Slide 1: Investor Presentation
c9 Investor Presentation Speakers: MckKeel Hagerty | 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 statements” membership products as well as any new insurance programs and products we within the meaning of the Private Securities Litigation Reform Act of
Slide 3: YTD Q2 2023 Highlights
Y TD Q2 202 3 HI GHL I GHTS Total Revenue growth of 28% Written Premium growth of 17% Improved Profitability » Net Income of $1 million compared to $10 million in the prior year period » Adjusted EBITDA of $41 million compared to $10 million in the prior year period » Raised $105 million in capital
Slide 4: Hagerty Marketplace
HAGERT Y MAR KE TPL ACE » Hagerty Marketplace is a top focus area in 2023 as we seek to provide an unmatched online and live Marketplace experience for consumers. » Our Marketplace is positioned as the trusted brand for auto enthusiasts, offering certification services, title and escrow, financing o
Slide 5: Hagerty + State Farm Partnership
HAGERT Y + STATE FAR M PARTNERSH I P » Digital and technology teams are progressing through the testing phase and regulatory approval process » Expect to begin activating State Farm’s ~19,500 agents in 2023, including offering State Farm Classic+ policies and Hagerty Drivers Club in four states in t
Slide 6: 2023 Priorities
20 23 P RIORIT IES Strong top-line momentum expected to continue in 2023 with significantly improved profitability Total Revenue growth of 23-27% powered by Written Premium growth of 13-15% » Sustain double-digit Written Premium growth trajectory » Deliver an unmatched online and live Marketplace ex
Slide 7: YTD Q2 2023 Financial Highlights
Y T D Q2 20 23 FI NANCI AL HI GHL I GHTS $480M 41.7% $1M $1M 28% $459M 88.0% $41M $0.00 17% 1 See Appendix for additional information regarding this non-GAAP measure. HAGERTY Q2 2023 | 7
Slide 8: Revenue Components
RE V ENUE C OMP ONENTS Total Revenue YTD Q2 2023 Highlights Q2 2023 YTD Commission + fee revenue (+17%) » Written premium growth of 17% Millions Commission + fee revenue1 Membership, marketplace + other revenue » Policies in Force retention of 88% Earned premium in Hagerty Reinsurance Membership, ma
Slide 9: Earnings Analysis
E A RNI NGS ANALYSI S Q2 YTD Adjusted EBITDA IN THOUSANDS Q2 2023 Q2 2022 YTD 2023 YTD 2022 Millions Net income (loss) $15,539 ($5,543) $514 $10,323 Adjusted EBITDA Interest and other (income) expense (3,770) 353 (9,417) 1,037 Net Income (Loss) $41 Income tax (benefit) expense 3,730 2,138 7,398 4,16
Slide 10: 2023 Outlook
20 2 3 OU TLO OK Strong top-line momentum expected to continue in 2023 with significantly improved profitability 2023 Outlook 2022 Results vs 2023 Outlook IN THOUSANDS 2022 Results Low End Range High End Range Low End Range High End Range Total Revenue $787,588 $968,000 $1,000,000 23% 27% Total Writ
Slide 11: Raising Capital to Drive Growth and Value Creation
R AI S I N G CA P ITA L TO D RIVE 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 Support growth in our quota share risk strategic investors taki
Slide 12: Appendix
APPENDIX
Slide 13: 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 14: Hagerty Membership
HAG ERT Y MEMBERSHI P Total Member Count 1.4 million Paid Members (+6%) Paid Membership Counts Guest User Counts U.S. Q2 2022 Q2 2023 Q2 2022 Q2 2023 Insurance Member 454,388 476,401 U.S. 1,158,944 1,259,367 Insurance + HDC 653,095 696,274 Canada 77,139 83,157 HDC Standalone 29,844 32,537 9% growth
Slide 15: Reconciliation of Non-GAAP Metrics
REC ONCIL IAT ION OF NON- G A AP ME TR I CS Net Income (Loss) to Adjusted EBITDA IN THOUSANDS Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net income (loss) $15,539 ($5,543) $514 $10,323 Interest and other (income) expense (3,770) 353 (9,417) 1,037 Income tax (benefit) expense 3,730 2,138 7,398 4,168 Depreciat
Slide 16: Reconciliation of Non-GAAP Metrics
REC ONCIL IAT ION OF NON- G A AP ME TR I CS Basic Earnings (Loss) Per Share to Adjusted Earnings (Loss) Per Share IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Numerator: Net income (loss) attributable to Class A Common Stockholders1 $2,405 ($5,536) $306 $21,971 Net incom
Slide 17: 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 (Loss) to Adjusted EBITDA IN THOUSANDS 2023 Low 2023 High Net Income (Loss) ($12,000) $8,000 Interest and Other (Income) Expense (13,500) (13,500) Income Tax (Benefit) Expense 14,300 14,300 Depreciation and Amortization 43,04
Slide 18: Never Stop Driving
Never Stop Driving HAGERTY