Proceeds for Profitable Growth
Initiatives
TRAVERSE
CITY, Mich., June 23,
2023 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY), an
automotive lifestyle brand and a leading specialty insurance
provider focused on the global automotive enthusiast market, today
announced that the company is raising $105
million in capital from existing strategic investors
including State Farm, Markel Group and the Hagerty family.
This capital raise is comprised of $80
million of convertible preferred equity, which closed on
June 23rd, 2023, as well
as a $25 million commitment of
long-term debt financing for Hagerty Reinsurance Limited. The funds
will help support the company's profitable growth initiatives
focused on serving the car enthusiast community. This includes
evolving the company's risk appetite and core product to augment
its offerings to current members and reach new members who
represent 33 million enthusiast vehicles in the United States which is expected to drive
meaningful written premium and operating profit growth over the
coming years. The capital will also allow Hagerty to make ongoing
technology investments that should drive operating efficiencies
while improving customer facing interactions.
State Farm's Chairman, President and Chief Executive Officer
Michael Tipsord said, "We are
pleased to continue to grow our investment in Hagerty and help
support their strategic business objectives as we prepare for the
upcoming launch of our commercial relationship."
Markel Group's Chief Executive Officer Tom Gayner added, "Hagerty is an important
partner for our insurance business, and we are excited to see them
further expand their insurance offerings by finding new and
innovative ways to serve automotive enthusiasts."
Hagerty's Chief Executive Officer McKeel
Hagerty concluded, "We have been working diligently over the
last six months to deliver improved profitability and margin
expansion, while making the investments necessary to sustain our
growth trajectory for many years to come. We believe that the
additional capital positions us well during uncertain economic
times to execute against our significant growth opportunities."
Additional Details
Hagerty has posted an investor presentation providing more
details related to the capital raise on Hagerty's investor
relations website at investor.hagerty.com
This press release does not constitute an offer to sell or the
solicitation of an offer to buy these securities, and shall not
constitute an offer, solicitation or sale in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of that state or jurisdiction.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect Hagerty's current
intentions, expectations or beliefs regarding the proposed
offering. These statements may be preceded by, followed by or
include the words "aim," "anticipate," "believe," "estimate,"
"expect," "forecast," "intend," "likely," "outlook," "plan,"
"potential," "project," "projection," "seek," "can," "could,"
"may," "should," "would," "will," the negatives thereof and other
words and terms of similar meaning. Forward-looking statements
include all statements that are not historical facts. Such
forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. There is no assurance
that any forward-looking statements will materialize. You are
cautioned not to place undue reliance on forward-looking
statements, which reflect expectations only as of this date.
Hagerty does not undertake any obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments, or otherwise.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is an
automotive lifestyle brand committed to saving driving and fueling
car culture for future generations. The company is a leading
provider of specialty vehicle insurance, expert car valuation data
and insights, live and digital car auction services, immersive
events and automotive entertainment custom made for the 67 million
Americans who self-describe as car enthusiasts. Hagerty also
operates in Canada and the UK and
is home to Hagerty Drivers Club, a community of more than 750,000
who can't get enough of cars. As a purpose-driven organization,
Hagerty Impact aims to be a catalyst for positive change across the
issues that matter most to our teams, our members, the broader
automotive community, our shareholders and the planet at large. For
more information, please visit www.hagerty.com or connect with us
on Facebook, Instagram and Twitter.
More information can be found at newsroom.hagerty.com
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SOURCE Hagerty