Hagerty : Q1 2024 Investor Presentation

Total Revenue growth of 24%

Commission and Fee growth of 19%

Written Premium growth of 19%

• Added 59,000 new customers in the quarter

Membership, Marketplace and other revenue growth of 18%

• Marketplace growth of 58%

Significantly improved profitability

• Improved operating margin by 1,210 bps
• Net Income1 of $8 million compared to $(15) million
• Adjusted EBITDA2 of $27 million compared to $7 million

1. Net Income in the current year includes a $6 million loss as a result of an increase in the fair value of warrant liabilities.
2. See Appendix for additional information regarding this non-GAAP financial measure.

Reset Hagerty's cost base through restructurings and began to evaluate business process improvements to drive sustained margin improvement.

• Operating income margins expanded by 960 bps compared to 2022.
• Delivered an increase in Net Income of $26 million and Adjusted EBITDA1 of $90 million compared to 2022.

Beginning to implement changes to business processes to drive sustained reductions in cost to acquire and cost to serve.

• Performance marketing efforts powering efficient customer acquisition.
• Improve efficiency of our member service center focused on reducing handle times and freeing up existing resources to handle continued growth in new members.
• Adding resources to claims team to optimize spend and reduce losses.

1 See Appendix for additional information regarding this non-GAAP financial information

• Further improve loyalty to drive renewals and referrals
• Enhance member experience in a cost effective and efficient way
• Build Hagerty Marketplace into the most trusted and preferred place to buy, sell and finance collector cars
• Expand insurance offerings, particularly in the post-1980s collectible space

Commission + fee revenue (+19%)

• Written premium growth of 19%
• Policies in Force retention of 89%

Membership, marketplace + other revenue (+18%)

• Membership revenue growth of 7%
• Marketplace revenue growth of 58%

Earned premium in Hagerty Re (+29%)

• Contractual quota share2 ~80% in 2024

1. Q1 2022 Net Income includes a $32 million gain as a result of a decrease in fair value of warrant liabilities, Q1 2023 Net Income includes a $1 million loss and Q1 2024 includes a $6 million loss as a result of an increase in fair value of warrant liabilities.
2. See Appendix for additional information regarding this non-GAAP financial measure.

IN THOUSANDS	2023 RESULTS	2024 OUTLOOK ($)	2024 OUTLOOK (%)
Total Written Premium	$907,175	$1,025,000	- $1,034,000	13% - 14%
Total Revenue	$1,000,213	$1,150,000 - $1,170,000	15% - 17%
Net Income1	$28,179	$61,000	- $70,000	116%	- 148%
Adjusted EBITDA2	$88,162	$124,000	- $135,000	41%	- 53%

HAGERTY Q1 2024 | 9