Hagerty enters LOI with Markel for new fronting agreement

Hagerty (HGTY) announced that the company has entered into a non-binding letter of intent with Markel (MKL). Upon effectiveness and subject to regulatory approval, this 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.