Hagerty Inc
NYSE:HGTY
Hagerty Inc
Hagerty Inc. began as a family business in 1984, born from a passion for classic wooden boats and a recognition of the specialized insurance needs these vessels demanded. Over the decades, the company deftly sailed into the niche market of classic car insurance, capitalizing on the unique bond between owners and their collector vehicles. Hagerty has carved out a distinctive place in the insurance industry by offering tailored policies that address the specific risks associated with vintage automobiles, which are often different from those covered in standard auto insurance plans. Their understanding of this intricate market has allowed them to build a reputation as the go-to insurer for car enthusiasts who value expertise and care in handling prized possessions.
Beyond insurance, Hagerty has expanded to embody a comprehensive lifestyle brand for automotive aficionados. Through initiatives like Hagerty Drivers Club, the company generates revenue not only by offering insurance policies but also through providing exclusive services and experiences to its members, such as roadside assistance, subscription to a high-quality automotive magazine, and access to automotive events and valuation tools. This multi-faceted approach solidifies Hagerty's position in the hearts of car enthusiasts while concurrently broadening its financial horizons, positioning it as an integral part of the collector car ecosystem rather than merely an insurance provider.
Hagerty Inc. began as a family business in 1984, born from a passion for classic wooden boats and a recognition of the specialized insurance needs these vessels demanded. Over the decades, the company deftly sailed into the niche market of classic car insurance, capitalizing on the unique bond between owners and their collector vehicles. Hagerty has carved out a distinctive place in the insurance industry by offering tailored policies that address the specific risks associated with vintage automobiles, which are often different from those covered in standard auto insurance plans. Their understanding of this intricate market has allowed them to build a reputation as the go-to insurer for car enthusiasts who value expertise and care in handling prized possessions.
Beyond insurance, Hagerty has expanded to embody a comprehensive lifestyle brand for automotive aficionados. Through initiatives like Hagerty Drivers Club, the company generates revenue not only by offering insurance policies but also through providing exclusive services and experiences to its members, such as roadside assistance, subscription to a high-quality automotive magazine, and access to automotive events and valuation tools. This multi-faceted approach solidifies Hagerty's position in the hearts of car enthusiasts while concurrently broadening its financial horizons, positioning it as an integral part of the collector car ecosystem rather than merely an insurance provider.
Revenue Growth: Hagerty reported 2025 revenue up 17%, significantly exceeding original expectations.
Net Income Surge: Net income jumped 91% year-over-year to $149 million, boosted by record new business and a $21 million reserve reduction.
Strong Cash Flow: Operating cash flow rose 24% to $219 million, supporting future reinvestment.
Written Premium Acceleration: Written premiums grew 14% in 2025 and are expected to accelerate to 15–16% growth in 2026.
Marketplace Momentum: Marketplace revenue more than doubled to $119 million, with continued expansion in Europe and strong auction results.
Guidance & Accounting Change: 2026 revenue is guided down to $1.28–1.3 billion due to accounting changes, but underlying growth and cash flow are expected to remain strong.
Transitional Net Loss: 2026 net income is expected to be negative $41–51 million due to a one-time, noncash transitional expense; adjusted EBITDA is guided to $236–247 million.
Strategic Partnerships: State Farm and new Liberty Mutual/Safeco partnerships are key drivers of premium growth, with State Farm conversions ramping up through 2026 and 2027.
Margins & Efficiency: Combined ratio improved to 87%, and loss ratio guidance for 2026 is around 41%, reflecting steady underwriting performance.
