v3.25.2
Reinsurance
 6 Months Ended
Jun. 30, 2025
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]  
Reinsurance
14 — Reinsurance

The following table presents Hagerty Re's total premiums assumed and ceded on a written and earned basis for the three and six months ended June 30, 2025 and 2024:

Three months ended
June 30,		Six months ended
June 30,
2025202420252024
in thousands
Premiums written:
Assumed$247,812 $217,907 $423,323 $375,021 
Ceded(11,209)(10,143)(31,069)(32,969)
Net$236,603 $207,764 $392,254 $342,052 
Premiums earned:
Assumed$189,976 $168,100 $370,909 $329,787 
Ceded(12,191)(10,488)(23,769)(20,556)
Net$177,785 $157,612 $347,140 $309,231 
The following table presents gross, ceded, and net losses and loss adjustment expenses incurred for the three and six months ended June 30, 2025 and 2024:

Three months ended
June 30,		Six months ended
June 30,
2025202420252024
in thousands
Gross losses and loss adjustment expenses$78,059 $66,394 $161,385 $134,136 
Ceded losses and loss adjustment expenses(2,846)(1,665)(15,042)(7,051)
Net losses and loss adjustment expenses$75,213 $64,729 $146,343 $127,085 
Ceded Reinsurance

Hagerty Re purchases catastrophe reinsurance to protect its capital from large catastrophic events and to provide earnings protection and stability. Hagerty Re renegotiated its catastrophe reinsurance coverage effective January 1, 2025, with terms and limits similar to 2024. The 2025 catastrophe reinsurance program for accounts with total insured values ("TIV") of up to $5.0 million affords coverage in excess of a per event retention of $28.0 million in two layers; $27.0 million excess of $28.0 million, and $50.0 million excess of $55.0 million. Additionally, Hagerty Re purchases facultative reinsurance to cede a portion of the physical damage exposure related to certain high value vehicles.

Hagerty Re cedes 100% of its physical damage exposure on U.S. accounts written or renewed with TIV equal to or greater than $5.0 million ("High-Net-Worth Accounts") via quota share agreements with various reinsurers. These High-Net-Worth Accounts are assumed 100% from a wholly owned subsidiary of Markel. Certain reinsurers involved in these quota share agreements are related parties. Refer to Note 21 — Related-Party Transactions for additional information.

Hagerty Re receives ceding commissions related to premiums ceded under reinsurance contracts related to High-Net-Worth Accounts. Ceding commissions are recognized ratably over the terms of the related policies, which are generally 12 months, and are recorded within "Ceding commissions, net" in the Company's Condensed Consolidated Statements of Operations. Deferred portions of ceding commissions received are included in "Deferred acquisition costs, net" on the Company's Condensed Consolidated Balance Sheets.