Trash or Treasure? The classic car insurance ecosystem

Following a merger with the special purpose acquisition company Aldel Financial, Hagerty was listed on the New York Stock Exchange in December 2021. State Farm and Markel led a $704 million investment in the transaction. Hagerty, the 800-pound gorilla in the room, is now using the net proceeds to further its strategic growth opportunities. The moment White Mountains announced its intention to sell NSM Insurance, a big rival of Hagerty, to global investment firm Carlyle for $1.8 billion, the elephant in the room became apparent. After all, White Mountains gained a reputation as a savvy asset seller with the sales of Sirius (2016) and OneBeacon (2017), indicating that it thinks the moment is ripe to (also) quit the classic car insurance market.

This research report examines the state of the classic car insurance sector in terms of players, profits and potential.