Slide 1: Q2 2025 Investor Presentation
Q2 2025 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 complete the proposed fronting arrangement with Markel Group Inc. (together statements” within the meaning of the federal securities laws. All statements with its subsidiar
Slide 3: Second Quarter YTD 2025 Highlights
SECOND QUARTER YTD 2025 Highlights TOTAL REVENUE GROWTH OF 18% TO $688 MILLION 1. Commission and Fee growth of 12% 2. Written Premium growth of 11% » Added 143,000 new members in the first half of 2025 3. Membership, Marketplace and other revenue growth of 68% » Marketplace growth of 232%, primarily
Slide 4: 2025 Priorities
2025 Priorities Investing to double Hagerty’s policies in force to 3.0 million by 2030 FASTER, SMARTER, BETTER INTEGRATED: » Insurance growth with State Farm rollout and launch of Enthusiast Plus » Integrated membership with authentic delivery of products and services » Marketplace global expansion
Slide 5: Investing in Growth and Efficiency
Investing in Growth and Efficiency Launched Enthusiast+ in July of 2025 on Duck Creek platform Began the process of identifying challenges and risks of aging IT infrastructure in 2023 Current technology stack: » Impacts operational efficiency, resulting in a high cost to serve » Prevents scalability
Slide 6: Markel Fronting Arrangement
Markel Fronting Arrangement Evolving the decade-long partnership, with Hagerty controlling 100% of the premium in 2026 CURRENT MODEL PROPOSED FRONTING STRUCTURE (1/1/26) » Hagerty earns 42% total » Hagerty Re would earn 100% of the commissions as an MGA and retains premium and retain 100% of the ris
Slide 7: Financial Highlights
SECOND QUARTER YTD 2025 Financial Highlights $688M 42.2% Loss Ratio1 $73M $74M +18% 89.1% Combined Ratio 2 +46% +46% $600M 88.7% $103M $0.16 82 Adjusted EBITDA 3 +11% +28% 210 bps improvement in operating margin 1 Full year Loss Ratio includes approximately $10 million pre-tax impact from the Southe
Slide 8: Revenue Components
Revenue Components Strong double-digit gains TOTAL REVENUE SECOND QUARTER YTD 2025 HIGHLIGHTS Q2 YTD Commission and fee revenue (+12%) » Written premium growth 11% th » Policies in Force retention of 89% w gro 18% $688 Growth Membership, Marketplace and other revenue (+68%) $585 » Membership revenue
Slide 9: Second Quarter Earnings Analysis
Second Quarter Earnings Analysis Delivering sustained profit growth SECOND QUARTER NET INCOME1 SECOND QUARTER ADJUSTED EBITDA2 $64 $64 $53 $53 $47 $47 $43 $43 $34 $34 $16 $16 Q2 2023 Q2 2024 Q2 2025 Q2 2023 Q2 2024 Q2 2025 1 Q2 2023 Net Income includes a $2 million loss as a result of a change in th
Slide 10: YTD Earnings Analysis
YTD 2024 Earnings Analysis Delivering sustained profit growth SECOND QUARTER YTD NET INCOME1 SECOND QUARTER YTD ADJUSTED EBITDA2 $103 $74 $80 $51 $41 $1 Q2 2023 Q2 2024 Q2 2025 YTD Q2 2023 YTD Q2 2024 YTD Q2 2025 YTD Q2 2023 YTD Q2 2024 YTD Q2 2025 YTD Q2 2023 YTD Q2 2024 YTD Q2 2025 1 YTD Q2 2023 N
Slide 11: Increased 2025 Outlook
Increased 2025 Outlook Sustained growth and margin expansion IN THOUSANDS 2024 RESULTS PRIOR 2025 OUTLOOK 1 ($) REVISED 2025 OUTLOOK ($) REVISED 2025 OUTLOOK (%) LOW END HIGH END LOW END HIGH END LOW END HIGH END Total Written Premium $1,044,492 $1,180,000 $1,191,000 $1,180,000 $1,191,000 13% 14% To
Slide 12: Appendix
APPENDIX
Slide 13: Written Premium Growth Fueled by New Members
WRITTEN PREMIUM GROWTH FUELED BY NEW MEMBERS Strong and Growing New Business Count* 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E *New business count is expected to accelerate with State Farm Classic Plus convers
Slide 14: Total Loss Performance
PROVEN TRACK RECORD OF PROFITABLE LONG-TERM GROWTH HAGERTY U.S. AUTO PREMIUM GROWTH VS. INDUSTRY TOP 100 HAGERTY U.S. AUTO LOSS PERFORMANCE VS. INDUSTRY TOP 100 Hagerty U.S. Auto - CAGR 15% Hagerty Loss Ratio - average = 39% Industry Top 100 - CAGR 6% Industry Loss Ratio - average = 68% 600 90 Total
Slide 15: Historical Written Premium Growth
HISTORICAL WRITTEN PREMIUM GROWTH TOTAL U.S. AUTO WRITTEN PREMIUM U.S. AUTO WRITTEN PREMIUM ANNUAL GROWTH 1,000 20% 18% 800 15% 13% 600 10% 400 8% 5% 200 3% 0 —% 2013 2021 2008 2016 2024 2011 2019 2006 2014 2022 2009 2017 2012 2020 2007 2015 2023 2010 2018 2017 2007 2024 2014 2021 2011 2018 2008 201
Slide 16: Market Leading Position with Significant Penetration Opportunity
MARKET LEADING POSITION WITH SIGNIFICANT PENETRATION OPPORTUNITY HAGERTY PENETRATION AND U.S. AUTO INSURED VEHICLE COUNT COLLECTIBLE VEHICLES BY COHORT Collectible Vehicles by Cohort TOTAL ADDRESSABLE HAGERTY TARGET HAGERTY TCM TYPE MARKET (M) MARKET1 (M) PENETRATION Pre 1981 Vehicle Count ~14% Post
Slide 17: Revenue Components by Quarter
REVENUE COMPONENTS BY QUARTER $ IN MILLIONS COMMISSION + FEE REVENUE1 EARNED PREMIUM IN HAGERTY RE MEMBERSHIP, MARKETPLACE + OTHER REVENUE 178 168 169 143 166 158 152 129 147 140 116 110 127 103 100 89 89 78 50 48 42 33 34 31 27 24 20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1
Slide 18: Reconciliation of Non-GAAP Metrics
RECONCILIATION OF NON-GAAP METRICS Net Income to Adjusted EBITDA IN THOUSANDS Q2 2024 Q3 2024 - Q1 2025 Q2 2025 TTM Net income $42,657 $54,740 $47,202 $101,942 Interest and other (income) expense, net1, 2 (12,342) (23,276) (5,664) (28,940) Income tax expense 5,811 9,928 6,161 16,089 Depreciation and
Slide 19: Reconciliation of Non-GAAP Metrics
RECONCILIATION OF NON-GAAP METRICS Basic Earnings Per Share to Adjusted Earnings Per Share IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q2 2025 Q2 2024 YTD 2025 YTD 2024 Numerator: Net income available to Class A Common Stockholders 1 $8,465 $7,912 $14,505 $4,955 Accretion of Series A Convertible Preferr
Slide 20: Reconciliation of Non-GAAP Metrics | Reaffirmed 2025 Outlook
RECONCILIATION OF NON-GAAP METRICS | REAFFIRMED 2025 OUTLOOK Net Income to Adjusted EBITDA IN THOUSANDS 2025 Low 2025 High Net income $112,000 $120,000 Interest and other (income) expense, net1, 2 (32,000) (32,000) Income tax expense 23,000 25,000 Depreciation and amortization 39,000 39,000 Share-ba
Slide 21: Never Stop Driving
Never Stop Driving HAGERTY