial results. A reconciliation of Adjusted Net Income to Net income attributable to Class A Common Stockholders, the most directly comparable GAAP measure, and the computation of Adjusted Diluted EPS are presented below.
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Numerator: | in thousands (except per share amounts) | |||||||||||||||||||||||||
| Net income attributable to Class A Common Stockholders | $ | 8,385 | $ | 18,945 | $ | 196 | $ | 34,539 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Accretion of Series A Convertible Preferred Stock | 1,826 | 1,903 | 5,804 | 5,653 | ||||||||||||||||||||||
| Net income attributable to non-controlling interest | 26,058 | 25,323 | 25,565 | 80,474 | ||||||||||||||||||||||
| Net investment gains | (751) | (1,271) | (5,641) | (2,150) | ||||||||||||||||||||||
| Expense related to TRA Liability | — | 29,197 | — | 32,275 | ||||||||||||||||||||||
Other unusual items 1 | 5,189 | 895 | 6,353 | 2,961 | ||||||||||||||||||||||
Tax impact of above adjustments 2 | (5,089) | (41,452) | (15,991) | (51,410) | ||||||||||||||||||||||
| Adjusted Net Income | $ | 35,618 | $ | 33,540 | $ | 16,286 | $ | 102,342 | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
| Weighted average shares of Class A Common Stock outstanding — Diluted | 107,800 | 347,240 | 102,995 | 346,672 | ||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Assumed exchange of non-controlling interest THG units for shares of Class A Common Stock | 240,970 | — | 243,676 | — | ||||||||||||||||||||||
| Assumed conversion of shares of Series A Convertible Preferred Stock into shares of Class A Common Stock | 6,785 | 6,785 | 6,785 | 6,785 | ||||||||||||||||||||||
| Assumed vesting of share-based compensation awards | 5,690 | 7,069 | 7,884 | 7,300 | ||||||||||||||||||||||
| Adjusted weighted average shares of Class A Common Stock outstanding — Diluted | 361,245 | 361,094 | 361,340 | 360,757 | ||||||||||||||||||||||
| Adjusted Diluted EPS | $ | 0.10 | $ | 0.09 | $ | 0.05 | $ | 0.28 | ||||||||||||||||||
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| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Diluted EPS | $ | 0.08 | $ | 0.11 | $ | 0.00 | $ | 0.29 | ||||||||||||||||||
Impact of assumed exchange, conversion, or vesting of remaining potentially dilutive securities 3 | 0.02 | 0.01 | 0.09 | 0.04 | ||||||||||||||||||||||
Non-GAAP adjustments 4 | 0.00 | (0.03) | (0.04) | (0.05) | ||||||||||||||||||||||
| Adjusted Diluted EPS | $ | 0.10 | $ | 0.09 | $ | 0.05 | $ | 0.28 | ||||||||||||||||||
1 For the nine months ended September 30, 2026, other unusual items includes: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to the acquisition of Bennetts, as well as the 2026 THG Unit Exchange and related secondary offering; and (iv) additional severance expenses associated with the actions taken in the fourth quarter of 2025. For the nine months ended September 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the 2025 THG Unit Exchange and related secondary offering, and certain material severance expenses.
2 Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an estimated effective tax rate of 22.3% and 20.5% for the three months ended September 30, 2026 and 2025, respectively, and 30.4% and 22.8% for the nine months ended September 30, 2026 and 2025, respectively, which considers the U.S. federal statutory rate of 21%, a combined state income tax rate of approximately 5% (net of federal benefits and required valuation allowances), and certain material permanent items.
3 Assumes the exchange, conversion, or vesting of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards for shares of Class A Common Stock, resulting in the elimination of the non-controlling interest and recognition of the Net income attributable to non-controlling interest, as well as the elimination of the accretion of Series A Convertible Preferred Stock.
4 Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation above for additional information.
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Comparability Bridge
Due to the expanded underwriting and claims authority granted to us under the Markel Fronting Arrangement, we now control the Essentia book of business. While our U.S. MGA subsidiary and Hagerty Re continue to operate in the same manner they have historically, beginning on January 1, 2026, the benefit of our MGA services is being received by Hagerty Re and not Essentia. As a result, effective in the first quarter of 2026, we are no longer recognizing commission revenue or the associated ceding commission expense for Essentia-originated policies in our Condensed Consolidated Financial Statements. However, ceding commission expense associated with Essentia policies issued in 2025 will continue to be recognized ratably over the remaining term of those policies throughout 2026. In addition, policy acquisition costs incurred by our U.S. MGA subsidiary for Essentia policies issued in 2026 are being deferred and amortized over the policy term. Accordingly, our entry into the Markel Fronting Arrangement has reduced the period‑to‑period comparability of our Condensed Consolidated Financial Statements.
The following table provides a reconciliation of the standalone results of operations for our Hagerty Re and MGA+ reporting units for the three months ended September 30, 2026, which reflect the continuing operations of those businesses, to total insurance segment results of operations included in our Condensed Consolidated Statements of Operations:
| Three months ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
Hagerty Re: Essentia Policy Year 2025 (a) | Hagerty Re: Essentia Policy Year 2026 & Other Carriers (b) | Hagerty Re Total | MGA+ (c) | Consolidation Entries | Insurance Segment | |||||||||||||||||||||||||||||||||
| REVENUES: | in thousands | |||||||||||||||||||||||||||||||||||||
| Earned premium, net | $ | 87,989 | $ | 177,124 | $ | 265,113 | $ | — | $ | — | $ | 265,113 | ||||||||||||||||||||||||||
| Commission and fee revenue | — | 159,503 | (137,917) | (e) | 21,586 | |||||||||||||||||||||||||||||||||
| Membership and other revenue | — | 21,908 | — | 21,908 | ||||||||||||||||||||||||||||||||||
| Net investment income | 10,980 | 1,304 | — | 12,284 | ||||||||||||||||||||||||||||||||||
| Net investment gains | 751 | — | — | 751 | ||||||||||||||||||||||||||||||||||
| Total revenue | 276,844 | 182,715 | (137,917) | 321,642 | ||||||||||||||||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses, net | 86,463 | 3,798 | (d) | — | 90,261 | |||||||||||||||||||||||||||||||||
| Policy acquisition costs, net: | ||||||||||||||||||||||||||||||||||||||
| Ceding commission expense | 40,024 | 74,942 | 114,966 | — | (81,157) | (e) | 33,809 | |||||||||||||||||||||||||||||||
| Other policy acquisition costs | 8,286 | — | 20,119 | (f) | 28,405 | |||||||||||||||||||||||||||||||||
| Underwriting and other insurance expenses | 1,648 | 95,884 | (d) | (30,816) | (f) | 66,716 | ||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | — | 54,575 | — | 54,575 | ||||||||||||||||||||||||||||||||||
| Interest expense and other, net | (1,022) | 15 | — | (1,007) | ||||||||||||||||||||||||||||||||||
| Total expenses | 210,341 | 154,272 | (91,854) | 272,759 | ||||||||||||||||||||||||||||||||||
| INCOME BEFORE TAXES | $ | 66,503 | $ | 28,443 | $ | (46,063) | $ | 48,883 | (g) | |||||||||||||||||||||||||||||
(a) Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2025.
(b) Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers.
(c) The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities.
(d) Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within "Losses and loss adjustment expenses, net" and "Underwriting and other insurance expenses".
(e) These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units.
(f) These consolidation entries are made to defer $30.8 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the three months ended September 30, 2026, the amortization of such deferred policy acquisition costs totaled $20.1 million.
(g) This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
17
The following table provides a reconciliation of the standalone results of operations for our Hagerty Re and MGA+ reporting units for the nine months ended September 30, 2026, which reflect the continuing operations of those businesses, to our Condensed Consolidated Statements of Operations. This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
| Nine months ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
Hagerty Re: Essentia Policy Year 2025 (a) | Hagerty Re: Essentia Policy Year 2026 & Other Carriers (b) | Hagerty Re Total | MGA+ (c) | Consolidation Entries | Insurance Segment | |||||||||||||||||||||||||||||||||
| REVENUES: | in thousands | |||||||||||||||||||||||||||||||||||||
| Earned premium, net | $ | 463,627 | $ | 293,084 | $ | 756,711 | $ | — | $ | — | $ | 756,711 | ||||||||||||||||||||||||||
| Commission and fee revenue | — | 446,952 | (385,266) | (e) | 61,686 | |||||||||||||||||||||||||||||||||
| Membership and other revenue | — | 65,396 | — | 65,396 | ||||||||||||||||||||||||||||||||||
| Net investment income | 29,906 | 3,123 | — | 33,029 | ||||||||||||||||||||||||||||||||||
| Net investment gains | 5,641 | — | — | 5,641 | ||||||||||||||||||||||||||||||||||
| Total revenue | 792,258 | 515,471 | (385,266) | 922,463 | ||||||||||||||||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses, net | 285,950 | 12,939 | (d) | — | 298,889 | |||||||||||||||||||||||||||||||||
| Policy acquisition costs, net: | ||||||||||||||||||||||||||||||||||||||
| Ceding commission expense | 210,995 | 122,642 | 333,637 | — | (136,345) | (e) | 197,292 | |||||||||||||||||||||||||||||||
| Other policy acquisition costs | 14,073 | — | 36,412 | (f) | 50,485 | |||||||||||||||||||||||||||||||||
| Underwriting and other insurance expenses | 10,688 | 266,624 | (d) | (88,061) | (f) | 189,251 | ||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | — | 157,372 | — | 157,372 | ||||||||||||||||||||||||||||||||||
| Interest expense and other, net | (2,933) | 807 | — | (2,126) | ||||||||||||||||||||||||||||||||||
| Total expenses | 641,415 | 437,742 | (187,994) | 891,163 | ||||||||||||||||||||||||||||||||||
| INCOME BEFORE TAXES | $ | 150,843 | $ | 77,729 | $ | (197,272) | $ | 31,300 | (g) | |||||||||||||||||||||||||||||
(a) Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2025.
(b) Represents Hagerty Re's earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers.
(c) The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities.
(d) Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within "Losses and loss adjustment expenses, net" and "Underwriting and other insurance expenses".
(e) These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units.
(f) These consolidation entries are made to defer $88.1 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2026, the amortization of such deferred policy acquisition costs totaled $36.4 million.
(g) This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes.
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INVESTOR PRESENTATION Q3 2026 Speakers: McKeel Hagerty, Chief Executive Officer and Chairman Patrick McClymont, Chief Financial Officer
HAGERTY Q3 2026 | 2 Forward Looking Statements / Non-GAAP Financial Measures This presentation contains statements that constitute “forward- looking statements” within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding our future operating results and financial position, our business strategy and plans, products, services, and technology implementations, market conditions, growth and trends, expansion plans and opportunities, and our objectives for future operations. The words “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “ongoing,” “contemplate,” and similar expressions, and the negatives of these expressions, are intended to identify forward- looking statements. We have based these forward-looking statements largely on our current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in our forward- looking statements. These factors include, among other things, our ability to: (i) compete effectively within our industry and attract and retain insurance policyholders and paid Hagerty Drivers Club (“HDC”) subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages, or other issues with our technology platforms or use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) successfully implement the fronting arrangement consummated with Markel and realize the anticipated benefits while also managing the increased exposure to underwriting volatility, catastrophes, reinsurance counterparty risk, and legal, compliance, and regulatory risks resulting from the shift to Hagerty Re assuming 100% of the risk for policies written through this arrangement; (vii) underwrite and price new products, including Enthusiast+, consistent with expected loss ratios and risk tolerances; (viii) execute Broad Arrow’s private sale, auction, and financing strategies; (ix) complete acquisitions or investments on the expected terms or timeline, or at all, and realize the anticipated benefits of such acquisitions and investments, including expected earnings enhancements and synergies, including those anticipated from the recently completed acquisition of Bennetts Motorcycling Services Limited; (x) manage the cyclical nature of the insurance business and broader macroeconomic conditions, including inflation, interest rates, and potential recessionary pressures; (xi) achieve Hagerty’s investment objectives and avoid losses in the investment portfolio; (xii) address unexpected increases in the frequency or severity of claims, including catastrophe losses; and (xiii) comply with numerous laws and regulations applicable to Hagerty’s business, including without limitation state, federal, and foreign laws relating to insurance and rate increases, privacy and cybersecurity, marketing and advertising, digital services, accounting matters, tax, anti-money laundering, and economic sanctions. The forward-looking statements in this presentation represent our views as of the date hereof. You should not rely on forward- looking statements as predictions of future events. We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. This presentation should be read in conjunction with the information included in our filings with the SEC and press releases. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods. In addition, this presentation contains certain “non-GAAP financial measures”. The non-GAAP measures are presented for supplemental informational purposes only. These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Reconciliations to the most directly comparable financial measure calculated and presented in accordance with GAAP are provided in the appendix to this presentation. ON THE COVER: Pennsylvania Route 144, Hagerty’s 2026 Road of the Year, and a 1983 Porsche 911SC that knows exactly what to do with it. PHOTOGRAPHER: CAMERON NEVEAU
HAGERTY Q3 2026 | 3 THIRD QUARTER YTD 2026 Highlights 1 YTD Q3 2026 reflects the transition of business under the Markel Fronting Arrangement, which resulted in a decrease in Commission and fee revenue and the recognition of transitional costs to amortize the remaining deferred ceding commissions related to 2025 policies. 2 See Appendix for additional information regarding this non-GAAP financial measure. Still life at speed: 1960 Ferrari 250 GT SWB at the 75th Pebble Beach Concours d’Elegance. PHOTOGRAPHER: JAMES LIPMAN Revenue Components 1. Written Premium growth of 18% to $1,099 million » Added a record 402,000 new members in the nine months ended September 30, 2026, equating to policy in force growth of 18% year-over-year to 1.9 million members 2. Earned Premium growth of 42% to $757 million » Increased quota share to 100% as of January 1, 2026 with the Markel Fronting Arrangement 3. Marketplace revenue growth of 8% to $97 million 4. Membership and other revenue growth of 4% to $65 million 5. Total Revenue1 of $1,021 million, down 7% Strong growth in underlying profitability1 1. Net Income of $32 million compared to Net Income of $121 million » Includes $189 million of Markel Fronting Arrangement transitional costs 2. Adjusted EBITDA2 of $257 million compared to $180 million, growth of 43% 3. Hagerty Re Combined Ratio of 85.2% » Includes $32 million of lower estimated losses ($26 million reduction to our estimate of current year losses in the third quarter, and a $6 million reduction to our estimate of 2025 accident year losses recorded in the first quarter) Completed strategic evolution to assume 100% of premium post transition to Markel Fronting Arrangement Strong underlying operational performance with growth in PIF, Written Premium, and Earned Premium Transition to the Markel Fronting Arrangement resulted in lower reported revenue as previously disclosed
Grow policies in force to 3.0 million by 2030 INVESTING IN OUR MEMBER-CENTRIC APPROACH TO DELIVER COMPOUNDING PROFIT GROWTH: » Implement Markel Fronting Arrangement with 100% quota share and realize anticipated benefits » Accelerate insurance growth with State Farm rollout » Leverage technology to enhance agent distribution and accelerate business-to-business efforts » Further invest in our claims handling expertise for members » Refine Hagerty Drivers Club value proposition and leverage our unique and authentic car culture » Invest in technology and Duck Creek implementation → Top down, spotlight up: 2025 Bugatti W16 Mistral at Broad Arrow’s Quail auction. PHOTOGRAPHER: MATT TIERNEY 2026 Priorities HAGERTY Q3 2026 | 4
HAGERTY Q3 2026 | 5 THIRD QUARTER YTD 2026 Financial Highlights 1 YTD Q3 2026 reflects the transition of business under the Markel Fronting Arrangement, which resulted in a decrease in Commission and fee revenue and the recognition of transitional costs to amortize the remaining deferred ceding commissions related to 2025 policies. 2 Hagerty Re’s Loss Ratio is the ratio of (i) Hagerty Re’s losses and loss adjustment expenses to (ii) its earned premium. Loss and loss adjustment expenses includes approximately $32 million of reductions to our estimate in the first nine months of 2026 related to favorable development for the 2025 accident year and the continuation of favorable trends for the 2026 accident year. 3 Hagerty Re’s Combined Ratio is the ratio of (i) Hagerty Re’s losses, loss adjustment expenses, and underwriting expenses to (ii) its earned premium. 4 See Appendix for additional information regarding this non-GAAP financial measure. GROWTH PERSISTENCE PROFITABILITY $1,021M TOTAL REVENUE1 -7% $23M INCOME BEFORE TAXES1 $32M NET INCOME $1,099M WRITTEN PREMIUM +18% $257M ADJUSTED EBITDA4 +43% $0.00 BASIC EARNINGS PER SHARE 37.8% HAGERTY RE LOSS RATIO2 85.2% HAGERTY RE COMBINED RATIO3 88.2% RETENTION
HAGERTY Q3 2026 | 6 Revenue Components 18% Growth in Written Premium Fueled by PIF Growth 1 Includes base commissions, payment plan fees and contingent underwriting commissions. 2026 now reflects the transition of our business under the Markel Fronting Arrangement, which resulted in a decrease in Commission and fee revenue. THIRD QUARTER YTD 2026 HIGHLIGHTS Earned premium (+42%) » Quota share increased to 100% under the Markel Fronting Arrangement » Written premium growth of 18% with PIF growth of 18% » Policies in Force retention of 88% Commission and fee revenue (-84%) » 2026 reflects the transition under the Markel Fronting Arrangement, which resulted in a decrease in Commission and fee revenue Marketplace revenue (+8%) » Strong auction sales growth and increased financing revenue from upsized BAC Credit Facility Membership and other revenue (+4%) » HDC Membership revenue growth of 10% Net investment income (+29%) » $34 million of Net investment income and $6 million of Net investment gains Q3 YTD 2025 2026 2025 2026 $11 $21 $34 $187 $137 $391 $13 $22 $22 $32 $265 $354 $534 $757 $381 $62 $90 $97 $40 $31 $63 $65 $1,099 $1,021 18% (6)% 2% 42% (84)% CHANGE 29% 8% 4% 42% (84)% CHANGE 9% DECREASE 7% DECREASE 2025 2026 2025 2026 $11 $21 $34 $187 $137 $391 $13 $22 $22 $32 $265 $354 $534 $757 $381 $62 $90 $97 $40 $31 $63 $65 $1,099 $1,02 18% (6)% 2% 42% (84)% CHANGE 29% 8% 4% 42% (84)% CHANGE 9% DECREASE 7% DECREASE TOTAL REVENUE Earned premium Commission and fee revenue1 Membership + other revenue Marketplace revenue Net investment income
HAGERTY Q3 2026 | 7 Q3 2024 Q3 2025 Q3 2026Q3 2024 Q3 2025 Q3 2026 1 Q3 2024 Net Income includes a $0.5 million net loss as a result of the settlement of our warrant liabilities and change in the fair value prior to the settlement of our warrant liabilities and $24 million of pre- tax losses from Hurricane Helene. Q3 2025 Net Income includes a $9 million net benefit as a result of the release of a portion of our valuation allowance of $38 million, partially offset by a $29 million loss related to the change in value of the TRA liability. Q3 2026 Net Income includes $36 million of pre-tax transitional costs associated with the new Markel Fronting Arrangement. 2 Adjusted EBITDA includes Net investment income of $10 million in Q3 2024 and Q3 2025, and $13 million in Q3 2026. See Appendix for additional information regarding this non-GAAP financial measure. Third Quarter Earnings Analysis Net Income and Adjusted EBITDA THIRD QUARTER NET INCOME1 THIRD QUARTER ADJUSTED EBITDA2 $19 $46 $36 YTD Q3 2024 YTD Q3 2025 YTD Q3 2026 $33 $59 $97 YTD Q3 2024 YTD Q3 2025 YTD Q3 2026
HAGERTY Q3 2026 | 8 Q3 2024 Q3 2025 Q3 2026 Q3 2024 Q3 2025 Q3 2026 1 YTD Q3 2024 Net Income includes a $9 million loss as a result of the settlement of our warrant liabilities and change in the fair value prior to the settlement of our warrant liabilities and $24 million of pre-tax losses from Hurricane Helene. YTD Q3 2025 Net Income includes a $6 million net benefit as a result of the release of a portion of our valuation allowance of $38 million, partially offset by a $32 million loss related to the change in value of the TRA liability. YTD Q3 2026 Net Income includes $189 million of pre-tax transitional costs associated with the new Markel Fronting Arrangement. 2 Adjusted EBITDA includes Net investment income of $30 million in YTD Q3 2024, $29 million in YTD Q3 2025, and $34 million in YTD Q3 2026. See Appendix for additional information regarding this non-GAAP financial measure. Third Quarter YTD 2026 Earnings Analysis Net Income and Adjusted EBITDA THIRD QUARTER YTD NET INCOME1 THIRD QUARTER YTD ADJUSTED EBITDA2 Q3 2024 Q3 2025 Q3 2026 $70 $121 $32 Q3 2024 Q3 2025 Q3 20 $133 $180 $257
HAGERTY Q3 2026 | 9 Increased 2026 Outlook 1 Prior 2026 Outlook shared on the Company’s second quarter earnings call on August 5th, 2026. 2 Revenue guidance reflects the accounting impact of the Markel Fronting Arrangement. Beginning in 2026, we now control the Essentia book of business with the benefit of our MGA services received by Hagerty Re and not Essentia. As a result, commission revenue and the associated ceding commission expense for policies issued through the Markel Fronting Arrangement are eliminated in consolidation. Although we expect the arrangement to result in increased profitability (as reflected in Adjusted EBITDA), reported commission revenue and ceding commission expense will be significantly lower than prior periods, affecting period-to-period comparability. 2025 commission revenue associated with our alliance agreement with Markel was $437 million and ceding commission expense related to the Company’s reinsurance quota share agreement with Markel was $344 million in 2025. 3 The projected Net Income includes approximately $199 million of pre-tax transitional costs related to the Markel Fronting Arrangement representing deferred ceding commissions paid to Markel for policies written prior to January 1, 2026, which will be fully amortized ratably over the remaining term of those policies throughout 2026. This amortization is expected to decline to approximately $10 million in Q4 2026 as 2025 policies expire. Excluding these transitional costs, we expect 2026 to reflect underlying profitability improvement. 4 Full year 2025 Net Income includes (i) the benefit from the $42 million release of a portion of our valuation allowance, partially offset by a $32 million loss related to the change in value of the TRA liability; and (ii) a $21 million pre-tax reserve reduction in the fourth quarter, primarily related to favorable development for the 2024 accident year and improvement in current accident year experience. 5 See Appendix for additional information regarding this non-GAAP financial measure. N/M = Not meaningful Sustained Compounding Growth IN THOUSANDS 2025 RESULTS PRIOR 2026 OUTLOOK1 ($) REVISED 2026 OUTLOOK ($) 2026 OUTLOOK (%) LOW END HIGH END LOW END HIGH END LOW END HIGH END Total Written Premium $1,193,548 $1,385,000 $1,397,000 $1,385,000 $1,397,000 16% 17% Total Revenue 2 $1,456,389 $1,325,000 $1,340,000 $1,340,000 $1,354,000 (8)% (7)% Net Income 3, 4 $149,225 $18,000 $30,000 $48,000 $60,000 N/M N/M Adjusted EBITDA 5 $236,791 $270,000 $280,000 $305,000 $315,000 29% 33% Fall in motion: early 2000s Mercedes-Benz G500. PHOTOGRAPHER: CAMERON NEVEAU
HAGERTY Q3 2026 | 10 NON-GAAP FINANCIAL MEASURES | 2026 OUTLOOK Net Income to Adjusted EBITDA 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Selling, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. 2 Other unusual items include: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to the acquisition of Bennetts, as well as the 2026 THG Unit Exchange and related secondary offering; and (iv) additional severance expenses associated with the actions taken in the fourth quarter of 2025. 3 Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, $36 million in the third quarter of 2026, and we expect it to decline to approximately $10 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement. * See Appendix for the definition on Adjusted EBITDA. IN THOUSANDS 2026 LOW 2026 HIGH Net Income $48,000 $60,000 Interest expense and other, net1 2,000 2,000 Income tax benefit (11,000) (13,000) Depreciation and amortization 40,000 40,000 Share-based compensation expense 21,000 21,000 Other unusual items2 6,000 6,000 Markel Fronting Arrangement transitional costs3 199,000 199,000 Adjusted EBITDA $305,000 $315,000
Appendix
HAGERTY Q3 2026 | 12 REVENUE COMPONENTS BY QUARTER $ in Millions 152 158 166 168 169 178 187 193 240 252 265 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 89 129 116 89 100 143 137 106 16 24 22 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 31 27 42 34 50 48 56 48 48 61 54 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 COMMISSION + FEE REVENUE1 EARNED PREMIUM MEMBERSHIP, MARKETPLACE + OTHER REVENUE 1 Includes base commissions, payment plan fees and contingent underwriting commissions. YTD Q3 2026 reflects the transition of business under the Markel Fronting Arrangement, which resulted in a decrease in Commission and fee revenue and the recognition of transitional costs to amortize the remaining deferred ceding commissions related to 2025 policies. Assuming control of the Essentia book through the Markel Fronting Arrangement beginning on January 1, 2026 requires the elimination of $138 million of Commission and fee revenue in the third quarter of 2026 and $385 million in the year-to-date 2026 Condensed Consolidated Statements of Operations.
HAGERTY Q3 2026 | 13 IN THOUSANDS Q3 2025 Q4 2025 - Q2 2026 Q3 2026 TTM Net income $46,171 $23,855 $36,269 $60,124 Interest expense and other, net1 32,403 2,807 886 3,693 Income tax expense (benefit) (32,834) (2,860) 5,130 2,270 Depreciation and amortization 9,413 29,212 9,791 39,003 EBITDA 55,153 53,014 52,076 105,090 Net investment gains (1,271) (5,803) (751) (6,554) Interest expense related to State Farm Term Loan2 (515) (1,545) (515) (2,060) Share-based compensation expense 5,089 13,991 5,216 19,207 Markel Fronting Arrangement transitional costs3 — 153,069 35,836 188,905 Other unusual items4 895 3,608 5,189 8,797 Adjusted EBITDA $59,351 $216,334 $97,051 $313,385 1 Excludes interest expense related to the BAC Credit Facility, which is recorded within “Selling, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. 2 Interest expense related to the State Farm Term Loan is charged against Adjusted EBITDA as it is directly attributable to the operations of Hagerty Re. 3 Represents the amortization of deferred ceding commissions paid to Markel for policies written prior to January 1, 2026. These costs relate exclusively to policies written prior to our entry into the Markel Fronting Arrangement and are being fully amortized ratably over the remaining term of those policies through December 31, 2026. The amortization of these deferred ceding commissions was $89 million in the first quarter of 2026, $64 million in the second quarter of 2026, $36 million in the third quarter of 2026, and we expect it to decline to approximately $10 million in the fourth quarter of 2026 as the remaining 2025 policy terms run off. Management excludes these costs from Adjusted EBITDA because they are transitional charges related solely to deferred ceding commissions on policies written prior to January 1, 2026, are expected to run off by December 31, 2026, and are not indicative of our ongoing operating performance under the Markel Fronting Arrangement. 4 For the trailing twelve months ended September 30, 2026 other unusual items includes: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to (a) the acquisition of Bennetts and (b) the 2026 THG Unit Exchange and related secondary offering; and (iv) certain material severance expenses. Adjusted EBITDA We define EBITDA as consolidated Net income, excluding Interest expense and other, net, Income tax expense (benefit), and Depreciation and amortization. We define Adjusted EBITDA as EBITDA, further adjusted to (i) exclude net investment gains and losses; (ii) deduct interest expense related to the State Farm Term Loan; (iii) exclude share-based compensation expense; and when applicable, exclude (iv) restructuring, impairment and related charges; (v) gains, losses and impairments related to divestitures; and (vi) certain other unusual items, such as Markel Fronting Arrangement transitional costs incurred during the three and nine months ended September 30, 2026. How This Measure is Useful When used in conjunction with GAAP financial measures, Adjusted EBITDA is a supplemental measure of operating performance that we believe is a useful measure to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted EBITDA to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe the presentation of Adjusted EBITDA provides securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Limitations of the Usefulness of This Measure Adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted EBITDA should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA
HAGERTY Q3 2026 | 14 1 For the nine months ended September 30, 2026, other unusual items includes: (i) a loss related to the write-down of certain fixed assets classified as held-for-sale; (ii) the impairment of certain operating lease right-of-use assets; (iii) professional fees related to (a) the acquisition of Bennetts, and (b) the 2026 THG Unit Exchange and related secondary offering; and (iv) additional severance expenses associated with the actions taken in the fourth quarter of 2025. For the nine months ended September 30, 2025, other unusual items includes certain legal settlement expenses, professional fees associated with the 2025 THG Unit Exchange and related secondary offering, and certain material severance expenses. 2 Represents the tax effect of the aforementioned adjustments to reflect corporate income taxes at an estimated effective tax rate of 22.3% and 20.5% for the three months ended September 30, 2026 and 2025, respectively, and 30.4% and 22.8% for the nine months ended September 30, 2026 and 2025, respectively, which considers the U.S. federal statutory rate of 21%, a combined state income tax rate of approximately 5% (net of federal benefits and required valuation allowances), and certain material permanent items. 3 Assumes the exchange, conversion, or vesting of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards for shares of Class A Common Stock, resulting in the elimination of the non-controlling interest and recognition of the Net income attributable to non-controlling interest, as well as the elimination of the accretion of Series A Convertible Preferred Stock. 4 Represents the per share impact of non-GAAP adjustments for each period. Adjusted Net Income and Adjusted Diluted EPS Adjusted Net Income represents Net income attributable to Class A Common Stockholders, assuming the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, adjusted to exclude (i) net investment gains and losses; and when applicable, (ii) expense related to the TRA Liability; (iii) restructuring, impairment and related charges; (iv) gains, losses, and impairments related to divestitures; and (v) certain other unusual items. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average shares of Class A Common Stock outstanding, assuming the full exchange, conversion, or vesting of all outstanding THG units, Series A Convertible Preferred Stock, and unvested share-based compensation awards. How These Measures Are Useful When used in conjunction with GAAP financial measures, Adjusted Net Income and Adjusted Diluted EPS are supplemental measures of operating performance that we believe are useful measures to evaluate our performance period over period and relative to our competitors and peers. Management uses Adjusted Net Income and Adjusted Diluted EPS to evaluate our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations. We believe these measures provide securities analysts, investors, and other interested parties with a supplemental view of our operating performance that enhances their understanding of our business and results of operations that may not otherwise be apparent when relying solely on GAAP measures. By assuming the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock, we believe these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Class A Common Stockholders driven by increases in Hagerty, Inc.’s ownership in THG, which is unrelated to our operating performance, and excludes items that are unusual or may not be indicative of our ongoing performance. Limitations of the Usefulness of These Measures Adjusted Net Income and Adjusted Diluted EPS may differ from similarly titled measures used by other companies due to different methods of calculation, which could reduce the usefulness of this non-GAAP financial measure when comparing our performance to that of other companies. Presentation of Adjusted Net Income and Adjusted Diluted EPS should not be considered in isolation or a substitute for, or superior to, the financial information prepared in accordance with GAAP. While these measures are useful in evaluating our performance, they assume the full exchange or conversion of all outstanding THG units and Series A Convertible Preferred Stock for shares of Class A Common Stock, which has not occurred and may not occur. Further, the adjustments made to arrive at Adjusted Net Income exclude certain expenses and income that may recur in the future. Adjusted Net Income and Adjusted Diluted EPS should be evaluated in conjunction with our GAAP financial results. A reconciliation of Adjusted Net Income to Net income attributable to Class A Common Stockholders, the most directly comparable GAAP measure, and the computation of Adjusted Diluted EPS are presented on this slide. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2026 2025 2026 2025 Numerator: in thousands (except per share amounts) Net income attributable to Class A Common Stockholders $8,385 $18,945 $196 $34,539 Adjustments: Accretion of Series A Convertible Preferred Stock 1,826 1,903 5,804 5,653 Net income attributable to non-controlling interest 26,058 25,323 25,565 80,474 Net investment gains (751) (1,271) (5,641) (2,150) Expense related to TRA Liability 0.00 29,197 0.00 32,275 Other unusual items 1 5,189 895 6,353 2,961 Tax impact of above adjustments 2 (5,089) (41,452) (15,991) (51,410) Adjusted Net Income $35,618 $33,540 $16,286 $102,342 Denominator: Weighted average shares of Class A Common Stock outstanding — Diluted 107,800 347,240 102,995 346,672 Adjustments: Assumed exchange of non-controlling interest THG units for shares of Class A Common Stock 240,970 0.00 243,676 0.00 Assumed conversion of shares of Series A Convertible Preferred Stock into shares of Class A Common Stock 6,785 6,785 6,785 6,785 Assumed vesting of share-based compensation awards 5,690 7,069 7,884 7,300 Adjusted weighted average shares of Class A Common Stock outstanding — Diluted 361,245 361,094 361,340 360,757 Adjusted Diluted EPS $0.10 $0.09 $0.05 $0.28 Diluted EPS $0.08 $0.11 $0.00 $0.29 Impact of assumed exchange, conversion, or vesting of remaining potentially dilutive securities 3 0.02 0.01 0.09 0.04 Non-GAAP adjustments 4 0.00 (0.03) (0.04) (0.05) Adjusted Diluted EPS $0.10 $0.09 $0.05 $0.28 NON-GAAP FINANCIAL MEASURES Adjusted Net Income and Adjusted Diluted EPS
Markel Fronting Arrangement Evolving the decade-long partnership, with Hagerty controlling 100% of the premium in 2026 HAGERTY Q3 2026 | 15 → Future classic status: Secured. The 2013 BMW M3 Lime Rock Park Edition. PHOTOGRAPHER: JAMES LIPMAN DRIVING BETTER PROFITABILITY AND OPERATIONAL CONTROL WITH NO DISRUPTION TO POLICYHOLDERS PREVIOUS MODEL NEW FRONTING STRUCTURE (1/1/26) » Hagerty earned 42% total commissions as an MGA and retained ~80% of the risk via Hagerty Re » Markel retained 20%, handled filings and administrative support » Hagerty Re paid a 47% ceding commission to Markel (~42% commissions + ~5% for G&A, taxes and operating expenses) » Hagerty Re earns 100% of the premium and retains 100% of the risk » Hagerty secures expanded underwriting and claims authority; Markel issues policies and provides administrative support » Hagerty Re pays a ~2% fronting fee and funds G&A, taxes and operating expenses
HAGERTY Q3 2026 | 16 THIRD QUARTER P&L COMPARABILITY BRIDGE a Represents Hagerty Re’s earned premium and associated policy acquisition costs related to Essentia policies issued in 2025. b Represents Hagerty Re’s earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers. c The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities. d Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within “Losses and loss adjustment expenses, net” and “Underwriting and other insurance expenses”. e These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units. f These consolidation entries are made to defer $30.8 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the three months ended September 30, 2026, the amortization of such deferred policy acquisition costs totaled $20.1 million. g This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes. THREE MONTHS ENDED SEPTEMBER 30, 2026 Hagerty Re: Essentia Policy Year 2025 a Hagerty Re: Essentia Policy Year 2026 & Other Carriers b Hagerty Re Total MGA+ c Consolidation Entries Insurance Segment REVENUES: in thousands Earned premium, net $87,989 $177,124 $265,113 $— $— $265,113 Commission and fee revenue — 159,503 (137,917) e 21,586 Membership and other revenue — 21,908 — 21,908 Net investment income 10,980 1,304 — 12,284 Net investment gains 751 — — 751 Total revenue 276,844 182,715 (137,917) 321,642 EXPENSES: Losses and loss adjustment expenses, net 86,463 3,798 d — 90,261 Policy acquisition costs, net: Ceding commission expense 40,024 74,942 114,966 — (81,157) e 33,809 Other policy acquisition costs 8,286 — 20,119 f 28,405 Underwriting and other insurance expenses 1,648 95,884 d (30,816) f 66,716 Selling, general, and administrative expenses — 54,575 — 54,575 Interest expense and other, net (1,022) 15 — (1,007) Total expenses 210,341 154,272 (91,854) 272,759 INCOME BEFORE TAXES $66,503 $28,443 $(46,063) $48,883 g
HAGERTY Q3 2026 | 17 THIRD QUARTER YTD P&L COMPARABILITY BRIDGE a Represents Hagerty Re’s earned premium and associated policy acquisition costs related to Essentia policies issued in 2025. b Represents Hagerty Re’s earned premium and associated policy acquisition costs related to Essentia policies issued in 2026 and through other carriers. c The MGA+ reporting unit includes our MGA operations, as well as our membership, events, and media activities. d Our MGA subsidiaries incur costs to fulfill certain underwriting and claims handling functions on behalf of Hagerty Re, for which they are compensated through an intercompany commission paid by Hagerty Re. These costs are reflected within the standalone results of our MGA+ reporting unit within “Losses and loss adjustment expenses, net” and “Underwriting and other insurance expenses”. e These consolidation entries are made to eliminate intercompany commission revenue and ceding commission expense between the Hagerty Re and MGA+ reporting units. f These consolidation entries are made to defer $88.1 million in policy acquisition costs incurred by the MGA+ reporting unit in their standalone results of operations, which are then amortized over the underlying policy term in our Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2026, the amortization of such deferred policy acquisition costs totaled $36.4 million. g This table is presented solely to improve the year-over-year comparability of our financial statements and should not be viewed on a standalone basis. It should be read together with our Condensed Consolidated Statements of Operations and the accompanying notes. NINE MONTHS ENDED SEPTEMBER 30, 2026 Hagerty Re: Essentia Policy Year 2025 a Hagerty Re: Essentia Policy Year 2026 & Other Carriers b Hagerty Re Total MGA+C Consolidation Entries Insurance Segment REVENUES: in thousands Earned premium, net $463,627 $293,084 $756,711 $— $— $756,711 Commission and fee revenue — 446,952 (385,266) e 61,686 Membership and other revenue — 65,396 — 65,396 Net investment income 29,906 3,123 — 33,029 Net investment gains 5,641 — — 5,641 Total revenue 792,258 515,471 (385,266) 922,463 EXPENSES: Losses and loss adjustment expenses, net 285,950 12,939 d — 298,889 Policy acquisition costs, net: Ceding commission expense 210,995 122,642 333,637 — (136,345) e 197,292 Other policy acquisition costs 14,073 — 36,412 f 50,485 Underwriting and other insurance expenses 10,688 266,624 d (88,061) f 189,251 Selling, general, and administrative expenses — 157,372 — 157,372 Interest expense and other, net (2,933) 807 — (2,126) Total expenses 641,415 437,742 (187,994) 891,163 INCOME BEFORE TAXES $150,843 $77,729 $(197,272) $31,300 g
HAGERTY Q3 2026 | 18 WELL-POSITIONED TO CAPTURE ADDITIONAL MARKET SHARE Large and underpenetrated target market Hagerty Target Market is the subset of TAM identified as more likely to be currently used as collector vehicles based on age, inherent vehicle characteristics and expert curation. Source: Hagerty. Company reports based on aggregated data of various sources; 1 Per Facebook analytics, members who have expressed an interest in or “Liked” automobiles or associated interests. 2 Per Hagerty company reports based on aggregated data of various sources. 3 Vehicles in force as of December 31, 2025. TYPE TOTAL ADDRESSABLE MARKET (M) HAGERTY TARGET MARKET (M) HAGERTY TCM PENETRATION Pre 1981 Vehicles 11.1 11.1 15.3% Post 1981 Vehicles 38.0 24.9 3.1% Total 49.1 36.0 6.9% 3.0M Hagerty Insured Vehicles3 36M Hagerty Target Market2 49M Total Addressable Market 67M U.S. Auto Enthusiasts2 500M+ Global Auto Enthusiasts1 HAGERTY PENETRATION AND U.S. AUTO INSURED VEHICLE COUNT Pre 1981 Vehicle Count Post 1981 Vehicle Count 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ~3% ~15%
HAGERTY Q3 2026 | 19 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 —% 100% 200% 300% 400% 500% 600% Hagerty U.S. Auto - CAGR 13% Industry Top 100 - CAGR 5% Hagerty Loss Ratio - average = 39% Industry Loss Ratio - average = 68% HAGERTY U.S. AUTO PREMIUM GROWTH VS. INDUSTRY TOP 100 HAGERTY U.S. AUTO LOSS PERFORMANCE VS. INDUSTRY TOP 100 Source: Hagerty Internal Data, S&P Global Market Intelligence (2025). To ta l P er ce nt ag e G ro w th To ta l L os s P er fo rm an ce 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20% 30% 40% 50% 60% 70% 80% 90% HAGERTY’S DIFFERENTIATED MODEL DELIVERS HIGH-QUALITY GROWTH Consistent low to mid-teens premium growth with low volatility underwriting
HAGERTY Q3 2026 | 20 HISTORICAL WRITTEN PREMIUM GROWTH 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400 600 800 1,000 1,200 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 —% 3% 5% 8% 10% 13% 15% 18% 20% TOTAL U.S. AUTO WRITTEN PREMIUM U.S. AUTO WRITTEN PREMIUM ANNUAL GROWTH
HAGERTY Q3 2026 | 21 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 • New business count accelerated with commencement of State Farm Classic+ conversion WRITTEN PREMIUM GROWTH FUELED BY NEW MEMBERS Consistent share gains drive new business count
