Hagery to acquire a licensed carrier

Classic car insurance company Hagerty has agreed to acquire Consolidated National Insurance Company from Everspan for $18.4 million, a move “set to expand Hagerty’s direct underwriting capabilities and enhance value for customers.”

The deal is expected to close in Q2 2024, subject to regulatory approvals.

The closing price is comprised of approximately $10 million for the approved state licenses and $8 million for the expected capital and surplus.

Hagerty says that the new carrier will allow it to continue to drive high rates of written premium growth and retention of underwriting profits by:

• Continuing the evolution of the Hagerty ecosystem to incorporate a direct underwriting carrier model to better control underwriting profit within Hagerty;
• Removing frictional costs to create more value for customers leveraging the company’s high growth, differentiated brokerage platform, and;
• Widening the aperture with new products and new coverage offerings to fill an underserved segment of the classic and enthusiast vehicle market where penetration is low today (post 1980 vehicles).

Bottom Line: Here‘s access to an old report on the topic.