Hagerty Reports $354.8M Revenue Decline and $8.0M Net Income for Q2 2026

Hagerty, Inc. reported a total revenue of $354.8 million for the three months ended June 30, 2026, a decrease of 6.5% compared to $379.3 million in the same period last year. The decline was primarily attributed to a significant drop in commission and fee revenue, which fell by 83.5% to $23.7 million from $143.3 million in the prior year. This reduction is linked to the company's transition to the Markel Fronting Arrangement, which took effect on January 1, 2026, resulting in Hagerty Re assuming 100% of the risk for policies previously underwritten by Essentia Insurance Company. Despite the overall revenue decline, earned premium, net increased by 41.7% to $252.0 million, reflecting the expanded quota share percentage under the new arrangement.

In terms of profitability, Hagerty reported a net income of $8.0 million for the quarter, down 83.0% from $47.2 million a year earlier. The income attributable to Class A common stockholders was a loss of $1.7 million, compared to a profit of $9.1 million in the same quarter of 2025. The company's income before taxes also saw a significant decline, dropping to $2.2 million from $53.4 million in the previous year. The decrease in profitability was influenced by increased losses and loss adjustment expenses, which rose by 47.2% to $110.7 million, driven by the transition to the Markel Fronting Arrangement.

Operationally, Hagerty's Insurance segment reported a total written premium of $424.5 million, a 19.2% increase from the previous year, while the number of policies in force grew by 19.0% to 1.86 million. The Hagerty Re loss ratio for the quarter was 42.7%, slightly up from 42.3% in the prior year. The Marketplace segment also showed improvement, with income before taxes rising to $1.1 million from a loss of $2.0 million, driven by increased auction revenue and a significant rise in net auction sales.

Looking ahead, Hagerty has announced plans to acquire Bennetts Motorcycling Services Limited, a specialty motorcycle insurance broker in the U.K., for approximately $43 million, pending regulatory approval. This acquisition is expected to enhance Hagerty's international presence and create synergies between its insurance and marketplace operations. The company remains focused on leveraging its integrated automotive ecosystem to drive growth and profitability in the coming quarters.