Hagerty announces new fronting arrangement with Markel

Hagerty has entered into a non-binding letter of intent with Markel.

The proposed arrangement will result in Hagerty assuming 100% of the underwriting and investment economics while paying an initial fronting fee of 2% to Markel, with the fronting fee decreasing based on the volume of policies issued in each calendar year, commencing January 1, 2026.

Hagerty has increased risk sharing from 0% in 2016 to 80% of the underwriting economics today.

“Today’s announcement marks the continued evolution of our highly successful partnership with Markel that began with their acquisition of Essentia in 2013. Under the newly proposed fronting arrangement, Hagerty will control 100% of the premium from our consistent, high-quality underwriting, positioning us to deliver better profitability and operational control with no disruption to policyholders.” – McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.