v3.26.3
Related-Party Transactions
 9 Months Ended
Sep. 30, 2026
Related Party Transactions [Abstract]  
Related-Party Transactions
20 — Related-Party Transactions

As of September 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 InterestShares/Units
Percentage of total outstanding (1)
Shares/Units
Percentage of total outstanding (1)
Hagerty, Inc. Class A Common Stock10,944,411 9.1 %51,800,000 43.0 %
Hagerty, Inc. Class V Common Stock67,163,589 30.1 %— — %
Hagerty, Inc. Series A Convertible Preferred Stock1,590,668 18.8 %5,302,226 62.5 %
THG units
67,163,589 19.4 %— — %
Controlling interest10,944,411 9.1 %51,800,000 43.0 %
Non-controlling interest67,163,589 29.7 %— — %
(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.

Refer to Note 16 — Stockholders' Equity and Note 15 — Convertible Preferred Stock for additional information and a description of each equity interest in the table above.
Markel

The Company is party to a master relationship agreement and associated agency and claims services agreements with Markel. Under these agreements, the Company's U.S. MGA subsidiary is licensed and authorized to underwrite, sell, and service insurance policies written through Essentia, which serves as the dedicated carrier for Hagerty's specialty collector vehicle insurance policies in the U.S.

Effective January 1, 2026, the Company and Markel became parties to the Markel Fronting Arrangement and the LPT Agreement, which are described in Note 3 — Markel Fronting Arrangement. Amounts due to or from Markel subsidiaries arising from these arrangements are settled on a net basis in accordance with the contractual terms of the underlying agreements.

Markel, together with HHC, is a Legacy Unit Holder and party to the TRA. Refer to Note 19 — Taxation for additional information regarding the TRA, including the TRA Liability attributable to Markel.
The following tables summarize all balances related to the Company's business with Markel subsidiaries:

Three months ended
September 30,		Nine months ended
September 30,
2026202520262025
Revenue:in thousands
Earned premium, net$277,440 $191,315 $783,230 $549,289 
Commission and fee revenue1,649 122,386 5,172 343,813 
Total revenue$279,089 $313,701 $788,402 $893,102 
Expenses:
Losses and loss adjustment expenses, net$86,698 $78,194 $283,931 $232,703 
Policy acquisition costs, net47,561 88,998 222,987 253,333 
Underwriting and other insurance expenses1,634 — 4,376 — 
Total expenses$135,893 $167,192 $511,294 $486,036 
September 30,December 31,
20262025
Assets:in thousands
Accounts receivable$1,348 $1,321 
Premiums receivable— 174,169 
Reinsurance recoverables1,576 1,958 
Other assets3,780 — 
Total assets$6,704 $177,448 
Liabilities:
Accounts payable and accrued expenses$859 $— 
Losses payable and reserves for unpaid losses and loss adjustment expenses— 247,758 
Due to insurers4,514 88,888 
Ceding commissions payable— 83,494 
Other liabilities2,988 2,470 
Total liabilities$8,361 $422,610 

Pursuant to the terms of the Markel Fronting Arrangement, Hagerty Re maintains assets in trust for the benefit of Essentia. These assets are included within "Restricted cash and cash equivalents", "Fixed maturity securities" and "Equity securities, at fair value" on the Condensed Consolidated Balance Sheets. The assets held in trust for the benefit of Essentia totaled $471.9 million and $680.4 million as of September 30, 2026 and December 31, 2025, respectively.
State Farm

Alliance Agreement

Hagerty has a 10-year master alliance agreement and associated managing general underwriter agreement with State Farm, under which State Farm Classic+ policies are offered to State Farm's customers through State Farm agents. This program began issuing policies in September 2023. As of September 30, 2026, State Farm Classic+ policies were being offered in 40 states, with conversions of their existing book of business occurring in 26 of these states and plans to offer such policies in additional states in the remainder of 2026 and 2027. Under the master alliance agreement, State Farm paid Hagerty an advanced commission of $20.0 million in 2020, which is being recognized as "Commission and fee revenue" over the remaining life of the arrangement. In addition, the Company is paid a commission for underwriting, binding coverage, and issuing State Farm Classic+ policies and can offer HDC memberships to State Farm Classic+ customers, providing Hagerty with an additional revenue opportunity. Commission revenue generated from State Farm Classic+ policies was $8.1 million and $4.1 million for the three months ended September 30, 2026 and 2025, respectively, and $21.6 million and $7.1 million for the nine months ended September 30, 2026 and 2025, respectively.
Reinsurance Agreement

Hagerty Re has a quota share agreement to cede a portion of the risk related to High-Net-Worth Accounts to Oglesby Reinsurance Company, a wholly owned subsidiary of State Farm. Refer to Note 13 — Reinsurance for additional information on the Company's reinsurance programs.
The following tables summarize all balances related to the risk ceded by Hagerty Re to State Farm subsidiaries:

Three months ended
September 30,		Nine months ended
September 30,
2026202520262025
Revenue:in thousands
Earned premium, net (1)
$(5,461)$(4,923)$(16,135)$(14,114)
Expenses:
Losses and loss adjustment expenses, net (2)
$(1,639)$(1,577)$(5,111)$(9,084)
Policy acquisition costs, net (3)
(2,839)(2,559)(8,390)(7,339)
Total expenses$(4,478)$(4,136)$(13,501)$(16,423)
(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".

September 30,December 31,
20262025
Assets:in thousands
Reinsurance recoverables$6,934 $6,668 
Other assets6,223 2,716 
Total assets$13,157 $9,384 
Liabilities:
Other liabilities (1)
$11,966 $5,224 
Total liabilities$11,966 $5,224 
(1)    Represents reinsurance premiums due to State Farm subsidiaries.
State Farm Term Loan

In September 2023, Hagerty Re entered into an unsecured term loan facility with State Farm in an aggregate principal amount of $25.0 million and an interest rate of 8.0% per annum. The State Farm Term Loan will mature in September 2033. Refer to Note 14 — Debt for additional information.
Other Related Party Transactions

From time-to-time, in the ordinary course of business, related parties, such as members of the Board and management, purchase insurance policies from the Company, receive payments on claims required by the Company's insurance policies, and buy and sell collector cars and enthusiast vehicles through marketplace auctions or in private transactions.