Segment Reporting and Disaggregated Revenue

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

Segment Reporting and Disaggregated Revenue

4 — Segment Reporting and Disaggregated Revenue

Segment Reporting

Due to the continued revenue growth and recent geographic expansion of Hagerty's marketplace business, beginning in the fourth quarter of 2025, the Company updated its segment reporting to reflect two operating and reportable segments: Insurance and Marketplace. Previously, the Company operated as a single operating and reportable segment. Prior period segment information has been recast to conform to the current presentation in this Annual Report.

The Insurance segment principally includes the Company's MGA and reinsurance operations, as well as its membership, events and media activities which support and enhance the Company's insurance offerings. The Marketplace segment offers a trusted marketplace where automotive enthusiasts can buy, sell, and finance collector cars.

The Company's Chief Executive Officer ("CEO") and Chairman of its Board of Directors ("the Board") acts as the Chief Operating Decision Maker ("CODM"). The CODM evaluates performance and makes resource allocation decisions about the Company's reportable segments using a number of measures, including income before taxes, which is the Company's measure of segment profitability.

The CODM regularly receives information about the significant expenses of each reportable segment, including (i) Losses and loss adjustment expenses; (ii) Ceding commissions, net; (iii) Sales expense; and (iv) other expenses, which is an aggregation of Salaries and benefits, General and administrative expenses, and Depreciation and amortization. These expenses are not regularly used by the CODM on a disaggregated basis for purposes of evaluating segment profitability. The Company does not report total assets by segment for internal or external reporting purposes as the Company's CODM does not receive segment balance sheets or assess performance, make strategic decisions, or allocate resources based on assets.

Income before taxes for each segment includes an allocation of attributable shared service expenses. Certain corporate expenses are excluded from segment income before taxes as they are not attributable to the operations of the reportable segments. These unallocated expenses are included in the reconciliation of total segment income before taxes to consolidated income before taxes below.

The table below presents the Company's segment information for the years ended December 31, 2025, 2024, and 2023:


	Year ended December 31, 2025
	Insurance		Marketplace		Total

REVENUES:	(in thousands)
Commission and fee revenue	$	486,376	$	—	$	486,376
Earned premium, net	726,726		—		726,726
Marketplace revenue	—		119,199		119,199
Membership and other revenue	82,376		—		82,376
Net investment income	37,739		909		38,648
Net investment gains	3,064		—		3,064
Total revenue	1,336,281		120,108		1,456,389
EXPENSES:
Losses and loss adjustment expenses	285,394		—		285,394
Ceding commissions, net	337,087		—		337,087
Sales expense	165,894		92,307		258,201
Other expenses	356,749		38,930		395,679
Total segment expenses	1,145,124		131,237		1,276,361
Segment income (loss) before taxes	191,157		(11,129)		180,028
Corporate expenses					(3,171)
Interest expense					(5,440)
Change in TRA Liability					(32,235)
Income before taxes					$	139,182


	Year ended December 31, 2024
	Insurance				Marketplace		Total

REVENUES:	(in thousands)
Commission and fee revenue	$	423,240			$	—	$	423,240
Earned premium, net	643,324				—		643,324
Marketplace revenue	—				54,549		54,549
Membership and other revenue	78,925				—		78,925
Net investment income	38,357				892		39,249
Net investment gains	2,223				—		2,223
Total revenue	1,186,069				55,441		1,241,510
EXPENSES:
Losses and loss adjustment expenses	298,593		$	—	—		298,593
Ceding commissions, net	301,719				—		301,719
Sales expense	151,295				39,226		190,521
Other expenses	311,914				30,622		342,536
Total segment expenses	1,063,521				69,848		1,133,369
Segment income (loss) before taxes	122,548				(14,407)		108,141
Corporate expenses							(3,004)
Gain related to divestiture							87
Loss related to warrant liabilities, net							(8,544)
Interest expense							(1,396)
Change in TRA Liability							(1,602)
Income before taxes							$	93,682


	Year ended December 31, 2023
	Insurance				Marketplace		Total

REVENUES:	(in thousands)
Commission and fee revenue	$	365,512			$	—	$	365,512
Earned premium, net	531,866				—		531,866
Marketplace revenue	—				28,085		28,085
Membership and other revenue	74,750				—		74,750
Net investment income	26,904				—		26,904

Total revenue	999,032				28,085		1,027,117
EXPENSES:
Losses and loss adjustment expenses	220,658		$	—	—		220,658
Ceding commissions, net	251,805				—		251,805
Sales expense	141,454				14,918		156,372
Other expenses	321,837				26,036		347,873
Total segment expenses	935,754				40,954		976,708
Segment income (loss) before taxes	63,278				(12,869)		50,409
Corporate expenses							(1,608)
Restructuring, impairment and related charges, net							(8,812)
Losses and impairments related to divestitures							(4,013)
Gain related to warrant liabilities							11,543
Interest expense							(5,383)
Change in TRA Liability							2,636
Income before taxes							$	44,772

Disaggregation of Revenue

The following tables present revenues from customer contracts that are recognized in accordance with ASC 606, disaggregated by geographic area, as well as a reconciliation to total revenue for the years ended December 31, 2025, 2024, and 2023:


	Year ended December 31, 2025
	Insurance		Marketplace		Total

	in thousands
United States	$	528,023	$	88,502	$	616,525
International	40,729		20,380		61,109
Total revenue from customer contracts	568,752		108,882		677,634
Earned premium, net	726,726		—		726,726
Net investment income	37,739		909		38,648
Net investment gains	3,064		—		3,064
Finance revenue	—		10,317		10,317
Total revenue	$	1,336,281	$	120,108	$	1,456,389


	Year ended December 31, 2024
	Insurance		Marketplace		Total

	in thousands
United States	$	467,478	$	45,184	$	512,662
International	34,687		1,282		35,969
Total revenue from customer contracts	502,165		46,466		548,631
Earned premium, net	643,324		—		643,324
Net investment income	38,357		892		39,249
Net investment gains	2,223		—		2,223
Finance revenue	—		8,083		8,083
Total revenue	$	1,186,069	$	55,441	$	1,241,510


	Year ended December 31, 2023
	Insurance		Marketplace		Total

	in thousands
United States	$	409,345	$	22,816	$	432,161
International	30,917		1,195		32,112
Total revenue from customer contracts	440,262		24,011		464,273
Earned premium, net	531,866		—		531,866
Net investment income	26,904		—		26,904

Finance revenue	—		4,074		4,074
Total revenue	$	999,032	$	28,085	$	1,027,117

Commission and fee revenue is earned through two distribution channels: direct and agent. Revenue earned from the direct distribution channel includes revenue generated by Hagerty's employee agents. Revenue earned from the agent distribution channel includes revenue generated through the Company's insurance distribution partnerships, as well as its relationships with independent agents and brokers. The tables below present the Company's revenue by distribution channel for the years ended December 31, 2025, 2024, and 2023:


	Year ended December 31, 2025
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	241,080	$	192,611	$	433,691
Contingent commission	28,105		24,580		52,685
Total commission and fee revenue	$	269,185	$	217,191	$	486,376


	Year ended December 31, 2024
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	210,052	$	171,252	$	381,304
Contingent commission	23,228		18,708		41,936
Total commission and fee revenue	$	233,280	$	189,960	$	423,240


	Year ended December 31, 2023
	Agent		Direct		Total

	in thousands
Commission and fee revenue	$	158,354	$	131,178	$	289,532
Contingent commission	42,408		33,572		75,980
Total commission and fee revenue	$	200,762	$	164,750	$	365,512

Refer to Note 16 — Reinsurance for information regarding "Earned premium, net", Note 5 — Investments for information regarding "Net investment income" and "Net investment gains", and Note 7 — Notes Receivable for information regarding "Finance revenue".