Hagerty, a specialty insurer, has announced their Q4 2023 results, showcasing impressive growth and a transformation in their business model. The company experienced a total revenue growth of 27% in 2023, building upon the previous year's growth rate of 27%. This notable achievement was accompanied by a 17% increase in written premiums, as well as the addition of adjacent revenue and profit streams from their buy-sell-finance business (Hagerty Marketplace), membership organization (Hagerty Drivers Club), and their underwriting business.
The transformation in their business model has also been reflected in the improvement of their operating margins, with a 960 basis point improvement delivered in 2023. Additionally, the company has set its sights on continued growth, projecting another year of double-digit compounding growth in 2024.
Hagerty attributes this success to a strategic focus on enhancing the customer experience through continuous improvements in their business processes and smart technology investments. They aim to expand their operating margins even further, building on the progress made in 2023.
The company's CEO, McKeel Hagerty, expressed pride in the transformation, emphasizing the message it sends to employees, partners, and the financial community – "We did what we said we would do." He highlighted the company's track record of delivering on promises, which has contributed to their growth and the trust they have built with their members over four decades.
As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $8.87. For the full picture, make sure to review Hagerty's 8-K report.
