Hagerty : Investor Slides

About this update from Hagerty, Inc.

2026 Investor Presentation Company Overview Our Vision Creating a world where loved cars are driven, shared and enjoyed "People take good care of their toys." Louise Hagerty The Leading Brand for Auto Enthusiasts Creating an Enthusiast-Centered Ecosystem 1 Per SNL Financial, by auto premiums written as of FY2024. Insurance: Protect Custom, specialized insurance for enthusiast vehicles Marketplace: Buy s Sell Trusted marketplace for buying and selling classic and collector cars Membership: Enjoy Affinity program with the world's largest automotive membership community and award-winning content & entertainment HAGERTY | 6 Hagerty Summary Highlights Leading specialty insurance provider and automotive brand for the vast collector car enthusiast ecosystem Recurring revenue model fueled by unique expertise in underwriting, servicing and monetizing collector cars All components of the engine come together to create a powerful flywheel effect resulting in happy customers who view Hagerty as additive to their passion and not simply a commodity Underpinned by proprietary database meticulously constructed, cataloged and scrubbed over 40+ years leading to measurable data advantages Highly predictable and stable underwriting economics captured via underwriting entities Commission and fee-based economics earned in an MGA capacity Membership, marketplace and other economics from Hagerty Drivers Club (HDC) subscriptions, auto auctions, private sales, online marketplaces, events, collector car lending and more GROWTH AND RETENTION $ 1,456M 2025Y Total Revenue +17% from 2024Y 88.7% 2025Y Policy Retention >80 5 Year Net Promoter Score 1 PROFITABILITY 39.3% 2025Y Loss Ratio 2 $ 149M 10% 3 2025Y Net Income +91% YOY $ 237M 16% 3 2025Y Adj. EBITDA 4 +46% YOY Note: Statistics shown LTM for the period ended December 31, 2025. 1 NPS is measured twice annually through a web-based survey sent by email invitation to a random sample of existing HDC Members and is reported annually using an average of the two surveys. 2 Hagerty Re Loss Ratio is the ratio of (i) Hagerty Re's losses and loss adjustment expenses to (ii) its earned premium. 3 Net income margin and adjusted EBITDA margin, respectively. 4 Non-GAAP financial measure. Please see the appendix for a reconciliation to most applicable GAAP metric. Unique Ecosystem to Authentically Engage with Passionate Enthusiasts Membership Suite of Products and Services Help Enthusiasts Protect, Buy, Sell, and Enjoy… Driving Engagement Across Every Mile of the Hagerty Experience - Our "Secret Sauce" .. While Constant Engagement Helps Build the Brand and Feed the Hagerty Insurance Engine data collection Authentic interaction with customers and policyholders - not just at insurance renewal Allows insurance business to flourish Ability to reach all collector car enthusiasts Source of vast amount of Outsized new customer growth Excellent customer retention and NPS Decreased Customer Acquisition Cost Improved underwriting Earnings diversification Differentiated means of competing in insurance 479M lifetime views and 4.7M followers Automotive enthusiast events, merchandise, social media content $17B buy/sell transactions observed Live and virtual auctions, auto lending 930k members Roadside assistance, exclusive events, authentic contact Media and Events Marketplace HAGERTY | 8 Compelling Financial Profile $G07 $1,044 $1,000 $1,200 Total Revenue ($M) Total Written Premium ($M) 2 $1,456 $1,1G4 $237 2023 2024 2025 2023 2024 2025 $88 $124 Adjusted EBITDA 1 ($M) 2023 2024 2025 CAT Non-CAT Hagerty Re Loss Ratio (%) 3 41.5% 46.4% 3G.3% 1.2% 5.6% 2.4% 2023 2024 2025 Hagerty Re Return on Equity Net Income ($M) 38% 25% 34% $14G $78 $28 2023 2024 2025 2023 2024 2025 1 Non-GAAP financial measure. Please see the appendix for a reconciliation to most applicable GAAP metric. 2 Total Written Premium is the total amount of insurance premium written by our MGA subsidiaries on behalf of insurance carrier partners during the period. 3 Hagerty Re Loss Ratio is the ratio of (i) Hagerty Re's losses and loss adjustment expenses to (ii) its earned premium. HAGERTY | 9 Investment Highlights Why Hagerty Visionary, founder-led leadership team with deep insurance expertise and diverse backgrounds Attractive combination of Retained underwriting economics Commission and fee-based MGA revenue And synergistic membership, marketplace and other revenue Robust and diversified omni-channel distribution State Farm partnership and Enthusiast+ product spring-loaded to sustain high rates of profitable growth Large and underpenetrated target market with deep fragmentation Advanced data collection will be augmented by recent technology investments Risk bearing entity producing strong returns with a robust and conservative balance sheet High Quality Leadership Team McKeel Hagerty Chief Executive Officer & Chairman of the Board Mark Elliott Chief Investment Officer Patrick McClymont Chief Financial Officer Kenneth Ahn President of Marketplace Collette Champagne Chief HR Officer & Chief Administrative Officer Jeff Briglia President of Insurance Russell (Russ) Page Chief Information Officer Jay Koval SVP of Investor Relations and Communications Diana Chafey Chief Legal Officer Marc Burns SVP of Brand and Marketing Diversified Sources of Revenue Total Revenue ($M) 1 Includes base commissions, payment plan fees and contingent underwriting commissions. 2 Quota share percentages by geographic area for the year ended December 31, 2025, were 81% for core U.S. business, 50% in Canada, and 80% in the U.K. Hagerty Re is no longer reinsuring the risks underwritten by its U.K. MGA affiliate as of 1/1/2024, and the book is in run-off. Hagerty began assuming 100% of the risk in the U.S. book starting on January 1, 2026 as more fully described on page 21. HAGERTY | 13 • Earned Premium Earned portion of written premiums that Hagerty Re has assumed under ~80% 2 quota share reinsurance agreements with carrier partners • Commission and Fees Gross commissions and fees earned from the underwriting, sale and servicing of insurance policies written on behalf of carriers, prior to any offsetting ceding commission expense Membership and Other & Marketplace Revenue primarily earned through HDC subscriptions, auto auctions, private sales, online marketplaces, industry-leading events, collector car lending, media and more Omni-Channel Distribution Network Unlocks Target Market Direct Distribution Channel Value proposition: Belonging, camaraderie, 45% 55% Partnership Channel AGENCY & BROKER PARTNERS 32% understanding, admiration, joy Membership model drives significant percentage of new business flow Promotes brand awareness Value proposition: Enhance service, increase efficiency Over 50,000 agents 10 of the top 10 brokers by revenue 1 NATIONAL INSURANCE PARTNERS Value proposition: Enhance service, true partner, no channel conflict 9 of the top 10 largest auto insurers 2 23% 4 of our top 5 partners report double digit growth Recent new partnerships REPRESENTATIVE PARTNERS 1 Per Business Insurance. 2 Per SNL Financial, by auto premiums written as of FY2024. Durable and Consistent Mid-Teens Growth 3.0 2.5 2.0 1.5 1.0 0.5 Hagerty PIF Count(M) Hagerty vs. Industry Top 100 1 Total U.S. Auto Written Premium Growth 700% 600% 500% 400% 300% 200% 100% Hagerty vs. Peers 2020-2025 Median Total Revenue Growth 2 25% 23% 16% 3.0M PIF count goal by 2030 0.0 Note: All premium amounts shown for Hagerty reflect total written premium. 0% HGTY U.S. Auto Industry Top 100 Specialty P&C 3 Brokers 4 1 Industry Top 100 represents the top 100 U.S. P&C insurers with a private auto LOB. 2 Source: Company filings. 3 Specialty P&C peers include BOW, KNSL, PGR, PLMR, RLI, SKWD, and WRB. 4 Brokers peers include AJG, AON, BRO, BWIN, GSHD, MMC, NP, RYAN, TWFG, and WTW. HAGERTY | 15 Decades of Underwriting Drive Predictably Low Loss Ratios Hagerty MGA delivers consistent, high quality written premium growth Multi-dimensional first-party data advantage → Superior value proposition and innovative partnerships → Engaging, seamless member experience and cross-selling → Decades of claims data with 40,000 distinct makes/models in Hagerty Valuation Tools → Effective pricing of risk to maintain low loss ratios Near and Medium-Term Initiatives at Inflection Point Near Term Growth Engine Distribution relationship since 2022; agreement in place through 2030 Alignment of interest via State Farm ~15% stake in Hagerty 525k+ existing State Farm collector car policies moving to Hagerty platform by 2027 State Farm agents selling new policies in 27 states; expect to be selling in majority of US by YE 2026 100% MGA-based economic arrangement Enthusiast+ Program Broadening underwriting appetite and addressable market Distinct pricing and leading product features Natural evolution of risk appetite and business model Initial launch in 3Q'25; full rollout in the United States in next 3-4 years Opportunity to leverage onshore insurance carrier, Drivers Edge Medium Term Growth Engine Designed to target more modern enthusiast vehicles that are inherently more drivable HAGERTY | 17 Well Positioned to Capture Additional Market Share Niche, but large and underpenetrated, target market Source: Hagerty. Company reports based on aggregated data of various sources; 1 Per Facebook analytics, members who have expressed an interest in or "Liked" automobiles or associated interests. 2 Per Hagerty company reports based on aggregate data of various sources. 3 Vehicles in force as of December 31, 2025. Technology and Data Driving Superior Results Industry-Leading Valuation Tool Powering Hagerty's Ecosystem Today HISTORICAL DATA COLLECTION 40+ years of proprietary collector car data Detailed pricing data points across 48k+ collector car models 300k+ 2025 collector car transactions observed CURRENT TECHNOLOGY AND DATA Improving operational efficiency through technology investments in CRM tools, Duck Creek, and other systems Leveraging existing data and platform to drive superior financial performance Leading valuation capabilities on collector cars enhances insurance function and customer experience Differentiated claims handling ability via parts sourcing and expert repair networks fueled by data FUTURE AREAS OF EXPANSION Best in class proprietary data and unique access to collector car market unlocks AI capabilities for automation, pricing, and unique customer features Investment in technology drives down costs to serve our customers HAGERTY | 19 Underwriting Snapshot Our risk-bearing entity assumes risk from our capacity partners via quota share reinsurance Core U.S. = 80% moving to 100% 1 Canada = 50% Steady increase in assumed premium over time given profitability of the book Track record of industry-leading consistent and stable loss ratios 3Y average loss ratio of 43% vs. ~75% industry average Fundamentally different risk profile vs. daily driving auto insurance Diversified high-quality investment portfolio with 95% comprised of investment grade fixed maturity securities as of 4Q'25 Prudently booked reserves $1,1G4M 2025 Net Written Premium 1G5% 12/31/2025 BSCR 2 3G.3% 2025 Loss Ratio $382M 12/31/25 Capital 3 $727M 2025 Net Earned Premium ~34% 2025 Return on Equity 86.6% 2025 Combined Ratio A- A.M. Best FSR Positive 1 Hagerty will assume 100% of the risk in the U.S. book starting on January 1, 2026. 2 Bermuda Solvency Capital Requirement. 3 Represents Hagerty Re equity of $357 plus the State Farm loan of $25M that is treated as debt per GAAP however received favorable capital treatment from A.M. Best and has received approval from the Bermuda Monetary Authority to be recorded as Other Fixed Capital on the Statutory Statement of Capital and Surplus and as Tier 2 Ancillary Capital. HAGERTY | 20 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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