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Taxation (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | For the years ended December 31, 2025, 2024, and 2023, income before taxes includes the following components:
|  | Year ended December 31,
|  | 2025 |  | 2024 |  | 2023
|  | in thousands
United States |  | $ | 24,050 |  |  | $ | 108,589 |  |  | $ | 62,030 |
Foreign (1) |  | 115,132 |  |  | (14,907) |  |  | (17,258) |
Total |  | $ | 139,182 |  |  | $ | 93,682 |  |  | $ | 44,772 |
(1) The Company adopted ASU 2023-09 on a prospective basis, and as a result, for year ended December 31, 2025, foreign income is presented based on the country of domicile which results in Hagerty Re's income before taxes included in the Foreign jurisdiction. For the years ended December 31, 2024 and 2023, Hagerty Re's income was included in the United States based on country of tax jurisdiction.
Schedule of Components of Income Tax Expense | For the years ended December 31, 2025, 2024, and 2023, income tax (benefit) expense consists of the following components:
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| in thousands
Current: |  |  |  |  |
Federal | $ | 23,786 |  |  | $ | 12,075 |  |  | $ | 13,664 |
State | 377 |  |  | 368 |  |  | 8 |
Foreign | 297 |  |  | 7 |  |  | — |
| $ | 24,460 |  |  | $ | 12,450 |  |  | $ | 13,672 |
Deferred: |  |  |  |  |
Federal | $ | (30,586) |  |  | $ | 2,846 |  |  | $ | 2,899 |
State | (3,917) |  |  | 83 |  |  | 22 |
Foreign | — |  |  | — |  |  | — |
| $ | (34,503) |  |  | $ | 2,929 |  |  | $ | 2,921 |
Total | $ | (10,043) |  |  | $ | 15,379 |  |  | $ | 16,593 |
Schedule of Effective Income Tax Rate Reconciliation | For the year ended December 31, 2025, the income tax benefit reflected in the Consolidated Statements of Operations differs from the tax computed by applying the statutory U.S. federal rate of 21% to "Income tax benefit (expense)" as follows:
|  | Year ended December 31, 2025
|  | in thousands (except percentages)
Income tax expense at U.S. federal statutory rate |  | $ | 29,228 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect (1) |  | (5,098) |  |  | (3.7) | %
Tax credits |  | (588) |  |  | (0.4) | %
Nontaxable and nondeductible items: |  |  |  |
Net impact of noncontrolling interest and non-partnership operations on partnership outside basis | (2,424) |  |  | (1.7) | %
Other |  | 404 |  |  | 0.3 | %
Effect of cross-border tax laws: |  |  |  |
U.S. tax on foreign insurance income |  | 27,087 |  |  | 19.5 | %
Other |  | 40 |  |  | — | %
Foreign branch income |  | (2,136) |  |  | (1.5) | %
Changes in valuation allowance |  | (33,280) |  |  | (23.9) | %
Changes in unrecognized tax benefits |  | 123 |  |  | 0.1 | %
Effect of changes in tax laws or rates enacted in the current period |  | 1,109 |  |  | 0.8 | %
Other |  | (628) |  |  | (0.5) | %
Foreign tax effects: |  |  |  |
Bermuda: |  |  |  |
Statutory tax exemption |  | (27,087) |  |  | (19.5) | %
Canada |  | 1,670 |  |  | 1.2 | %
U.K.: |  |  |  |
Valuation allowance |  | 1,931 |  |  | 1.4 | %
Other |  | (832) |  |  | (0.6) | %
Other foreign jurisdictions |  | 438 |  |  | 0.3 | %
Income tax benefit |  | $ | (10,043) |  |  | (7.2) | %
(1) California, New York, Florida, Pennsylvania, and Michigan represent the majority of the tax effect in this category. For the years ended December 31, 2024 and 2023, income tax expense reflected in the Consolidated Statements of Operations differs from the tax computed by applying the statutory U.S. federal rate of 21% to "Income tax benefit (expense)" as follows:
| Year ended December 31,
| 2024 |  | 2023
| in thousands (except percentages)
Income tax expense at U.S. federal statutory rate | $ | 19,673 |  |  | 21.0 | % |  | $ | 9,402 |  |  | 21.0 | %
State taxes | 659 |  |  | 0.7 | % |  | (232) |  |  | (0.5) | %
Net impact of noncontrolling interest and non-partnership operations on partnership outside basis | (8,759) |  |  | (9.3) | % |  | 5,000 |  |  | 11.2 | %
Foreign rate differential | 2,407 |  |  | 2.6 | % |  | (529) |  |  | (1.2) | %
Change in valuation allowance | 3,485 |  |  | 3.7 | % |  | 393 |  |  | 0.9 | %
Loss (gain) related to warrant liabilities, net | 1,794 |  |  | 1.9 | % |  | (2,424) |  |  | (5.4) | %
Permanent items | 89 |  |  | 0.1 | % |  | 914 |  |  | 2.0 | %
Effect of changes in tax rates | (4,400) |  |  | (4.7) | % |  | 4,018 |  |  | 9.0 | %
Other, net | 431 |  |  | — | % |  | 51 |  |  | — | %
Income tax expense | $ | 15,379 |  |  | 16.0 | % |  | $ | 16,593 |  |  | 37.0 | %
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2025 and 2024, the tax effects of temporary differences that give rise to significant portions of the deferred tax provision are as follows:
| December 31,
| 2025 |  | 2024
Deferred tax assets: | in thousands
Discount on provision for losses and loss adjustment expenses | $ | 1,442 |  |  | $ | 1,343 |
Unearned premiums | 16,385 |  |  | 14,239 |
Tax receivable agreement | 10,110 |  |  | — |
Unrealized foreign currency gain | 190 |  |  | 597 |
Excess tax basis | 159,189 |  |  | 148,089 |
Net operating loss ("NOL") and other carryforwards | 39,047 |  |  | 28,854 |
Other | 2,083 |  |  | 480 |
Gross deferred tax assets | 228,446 |  |  | 193,602 |
Less: valuation allowance | (165,748) |  |  | (176,167) |
Total net deferred tax assets | $ | 62,698 |  |  | $ | 17,435 |
Deferred tax liabilities: |  |  |
Deferred acquisition costs | $ | (37,640) |  |  | $ | (32,858) |
Unrealized foreign currency gain | (188) |  |  | (388) |
Unrealized investment gain | (3,258) |  |  | (56) |
Intangible assets | (1,093) |  |  | (1,309) |
Other | (997) |  |  | (889) |
Total deferred tax liabilities | (43,176) |  |  | (35,500) |
Net deferred tax assets (liabilities) | $ | 19,522 |  |  | $ | (18,065) |
Schedule of Unrecognized Tax Benefits |
|  | December 31,
|  | 2025 |  | 2024
|  | in thousands
Beginning of period |  | $ | — |  |  | $ | — |
Additions based on tax positions related to the current year |  | 57 |  |  | — |
Additions for tax positions of prior years |  | 66 |  |  | — |
End of period |  | $ | 123 |  |  | $ | — |

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