| Schedule of Ownership Interests, by Affiliates |
As of June 30, 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 | | | 3.4 | % | | 51,800,000 | | | 57.1 | % | | Hagerty, Inc. Class V Common Stock | | 75,000,000 | | | 29.9 | % | | — | | | — | % | | 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 | | | 3.4 | % | | 51,800,000 | | | 57.1 | % | | Non-controlling interest | | 75,000,000 | | | 29.4 | % | | — | | | — | % | | | | | | | | | |
|
| 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:
| | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | in thousands (except percentages) | | Commission revenue | $ | 127,454 | | | $ | 115,975 | | | $ | 221,427 | | | $ | 199,644 | | | | | Percent of total | 91 | % | | 92 | % | | 92 | % | | 93 | % | | |
| | | | | | | | | | | | | June 30, | | December 31, | | 2025 | | 2024 | | | | | | in thousands (except percentages) | | Due to insurer | $ | 135,906 | | | $ | 78,792 | | | Percent of total | 89 | % | | 94 | % |
The following tables summarize all balances related to the Company's reinsurance business with Markel subsidiaries:
| | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | Revenue: | in thousands | | Earned premium | $ | 182,913 | | | $ | 162,536 | | | $ | 357,974 | | | $ | 318,656 | | | | | Expenses: | | | | | | | | | | | Ceding commission, net | $ | 84,868 | | | $ | 75,033 | | | $ | 164,335 | | | $ | 147,396 | | | | | Losses and loss adjustment expenses | 74,598 | | | 64,266 | | | 154,509 | | | 129,421 | | | | | Total expenses | $ | 159,466 | | | $ | 139,299 | | | $ | 318,844 | | | $ | 276,817 | | | |
| | | | | | | | | | | | | June 30, | | December 31, | | 2025 | | 2024 | | | | | | Assets: | in thousands | | Premiums receivable | $ | 236,368 | | | $ | 150,436 | | | Commissions receivable | 1,777 | | | 489 | | | Deferred acquisition costs, net | 180,745 | | | 160,360 | | | Other current assets | 4,947 | | | 2,926 | | | Total assets | $ | 423,837 | | | $ | 314,211 | | | Liabilities: | | | | | Accounts payable, accrued expenses and other current liabilities | $ | 3,214 | | | $ | 806 | | | Losses payable and provision for unpaid losses and loss adjustment expenses | 244,779 | | | 254,422 | | | Ceding commissions payable | 107,428 | | | 76,001 | | | Unearned premiums | 393,676 | | | 347,501 | | | Total liabilities | $ | 749,097 | | | $ | 678,730 | |
The following tables summarize all balances related to the risk ceded by Hagerty Re to State Farm subsidiaries:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | Revenue: | | in thousands | Earned premium (1) | | $ | (4,735) | | | $ | (4,069) | | | $ | (9,191) | | | $ | (8,022) | | | | | Expenses: | | | | | | | | | | | Ceding commission, net (2) | | $ | (2,463) | | | $ | (2,117) | | | $ | (4,780) | | | $ | (4,172) | | | | Losses and loss adjustment expenses (3) | | (1,420) | | | (813) | | | (7,507) | | | (3,604) | | | | | Total expenses | | $ | (3,883) | | | $ | (2,930) | | | $ | (12,287) | | | $ | (7,776) | | | | | | | | | | | | | | |
(1) Represents premiums ceded to State Farm subsidiaries, which are accounted for as a reduction to "Earned premium". (2) Represents commissions 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".
| | | | | | | | | | | | | | | | | June 30, | | December 31, | | | 2025 | | 2024 | | | | | | | Assets: | | in thousands | | Commissions receivable | | $ | 5,502 | | | $ | 2,095 | | Deferred acquisition costs, net (1) | | (5,171) | | | (4,448) | | Other current assets (2) | | 20,562 | | | 14,758 | | | Total assets | | $ | 20,893 | | | $ | 12,405 | | | Liabilities: | | | | | Accounts payable, accrued expenses and other current liabilities (3) | | $ | 10,582 | | | $ | 4,028 | | | Total liabilities | | $ | 10,582 | | | $ | 4,028 | | | | | | |
(1) Represents unearned ceding commission received from State Farm subsidiaries. (2) Represents unearned deferred ceded premium and reinsurance recoverables from State Farm subsidiaries. (3) Represents reinsurance premiums due to State Farm subsidiaries.
|