Slide 1: Investor Presentation
~ Investor Presentation Speal McKeel Ha; gerty | Chief Executive Officer HAGERTY Patrick McClymont | Chief Financial Officer
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
FO RWA R D LO OK ING STAT E MENTS / NON- G A AP F I NANCI AL ME A SUR ES This presentation contains statements that constitute “forward-looking platforms or our use of third-party services; (v) accelerate the adoption statements” within the meaning of the Private Securities Litigation Reform of our
Slide 3: YTD Q3 2023 Highlights
Y TD Q3 202 3 HI GHL I GHTS Total Revenue growth of 28% Written Premium growth of 16% » Added over 200,000 new customers » Launched State Farm partnership in four states » Received financial strength rating of A- (Excellent) from AM Best Marketplace revenue of $25 million, growth of 210% Significant
Slide 4: Hagerty Marketplace
HAGERT Y MAR KE TPL ACE » Hagerty Marketplace was created to help consumers buy and sell enthusiast vehicles. Large and growing market opportunity with ~300,000 cars transacting for ~$12.5 billion through Hagerty’s insurance book during 2022. » We seek to provide an unmatched online and live Marketp
Slide 5: Hagerty + State Farm Partnership
HAGERT Y + STATE FAR M PARTNERSH I P » Began activating State Farm agents to offer State Farm Classic+ policies and Hagerty Drivers Club in four initial states in September of 2023 » 480,000+ existing collector car policies plus up to 75% HDC enrollment possible on new insurance policies sold by Sta
Slide 6: 2023 Priorities
20 23 P RIORIT IES Deliver sustained top-line momentum in 2023 with significantly improved profitability On track to deliver Total Revenue growth of 26-27% powered by Written Premium growth of 15-16% » Sustain double-digit Written Premium growth trajectory » Deliver an unmatched online and live Mark
Slide 7: YTD Q3 2023 Financial Highlights
Y T D Q3 20 23 FI NANCI AL HI GHL I GHTS $755M 41.5% $17M $19M +28% $714M 88.2% $78M $0.04 +16% 1 See Appendix for additional information regarding this non-GAAP measure. HAGERTY Q3 2023 | 7
Slide 8: Revenue Components
RE V ENUE C OMP ONENTS Total Revenue YTD Q3 2023 Highlights Q3 YTD Commission + fee revenue (+18%) » Written premium growth of 16% » Policies in Force retention of 88% Membership, marketplace + other revenue (+47%) » Membership revenue growth of 20% » Marketplace revenue growth of 210% » 80% of new
Slide 9: Earnings Analysis
E A RNI NGS ANALYSI S Net Income Adjusted EBITDA Adjusted EBITDA IN THOUSANDS Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net income $18,623 $24,313 $19,137 $34,636 2023 Interest and other (income) expense (6,260) (662) (15,677) 375 2022 Income tax (benefit) expense 4,604 (91) 12,002 4,077 Depreciation and am
Slide 10: 2023 Outlook: Growth and Profitability
20 23 OU T LO OK: GROW TH AND PROFI TABI L I T Y Strong top-line momentum continuing in 2023 with significantly improved profitability 2023 Outlook Prior Outlook at Q2 2023 IN THOUSANDS Low End Range High End Range Low End Range High End Range Total Revenue1 $992,000 $1,000,000 $968,000 $1,000,000 T
Slide 11: Appendix
APPENDIX
Slide 12: Historical Seasonality Trends
HISTORICA L SE A SONAL I T Y TR ENDS Total Written Premium New Business Count (Insurance) 250 90 80 200 70 60 150 50 100 40 30 50 20 10 0 0 $ IN Q1 Q2 Q3 Q4 Total THOUSANDS Q1 Q2 Q3 Q4 Total 2018 32,610 56,729 51,795 35,356 176,490 2018 82,514 137,943 123,385 86,621 430,463 2019 36,848 62,842 57,426
Slide 13: Hagerty Membership
HAG ERT Y MEMBERSHI P Total Member Count 1.4 million Paid Members (+6%) Paid Membership Counts Guest User Counts U.S. Q3 2022 Q3 2023 Q3 2022 Q3 2023 Insurance Member 462,289 480,616 U.S. 1,183,201 1,305,743 Insurance + HDC 660,304 709,468 Canada 79,271 85,892 HDC Standalone 29,769 33,237 Total Gues
Slide 14: Reconciliation of Non-GAAP Metrics
REC ONCIL IAT ION OF NON- G A AP ME TR I CS Net Income to Adjusted EBITDA IN THOUSANDS Q3 2023 Q3 2022 YTD 2023 YTD 2022 Net income $18,623 $24,313 $19,137 $34,636 Interest and other (income) expense (6,260) (662) (15,677) 375 Income tax (benefit) expense 4,604 (91) 12,002 4,077 Depreciation and amo
Slide 15: Reconciliation of Non-GAAP Metrics
REC ONCIL IAT ION OF NON- G A AP ME TR I CS Basic Earnings Per Share to Adjusted Earnings (Loss) Per Share IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Numerator: Net income available to Class A Common Stockholders1 $3,255 $14,714 $3,712 $36,685 Undistributed earnings al
Slide 16: Reconciliation of Non-GAAP Metrics | Outlook
R EC ONC IL IAT ION OF NON- G A AP ME TR I CS | 202 3 OU TLO OK Net Income to Adjusted EBITDA IN THOUSANDS 2023 Low 2023 High Net Income $2,000 $12,000 Interest and Other (Income) Expense (18,500) (18,500) Income Tax (Benefit) Expense 15,500 15,500 Depreciation and Amortization 44,112 44,112 Restruc
Slide 17: Raised $105M of Capital in June to Drive Growth and Value Creation
R A ISE D $1 0 5 M OF CAPI TAL I N JUNE OF 202 3 TO D RIV E GROW TH AND VALUE CR E ATI ON $80M of capital raised at Hagerty, Inc. $25M of Tier 2 capital at Hagerty Re to support strategic growth initiatives provided by State Farm Strong sponsorship from existing strategic investors Support growth in
Slide 18: Never Stop Driving
Never Stop Driving HAGERTY