Hagerty, Inc. (HGTY) Stock Analysis and Metrics

Hagerty

NYSE: HGTY

$12.11 ▼ -0.04 (-0.33%)

At close: Jul 8, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap1.22 Bn

P/E11.16

P/S0.97

Div. Yield0.00

ROIC (Qtr)0.00

Total Debt (Qtr)228.61 Mn

Revenue Growth (1y) (Qtr)84.13

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About

Hagerty, Inc. is a market leader in providing insurance for collector cars and enthusiast vehicles, helping the automotive enthusiast community protect and enjoy their special cars for more than 40 years. The company operates as a Managing General Agent (MGA) by underwriting, selling, and servicing collector car and enthusiast vehicle insurance policies on behalf of insurance carrier partners. Its offerings are complemented by the Hagerty Drivers Club membership, renowned car events, media and entertainment platforms, and a trusted marketplace where collectors and enthusiasts can buy and sell a wide range of vehicles.

Hagerty, Inc. generates revenue through multiple streams. The primary source is insurance-related activities, including commission and fee revenue from underwriting, selling, and servicing insurance policies on behalf of carrier partners. Additionally, the company earns reinsurance premiums through Hagerty Re, its Bermuda-based reinsurance subsidiary. Revenue is also derived from the Marketplace segment via auction commission revenue, private sales commissions, bidder fees, and financing solutions provided by Broad Arrow Capital LLC. Investment income from fixed maturity securities, equity securities, and cash holdings further contributes to earnings.

The company operates through the following segments: Insurance and Marketplace.

• The Insurance segment focuses on underwriting, selling, and servicing collector car and enthusiast vehicle insurance policies. It operates as an MGA for carrier partners such as Essentia Insurance Company, Aviva Canada, and State Farm. The segment includes Hagerty Re, which reinsures risks from policies issued by Essentia and other partners. It also encompasses the Hagerty Drivers Club membership, automotive events, media and entertainment platforms, and related ancillary activities that support brand awareness and customer engagement.

• The Marketplace segment provides a trusted platform for collectors and enthusiasts to buy and sell vehicles. It includes live auctions and an online sale platform through Hagerty Marketplace, as well as brokered private sales. At the high-end, transactions are conducted by its wholly owned subsidiary Broad Arrow, which also engages in opportunistic acquisitions of collector cars. The segment offers financing solutions via Broad Arrow Capital LLC, which structures loans secured by collector cars and enthusiast vehicles for qualified customers in the U. S., Canada, the U. K., and certain European countries.

Hagerty, Inc. holds a leading position in the U. S. collector car and enthusiast vehicle insurance market with an overall market share of approximately 7% across 36 million insurable vehicles. It has an estimated 15% market share for pre-1981 classic vehicles and 3% for post-1980 collectible vehicles. The company differentiates itself through its enthusiast-centered ecosystem, strong brand loyalty reflected in a Net Promoter Score of approximately 81, and a high insurance policy retention rate nearing 90% with an average policy life of nine years. Competitors include other specialty insurance providers, though Hagerty’s integrated model of insurance, membership, events, media, and marketplace creates a unique value proposition that reduces reliance on price-based competition.

Hagerty, Inc. serves automotive enthusiasts and collectors who own or are interested in collector cars and enthusiast vehicles. Its customer base includes individuals seeking insurance for special vehicles, members of the Hagerty Drivers Club, participants in automotive events, users of its media and entertainment platforms, and buyers and sellers utilizing its marketplace for vehicle transactions. The company also works with insurance carrier partners, independent agents and brokers, and financial institutions through its lending subsidiary.

Investment Thesis

▲ Bull case

Hagerty’s underlying insurance franchise is experiencing accelerating organic growth driven by a record inflow of new policies and industry‑leading retention. In the first quarter the company added 112 thousand policies pushing policies in force up 15 % year over year while retention held steady at 89 %. This growth is fueled by a strategic focus on new business count rather than cyclical market shifts, allowing Hagerty to outpace the broader specialty insurance sector. The durability of this trend is reinforced by the deepening relationship with State Farm, which is on track to place Hagerty’s Classic Plus product in front of 19 thousand agents across 40 states by year end, creating a scalable distribution channel that will continue to feed policy counts well into 2027. The combination of strong acquisition metrics and high retention signals a durable compounding engine that the market may be underestimating as it focuses on short‑term GAAP volatility.
The shift to a 100 % quota share arrangement with Markel unlocks a structural profitability improvement that is not yet reflected in headline earnings. By retaining all underwriting risk and investment income on its U.S. book Hagerty Re’s combined ratio improved to 86.5 % in the quarter, a meaningful step down from the historical 88.5 % level. This improvement translates directly into higher adjusted EBITDA, which grew 77 % year over year to $85 million, demonstrating that the core insurance operation is converting premium growth into cash flow at an accelerating pace. The amortization of deferred ceding commissions, while a GAAP headwind, is a non‑cash charge that will fully runoff by year end, after which reported revenue will align more closely with written premium growth. Investors who look beyond the temporary accounting distortion can see a margin expansion trajectory that could drive multiple years of double‑digit adjusted EBITDA growth.
Hagerty’s marketplace arm, exemplified by Broad Arrow Auctions, is becoming a powerful customer acquisition flywheel that fuels both insurance and membership growth. The Amelia Car Week sale generated $111 million in total sales with a 92 % sell‑through rate, setting twelve pricing records and attracting bidders from twenty‑three countries. Each vehicle sold through Broad Arrow represents a prospective insurance policy, creating a self‑reinforcing loop where auction success drives higher insured values and premium growth. The company’s expanding footprint in Europe, including upcoming events at Villa d’Este and continued success at Porsche Air|Water auctions, provides an international pipeline for high‑value enthusiast cars that will further amplify this effect. As the marketplace scales, its contribution to revenue becomes less volatile and more predictable, offering a hidden catalyst that the market may be overlooking.
Investments in claims infrastructure are converting a traditional cost center into a competitive advantage that improves loss ratios and customer satisfaction. Hagerty has increased the proportion of claims handled in‑house, leveraging specialized expertise for vintage vehicle repairs while applying standard auto best practices to control leakage. This shift has already produced favorable prior‑year development, enabling a $6 million reserve reduction in the quarter and contributing to a loss ratio of 38.4 %. The enhanced claims capability not only reduces expense volatility but also strengthens net promoter scores, supporting the high retention rates observed in the core book. As the claims organization continues to mature, the company is positioned to sustain underwriting excellence even as premium volumes rise, a factor that could be underappreciated in current valuations.
The long‑term alignment between asset appreciation and insurance economics creates a built‑in tailwind that compounds over time. Historically, approximately 20 % of Hagerty’s per‑policy premium growth has come from members voluntarily increasing coverage limits as their collector cars appreciate in value. This dynamic is absent from the standard auto market where vehicles depreciate, giving Hagerty a structural advantage that grows with the collector car market. Recent auction results demonstrate strong demand for modern supercars and hypercars, indicating that the appreciation trend is accelerating among younger enthusiasts. As this cohort ages and acquires higher‑value vehicles, the premium uplift effect is likely to intensify, providing a steady low‑single‑digit growth driver that could sustain top‑line expansion for years to come.

Hagerty’s underlying insurance franchise is experiencing accelerating organic growth driven by a record inflow of new policies and industry‑leading retention. In the first quarter the company added 112 thousand policies pushing policies in force up 15 % year over year while retention held steady at 89 %. This growth is fueled by a strategic focus on new business count rather than cyclical market shifts, allowing Hagerty to outpace the broader specialty insurance sector. The durability of this trend is reinforced by the deepening relationship with State Farm, which is on track to place Hagerty’s Classic Plus product in front of 19 thousand agents across 40 states by year end, creating a scalable distribution channel that will continue to feed policy counts well into 2027. The combination of strong acquisition metrics and high retention signals a durable compounding engine that the market may be underestimating as it focuses on short‑term GAAP volatility.
The shift to a 100 % quota share arrangement with Markel unlocks a structural profitability improvement that is not yet reflected in headline earnings. By retaining all underwriting risk and investment income on its U.S. book Hagerty Re’s combined ratio improved to 86.5 % in the quarter, a meaningful step down from the historical 88.5 % level. This improvement translates directly into higher adjusted EBITDA, which grew 77 % year over year to $85 million, demonstrating that the core insurance operation is converting premium growth into cash flow at an accelerating pace. The amortization of deferred ceding commissions, while a GAAP headwind, is a non‑cash charge that will fully runoff by year end, after which reported revenue will align more closely with written premium growth. Investors who look beyond the temporary accounting distortion can see a margin expansion trajectory that could drive multiple years of double‑digit adjusted EBITDA growth.
Hagerty’s marketplace arm, exemplified by Broad Arrow Auctions, is becoming a powerful customer acquisition flywheel that fuels both insurance and membership growth. The Amelia Car Week sale generated $111 million in total sales with a 92 % sell‑through rate, setting twelve pricing records and attracting bidders from twenty‑three countries. Each vehicle sold through Broad Arrow represents a prospective insurance policy, creating a self‑reinforcing loop where auction success drives higher insured values and premium growth. The company’s expanding footprint in Europe, including upcoming events at Villa d’Este and continued success at Porsche Air|Water auctions, provides an international pipeline for high‑value enthusiast cars that will further amplify this effect. As the marketplace scales, its contribution to revenue becomes less volatile and more predictable, offering a hidden catalyst that the market may be overlooking.
Investments in claims infrastructure are converting a traditional cost center into a competitive advantage that improves loss ratios and customer satisfaction. Hagerty has increased the proportion of claims handled in‑house, leveraging specialized expertise for vintage vehicle repairs while applying standard auto best practices to control leakage. This shift has already produced favorable prior‑year development, enabling a $6 million reserve reduction in the quarter and contributing to a loss ratio of 38.4 %. The enhanced claims capability not only reduces expense volatility but also strengthens net promoter scores, supporting the high retention rates observed in the core book. As the claims organization continues to mature, the company is positioned to sustain underwriting excellence even as premium volumes rise, a factor that could be underappreciated in current valuations.
The long‑term alignment between asset appreciation and insurance economics creates a built‑in tailwind that compounds over time. Historically, approximately 20 % of Hagerty’s per‑policy premium growth has come from members voluntarily increasing coverage limits as their collector cars appreciate in value. This dynamic is absent from the standard auto market where vehicles depreciate, giving Hagerty a structural advantage that grows with the collector car market. Recent auction results demonstrate strong demand for modern supercars and hypercars, indicating that the appreciation trend is accelerating among younger enthusiasts. As this cohort ages and acquires higher‑value vehicles, the premium uplift effect is likely to intensify, providing a steady low‑single‑digit growth driver that could sustain top‑line expansion for years to come.

▼ Bear case

The transition to the Markel fronting arrangement introduces significant short‑term earnings volatility that could mask underlying performance and lead to mispricing. GAAP revenue declined 5 % despite an 18 % increase in written premium due to the elimination of commission and ceding commission offsets, and the company reported a GAAP net loss of $13 million in the quarter. The amortization of deferred ceding commissions, which totaled $89 million in Q1, will continue to weigh on earnings throughout 2026, potentially causing investors to overlook the improving adjusted EBITDA trend. If the market continues to focus on headline GAAP metrics, the stock may remain undervalued relative to its cash‑generating capacity, creating a value trap that persists until the transitional costs fully runoff.
Hagerty’s growth strategy is heavily dependent on the successful rollout of State Farm’s Classic Plus program, exposing the company to execution and partnership risk. While management anticipates placing the product in front of 19 thousand agents across 40 states by year end, any delay in agent training, technology integration or regulatory approval could slow the expected policy inflow. The enthusiasm for the partnership assumes that State Farm’s agents will effectively cross‑sell the enthusiast product, yet there is limited historical data on conversion rates for this niche offering. A slower‑than‑expected rollout would directly impact written premium growth and could force the company to rely more heavily on its core book, which has historically grown at a mid‑single‑digit pace.
The collector car market, while currently strong, is susceptible to macroeconomic shifts that could depress asset valuations and curb premium growth. Broad Arrow’s record auction results are driven by high net‑worth buyers from twenty‑three countries, a segment that may retreat if global interest rates rise, inflation persists or equity markets correct. A decline in enthusiast vehicle values would reduce the voluntary increase in coverage limits that has historically contributed roughly 20 % of premium growth, removing a key tailwind. Furthermore, a downturn could increase claim frequency as owners delay maintenance or repairs, putting pressure on loss ratios. The company’s reliance on market appreciation for a portion of its growth makes it vulnerable to external economic cycles that are not fully captured in its internal forecasts.
Hagerty’s foray into the Enthusiast Plus product, which targets daily‑driver enthusiasts, faces underwriting and competitive challenges that could limit profitability. The product is currently offered only in Colorado and is still in the learning phase regarding appropriate pricing and loss tolerance. Entering a market that overlaps with standard auto carriers exposes Hagerty to competition from carriers with larger scale and more sophisticated actuarial capabilities. If Enthusiast Plus fails to achieve attractive loss ratios, the investment required to scale the product nationally could dilute overall margins and divert resources from higher‑return core initiatives. The uncertainty surrounding this line adds a layer of risk that may be underappreciated by investors focused solely on the core insurance and marketplace stories.
The company’s growing debt load, particularly the $110 million of back leverage tied to Broad Arrow’s loan portfolio, introduces financial risk that could become material if auction market liquidity tightens. While the debt is currently serviced by cash flows from the auction business, a prolonged downturn in high‑value vehicle sales could reduce the cash available to meet interest obligations, forcing Hagerty to either draw on its cash reserves or seek additional financing. The presence of leverage also increases sensitivity to changes in interest rates, which could raise borrowing costs and affect net investment income. Investors may be underestimating the potential strain that a stressed auction cycle could place on the balance sheet, especially given the company’s stated ambition to become the undisputed global leader in live and online sales.

The transition to the Markel fronting arrangement introduces significant short‑term earnings volatility that could mask underlying performance and lead to mispricing. GAAP revenue declined 5 % despite an 18 % increase in written premium due to the elimination of commission and ceding commission offsets, and the company reported a GAAP net loss of $13 million in the quarter. The amortization of deferred ceding commissions, which totaled $89 million in Q1, will continue to weigh on earnings throughout 2026, potentially causing investors to overlook the improving adjusted EBITDA trend. If the market continues to focus on headline GAAP metrics, the stock may remain undervalued relative to its cash‑generating capacity, creating a value trap that persists until the transitional costs fully runoff.
Hagerty’s growth strategy is heavily dependent on the successful rollout of State Farm’s Classic Plus program, exposing the company to execution and partnership risk. While management anticipates placing the product in front of 19 thousand agents across 40 states by year end, any delay in agent training, technology integration or regulatory approval could slow the expected policy inflow. The enthusiasm for the partnership assumes that State Farm’s agents will effectively cross‑sell the enthusiast product, yet there is limited historical data on conversion rates for this niche offering. A slower‑than‑expected rollout would directly impact written premium growth and could force the company to rely more heavily on its core book, which has historically grown at a mid‑single‑digit pace.
The collector car market, while currently strong, is susceptible to macroeconomic shifts that could depress asset valuations and curb premium growth. Broad Arrow’s record auction results are driven by high net‑worth buyers from twenty‑three countries, a segment that may retreat if global interest rates rise, inflation persists or equity markets correct. A decline in enthusiast vehicle values would reduce the voluntary increase in coverage limits that has historically contributed roughly 20 % of premium growth, removing a key tailwind. Furthermore, a downturn could increase claim frequency as owners delay maintenance or repairs, putting pressure on loss ratios. The company’s reliance on market appreciation for a portion of its growth makes it vulnerable to external economic cycles that are not fully captured in its internal forecasts.
Hagerty’s foray into the Enthusiast Plus product, which targets daily‑driver enthusiasts, faces underwriting and competitive challenges that could limit profitability. The product is currently offered only in Colorado and is still in the learning phase regarding appropriate pricing and loss tolerance. Entering a market that overlaps with standard auto carriers exposes Hagerty to competition from carriers with larger scale and more sophisticated actuarial capabilities. If Enthusiast Plus fails to achieve attractive loss ratios, the investment required to scale the product nationally could dilute overall margins and divert resources from higher‑return core initiatives. The uncertainty surrounding this line adds a layer of risk that may be underappreciated by investors focused solely on the core insurance and marketplace stories.
The company’s growing debt load, particularly the $110 million of back leverage tied to Broad Arrow’s loan portfolio, introduces financial risk that could become material if auction market liquidity tightens. While the debt is currently serviced by cash flows from the auction business, a prolonged downturn in high‑value vehicle sales could reduce the cash available to meet interest obligations, forcing Hagerty to either draw on its cash reserves or seek additional financing. The presence of leverage also increases sensitivity to changes in interest rates, which could raise borrowing costs and affect net investment income. Investors may be underestimating the potential strain that a stressed auction cycle could place on the balance sheet, especially given the company’s stated ambition to become the undisputed global leader in live and online sales.

Segments Breakdown of Revenue (2025)

Peer Comparison

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S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MKL	Markel Group Inc.	7,105.55 Bn	4,049.14	596.80	-
2	PGR	Progressive Corp/Oh/	131.92 Bn	11.41	1.53	-
3	CB	Chubb Ltd	78.78 Bn	6.78	1.23	1.93 Bn
4	CINF	Cincinnati Financial Corp	74.32 Bn	23.75	6.52	0.86 Bn
5	TRV	Travelers Companies, Inc.	72.03 Bn	9.47	1.41	-
6	ALL	Allstate Corp	63.08 Bn	5.25	0.93	-
7	FRFHF	Fairfax Financial Holdings Ltd/ Can	34.53 Bn	10.52	-	-
8	L	Loews Corp	23.53 Bn	13.57	1.60	8.93 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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