Hagerty Reports 17.7% Revenue Growth to $368.7 Million in Latest Quarter

Hagerty, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $368.7 million for the three months ended June 30, 2025, a 17.7% increase from $313.2 million in the same period last year. The company's net income also rose to $47.2 million, up 10.7% from $42.7 million in the prior year. For the first half of 2025, Hagerty's total revenue was $688.3 million, reflecting a 17.7% increase compared to $584.9 million in the first half of 2024, while net income surged 46.5% to $74.5 million from $50.9 million.

The growth in revenue was driven by a 10.8% increase in written premiums, which contributed to an 11.2% rise in commission and fee revenue, and a 12.8% increase in earned premiums. Membership, marketplace, and other revenue saw a notable increase of 77.7%, primarily due to higher sales from Broad Arrow's inventory and private sales, as well as the success of its inaugural auction at Concorso d’Eleganza Villa d’Este. The company also reported a 3.5% increase in policies in force, totaling 1,559,798, and a 3.7% rise in Hagerty Drivers Club paid member count to 907,963.

Operating expenses for the second quarter increased by 16.7% to $321.0 million, driven by higher salaries and benefits, ceding commissions, and sales expenses. Salaries and benefits rose to $64.1 million, reflecting annual merit increases and a growing workforce. The loss ratio for Hagerty Re was reported at 42.3%, slightly up from 41.1% in the previous year, while the combined ratio was 89.6%, indicating continued profitability in underwriting.

Looking ahead, Hagerty announced a non-binding letter of intent for a proposed fronting arrangement with Markel Group, which is expected to enhance profitability and operational efficiencies. This arrangement would allow Hagerty to assume 100% of the risk for policies written through Markel's Essentia Insurance Company, expanding its underwriting authority. The company remains optimistic about its growth trajectory, supported by strong performance metrics and strategic initiatives aimed at enhancing its market position in the collector car insurance sector.