Slide 1: Presentation
Presentation SPEAKERS: McKeel Hagerty | Chief Executive Officer and Chairman Patrick McClymont | Chief Financial Officer
Slide 2: Forward Looking Statements / Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES This presentation contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. The
Slide 3: Third Quarter YTD 2024 Highlights
THIRD QUARTER YTD 2024 Highlights Total YTD Revenue growth of 20% Commission and Fee growth of 16% Written Premium growth of 16% » Added 226,000 new customers during the first nine months of 2024 Membership, Marketplace and other revenue growth of 20% » Marketplace growth of 54% Significantly improv
Slide 4: 2024 Priorities
2024 Priorities Deliver sustained top-line momentum with continued margin expansion Further improve loyalty to drive renewals and referrals. Enhance member experience in a cost effective and efficient way. Build Hagerty Marketplace into the most trusted and preferred place to buy, sell and finance c
Slide 5: Business Process Re-engineering Driving Sustained Margin Expansion
Business Process Re-engineering Driving Sustained Margin Expansion 2024 Began to implement changes to business processes to drive sustained reductions in cost to acquire and cost to serve » Marketing efforts powering efficient » Operating income margins expanded customer acquisition. by 440 bps in t
Slide 6: Financial Highlights
THIRD QUARTER YTD 2024 Financial Highlights GROWTH PERSISTENCE PROFITABILITY S9O08M 477% SGOM S7OM Loss Ratio? Total Revenue Operating Income Net Income +20% +$43M +S5IM 88.8% Retention $827M $0.09 Written Premium 82 Adjusted EBITD. Basic Earnings 16% +826M Per Share Net Promoter Score 440 bps impro
Slide 7: Revenue Components
Revenue Components Strong double-digit gains TOTAL REVENUE THIRD QUARTER YTD 2024 HIGHLIGHTS g Qs YTD Commission and fee revenue (+16%) = » Written premium growth of 16% [BE Commission and fee revenue! $908 woe . [BE Membership, Marcstplace and other revenue » Policies in Force retention of 89% IB E
Slide 8: Q3 2022 Q3 2023 Q3 2024 Q3 2022 Q3 2023 Q3 2024
$37 $24 $24 $19 $19 $(10) Q3 2022 Q3 2023 Q3 2024 Q3 2022 Q3 2023 Q3 2024
Slide 9: YTD 2024 Earnings Analysis
YTD 2024 Earnings Analysis Delivering sustained profit growth THIRD QUARTER YTD NET INCOME’ THIRD QUARTER YTD ADJUSTED EBITDA? $35 | i a $. YTD Q3 2022 YTDQ32023 YTD Q32024 $105 Millions: tions 3 $78 YTD Q3 2022 YTDQ32023 YTD Q3 2024 YTD 2024 Adjusted EBITDA of $105 million (includes $25 million of
Slide 10: 2024 Outlook
IN THOUSANDS 2023 RESULTS PRIOR 2024 OUTLOOK2 REVISED 2024 OUTLOOK Total Written Premium $907,175 $1,034,000 - $1,043,000 $1,043,000 - $1,043,000 Total Revenue $1,000,213 $1,160,000 - $1,180,000 $1,180,000 - $1,190,000 Net Income3 $28,179 $76,000 - $84,000 $65,000 - $74,000 Adjusted EBITDA4 $88,162
Slide 11: Appendix
APPENDIX
Slide 12: Total Loss Performance
500% 500% 90% 90% Total Percentage Growth Total Loss Performance 80% 80% 400% 400% 70% 70% 60% 60% 300% 300% 50% 50% 40% 40% 200% 200% 30% 30% 20% 20% 100% 100% 10% 10% 0% 0% 0% 0% 2010 20102012 2011 20112013 20122014 20132015 20142016 20152017 20162018 20172019 20182020 2019 2021 20202022 2021 2023
Slide 13: U.S. Auto Written Premium Annual Growth
2023 2023 2022 2022 2021 2021 2020 Growth 2020 AnnualGrowth 2019 2019 2018 2018 PremiumAnnual 2017 2017 2016 2016 WrittenPremium 2015 2015 2014 2014 2013 2013 AutoWritten 2012 2012 2011 2011 2010 U.S.Auto 2010 2009 2009 U.S. 2008 2008 2007 2007 2006 2006 2005 2005 25% 20% 15% 10% 5% 0% 25% 20% 15% 1
Slide 14: Global New Business Count
Global New Business Count 300,000 250,000 200,000 150,000 100,000 50,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E
Slide 15: Hagerty Penetration and U.S. Auto Insured Vehicle Count
Hagerty Penetration and U.S. Auto Insured Vehicle Count Collectible Vehicles by Cohort Pre 1980 Vehicle Count Post 1980 Vehicle Count ~13% Type Total Market Hagerty 1,600,000 (cars, mm) Penetration 1,400,000 Pre 1980 7% annual growth in pre 1980s Vehicles 11.2 13.3% 1,200,000 Post 1980 1,000,000 Veh
Slide 16: Total Revenue and Operating Income Seasonality
Total Revenue Operating Income 5 YEAR AVERAGE 5 YEAR AVERAGE 80% 70% 67% 40% 60% 50% 51% 27% 27% 40% 30% 25% 30% 21% 20% 15% 10% 20% 0 (10%) 10% (20%) (30%) (40%) (34%) —% (50%) Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q2 Q3 Q4 $ IN THOUSANDS Q1 Q2 Q3 Q4 Total $ IN THOUSANDS Q1 Q2 Q3 Q4 Total 2019 78,479 109,722
Slide 17: Quarterly Results in Millions
$ IN MILLIONS 166 129 158 152 147 116 140 110 103 127 117 89 112 78 75 64 42 33 31 27 27 24 21 20 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2023 2023 2023 2024 2024 2024 2022 2023 2023 2023 2023 2024 2024 2024 2022 2023 2023 2023 2023 2024 2024 2024
Slide 18: Adjusted EBITDA Reconciliation
IN THOUSANDS Q3 2023 Q4 2023 - Q2 2024 Q3 2024 TTM Net income $18,623 $59,898 $19,007 $78,905 Interest and other (income) expense1 (6,260) (26,730) (8,359) (35,089) Income tax (benefit) expense 4,604 15,531 (1,022) 14,509 Depreciation and amortization 10,753 31,490 9,184 40,674 EBITDA 27,720 80,189
Slide 19: Adjusted Net Income and Earnings Per Share Reconciliation
IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q3 2024 Q3 2023 YTD 2024 YTD 2023 Numerator: Net income available to Class A Common Stockholders1 $2,798 $3,255 $7,753 $3,712 Accretion of Series A Convertible Preferred Stock 1,875 1,838 5,552 1,838 Undistributed earnings allocated to Series A Convertible Pre
Slide 20: 2024 Adjusted EBITDA Outlook Reconciliation
IN THOUSANDS 2024 Low 2024 High Net income $65,000 $74,000 Interest and other (income) expense2 (35,000) (35,000) Income tax (benefit) expense 14,000 15,000 Depreciation and amortization 40,000 40,000 Gain (loss) related to warrant liabilities, net 8,500 8,500 Share-based compensation expense 17,500
Slide 21: Never Stop Driving
Never Stop Driving