Slide 1: Hagerty Investor Presentation
HAGERTY. Investor 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 federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, includin
Slide 3: 2024 Outlook vs 2024 Results
2024 OUTLOOK 2024 RESULTS (AS OF 3/12/24)* Total Revenue Growth 15% - 17% +20% Written Premium Growth 13% - 14% +15% Significantly improve profitability1: Net Income $61M - $70M $78M (+178%) Adjusted EBITDA2 $124M - $135M $124M (+41%) * Hagerty shared the initial 2024 Outlook on the fourth quarter 2
Slide 4: Full Year 2024 Highlights
FULL YEAR 2024 Highlights 1. Commission and Fee growth of 16% 2. Written Premium growth of 15% » Added a record 279,000 new members in 2024 3. Membership, marketplace and other revenue growth of 30% » Marketplace growth of 90% 1. Operating Income of $66 million (+538%) » Improved operating margin by
Slide 5: 2025 Priorities
2025 Priorities Investing to double Hagerty’s policies in force to 3.0 million by 2030 FASTER, SMARTER, MORE INTEGRATED: » Insurance growth with State Farm rollout and launch of Enthusiast Plus » Integrated membership with authentic delivery of products and services » Marketplace global expansion in
Slide 6: Investing in Growth and Efficiency
Investing in Growth and Efficiency Elevated technology investments of ~$20 million in 2025 Began the process of identifying challenges and risks of aging IT infrastructure in 2023 Current technology stack: » Negatively impacts operational efficiency, resulting in a high cost to serve » Prevents scal
Slide 7: Fourth Quarter YTD 2024 Financial Highlights
FOURTH QUARTER YTD 2024 Financial Highlights GROWTH PERSISTENCE SI2ZQO0OM4 46.4% Loss Ratio* 89.0% Retention Total Revenue +20% $1,044M Written Premium 82 +15% Net Promoter Score 450 bps improvement in operating margin * Hagerty’s loss ralio of 46.4% includes the $26.7 milion pre-tax impact from Hur
Slide 8: gro gro
w th gro 20 % $1,200 Growth $1,000 $423 16% $366 w th gro 19% $133 30% $292 Growth $103 $245 $89 15% $78 $34 68% $643 21% $20 $532 $168 14% $147 2023 2024 2023 2024
Slide 9: Q4 2022 Q4 2023 Q4 2024 Q4 2022 Q4 2023 Q4 2024
$20 $9 $8 $10 $(2) $(32) Q4 2022 Q4 2023 Q4 2024 Q4 2022 Q4 2023 Q4 2024
Slide 10: YTD 2024 Earnings Analysis
YTD 2024 Earnings Analysis Delivering sustained profit growth FOURTH QUARTER YTD ADJUSTED EBITDA” FOURTH QUARTER YTD NET INCOME' $124 Millions: $78 Millions $88 $28 $(2) YTD Q4 2022 YTD Q4 2023 YTD Q4 2024 YTD Q4 2022 YTD Q4 2023 YTD Q4 2024 Full Year 2024 Adjusted EBITDA of $124 million * 2022 Net
Slide 11: 2025 Outlook
IN THOUSANDS 2024 RESULTS 2025 OUTLOOK ($) 2025 OUTLOOK (%) LOW END HIGH END LOW END HIGH END Total Written Premium $1,044,492 $1,180,000 $1,191,000 13% 14% Total Revenue $1,200,038 $1,344,000 $1,356,000 12% 13% Net Income1 $78,303 $102,000 $110,000 30% 40% Adjusted EBITDA2 $124,473 $150,000 $160,00
Slide 12: Appendix
APPENDIX
Slide 13: 450,000 400,000 350,000 300,000 250,000 200,000 150,000 0,000 50,000 0 2014 2020 2015 2021
450,000 400,000 0 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2014 2020 2015 2021 2016 2022 2017 2023 2018 2024 2019 2025E
Slide 14: Total Loss Performance
600 90 Total Percentage Growth Total Loss Performance 500 80 70 400 60 300 50 200 40 100 30 0 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 15: 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 20% 18% 15% 13% 10% 8% 5% 3% —% 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 1,000 800 600 400 200 0
Slide 16: Hagerty Penetration and U.S. Auto Insured Vehicle Count
Hagerty Penetration and U.S. Auto Insured Vehicle Count Collectible Vehicles by Cohort Pre 1981 Vehicle Count ~14% Post 1980 Vehicle Count Type Total Market Hagerty 1,600,000 (cars, mm) Penetration 1,400,000 Pre 1981 Vehicles 11.1 14.0% 1,200,000 1,000,000 ~2% Post 1980 Vehicles 36.7 1.9% 800,000 60
Slide 17: Quarterly Results 2023-2024
Q1 2023 Q2 2023 Q3 2023 Q4 2023 TOTAL Q1 2024 Q2 2024 Q3 2024 Q4 2024 TOTAL 2023 2024 Total Written Premium (thousands) $182,850 $275,895 $255,569 $192,861 $907,175 $218,286 $321,173 $287,609 $217,424 $1,044,492 Hagerty Re Loss Ratio1 41.3% 42.0% 41.1% 41.5% 41.5% 41.1% 41.1% 60.0% 42.8% 46.4% Hager
Slide 18: $ in Millions Quarterly Trends
$ IN MILLIONS 166 168 129 158 152 147 116 140 110 103 127 96 117 89 89 112 86 107 78 94 75 89 62 64 42 33 34 31 27 27 24 24 21 20 16 16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2
Slide 19: Adjusted EBITDA Reconciliation
IN THOUSANDS Q4 2024 Q4 2023 FY 2024 FY 2023 Net income $8,440 $9,042 $78,303 28,179 Interest and other (income) expense1, 2 (7,863) (7,144) (35,808) (22,821) Income tax expense 5,461 4,591 15,379 16,593 Depreciation and amortization 9,147 10,916 38,905 45,809 EBITDA 15,185 17,405 96,779 67,760 Rest
Slide 20: Adjusted Earnings Per Share Reconciliation
IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q4 2024 Q4 2023 YTD 2024 YTD 2023 Numerator: Net income available to Class A Common Stockholders1 $1,144 $11,786 $8,900 $15,881 Accretion of Series A Convertible Preferred Stock 1,875 1,839 7,427 3,677 Undistributed earnings allocated to Series A Convertible P
Slide 21: 2025 Adjusted EBITDA Outlook Reconciliation
IN THOUSANDS 2025 Low 2025 High Net income $102,000 $110,000 Interest and other (income) expense1, 2 (32,000) (32,000) Income tax expense 21,000 23,000 Depreciation and amortization 39,000 39,000 Share-based compensation expense 20,000 20,000 Adjusted EBITDA $150,000 $160,000
Slide 22: Never Stop Driving
Never Stop Driving HAGERTY