| Schedule of Ownership Interests, by Affiliates |
As of June 30, 2026, 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 | | | 50.9 | % | | 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 | | | 21.6 | % | | — | | | — | % | | | | | | | | | | | Controlling interest | | 3,108,000 | | | 3.1 | % | | 51,800,000 | | | 50.9 | % | | 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.
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| Schedule of Related Party Transactions |
The following tables summarize all balances related to the Company's business with Markel subsidiaries:
| | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended
June 30, | | Six months ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | Revenue: | in thousands | | Earned premium, net | $ | 260,982 | | | $ | 182,913 | | | $ | 505,790 | | | $ | 357,974 | | | | | Commission and fee revenue | 1,817 | | | 127,454 | | | 3,523 | | | 221,427 | | | | | Total revenue | $ | 262,799 | | | $ | 310,367 | | | $ | 509,313 | | | $ | 579,401 | | | | | Expenses: | | | | | | | | | | | Losses and loss adjustment expenses, net | $ | 105,727 | | | $ | 74,598 | | | $ | 197,233 | | | $ | 154,509 | | | | | Policy acquisition costs, net | 75,477 | | | 84,868 | | | 175,426 | | | 164,335 | | | | | Underwriting and other insurance expenses | 625 | | | — | | | 2,742 | | | — | | | | | Total expenses | $ | 181,829 | | | $ | 159,466 | | | $ | 375,401 | | | $ | 318,844 | | | |
| | | | | | | | | | | | | June 30, | | December 31, | | 2026 | | 2025 | | | | | | Assets: | in thousands | | Accounts receivable | $ | 1,526 | | | $ | 1,321 | | | Premiums receivable | — | | | 174,169 | | | Reinsurance recoverables | 1,181 | | | 1,958 | | | Other assets | 1,115 | | | — | | | Total assets | $ | 3,822 | | | $ | 177,448 | | | Liabilities: | | | | | Accounts payable and accrued expenses | $ | 1,422 | | | $ | — | | | Losses payable and reserves for unpaid losses and loss adjustment expenses | — | | | 247,758 | | | | | | | | | | | Due to insurers | 5,231 | | | 88,888 | | | Ceding commissions payable | — | | | 83,494 | | | Other liabilities | 1,477 | | | 2,470 | | | Total liabilities | $ | 8,130 | | | $ | 422,610 | |
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, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | Revenue: | | in thousands | Earned premium, net (1) | | $ | (5,467) | | | $ | (4,735) | | | $ | (10,674) | | | $ | (9,191) | | | | | Expenses: | | | | | | | | | | | Losses and loss adjustment expenses, net (2) | | $ | (1,910) | | | $ | (1,420) | | | $ | (3,472) | | | $ | (7,507) | | | | Policy acquisition costs, net (3) | | (2,843) | | | (2,463) | | | (5,551) | | | (4,780) | | | | | Total expenses | | $ | (4,753) | | | $ | (3,883) | | | $ | (9,023) | | | $ | (12,287) | | | | | | | | | | | | | | |
(1) Represents premiums ceded to State Farm subsidiaries, which are accounted for as a reduction to "Earned premium, net". (2) Represents loss recoveries associated with reinsurance ceded to State Farm subsidiaries, which are accounted for as a reduction to "Losses and loss adjustment expenses, net". (3) Represents commissions earned from State Farm subsidiaries related to ceded reinsurance, which are accounted for as a reduction to "Policy acquisition costs, net".
| | | | | | | | | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | | | | | | | Assets: | | in thousands | | Reinsurance recoverables | | $ | 5,295 | | | $ | 6,668 | | | Other assets | | 3,075 | | | 2,716 | | | Total assets | | $ | 8,370 | | | $ | 9,384 | | | Liabilities: | | | | | Other liabilities (1) | | $ | 5,914 | | | $ | 5,224 | | | Total liabilities | | $ | 5,914 | | | $ | 5,224 | | | | | | |
(1) Represents reinsurance premiums due to State Farm subsidiaries.
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