Hagerty (HGTY) Q2 2026 earnings summary

Executive summary

• Achieved record first-half growth in written premium (up 19% to $713 million), earned premium (up 42% to $492 million), and membership (up 19% to 1.9 million policies in force), with 279,000 new members added.

• Transitioned to the Markel Fronting Arrangement, assuming 100% of premium and risk, resulting in lower reported revenue but improved operational control and profitability.

• Marketplace segment delivered strong auction growth, with Q2 revenue up 48% to $40 million and a 91% auction sell-through rate.

• Announced acquisition of Bennetts, the UK’s second-largest specialty motorcycle insurer, for £34 million, expected to triple UK scale.

• Omnichannel distribution, strategic partnerships, and investments in technology and member experience are fueling growth and retention.

Financial highlights

• Written premium grew 19% year-over-year to $713 million; earned premium up 42% to $492 million; Q2 written premium was $425 million.

• Total revenue for the first half was $667 million, down 6% year-over-year due to the Markel transition; Q2 revenue was $355 million.

• Adjusted EBITDA rose 32% to $160 million for the first half; Q2 Adjusted EBITDA was $75 million.

• Net loss for the first half was $5 million (including $153 million in transitional costs); Q2 net income was $8 million (including $64 million in transitional costs).

• Operating cash flow nearly doubled year-over-year to $186 million in the first half.

Outlook and guidance

• Raised 2026 outlook: written premium growth of 16–17% ($1.385B–$1.397B), net income of $18–30 million, and Adjusted EBITDA of $270–280 million.

• Total revenue for 2026 expected to decline 8–9% due to accounting changes from the Markel arrangement, but underlying profitability to improve.

• Transitional costs from the Markel arrangement expected to decline sharply in H2 2026, supporting improved profitability.

• 2027 expected to reflect normalized results as transition costs and accounting noise subside.

• Pending Bennetts acquisition to enhance UK platform and cross-sell opportunities.