Hagerty, Inc. 8-K

What Happened
Hagerty, Inc. (HGTY) announced it and its subsidiaries completed a previously announced fronting arrangement with Markel Group Inc. and Essentia Insurance Company by executing several amended and new agreements on December 31, 2025, with key provisions effective January 1, 2026. The agreements include a Sixth Amended and Restated Master Relationship Agreement (extends the relationship through December 31, 2028 and preserves OpCo’s option to purchase Essentia), a Seventh Amended and Restated LLC Agreement (removes certain restrictive/exclusivity covenants), a General Agency Agreement (expands Hagerty Insurance Agency’s authority to produce, bind, service and manage Essentia policies) and a Quota Share Reinsurance Agreement under which Hagerty Reinsurance Limited will assume 100% of the risk on specified Essentia policies.

Key Details

• Agreements executed on December 31, 2025; key provisions effective January 1, 2026.
• Relationship Agreement term extended through December 31, 2028; OpCo’s option to purchase Essentia can be exercised between January 1, 2026 and January 1, 2028.
• Hagerty Re will assume 100% of the risk on (i) Essentia policies issued on or after January 1, 2026 and (ii) prior Essentia policies with unexpired risk as of January 1, 2026 for losses with date of loss on or after January 1, 2026.
• Hagerty Insurance Agency’s administrative and binding authority expanded for the business covered by the quota share.

Why It Matters
For investors, the filing documents a structural change in how Hagerty will administer and assume insurance risk: Hagerty will both manage Essentia-originated policies (via HIA) and have Hagerty Re assume the related underwriting risk (100% quota share) effective January 1, 2026. The removal of exclusivity covenants and the option to acquire Essentia provide Hagerty and Markel with greater strategic flexibility. The 8‑K does not disclose purchase price or detailed financial terms; investors should monitor subsequent filings and financial disclosures for impacts on Hagerty’s insurance results, capital, reserves, and consolidated financials.