Hagerty (HGTY) investor relations material

Executive summary

• 9M written premium rose 18% to $1.099B and Adjusted EBITDA increased 42.5% to $256.7M; reported revenue fell 7.1% to $1.021B following the Markel Fronting Arrangement transition.

• 9M net income was $31.6M versus $120.7M, including $189M of pre-tax transitional costs.

• The Markel Fronting Arrangement took effect Jan. 1, 2026, moving the U.S. quota share to 100% and placing all premium and risk with Hagerty Re.

• A record 402,000 new members joined in 9M; management remains on track toward 3.0M policies in force by 2030.

Financial highlights

• Q3 revenue was $354.2M, down 9.5%; net income was $36.3M, down 21.4%, and Adjusted EBITDA was $97.1M, up 63.5%.

• Q3 earned premium rose 41.7% to $265.1M; net investment income increased 25% to $13M.

• 9M earned premium rose 41.7% to $756.7M; written premium increased 18% to $1.099B.

• 9M Adjusted EBITDA rose 42.5% to $256.7M from $180M; Adjusted diluted EPS was $0.05 versus $0.28.

• 9M operating cash flow increased 47.5% to $280.1M.

Outlook and guidance

• FY26 written premium outlook is $1.385B–$1.397B, representing 16%–17% growth; revenue outlook is $1.340B–$1.354B, down 8%–7%.

• FY26 net income guidance increased to $48M–$60M; Adjusted EBITDA guidance increased to $305M–$315M, up 29%–33%.

• Net income guidance includes ~$199M of pre-tax transition costs; ~$10M of legacy ceding commission amortization is expected in Q4 as 2025 policies expire.

• Adjusted EBITDA guidance includes a $52M benefit from capitalized acquisition costs, a timing benefit that will not recur in 2027.