Hagerty Q4 revenue beats on written premiums growth

Overview

• Automotive insurance provider's Q4 revenue rose 19%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's 2025 net income surged 91% yr/yr, driven by strong revenue growth

Outlook

• Hagerty expects 2026 written premium growth of 15% to 16%

• Company anticipates 2026 total revenue decline of 11% to 12% due to Markel arrangement

• Hagerty projects 2026 net loss of $41 mln to $51 mln due to Markel transition costs

Result Drivers

• WRITTEN PREMIUM GROWTH - Hagerty's 17% revenue increase was driven by a 14% rise in written premiums

• MARKETPLACE EXPANSION - Marketplace revenue rose 119%, driven by growth in private sales and European expansion

• TECHNOLOGY INVESTMENTS - Co reinvested in tech transformation and launched new products like Enthusiast+

Company press release: ID:nPn9vd4bSa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Hagerty Inc is $15.00, about 29.1% above its February 25 closing price of $11.62

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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