Business
Hagerty Announces LOI for New Fronting Arrangement with Markel; Hagerty Re to Assume 100% of the Premium
Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and a leading specialty vehicle insurance provider, today announced that the company has entered into a non-binding letter of intent with Markel. Upon effectiveness and subject to regulatory approval, this proposed arrangement will result in Hagerty assuming 100% of the underwriting and investment economics while paying an initial fronting fee of 2% to Markel, with the fronting fee decreasing based on the volume of policies issued in eac
About this update from Markel Group Inc.
[{"type":"text","content":"TRAVERSE CITY, Mich., July 24, 2025 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and a leading specialty vehicle insurance provider, today announced that the company has entered into a non-binding letter of intent with Markel. Upon effectiveness and subject to regulatory approval, this proposed arrangement will result in Hagerty assuming 100% of the underwriting and investment economics while paying an initial fronting fee of 2% to Markel, with the fronting fee decreasing based on the volume of policies issued in each calendar year, commencing January 1, 2026.","length":601,"tagName":"p"},{"type":"image","alt":"Hagerty (PRNewsfoto/Hagerty)","displaySize":"","headline":null,"caption":"Hagerty (PRNewsfoto/Hagerty)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":76,"url":"https://media.zenfs.com/en/prnewswire.com/f3a9cdd6960139ad6b26f771a0046227"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/XW0Jabwla7aY2wVpGXm5jQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTEzNDtjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/f3a9cdd6960139ad6b26f771a0046227","width":400,"height":76}},"href":"https://mma.prnewswire.com/media/1826480/Hagerty_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":""Today's announcement marks the continued evolution of our highly successful partnership with Markel that began with their acquisition of Essentia in 2013. Under the newly proposed fronting arrangement, Hagerty will control 100% of the premium from our consistent, high-quality underwriting, positioning us to deliver better profitability and operational control with no disruption to policyholders," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.","length":489,"tagName":"p"},{"type":"text","content":"The company has posted a presentation about the proposed fronting arrangement to Hagerty's investor relations section of the company's corporate website. These slides are available at investor.hagerty.com.","length":213,"tagName":"p"},{"type":"text","content":"About Hagerty, Inc.Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car ...