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Related-Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related-Party Transactions
20 — Related-Party Transactions

As of March 31, 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 Stock3,108,000 3.1 %51,800,000 51.2 %
Hagerty, Inc. Class V Common Stock75,000,000 31.0 %— — %
Hagerty, Inc. Series A Convertible Preferred Stock1,590,668 18.8 %5,302,226 62.5 %
THG units
75,000,000 21.7 %— — %
Controlling interest3,108,000 3.1 %51,800,000 51.2 %
Non-controlling interest75,000,000 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.

Refer to Note 16 — Stockholders' Equity and Note 15 — Convertible Preferred Stock for a description of each equity interest in the table above.
The following tables summarize all balances related to the Company's business with Markel subsidiaries:

Three months ended March 31,
20262025
Revenue:in thousands
Earned premium, net$244,808 $175,061 
Commission and fee revenue1,706 93,973 
Total revenue$246,514 $269,034 
Expenses:
Losses and loss adjustment expenses, net$91,506 $79,911 
Policy acquisition costs, net99,949 79,467 
Underwriting and other insurance expenses2,117 — 
Total expenses$193,572 $159,378 

March 31,December 31,
20262025
Assets:in thousands
Accounts receivable$1,196 $1,321 
Premiums receivable— 174,169 
Reinsurance recoverables1,742 1,958 
Other assets6,155 — 
Total assets$9,093 $177,448 
Liabilities:
Accounts payable and accrued expenses$1,200 $— 
Losses payable and reserves for unpaid losses and loss adjustment expenses— 247,758 
Due to insurers4,773 88,888 
Ceding commissions payable— 83,494 
Other liabilities2,553 2,470 
Total liabilities$8,526 $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" on the Condensed Consolidated Balance Sheets. The assets held in trust for the benefit of Essentia totaled $592.2 million and $680.4 million as of March 31, 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 March 31, 2026, State Farm Classic+ policies were being offered in 33 states, with conversions of their existing book of business occurring in 17 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.
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 March 31,
20262025
Revenue:in thousands
Earned premium, net (1)
$(5,207)$(4,456)
Expenses:
Losses and loss adjustment expenses, net (2)
$(1,562)$(6,087)
Policy acquisition costs, net (3)
(2,708)(2,317)
Total expenses$(4,270)$(8,404)
(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".

March 31,December 31,
20262025
Assets:in thousands
Accounts receivable$2,873 $2,716 
Deferred acquisition costs, net (1)
(5,566)(5,400)
Reinsurance recoverables4,858 6,668 
Prepaid reinsurance premiums10,704 10,385 
Total assets$12,869 $14,369 
Liabilities:
Other liabilities (2)
$5,525 $5,224 
Total liabilities$5,525 $5,224 
(1)    Represents unearned ceding commissions received from State Farm subsidiaries.
(2)    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.