Hagerty, Inc. Reports 17.3% Revenue Growth to $1.46 Billion in 2025

**Hagerty, Inc. Reports Increased Revenue and Profitability in 2025**

Hagerty, Inc. (HGTY) has released its 10-K filing, reporting a total revenue of $1.46 billion for the year ended December 31, 2025, a 17.3% increase from the $1.24 billion reported in 2024. The company's net income also saw a significant rise, reaching $149.2 million, a 90.6% increase compared to the $78.3 million in the previous year. This growth was further reflected in the Adjusted EBITDA, which increased by 46.5% to $236.8 million from $161.7 million in 2024. The company attributes this financial performance to growth in both its Insurance and Marketplace segments.

The Insurance segment, which constitutes the majority of Hagerty's revenue, saw a 14.3% increase in total written premium, leading to a 14.9% rise in commission and fee revenue and a 13.0% increase in earned premium, net. The segment's performance was also positively impacted by a decrease in losses and loss adjustment expenses, driven by lower catastrophe losses and favorable reserve development. Key operational metrics for the Insurance segment include 1.68 million policies in force, a retention rate of 88.7%, and 2.82 million vehicles insured. The Marketplace segment also contributed to the overall growth, with revenue increasing by 116.6% due to higher levels of inventory sales, private sale commissions, and the expansion of live auction offerings in Europe.

Operationally, Hagerty has been focused on expanding its Marketplace segment, with Broad Arrow Group holding its inaugural European auctions and becoming the official auction partner of Concours at Wynn Las Vegas. The company also increased the borrowing capacity of Broad Arrow Capital's revolving credit facility from $75 million to $150 million. In the Insurance segment, Hagerty launched Enthusiast+, a new insurance product tailored for modern enthusiast vehicles, in Colorado, with plans for a phased nationwide rollout over the next four years. The company also entered into new contractual arrangements with Markel, forming the Markel Fronting Arrangement, which became effective January 1, 2026, and is expected to increase profitability and operational efficiencies.

Looking ahead, Hagerty anticipates that the Markel Fronting Arrangement will significantly change its accounting for the Essentia book of business, impacting the recognition of commission revenue and ceding commission expense. While the company expects increased profitability from this arrangement, it also acknowledges that the changes may reduce period-to-period comparability of its consolidated financial statements. Hagerty also notes that it is closely monitoring macroeconomic conditions, including inflation and interest rates, and is taking steps to manage its investment portfolio and risk exposure. The company's employee headcount as of December 31, 2025, was 1,891 full-time employees.