Hagerty and Markel Progress in Fronting Arrangement for Premium Control

Traverse City, Mich. - In a significant stride for automotive enthusiasts everywhere, Hagerty, Inc. (NYSE: HGTY), a prominent name in specialty vehicle insurance, has announced a new arrangement with Markel via a non-binding letter of intent. Set to kick off in January 2026, this innovative fronting arrangement is geared towards allowing Hagerty to take full control over underwriting, thus assuming 100% of the premium economics it creates.

This collaboration is particularly exciting due to its potential to enhance profitability and operational efficiency for Hagerty, which will now be directly involved in the management of all underwriting decisions. CEO McKeel Hagerty emphasized, "This announcement signifies the next phase in our thriving partnership with Markel, a relationship that began with their acquisition of Essentia back in 2013. Under this newly proposed arrangement, our consistent and high-quality underwriting will enable us to provide better profitability and maintain operational control without disrupting our policyholders' experiences."

Under this prospective arrangement, Hagerty will pay an initial fronting fee of 2% to Markel. As the volume of policies issued increases annually, this fee is expected to decrease, further aligning financial interests between the two companies.

Hagerty’s commitment to the automotive community is unwavering as it continues to engage with car enthusiasts across the nation. With nearly 890,000 members in its Hagerty Drivers Club, the company is not only focused on providing quality insurance products but also on celebrating and preserving car culture. The arrangement with Markel is a strategic maneuver for Hagerty to solidify its position as a leading provider, delivering unparalleled service to its customers and maintaining control over its underwriting process.

Details of the fronting arrangement will be complemented by a presentation on Hagerty's investor relations website at investor.hagerty.com, where interested parties can find additional insights.

About Hagerty, Inc.

Hagerty is defined by its passion for preserving the joys of driving and enhancing automotive experiences. Specializing in vehicle insurance tailored for the unique needs of car enthusiasts, the brand also provides car valuation services, live and digital auction experiences, and various events that invigorate car culture. With operations extending into Canada and the U.K., Hagerty plays a vital role in connecting car lovers while offering valuable services.

As one of the foremost players in specialty vehicle insurance, Hagerty looks ahead with optimism about the future and anticipates continued growth through partnerships like the one with Markel. The anticipated arrangement remains contingent upon regulatory approval and conclusive negotiations, underscoring the importance of due diligence in financial agreements.

In this landscape, Hagerty recognizes the dynamic nature of the automotive insurance industry and the need for adaptability. With a future-driven mindset, the partnership with Markel not only reinforces its market position but also enhances its capability to cater to the evolving preferences of car enthusiasts.

For more information about Hagerty, visit www.hagerty.com or follow them on social media platforms.