Avi Ben-Hutta
Editor at Coverager
Hagerty

Hagerty ends Q3 with $18.6 million net income

Hagerty released its Q3 2023 Results. Below are some highlights.

  • Revenue increased 27% to $275.6 million compared to the prior year period and YTD 2023 total revenue increased 28% to $755.2 million compared to the prior year period.
  • Written premium increased 15% YoY to $255.6 million, and TYD 2023 written premium increased 16% to $714.3 million compared to the prior year period.
  • Net Income decreased 23% to $18.6 million compared to the prior year period, and YTD 2023 net income decreased 45% to $19.1 million compared to the prior year period.
  • As of September 30, 2023 the company had 1,387,429 policies in force. The company added 71k policies to its count from December 31, 2022.
  • Vehicles in force as of September 30, 2023 reached 2,356,603.
  • Membership, marketplace and other revenue was $32.6 million for the three months ended September 30, 2023, an increase of $8.8 million, or 37%, compared to 2022.
  • Sales expense for the quarter was $47.7 million, an 8% increase compared to the same quarter last year.

In the third quarter, Hagerty entered into an agreement to sell Hagerty DriveShare, a peer-to-peer rental platform for collector vehicles, to Drive Co. The sale was completed on October, 9, 2023. As a result of this sale, Hagerty recognized a $0.4 million loss in the third quarter to write-down the carrying value of its investment in DriveShare.

“2023 is turning out to be a banner year for Hagerty, with year-to-date revenue growth of 28%, propelled by written premium gains of 16%, earned premium growth of 32%, and membership and marketplace gains of 47%. Our focus on creating a more profitable business has driven dramatically improved margins through operational efficiencies, cost discipline, and economies of scale. Given our sustained business momentum, we now expect to hit the upper end of our prior full year revenue guidance of 23-27% and are once again increasing our 2023 outlook for both net income and Adjusted EBITDA, powered by better-than-expected flow-through to the bottom line.” – McKeel Hagerty, CEO of Hagerty.

Related Posts