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Related-Party Transactions | 12 Months Ended
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Dec. 31, 2025
Related Party Transactions [Abstract] |
Related-Party Transactions | 24 — Related-Party Transactions As of December 31, 2025, Markel and State Farm had the following equity interests in Hagerty and, as a result, are considered related parties:
|  | Markel |  | State Farm
Equity Interest |  | Shares/Units |  | Percentage of total outstanding (1) |  | Shares/Units |  | Percentage of total outstanding (1)
Hagerty, Inc. Class A Common Stock |  | 3,108,000 |  |  | 3.1 | % |  | 51,800,000 |  |  | 51.4 | %
Hagerty, Inc. Class V Common Stock |  | 75,000,000 |  |  | 31.0 | % |  | — |  |  | — | %
Hagerty, Inc. Series A Convertible Preferred Stock |  | 1,590,668 |  |  | 18.8 | % |  | 5,302,226 |  |  | 62.5 | %
THG units |  | 75,000,000 |  |  | 21.7 | % |  | — |  |  | — | %
Controlling interest |  | 3,108,000 |  |  | 3.1 | % |  | 51,800,000 |  |  | 51.4 | %
Non-controlling interest |  | 75,000,000 |  |  | 30.6 | % |  | — |  |  | — | %
(1) The percentages reflected represent only the ownership of the specific security identified in each row, and are not reflective of the total economic ownership in Hagerty. Refer to Note 20 — Stockholders' Equity and Note 19 — Convertible Preferred Stock for a description of each equity interest in the table above. Markel Alliance Agreement For the years ended December 31, 2025, 2024, and 2023, the Company and Markel were parties to an alliance agreement (the "Markel Alliance Agreement") and associated agency agreement pursuant to which policies sold by Hagerty's U.S. MGAs were underwritten by Essentia and reinsured with Evanston Insurance Company ("Evanston"), both of which are wholly owned subsidiaries of Markel. Refer to 1 — Description of Business for information regarding the Markel Fronting Arrangement, which was entered into on December 31, 2025 and became effective on January 1, 2026. The following tables provide information related to Markel-affiliated "Commission revenue" and "Due to insurer" liabilities associated with the Markel Alliance Agreement:
|  |  | Year ended December 31,
|  |  |  |  | 2025 |  | 2024 |  | 2023
|  |  |  |  | in thousands (except percentages)
Commission revenue |  |  |  |  | $ | 436,843 |  |  | $ | 387,951 |  |  | $ | 340,534 |
Percent of total |  |  |  |  | 91.1 | % |  | 93.1 | % |  | 94.7 | %
| December 31,
| 2025 |  | 2024
| in thousands (except percentages)
Due to insurer | $ | 88,888 |  |  | $ | 78,792 |
Percent of total | 93.6 | % |  | 93.8 | %
Refer to Note 2 — Summary of Significant Accounting Policies for information on related party balances within "Commissions receivable," which primarily consist of CUC receivables due from Markel. Reinsurance Agreement For the years ended December 31, 2025, 2024, and 2023, Hagerty Re was party to a quota share agreement with Evanston to assume approximately 80% of the risks written through the Company's U.S. MGAs, with the exception of High-Net-Worth Accounts, in which Hagerty Re assumed 100% of the risk. Refer to 1 — Description of Business for information on the Markel Fronting Arrangement, which was entered into on December 31, 2025 and became effective on January 1, 2026, and Note 16 — Reinsurance for additional information on the Company's reinsurance programs. The following tables summarize all balances related to the Company's reinsurance business with Markel subsidiaries:
|  |  | Year ended December 31,
|  |  |  |  | 2025 |  | 2024 |  | 2023
Revenue: |  |  |  |  | in thousands
Earned premium, net |  |  |  |  | $ | 745,669 |  |  | $ | 662,791 |  |  | $ | 535,352 |
Expenses: |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  | $ | 293,268 |  |  | $ | 302,088 |  |  | $ | 214,401 |
Ceding commission, net |  |  |  |  | 344,208 |  |  | 307,759 |  |  | 247,918 |
Total expenses |  |  |  |  | $ | 637,476 |  |  | $ | 609,847 |  |  | $ | 462,319 |
| December 31,
| 2025 |  | 2024
Assets: | in thousands
Commissions receivable | $ | 1,321 |  |  | $ | 489 |
Premiums receivable | 174,169 |  |  | 150,436 |
Deferred acquisition costs, net | 181,972 |  |  | 160,360 |
Reinsurance recoverable | 1,958 |  |  | 1,215 |
Prepaid reinsurance premium | 2,376 |  |  | 1,711 |
Total assets | $ | 361,796 |  |  | $ | 314,211 |
Liabilities: |  |  |
Losses payable | $ | 92,001 |  |  | $ | 95,906 |
Provision for unpaid losses and loss adjustment expenses | 155,757 |  |  | 158,516 |
Ceding commissions payable | 83,494 |  |  | 76,001 |
Unearned premiums | 395,239 |  |  | 347,501 |
Other liabilities | 2,470 |  |  | 806 |
Total liabilities | $ | 728,961 |  |  | $ | 678,730 |
Pursuant to the terms of the quota share agreement with Evanston, Hagerty Re maintains assets in trust for the benefit of Evanston. These assets are included within "Restricted cash and cash equivalents", "Fixed maturity securities" and "Equity securities" on the Consolidated Balance Sheets. The assets held in trust for the benefit of Evanston totaled $680.4 million and $589.2 million as of December 31, 2025 and 2024, respectively. State Farm Alliance Agreement Hagerty has a 10-year master alliance agreement and associated managing general underwriter agreement with State Farm, under which State Farm Classic+ policies are offered to State Farm's customers through State Farm agents. This program began issuing policies in September 2023. As of December 31, 2025, State Farm Classic+ policies were being offered in 27 states, with conversions of their existing book of business occurring in seven of these states and plans to offer such policies in additional states in 2026 and 2027. Under the master alliance agreement, State Farm paid Hagerty an advanced commission of $20.0 million in 2020, which is being recognized as "Commission and fee revenue" over the remaining life of the arrangement. In addition, the Company is paid a commission for underwriting, binding coverage, and issuing State Farm Classic+ policies and can offer HDC memberships to State Farm Classic+ customers, providing Hagerty with an additional revenue opportunity. Reinsurance Agreement Hagerty Re has a quota share agreement to cede 50% of the risk assumed from a subsidiary of Markel in relation to High-Net-Worth Accounts to Oglesby Reinsurance Company, a wholly owned subsidiary of State Farm. Refer to Note 16 — Reinsurance for additional information on the Company's reinsurance programs. The following tables summarize all balances related to the risk ceded by Hagerty Re to State Farm subsidiaries:
|  |  |  | Year ended December 31,
|  |  |  |  |  | 2025 |  | 2024 |  | 2023
Revenue: |  |  |  |  |  | in thousands
Earned premium, net (1) |  |  |  |  |  | $ | (19,442) |  |  | $ | (15,950) |  |  | $ | (5,883) |
Expenses: |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses (3) |  |  |  |  |  | $ | (11,256) |  |  | $ | (7,502) |  |  | $ | (1,877) |
Ceding commission, net (2) |  |  |  |  |  | (10,110) |  |  | (8,294) |  |  | (3,059) |
Total expenses |  |  |  |  |  | $ | (21,366) |  |  | $ | (15,796) |  |  | $ | (4,936) |
(1) Represents premiums ceded to State Farm subsidiaries, which are accounted for as a reduction to "Earned premium, net". (2) Represents commissions earned from State Farm subsidiaries related to ceded reinsurance, which are accounted for as a reduction to "Ceding commissions, net". (3) Represents loss recoveries associated with reinsurance ceded to State Farm subsidiaries, which are accounted for as a reduction to "Losses and loss adjustment expenses".
|  | December 31,
|  | 2025 |  | 2024
Assets: |  | in thousands
Commissions receivable |  | $ | 2,716 |  |  | $ | 2,095 |
Deferred acquisition costs, net (1) |  | (5,400) |  |  | (4,448) |
Reinsurance recoverable |  | 6,668 |  |  | 6,205 |
Prepaid reinsurance premium |  | 10,385 |  |  | 8,554 |
Total assets |  | $ | 14,369 |  |  | $ | 12,406 |
Liabilities: |  |  |  |
Other liabilities (2) |  | $ | 5,224 |  |  | $ | 4,028 |
Total liabilities |  | $ | 5,224 |  |  | $ | 4,028 |
(1) Represents unearned ceding commission received from State Farm subsidiaries. (2) Represents reinsurance premiums due to State Farm subsidiaries. State Farm Term Loan In September 2023, Hagerty Re entered into an unsecured term loan facility with State Farm in an aggregate principal amount of $25.0 million and an interest rate of 8.0% per annum. The State Farm Term Loan will mature in September 2033. Refer to Note 18 — Debt for additional information. Other Related Party Transactions From time-to-time, in the ordinary course of business, related parties, such as members of the Board and management, purchase insurance policies from the Company, receive payments on claims required by the Company's insurance policies, and buy and sell collector cars and enthusiast vehicles through marketplace auctions or in private transactions.

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