| Schedule of Ownership Interests, by Affiliates |
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 Interest | | Shares/Units | | Percentage of total outstanding (1) | | Shares/Units | | Percentage of total outstanding (1) | | Hagerty, Inc. Class A Common Stock | | 10,944,411 | | | 9.1 | % | | 51,800,000 | | | 43.0 | % | | Hagerty, Inc. Class V Common Stock | | 67,163,589 | | | 30.1 | % | | — | | | — | % | | Hagerty, Inc. Series A Convertible Preferred Stock | | 1,590,668 | | | 18.8 | % | | 5,302,226 | | | 62.5 | % | THG units | | 67,163,589 | | | 19.4 | % | | — | | | — | % | | | | | | | | | | | Controlling interest | | 10,944,411 | | | 9.1 | % | | 51,800,000 | | | 43.0 | % | | Non-controlling interest | | 67,163,589 | | | 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.
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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
September 30, | | Nine months ended
September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | Revenue: | in thousands | | Earned premium, net | $ | 277,440 | | | $ | 191,315 | | | $ | 783,230 | | | $ | 549,289 | | | | | Commission and fee revenue | 1,649 | | | 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, net | 47,561 | | | 88,998 | | | 222,987 | | | 253,333 | | | | | Underwriting and other insurance expenses | 1,634 | | | — | | | 4,376 | | | — | | | | | Total expenses | $ | 135,893 | | | $ | 167,192 | | | $ | 511,294 | | | $ | 486,036 | | | |
| | | | | | | | | | | | | September 30, | | December 31, | | 2026 | | 2025 | | | | | | Assets: | in thousands | | Accounts receivable | $ | 1,348 | | | $ | 1,321 | | | Premiums receivable | — | | | 174,169 | | | Reinsurance recoverables | 1,576 | | | 1,958 | | | Other assets | 3,780 | | | — | | | 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 insurers | 4,514 | | | 88,888 | | | Ceding commissions payable | — | | | 83,494 | | | Other liabilities | 2,988 | | | 2,470 | | | Total liabilities | $ | 8,361 | | | $ | 422,610 | |
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, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | 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, | | | 2026 | | 2025 | | | | | | | Assets: | | in thousands | | Reinsurance recoverables | | $ | 6,934 | | | $ | 6,668 | | | Other assets | | 6,223 | | | 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.
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