Patrick McClymont: So I think what Pablo’s asking is if disrupted market that has implications for standard auto, we are in partnership with each of these does it have implications for our ability to grow with them? Is that fair Pablo?
Pablo Singzon: That’s exactly right.
McKeel Hagerty: Yes. Okay. So yes, no, thank you. And it’s a good question. And the disruption has really been almost two years long. So let’s just be clear about it. We definitely saw changes in how some of our big partners were reacting to the market last year 2022. They’re very, very focused on their own results and their own growth. That being said, where we’re talking about agency companies, companies that work with agents, whether they’re big, the big, old classic, captive agency businesses. Those agents still need access to growth. They’re trying to manage the loss ratios in their book. They’re worried about availability in certain markets like California, but we’ve still been open for business with them, even in states like California.
So in many cases, where some of the big companies and their agents are kind of struggling to maintain their renewals, we’ve been a kind of a bright spot for them. And so our growth this year is even across all lines. And we’re all distribution points, like referred to it as our omnichannel direct agent and broker. And then we kind of break out those big partnerships where we get larger, larger flow through of the business. So, we’re open for business and it’s going well for us.
Pablo Singzon: Got it. That’s helpful McKeel. And then second question just on the sale of DriveShare and Garage Social. What kind of go forward impact will that have on, I guess, EBITDA? Right? I’m assuming, these are not highly profitable businesses under tiny, but any perspective you can provide on the impact of those sales going forward?
Patrick McClymont: Yes. You’ll see in the disclosure, there was a restructuring charge that we took or divestiture charge that we took related to those just north of $4 million. And both Garage and Social, and DriveShare were loss making. So it’ll be accretive to EBITDA.
Pablo Singzon: Okay. And then the last question I had, maybe for you, Patrick, just hoping you can give some perspective on what run rate investment income looks for a heavier these days. Right? So maybe just talk about how much, investable cash or assets you have in the balance sheet and what sort of yields are you getting. Thank you.
Patrick McClymont: Yes. The easiest way to think about it is just look at the cash within Hagerty Re and focus on well, within Hagerty Re, it’s both the restricted and unrestricted and it’s in the neighborhood of $600 million worth of assets. And right now, we’re invested heavily in cash like instruments, but that means you’re earning 5%, 5.25%. And so that’ll give you a sense what the current run rate is. And then for now, we’re going to stick with things that are cash like. So what you can run cash balances around, you’ll be able to calculate what our run rate earnings would be. It’s very simple and straightforward right now.
Pablo Singzon: Alright. Perfect. Thank you.
Operator: There are no further questions at this time. I would like to turn the floor over to McKeel for closing comments.
McKeel Hagerty: Thank you, operator, and thank you for those who ask questions. And thanks to all of you for your continued support and interest in Hagerty. We have a unique and highly differentiated business model that is just beginning to hit its stride as we help consumers protect buy sell and enjoy their prized vehicles. Commissionable revenue as a high growth insurance distributor is the backbone of Hagerty, supported by our membership proposition, and will continue to be a primary profit driver given expectations for sustained double digit growth through our omnichannel distribution. Our marketplace is in its infancy, but we’re very encouraged by the first year results and ability to deliver profitable growth and our move towards controlling our destiny and reducing frictional costs as a full stack insurer will allow us to capture more of the profit from our strong and stable underwriting results.
