Hagerty reported continued growth in its insurance business and said it raised its full-year outlook again, citing in part favorable claims trends. Its shareholder letter also highlighted gains in membership and adjusted EBITDA, while pointing to a 2030 target of 3 million policies in force. The company posted an investor presentation for use at future investor events.
Key details
- Insurance growth: Hagerty said year-to-date written premiums were up 18%. It added more than 400,000 members since January, with conversions from State Farm policies ramping up.
- Profitability and outlook: Adjusted EBITDA rose 43% in the first nine months of the year. Hagerty raised its full-year outlook again, partly because of favorable loss trends in physical-damage and liability coverage. The letter did not give revised numerical targets in the material provided.
- Long-term target: The company said it remains on pace toward its goal of having 3 million policies in force by 2030, and reported 15 consecutive quarters of growth on its key measures.
- Member engagement: Hagerty reported an average member-experience rating of 4.93 out of 5, a Net Promoter Score above 80 and retention above 88%. It said members selling their cars are its largest source of attrition.
- Collector-car auctions: Broad Arrow’s second Zoute auction, held in early October, recorded €36 million in car sales, up 35% from a year earlier. Cars sold included a LaFerrari, McLaren P1 and Porsche 918 Spyder. Hagerty also described upcoming auction activity in Las Vegas and Europe.
- Investor communications: Hagerty planned a November 3 conference call to discuss its third-quarter and first-nine-month results. It also posted a presentation intended for future investor meetings.
What it means
The update points to growth in Hagerty’s insurance business alongside improved adjusted EBITDA and a higher full-year outlook. The letter attributes part of the outlook increase to favorable claims trends, while the company’s 2030 policy target underscores the importance it places on continuing to expand its insurance base.