Hagerty, Inc. has recently released its 10-K report, providing insight into the company's financial performance and operations. The company, headquartered in Traverse City, Michigan, is a market leader in providing insurance for collector cars and enthusiast vehicles. It acts as a managing general agent (MGA) by underwriting, selling, and servicing collector car and enthusiast vehicle insurance policies, and reinsures approximately 80% of the risks written by its MGA subsidiaries through its wholly owned subsidiary, Hagerty Re.
In 2023, Hagerty, Inc. initiated a review of certain components of its operations, resulting in the sale or reorganization of certain businesses, including Hagerty Garage + Social, DriveShare, and Motorsport Reg ("MSR"). This strategic move aligns with the company's focus on prioritizing investments and resources in areas of the business that offer the strongest growth and profit potential. As a result of this review, the company recognized approximately $4.0 million of losses and impairments related to actions taken with respect to Hagerty Garage + Social and DriveShare, and in 2024, it recognized a $0.1 million gain related to the sale of MSR.
The 10-K report also highlights the financial impact of the California wildfires in January 2025, with estimated pre-tax losses resulting from these wildfires expected to be approximately $11.0 million. This estimation is below the company's 2025 catastrophe reinsurance program per event retention of $28.0 million, but there is inherent variability in early loss projections and claims severity, which may lead to changes in the estimate as additional information emerges.
In 2024, Hagerty, Inc. reported a net income of $78.3 million, representing a $50.1 million, or 177.9%, increase compared to 2023. The company also reported Adjusted EBITDA of $124.5 million, representing a $36.3 million, or 41.2%, increase compared to 2023. These improvements were primarily attributable to continued written premium growth, which drove a 15.8% increase in commission and fee revenue earned by its MGA subsidiaries and a 21.0% increase in earned premium at Hagerty Re. However, the company also faced losses related to Hurricane Helene and Hurricane Milton, totaling $26.7 million.
The 10-K report also provides key performance indicators, including operational metrics and financial measures. For instance, in 2024, the company reported a total written premium of $1,044,492, a 15.1% increase compared to 2023, and a net promoter score of 82. These metrics are used to evaluate the company's performance and make strategic decisions.
As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $10.0. For more information, read the company's full 10-K submission here.
