XML 73 R57.htm IDEA: XBRL DOCUMENT v3.25.4
Related-Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Ownership Interests, by Affiliates
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 InterestShares/Units
Percentage of total outstanding (1)
Shares/Units
Percentage of total outstanding (1)
Hagerty, Inc. Class A Common Stock3,108,000 3.1 %51,800,000 51.4 %
Hagerty, Inc. Class V Common Stock75,000,000 31.0 %— — %
Hagerty, Inc. Series A Convertible Preferred Stock1,590,668 18.8 %5,302,226 62.5 %
THG units
75,000,000 21.7 %— — %
Controlling interest3,108,000 3.1 %51,800,000 51.4 %
Non-controlling interest75,000,000 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.
Schedule of Related Party Transactions
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,
202520242023
in thousands (except percentages)
Commission revenue$436,843 $387,951 $340,534 
Percent of total91.1 %93.1 %94.7 %
December 31,
20252024
in thousands (except percentages)
Due to insurer$88,888 $78,792 
Percent of total93.6 %93.8 %
The following tables summarize all balances related to the Company's reinsurance business with Markel subsidiaries:

Year ended December 31,
202520242023
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, net344,208 307,759 247,918 
Total expenses$637,476 $609,847 $462,319 

December 31,
20252024
Assets:in thousands
Commissions receivable$1,321 $489 
Premiums receivable174,169 150,436 
Deferred acquisition costs, net181,972 160,360 
Reinsurance recoverable1,958 1,215 
Prepaid reinsurance premium2,376 1,711 
Total assets$361,796 $314,211 
Liabilities:
Losses payable$92,001 $95,906 
Provision for unpaid losses and loss adjustment expenses155,757 158,516 
Ceding commissions payable83,494 76,001 
Unearned premiums395,239 347,501 
Other liabilities2,470 806 
Total liabilities$728,961 $678,730 
The following tables summarize all balances related to the risk ceded by Hagerty Re to State Farm subsidiaries:

Year ended December 31,
202520242023
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,
20252024
Assets:in thousands
Commissions receivable$2,716 $2,095 
Deferred acquisition costs, net (1)
(5,400)(4,448)
Reinsurance recoverable6,668 6,205 
Prepaid reinsurance premium10,385 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.