Hagerty Reports 91% Surge in Net Income

By Chris Stiles • Thursday, February 26 12:56 • Permanent Link

Hagerty, a company specializing in classic car insurance and services, has reported its fourth quarter 2025 financial results in a recent stockholder letter. The company's top-line growth has been impressive, with a 17% increase compared to the previous period. Notably, net income has surged by an astonishing 91%, showcasing the company's improved profitability.

In 2025, Hagerty added 371,000 new members, marking record new business growth. Furthermore, the company has made significant progress towards its goal of reaching 3 million policies in force. A strategic shift towards targeting younger car enthusiasts has been fruitful, with a growing contribution from Gen X and Millennial customers.

The company's omni-channel strategy has delivered strong results from both direct and partner channels, including a growing contribution from the State Farm Classic + program rolled out to 27 states. Additionally, a new partnership with Liberty Mutual and Safeco is expected to further drive growth in the coming years.

Hagerty's European marketplace team has achieved substantial success, with three successful auctions in Switzerland, Belgium, and Italy, representing a 119% growth over 2024. The company's Private Sales business has also established itself as a trusted brand, facilitating connections between top collectors and significant cars.

Looking ahead to 2026, Hagerty anticipates further mid-teens written premium growth and underlying margin expansion. The company's ongoing technology investments aim to improve the member experience and streamline the cost structure. Furthermore, the State Farm rollout is expected to continue across the majority of the remaining states, with approximately half a million policies set to be converted to the new State Farm Classic+ program.

A major change in the company's financial results is expected to occur due to a new arrangement with Markel, whereby Hagerty will assume 100% of the underwriting and investment economics. This change is anticipated to boost underwriting profits by 25%.

The market has reacted to these announcements by moving the company's shares -0.78% to a price of $12.67. For the full picture, make sure to review Hagerty's 8-K report.

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