Yep, we can jump into questions. Okay, all right, we're going to go ahead and get started here. My name is Tommy McJoynt with KBW, and I'm joined by McKeel Hagerty of Hagerty, of course. To start us off, just to kind of introduce everyone to Hagerty, we have a video that we can start off with. When we collect, we aren't just keeping things. We keep memories, visions, moments. Perfect Saturdays on perfect roads. We keep what drives us. Did you find my old GTO? Happy birthday, Dad! I can't believe it. We won't let it stall out. It captured our hearts and shaped our lives. The road calls to us, and we will always take the wheel. We are not just collectors. We are all drivers. Hagerty, let's drive together. It just breathes insurance, doesn't it? You know, everything about that. Just a little intro, and then we'll have a conversation. Everything about Hagerty is a lot about what you just saw in that video there. We're, from the very beginning, over 41 years ago, have been about this sort of love of special vehicles, love of the automobile. It's weird in an insurance setting or an investor setting to talk about human emotions, but the unique characteristics of our business are driven by that idea that when you have something that you bought and you care for, or maybe you inherited, you take really good care of it. Wherever there is that care when it comes to cars, you see different risk dynamics. From the beginning of this business, starting as a kind of Managing General Agent (MGA) operating in the States, and then eventually Canada and the U.K., and now we're a risk taker, it all starts with that human emotion that there are tens of millions of people out there who love these cars. Because of that, they take really good care of them. Because of that, we can build a really cool insurance business around it. The challenge, though, like every good business, you're trying to figure out how to solve problems. Some of the problems that we were always trying to solve is how we're going to grow the business. From the beginning, we really built this omnichannel distribution model. Not only do we sell directly to consumers, like people like you'd see in the video there, and it's not just vintage cars. You also saw some newer cars there because that's a big part of our story, how the dynamics of the types of cars people are interested in is evolving. We also sell through agents and brokers out there. We have tens of thousands of agents that we work with. Finally, we partner with the biggest insurance companies out there in the world to help manage their books of business of these types of cars, sometimes behind the scenes, but never white labeled. Always there's a Hagerty partnership, and they're always exclusive. The most recent, which maybe we'll talk about, is our partnership with State Farm. We have this membership model that we interact with people. We built an automotive brand. When people think of us, they think of us as being like with them, not a big corporation selling policies to them. They think of themselves as members of Hagerty, not just a client of Hagerty, not just an insured, not just somebody buying a policy from them. They can get it to us anyway through, again, directly through a broker or through an insurance company. One of the final cool pieces and a big piece of this kind of ecosystem, this dynamic that we built, is that we entered the trade side of the business, buying and selling cars, by acquiring an auction company and standing up a digital auction marketplace. This is a really cool part of the business, and it really is complementary to the insurance side of the house because right now we insure two and a half million vehicles. Last year alone, our clients, our members, bought and sold over 300,000 vehicles for a total transactional value of about $15 billion worth of car transactions. Our goal in all of that is to become the place where we would help them buy and sell those cars. There is also this shopping dynamic. Long before you buy a car, you shop. You read magazines, you join car clubs, you watch YouTube videos. Guess what? Those are all the places that we are too with our media business. Our YouTube channel does not talk about insurance. It's three and a half million subscribers looking at car content. Our magazine is the highest circulation car magazine of any car magazine out there. People are reading about cars, again, not about insurance. This is kind of what makes Hagerty unique. We get to play with a lot of fun stuff like this. It's been, I think it's just like the most fun business that's based on insurance you could have. By the way, fourth year attending this conference, a big, big step forward of seeing Tommy's note about the business and covering our stock. Really grateful for the thoughtful consideration of what makes our business unique and grateful to be here with you. Yeah, it's, you know, Hagerty obviously is an insurance company as part of it. That's why you're here today. The ecosystem, as you described, is much bigger and the brand is much bigger than that. Maybe starting off, you know, one of the lines of distribution that you talked about is working with, you know, national carriers and on the agent side. Why, what is it about the classic and collector car, you know, area that the national carriers have a hard time servicing themselves? Like, why do they need to share their economics, you know, with Hagerty for their hard-earned customers? That's a great, it's a great question. You know, of the tens of millions of cars that are out there just in the United States registered, that's in our really target market. Most of those are insured by standard auto carriers just on a package policy, and that's usually because the agent out there placing that account wants to keep the home and the regular cars and the boats and everything all together. The challenge with a vintage car, especially, is that every car when you buy it new, it's depreciating in value. It hits some sort of trough at the bottom, and then sometimes they just become salvage and they just kind of go away. The cars that we're interested in, they go down in value or sometimes they go down a little bit less in value if they're, say, a new Ferrari, but they go down in value and then eventually they start appreciating again. It's when that J curve starts curving back up that the big insurance companies don't know what to do with it. Their models are not set up to deal with cars that are gaining in value. They're only designed to deal with cars that are depreciating. When it comes to claims, which for big insurance companies, they need to have happen very efficiently, claims have to be paid very quickly. That is the dynamic in modern auto insurance. For us, to repair a car if it's been damaged can take months, if not years, and that is just not how insurance companies are set up. We can partner with a big insurance company and say, look, the client is very important to you. A tiny fraction of that premium is a vintage car, two or three. Let us handle that for you. We'll cut up the math in the background and we'll take care of the tough part. We'll make sure the values are handled well. We'll give them this extraordinary experience. They'll become a member of the Hagerty Drivers Club and we'll handle the claims. We're not like throwing your claims teams into a tizzy over what to do with these cars. This is about them retaining the business. Even though we're, yes, we are sharing in the economics and, in every single case, including our latest partnership with State Farm, they came to us and they're number one auto insurer in the United States saying, look, this is a segment that we really want to take good care of. You're the best at doing it. Let's create this partnership. Auto insurance is one of the more cyclical elements of the insurance space, I would say. You constantly have pricing chasing loss costs. One of the things that I did as part of my research on Hagerty was, and I was interested to see, was the stability of the loss ratio performance that you guys have had. Can you maybe talk through why that has been the case? How are you guys differentiated from what the daily driver insurers experience? Yeah, it's interesting. For one thing, there's not a lot of competitive dynamics from a pricing standpoint, from a competitive pricing standpoint. There were MGAs, a number of MGAs out there doing this. They're now very few. Our growth kind of consolidated that market. Pricing has been very stable. Competitive dynamics have been very stable. You don't get that kind of hardening and softening market piece. Values are going up in general over time. Frequency of loss tends to remain very, very low, although severity of loss can be high. It's expensive to fix these things when they do need to be fixed. It's really a lifetime value play because when people buy these cars, when they own cars like this, they want to own them for life. They're not trading in and out of them. These are not two or three-year auto leases where you get more of that dynamic. These are things that people buy and they hold on to forever. By the way, that tends to be both pretty immune even from economic cycles. When the economy is good and people are feeling flushed, they tend to buy more cars. When the economy is soft, they tend to hang on to the cars that they have. They still pay their premiums. It's also not, we're pretty immune from tariffs, because there's not a big wide supply chain of parts needing to come in to fix these cars. We're in right now, as it stands, cars at least 25 years and older are not subject to the tariffs in terms of import cars. Hopefully that stays the same. That could change tomorrow, but we're here to help regardless. For anyone in the audience that, you know, has a classic or collector car, people are often very surprised to see what the premium price is for Hagerty. Is the idea of the offering savings to potential customers a part of the proposition that you guys? Oh yeah, I mean, if you think about it and, you know, all of the things that have been just in the regular news, consumer news that, you know, insurance prices are going up for regular cars, you know, still insuring a vintage car is a lot cheaper than insuring sort of a normal regular car. I'm talking about a $35,000, $40,000, $50,000 vintage car, not a million dollar car. Those can be a little bit more expensive. Yeah, it's still, there's real value to this. The value is, you know, cheaper price and a completely different service experience. It's good underwritten business, and this leads to a big change that's undergoing at Hagerty. The idea of risk retention in your relationship with Markel. Can you sort of give an overview on what's changing there, how that's evolved over the history? Yeah, you know, we, on the insurance side, the business started as an MGA, which means you're taking commission income and hopefully you're underwriting a good business and you make a little bit more at the end of the year on a commission basis, contingency basis. We started taking risk in 2019 in our partnership with Markel. When we started the relationship with Markel, actually before that in 2013, we explained very clearly our intention was to become a risk taker behind our MGA distribution model. We hope you can be with us on that journey, but someday you won't be taking any risk in this. We couldn't exactly explain when, but we started in 2019. That ratcheted up to where we were taking about 80% of the risk, with the idea that eventually, maybe in 2030, we'd be able to take the rest of the risk, kind of finish completing the cycle. Through a lot of discussions that we had with Markel in the recent year, we decided to move that from an 80% quota share to a 100% retention of the risk and more of a fronting arrangement. It was really mutual. It's good for them. It's good for us. We're excited about it. It'll be a meaningful change to how we talk about things in 2026, which we'll get to in those Q4 kind of earnings in March. It's an exciting opportunity for us. Now, our new program, which we call Enthusiast +, we're actually underwriting 100% of that through an insurance front that we bought last year called Drivers Edge. Everything has a driving element to it. That's been our path: build a distribution model first, take risk on the back end, and then build this kind of flywheel dynamic around how we retain customers. You mentioned there the Enthusiast + side and retaining that through the Drivers Edge subsidiary that you guys have. Is your expectation that the underwriting performance of that new program will be any different than what you guys see through your existing program? Yeah, so what the data is telling us is that contrary to the popular belief that only really old people like really old cars, what we found is in fact the newer younger generations like buying cars of this type, they're just newer cars. They tend to be cars from the 1990s, early 2000s. You think Porsche, think Mustang, think Corvette, think Toyota Supra, think Mazda Miata, cars that are relatively new in the big scheme of the cars that we insure. Those are people coming to us that are in their 40s, in their 30s, in their lower 50s, younger than our average age. Our rating structure couldn't flex enough to be able to say yes to all of those. What we wanted to do is say yes to the people that were coming to our door. What the new Enthusiast + program allows us to do is simply that. Say yes to the people coming to us, have more flexible pricing, which allows us to keep the loss dynamics exactly in the target zone of where we want to be. On a combined ratio standpoint, it should be right there. Slightly higher average premiums. We've found through the decades that we've been doing this, that the longer somebody holds the cars, the risk dynamics tend to get better and better over time. We just need more ways to welcome more people to the club. That's what we get with Enthusiast +. Is the expectation that there will be more miles driven? Yeah, newer cars are frankly more drivable, you know, than older cars. I was spending some time driving a 97-year-old car that I own. I can tell you I love driving 97-year-old cars, but not everybody does. They're a little funky in traffic, and you don't want anybody to stop really quickly in front of you because the brakes are like made out of leather, I think. You know, they're not great. You are going to see more miles out of newer cars, but the pricing kind of balances all of that out. Our job is just to be really more and more efficient, which is why we've been making tons of investments on the technology side of the house, which I know you spent some time on, and as so many of the, you know, property casualty insurers have, we're doing it too. It's been a big part of our world in the last few years. I think you touched on this earlier, but I just want to make sure I heard it correctly. The notion of the risk of tariffs for you guys, it's a big sort of point of discussion for a lot of auto insurers out there. Can you just clarify the carve out that you guys see on the tariff exemption? Right now, as it's drafted, cars 25 years or more, if they're imported, there was always a 2.5% tariff. As of right now, that stays in place. There's a thought that that may ratchet up to sort of the country standard, whatever it ends up being, say, for the E.U., somebody trying to import a car of any age from the E.U. If that's the case, that could change the dynamic of newly imported vintage cars to the space, which is not a big part of, it's not a big number every year. It will definitely change people buying things like brand new Ferraris, brand new Porsches, brand new, you know, Lamborghinis, that kind of thing. That group that buys those cars are pretty immune from price sensitivity. It just doesn't affect us much. We charge our premiums based on the value of the car. If it costs them 25% more to buy a car, we insure it for what they paid for it. We're pretty set there. On the more like supply chain side of tariffs, there just isn't a big demand for parts for these cars to repair. Again, frequency is super low. Even though we insure 2.5 million cars today and, you know, growing rapidly every year, there just isn't a high enough frequency where tariffs affect the cost of repair that much. We're pretty, you know, not 100% immune, but pretty immune from the big effects of tariffs. That is in reference to things like steel and parts that you guys just aren't really, you know. Yeah, buying a windshield wiper motor, you know, like those tend to come from overseas. At a high level, it does feel like 2026 and maybe even right now is kind of an inflection point for Hagerty. You guys have spent a lot of upfront money building and investing in the business, and you guys are starting to retain more business. Is that how you view it in the sense that we are at an inflection point, right? Yeah, it's like the plan is really coming together, and it's really been by design. We're able to gain much more in the economics on the risk bearing front with the change in Markel that really incepts in January 2026. That's going to be something really positive to talk about. Our Enthusiast + program will roll out in more states, which again, big heavy sets of investments that start rolling out. We'll be rolling out in more states with State Farm, on the State Farm partnership, which is by far our largest partnership from a distribution standpoint. We're going to be in 25 - 27 states by the end of the year. We'll start rolling out more states next year. Our auction business, which is the really fun live auction thing, if you've ever watched one of those on television, will have a full schedule of auctions both in the U.S. and Canada. That's already pulling a meaningful kind of oar in the water, if you will, on the profitability side of the business. Lots coming together in 2026. We're excited about it. Of course, we'll talk about it next year, but we're really looking forward. Are there any other big sort of investments that you think you need to make right now or near term? We are going to be, you know, look, we have to continue digitizing the experience as much as we can. We'll keep making tech investments. You know, we know that AI is going to play a big important part in our business, especially on the customer service side. That takes time, money, testing, all of those sorts of things. Fortunately, when it comes to taking more risk, we had plenty of capital to be able to take on the additional risk that we're getting from Markel. We don't have those kinds of needs. You know, we're investing in our, say, our auction business. You know, investing in the European expansion. We, you know, say on our international business, we've been in the U.K. for a long time, 20 years. We've been in Canada for a long time. We have a large, large share of business in Canada. People have often asked, what about Europe? Would we think about those places? Originally we thought we were going to be able to write European business through the U.K. and then Brexit happened, which, I'm sure everybody knows that was not necessarily the greatest thing for the U.K. insurance world. What we think the market entry point for our brand in the future will be starting with auctions, starting with events, starting with auctions, kind of get people used to the brand long before you'd sell insurance. We kind of like the investments we're making and we'll keep playing them forward. You know, we've had a number of great quarters of growth, but also expanding margin. That's what we're really focused on right now. You know, we want to make sure we deliver on what people expect. Just pause here to see if there's any questions from the audience. One of the things you just touched on there was the auction business, which I'm always sort of impressed to hear about. Can you walk through the actual economics of, and maybe the margin profile of that business? If you just look at the simple revenue contribution of that business, it has grown tremendously. Yeah, and percentage-wise it's growing a lot and, you know, still relatively small and mostly because the insurance business is growing so fast. We just, I always been this real, you know, organic (Kager) Steady Eddy growth. You saw it well when you did your research around us on the auction side. These are, this, these are, this is a very well established business. There are a few big players in this space, companies with names that people in here would remember, even if you're not in the automotive space. What we did is, we acquired a team of people who were starting a new competitive auction business and brought it into our house. Very different. It's not a recurring revenue business like insurance and membership, like the rest of the, less like the rest of our businesses. It's very much a transactional business. The way it works is when you construct particularly a live auction, they're almost built to be profitable right out of the gate. You can sign cars to the book that you're going to be selling at an auction, specifically with the idea that if you hit your sell-through rates, you're profitable from day one. Like literally, it's like an opening weekend for a movie. You kind of know right how you're going to land the plane, right what it needs to be. It's not recurring revenue predictive, but it's a very predictive, profitable business right out of the chute. The digital marketplace business is a slower growth thing for us. We think it'll ultimately be the biggest scale. Right now what we're doing is actively selling large collections of cars on our digital auction marketplace. The trick there is to balance the buy-sell dynamics, is that you have to make sure that you're filling your auction sites with great cars that people want to buy, but you can never let your sell-through rate drop too low because then suddenly your supply dries up. It's a very delicate little balance. For us, that'll be a little bit more of a slow growth thing. That business is just starting to see the economics that we'd like to see, but again, early stages, and it's very much kind of part of our digital picture. I know this is an audience probably not used to talking about a transactional car business, but I will tell you that we are not actually the first company in the world to do this. There was a specialty auto insurer kind of like us in Australia years ago that was called Shannons. They were the first to ever have this kind of what I think is a peanut butter and chocolate combination of an insurance business alongside a marketplace business. That business was sold years ago. It was really one of my first inspirations. You know, what we're seeing right now is not only can we grow the insurance business organically, letting the flywheel spin, that shopping dynamic of people wanting to come and see what cars sell for and what's kind of hot is a great way to attract people to your front door. As you've described the marketplace side, you guys also sporadically participate in actually buying and selling cars yourself. Do investors need to be worried they're going to wake up one day and see $1 billion of car inventory on your balance sheet? No, it's really, no, other than it'd probably be fun to drive. I hope they'd be fun to drive, but we don't do that. The nature of the auction business, and it's just like the art market, now and then auction companies, in order to get a transaction done, they'll end up buying a couple of cars for inventory with the idea that they're kind of sold out through the next sale. If you think of, you know, if somebody comes to you with, you know, 50 cars they want to sell at auction, maybe only 15 of them are really suitable to the auction. You have to, but you don't want to lose the client. You're pretty much doing anything you can to make sure you get the 15 cars. If that means you buy five and sell them some other way, it's just how it's done. That kind of flows in and out of the numbers, but it's certainly not something that we're actively doing. We don't want to own. I mean, I personally like owning some cars, but not in the auction business. We'll keep that separate. Yeah, separate. I keep that very separate. Let's switch over to talk about the State Farm relationship and the expansion there. A very exciting opportunity that's been announced. I want to say it was 2020 or 2021 timeframe. Before I was born. Yeah, absolutely. Just kind of remind everyone where you are in the rollout process now. Yeah, we were really grateful that we got the State Farm business up and running. You know, biggest auto insurance company in the United States, very deliberate in the way they build systems, very deliberate in the way they do things, and very, very, very careful. Also, I would say they too are going through a lot of technology transformations. I think they, you know, they've talked pretty openly about it, even though they're not a public company. We stood up four states last year. Actually, those four states on new business exceeded our expectations, and then we're starting to do the conversion process. As part of this, the numbers that we reported publicly over the next couple of years, in addition to being available for new business with the 19,000 State Farm agents, we'll just ingest about 525,000 new clients just as part of rolling that business over to us. A very significant amount of new business coming our way. The difference with this and our other partnerships, like the Allstate's and Progressive's and everybody else, is this is not a, you know, maybe they'll bring more business our way. This is a book, this looks like a book roll. It's just the book roll is within a State Farm company where they were writing all of those cars one way. We're moving them over to a new company and we're going to help manage that program for them again. We can get the pricing and the valuations right and help them handle claims. So far, you know, they're just a wonderful partner, and, you know, we're staffed, systems are ready. We're ready to rock with handling more State Farm business. I will say this, we work with a number of the other insurers, but we also have a pipeline of additional partnerships that we're working on. Hopefully in coming conferences, we'll be able to talk about yet some new ones that we're working on. To frame that 525,000 vehicles, that's relative to a total policy count. I think you guys have a little over 1.5 million. It's a very big, very big number. Yeah, 2.5 million vehicles, 1.5 million policy count-ish. Yeah. It's a lot coming our way from State Farm. Can you also clarify that there is a difference in terms of how this is strictly going to be an MGA relationship, right? Yes. It's commission-driven. There's no risk retention on that. Yeah, we do not take any risk in the State Farm business. I'd love to someday, but that's not the way the deal was crafted. It's a very good deal for us. It's a huge MGA relationship. It was very unusual for State Farm. State Farm has some other partners that do some other business with them, but they had never turned on a partnership that allowed someone else to insure cars. They have tremendous pride in being the number one auto insurer. They're really careful about those clients. We were a really unique partnership for them. It was a real kind of leap of faith from them to us that we could handle it. We wanted to, we were excited to get the partnership up and running. They have a board member on our board. When we went public, they made a significant investment in us as well, which was just kind of a sign that they were all in. That's a good one. That's a great big partner to have. That takes you to nine of the top 10 carriers that you partner with. That leaves one still remaining. Any share on that? No, I can't, not yet, but I hope to be able to share on those. You got to look at it as it's not even the top 10, it's the top 25, it's the top 30. What's amazing about the automotive insurance world in the U.S. is we tend to think about those big brands that advertise on television, but in every single state, there are smaller, single state insurers or regional insurers that are really very good at what they do. We're working on partnerships with a number of those as well. They don't tend to make the headlines, but they're important potential partnerships for us. We have a team out actively working those today. One thing that I find helpful with Hagerty is that I think the simplicity of the growth story, and you guys have a sort of a projection to double, you know, policy count by 2030. Yeah. I think that actually groups nicely into sort of three buckets, is how we think about it, with roughly a third from State Farm, a third from this new Enthusiast + program, and then a third from just the core business. Thinking about that second piece there, the Enthusiast + business, what gives you guys conviction that there are, you know, 500,000 potentially vehicles, and that's my number, not yours, but sort of to grow in that, in that new channel. Just as it stands today, we're walking away from so much of this business that is coming to us. We just either are, kind of our pricing or our underwriting profile does not allow us to take it on to the program as it is today. I am an entrepreneur by nature, and I don't like turning away good business. It's good business that we could just not adequately price. We needed this new program. We needed a whole new platform really to be able to say yes more. That's the model. The best thing about it is our marketing efforts are working. They're bringing these people to the front door. I just don't want to turn them away. That's how we're, the data is showing that we can write a lot of this business over the coming handful of years. That's why, this is not guidance. It's just directionally, we see that doubling of our (PIF) count by 2030 as right in the sort of target zone of where we'll be. We have a lot of things we're working on for beyond 2030 as well. If there's anything I've learned about the insurance world, it's a wonderful stable business, but sometimes it's a slow build. You gotta patiently build out programs. You have to make sure things are right, and then you ride the wave when it's going. Customers that get turned away now, are they sort of informed to be on a wait list or say, you know, coming soon you'll be available for this? Yeah, we've been communicating with them once we got really confident we were going to be able to get the Enthusiast + up and running. Even with older contacts, it's more like, hey, coming soon, there is something coming for you, so check us out again. I'd always get it right before I get it big. In insurance, it's really important that you get the systems right. That's why this is all a fresh carrier. It's a fresh Duck Creek system. It's brand new. It's why we've made so many big investments over the last couple of years and why we're excited about it. As folks think about making projections, the contribution from that Enthusiast +, should we think of it as more backend weighted between now and 2030? Think of it more in the out years just because new states need to be introduced and there's testing periods. Yeah, I mean, 2026 will be a, you know, again, we're not going to be in a huge number of states in 2026, but 2027, you know, 2027, 2028 will be when you really see the ramp in that. If we can make it faster, we will, but, you know, again, make it right before you make it big. Similar question for State Farm, what's the trajectory that you guys think you can? Yeah, now that should happen at a faster pace, simply because, you know, for a couple of reasons. One is, you know, we're already committed to 27 states this year. We'll get a large number of states next year. There will always be some stragglers. Probably everybody here knows that, you know, there are some states like, say, California that are, you know, it's slower for all auto insurers or any kind of insurer to get things approved there. You have to be pretty careful in those states anyway to get the pricing right. Not worried about California right away, but, you know, we want to be in a majority of states and really have the majority of that over 500,000 converted over in 2027. They also write six-month policies. We write 12, so that business will be converting faster within a year, which will allow us to realize some of that a little bit faster than we might have if it was just annual premiums. In the playbook with State Farm, as I remember it is, you'll go into a state, they'll only write Hagerty policies on new policies with State Farm. After some time period, which I don't know if you've caught that. A test period, yeah. A test period, is that years? Is that months before? Yeah, it's months. It's completely at their testing pace. They are incredibly deliberate, let's just say. When they flip the switch, you just start converting. We're converting the four, the original four states now. Everything is about matching their pace and trying to accelerate it whenever we can. You guys have been building the infrastructure to support State Farm for, you know, five years now with nothing on the top line contribution yet. How much of a headwind to the margin has that been building that, and should we benefit from going forward once that revenue starts coming on? Yeah, I mean, it has been a headwind, and you know, definitely when, you know, there was a period of time when we thought some of it would come on a little bit faster, we slowed down some of the spend to manage that. That was, I think, a pretty important aspect of what we're doing. You know, I can tell you, having launched, you know, dozens of these types of partnerships in my career, the big dynamic difference here is that this is more, this is a book roll. This is not an, this is not an if, this is a when. When you have that kind of opportunity where, you know, the biggest, you know, one of the biggest companies out there is going to be sending you a bunch of business, you better be ready. That was, I wanted to be able to front load it as much as we could. Are there any questions out here? We have a microphone over here. You know, you might have said this and maybe I missed it, but could you talk a little bit about just sort of the expected return profile of Enthusiast + versus the business you're doing today? It seems like there's a different dynamic to these policies and these risks, and so maybe they're more capital intensive and how you plan to, you know, sort of manage that risk. Thank you. First of all, we've actually been testing these segments of the business for a number of years through a kind of intermediate program that we added to our core business that we call Flex. It allowed us to test some of the different risk dynamics around underwriting, pricing, and different specific risk characteristics. We're not going into this blind. We're actually coming into this really informed. That Flex program is actually the first bit of business that will move over into the new Enthusiast + program. The business is going to be 100% written on our new platform, which is a Duck Creek platform, which is going to be significantly more efficient and more self-service driven than our current business, which is very much a consumer-friendly kind of talk to everybody, get to understand their cars a lot more. There will be trade-offs both ways. There will be different risk dynamics, but a much more efficient platform. Ultimately, the Duck Creek platform will run the entire business over the next few years. What we wanted to be able to do is get that up and running for the new program while it was still small before we committed, you know, moving a million policies over or whatever to a brand new platform, which I don't know if you think that's scary, but I think that's kind of scary. We want to be really careful before we do that. One of the reasons that, you know, we early on, if you've looked at any of our numbers before, we spent a lot of time talking about loss ratio. Our loss ratios are extremely low relative to the regular auto market. While we're shifting to just more of a market standard combined ratio, that's it. It's a dynamic. It's a ratio between a numerator and a denominator. We feel that this program will perform very substantially similar to the core program, primarily because you're going to be seeing higher average premiums. Again, we want to be a lifetime value kind of business. We want to keep these cars for life. What we want to make sure that we're doing as we evolve into this business is that people feel like they're kind of joining us for life. Why would they ever even bother shopping? That's why also pricing is an interesting dynamic because you want to capture the right premium, but you don't want to be so high that you push people into the market every year. That's where our membership feature really steps up, you know. When you become a member of our Hagerty Drivers Club, it's $70 a year. There are some free features too for people who just want to get newsletters and that sort of thing. The $70 feature, we're actively in your life as a car-oriented company. You're getting our magazine six times a year, you're getting invited to events, and you get offers for discounts on car-oriented stuff. They are hearing about Hagerty a lot more if you're a member, if you participate in our member program, than if you're just buying an insurance policy and getting a bill on a monthly or quarterly basis. The Enthusiast + program will have all of those same dynamics, which we think will be a good advantage for us. Good question though. That's a great question. Yeah, we just have time for maybe one or two questions if there's anything else. I can end with one. Sure. What's your favorite car? No. Sorry. The Bond Aston Martin usually. Yeah, Bond Aston Martin. Pretty cool. Yeah, as I think about the Hagerty stock, there's the Hagerty family, State Farm, Markel each have significant economic interest in Hagerty. It's great to have long-term holders. The sort of counter to that though is that the liquidity and the float of the stock is not very high. We did see last month there was a secondary sale increase the float by about 4%. Are there any plans you think in your mind for more secondaries that investors should think about in the horizon? Yeah, thanks. The biggest thing we hear about when we're meeting with investors, like, you know, here upstairs is, you know, float. Float's one of the things they're staring at, float and liquidity in the stock. We were really glad to get that secondary out there. It was the first one we did. Anybody who's ever done one of those, they can be a little painful, especially if it's your first one, but it really worked out well. We're really pleased with the support we got from KBW and JP Morgan through that process. Starting that march towards greater liquidity, the majority of the shares we sold were from my late sister's estate. Originally, this is a family-owned business. My two sisters and I owned it before we did a small minority sale and then went public. We were selling the estate shares. They've not said they would sell more, but we think there probably will be additional secondaries out there eventually. You just want to have enough float that shares can be absorbed through sort of the normal means, but we'll be ready for it. We got through this process and the stock's been performing nicely since then. My job is just to keep running the business well and we'll be responsive when that needs to happen. Thanks for your help with that too. Yeah, absolutely. Are you going to be driving back to Michigan in anything? I so wish. I have a couple of good car tours coming up, driving some really old cars, one in California and one in Arizona in October. I'm looking forward to that. There's nothing like driving a really old car slow. It just slows you down and you have to be really present with them. It forces you into a different state of mind. You should try it. It's pretty awesome. Great. All right, McKeel, thanks so much. Thank you. This presentation has now finished. Please check back shortly for the video. All right, we're going to go ahead and get started here. My name is Tommy McJoynt with KBW, and I'm joined by McKeel Hagerty of Hagerty, of course. To start us off, just to kind of introduce everyone to Hagerty, we have a video that we can start off with. When we collect, we aren't just keeping things. We keep memories, visions, moments, perfect Saturdays on perfect roads. We keep what drives us. Did you find my old GTO? Happy birthday, Dad. I can't believe it. We won't let it stall out. It captured our hearts and shaped our lives. The road calls to us, and we will always take the wheel. We are not just collectors. We are all drivers. Hagerty, let's drive together. Thanks. It just breathes insurance, doesn't it? You know, everything about that. Just a little intro, and then we'll have a conversation. Everything about Hagerty is a lot about what you just saw in that video there. We're, from the very beginning, over 41 years ago, have been about this sort of love of special vehicles, love of the automobile. It's weird in an insurance setting or an investor setting to talk about human emotions, but the unique characteristics of our business are driven by that idea that when you have something that you bought and you care for, or maybe you inherited, you take really good care of it. Wherever there is that care when it comes to cars, you see different risk dynamics. From the beginning of this business, starting as a kind of MGA operating in the States, and then eventually Canada and the U.K., and now a risk taker, it all starts with that human emotion that there are tens of millions of people out there who love these cars. Because of that, they take really good care of them. Because of that, we can build a really cool insurance business around it. The challenge, though, like every good business, you're trying to figure out how to solve problems. Some of the problems that we were always trying to solve is how we're going to grow the business. From the beginning, we really built this omnichannel distribution model. Not only do we sell directly to consumers, like people you'd see in the video there, and it's not just vintage cars. You also saw some newer cars there because that's a big part of our story, how the dynamics of the types of cars people are interested in is evolving. We also sell through agents and brokers out there. We have tens of thousands of agents that we work with. Finally, we partner with the biggest insurance companies out there in the world to help manage their books of business of these types of cars, sometimes behind the scenes, but never white labeled. Always there's a Hagerty partnership, and they're always exclusive. The most recent, which maybe we'll talk about, is our partnership with State Farm. We have this membership model that we interact with people. We built an automotive brand. When people think of us, they think of us as being like with them, not a big corporation selling policies to them. They think of themselves as members of Hagerty, not just a client of Hagerty, not just an insured, not just somebody buying a policy from them. They can get it to us anyway through, again, directly through a broker or through an insurance company. One of the final cool pieces and a big piece of this kind of ecosystem, this dynamic that we built, is that we entered the trade side of the business, buying and selling cars, by acquiring an auction company and standing up a digital auction marketplace. This is a really cool part of the business, and it really is complementary to the insurance side of the house because right now we insure two and a half million vehicles. Last year alone, our clients, our members, bought and sold over 300,000 vehicles for a total transactional value of about $15 billion worth of car transactions. Our goal in all of that is to become the place where we would help them buy and sell those cars. There's also this shopping dynamic. Long before you buy a car, you shop. You read magazines, you join car clubs, you watch YouTube videos. Those are all the places that we are too with our media business. Our YouTube channel does not talk about insurance. It's three and a half million subscribers looking at car content. Our magazine is the highest circulation car magazine of any car magazine out there. People are reading about cars, again, not about insurance. This is kind of what makes Hagerty unique. We get to play with a lot of fun stuff like this. It's been, I think it's just like the most fun business that's based on insurance you could have. By the way, fourth year attending this conference, a big, big step forward of seeing Tommy's note about the business and covering our stock. Really grateful for the thoughtful consideration of what makes our business unique and grateful to be here with you. Yeah, it's, you know, Hagerty obviously is an insurance company as part of it. That's, you know, why you're here today. The ecosystem, as you described, is much bigger and the brand is much bigger than that. Maybe starting off, one of the lines of distribution that you talked about is working with national carriers and the.