Hagerty (HGTY) investor relations material

Vision and business model

• Aims to create a world where loved cars are driven, shared, and enjoyed, focusing on auto enthusiasts.

• Provides a unique ecosystem combining insurance, marketplace, membership, and media for car lovers.

• Recurring revenue model leverages underwriting, servicing, and monetizing collector cars.

• Proprietary database built over 40+ years offers significant data advantages.

• High customer retention and engagement drive a powerful flywheel effect.

Financial performance and outlook

• 2025 total revenue projected at $1,456M, up 17% from 2024, with a 21% CAGR from 2023–2025.

• 2025 net income expected at $149M (+91% YOY), adjusted EBITDA at $237M (+46% YOY).

• 2025 loss ratio at 39.3%, policy retention at 88.7%, and net promoter score above 80.

• 2026 outlook anticipates written premium growth of 15–16%, with adjusted EBITDA between $236M–$247M.

• 2026 net income impacted by $190M in transitional, non-cash costs from the Markel fronting arrangement.

Revenue streams and distribution

• Revenue diversified across earned premium, commissions, membership, marketplace, and investment income.

• Omni-channel distribution includes direct, agency, broker, and national insurance partners.

• State Farm partnership and Enthusiast+ product expected to drive future growth.

• Marketplace revenue from auctions, private sales, and lending grew 119% YOY in 2025.