Hagerty announces non-binding LOI with Markel; will assume 100% of premium, pay 2% fronting fee from 2026

Hagerty, Inc.

Effective Jan 1, 2026, Hagerty Re will control 100% of premium and assume 100% of underwriting risk, paying Markel a 2% fronting fee.
New arrangement expands Hagerty's underwriting and claims authorities to maximum permitted by law.
Accounting impact: commission revenue from MGA to Markel eliminated; certain policy acquisition costs capitalized from Q1 2026.
Arrangement is non-binding, subject to definitive documentation and regulatory approvals; no assurance of completion.
CEO McKeel Hagerty: arrangement positions for better profitability and operational control with no disruption to policyholders.

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