Hagerty raises profit outlook as written premium grows 16%

Hagerty reported third-quarter written premium of $386 million, up 16% from a year earlier, and raised its full-year profit outlook.

Policies in force increased 18% to 1.9 million, while retention slipped to 88.2% from 88.6%. The company added 402,000 new members during the first nine months of 2026.

Quarterly net income fell to $36 million from $46 million, including $36 million in pre-tax transition costs tied to its new Markel fronting arrangement. Adjusted EBITDA increased 64% to $97 million.

Under the arrangement, effective January 1, Hagerty Re’s U.S. quota share increased from 80% to 100%. The change also eliminates certain commission revenue and related expenses in consolidation, affecting comparisons with prior periods. Reported quarterly revenue declined 9% to $354 million, while earned premium rose 42% to $265 million.

Hagerty Re’s quarterly combined ratio improved to 79.7% from 89.6%, helped by a $26 million reduction in estimated current-year losses.

Outside insurance, marketplace revenue fell 6% to $32 million as lower inventory sales offset auction growth. Paid Hagerty Drivers Club membership increased 6% to more than 977,000.

For 2026, Hagerty now expects net income of $48 million–$60 million, up from $18 million–$30 million, and adjusted EBITDA of $305 million–$315 million, up from $270 million–$280 million. Its written premium growth forecast remains unchanged at 16%–17%.