Slide 1: Q1 2025 Investor Presentation
Q1 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 well as any new insurance programs and products we offer; (vi) manage the statements” within the meaning of the federal securities laws. All statements cyclical nature of t
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights TOTAL REVENUE GROWTH OF 18% TO $320 MILLION 1. Commission and Fee growth of 13% 2. Written Premium growth of 12% » Added 55,000 new members in the quarter 3. Membership, Marketplace and Other revenue growth of 60% » Marketplace growth of 176%, primarily due to a higher level of in
Slide 4: 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 5: Investing in Growth and Efficiency
Investing in Growth and Efficiency 2025 technology investments tracking on-time and on-budget* 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: Financial Highlights
FIRST QUARTER 2025 Financial Highlights $320M 42.0% Loss Ratio1 $26M $27M +18% 88.5% Combined Ratio 2 +$14M +$19M $244M 89.0% $40M $0.07 82 Adjusted EBITDA 3 +12% +$12M 360 bps improvement in operating margin 1 Full year Loss Ratio includes a $10 million impact from the Southern California wildfires
Slide 7: Revenue Components
Revenue Components TOTAL REVENUE FIRST QUARTER 2025 HIGHLIGHTS Commission + Fee revenue (+13%) » Written premium growth 12% » Policies in Force retention of 89.0% Membership, Marketplace + Other revenue (+60%) w th gro 18% » Membership revenue growth of 14% $320 Growth » Marketplace delivered $29 mi
Slide 8: First Quarter Earnings Analysis
First Quarter Earnings Analysis Delivering sustained profit growth FIRST QUARTER NET INCOME1 FIRST QUARTER ADJUSTED EBITDA2 $40 $40 $27 $27 $27 $27 $8 $8 $7 $7 $(15) $(15) Q1 2023 Q1 2024 Q1 2025 Q1 2023 Q1 2024 Q1 2025 First Quarter 2025 Adjusted EBITDA of $40 million 1 Q1 2023 Net Loss includes a
Slide 9: Reaffirmed 2025 Outlook
Reaffirmed 2025 Outlook Sustained growth and margin expansion IN THOUSANDS 2024 RESULTS 2025 OUTLOOK ($) 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 $102,0
Slide 10: Appendix
APPENDIX
Slide 11: Written Premium Growth Fueled by New Members
WRITTEN PREMIUM GROWTH FUELED BY NEW MEMBERS Strong and Growing New Business Count* 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2020 2014 2021 2015 2022 2016 2023 2017 2024 2018 2025E 2019 *New business count is expected to accelerate with State Farm Classic Plus conversion HAGER
Slide 12: 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 13: 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 14: 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 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
Slide 15: Revenue Components by Quarter
REVENUE COMPONENTS BY QUARTER $ IN MILLIONS COMMISSION + FEE REVENUE1 EARNED PREMIUM IN HAGERTY RE MEMBERSHIP, MARKETPLACE + OTHER REVENUE 168 169 166 129 158 152 147 116 140 110 103 127 100 117 89 89 78 75 50 42 33 34 31 27 27 24 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4
Slide 16: Reconciliation of Non-GAAP Metrics: Net Income to Adjusted EBITDA
RECONCILIATION OF NON-GAAP METRICS Net Income to Adjusted EBITDA IN THOUSANDS Q1 2024 Q2 2024 - Q4 2024 Q1 2025 TTM Net income $8,199 $70,104 $27,293 $97,397 Interest and other (income) expense1, 2 (7,244) (28,564) (7,054) (35,618) Income tax expense 5,129 10,250 5,489 15,739 Depreciation and amorti
Slide 17: Reconciliation of Non-GAAP Metrics: Adjusted Earnings Per Share
RECONCILIATION OF NON-GAAP METRICS Basic Earnings Per Share to Adjusted Earnings Per Share IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) Q1 2025 Q1 2024 Numerator: Net income (loss) available to Class A Common Stockholders 1 $6,041 ($3,189) Accretion of Series A Convertible Preferred Stock 1,875 1,838 Und
Slide 18: 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 $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 c
Slide 19: Never Stop Driving
Never Stop Driving HAGERTY