Hagerty — Q3 2026 Earnings Summary

Financial Performance:

• Year-to-date written premium gains reached 18%.
• Adjusted EBITDA increased 43% over the first nine months.
• The company added more than 400,000 new members since January, driven by State Farm conversions.
• The company reported 15 consecutive quarters of growth on key performance measures.
• Total sales at the second Zoute auction in early October reached €36 million, representing a 35% increase from the prior year.
• Total sales across all auction houses at Monterey Car Week reached an all-time high of $756 million.
• Modern supercars and hypercars accounted for nearly half of the total sales at Monterey Car Week.

Guidance and Future Outlook:

• The company raised its full-year outlook, citing favorable loss trends in physical damage and liability.
• Management states the company is on pace to reach its 2030 goal of 3 million policies in force.
• The current policy count stands at 3.1 million vehicles across the U.S., Canada, and the U.K.
• The addressable target market in the U.S. alone is estimated at 36 million.
• Management anticipates a potential market "breather" at the top end of the price spectrum following the 2026 surge but remains optimistic about long-term support from generational shifts in buyer demographics.

Business Segments and Product Lines:

• Insurance: Identified as the core of the business, with retention rates above 88% (excluding attrition from members selling their cars).
• Auctions (Broad Arrow): Includes Wynn Concours in Las Vegas and Zoute and Zurich auctions in Europe.
• Community & Media: The Hagerty Drivers Club magazine reaches over two million readers per issue.
• Valuation Tools: Hagerty Valuation Tools are widely used for pricing collectible vehicles.
• Strategic Partnership: Barrett-Jackson named Hagerty its official insurance partner this summer.
• Customer Acquisition: A significant portion of future policyholders first encounter the brand at Broad Arrow auctions.

Market and Competitive Landscape:

• The collector car market is being driven by Gen X, Millennial, and Gen Z buyers gravitating toward modern, higher-value cars, similar to how Baby Boomers pursued 1960s European race cars and American muscle.
• There are 67 million Americans who identify as car lovers.
• Over the last year, $19 billion in collector car transactions flowed through the hands of Hagerty members.
• The company has gained share year after year in both strong and softer market conditions.
• Member experience ratings average 4.93 out of 5 stars, and the Net Promoter Score is over 80, nearly double the industry benchmark.

Risks and Challenges:

• The primary source of member attrition is members selling their cars.
• Management warns that the collector car market has peaks and troughs, and record sales in August do not guarantee future auction results.
• There is a risk that high prices for top-end supercars and hypercars in 2026 may lead to a market correction or pause.

Management Commentary and Tone:

• CEO McKeel Hagerty expressed optimism about the long-term runway, citing the deep emotional connection members have with their vehicles.
• Management emphasized a "household brand and business model" that successfully converts auction buyers into insurance policyholders and club members.
• The tone highlights a focus on "growing with purpose" and maintaining a 20-year member lifecycle.
• Management credited technology investments, specifically AI, for freeing up staff time to focus on high-value member engagement rather than administrative tasks.

Other Key Points:

• The company utilizes a "full circle" business model where auction buyers become insured members, join the Drivers Club, and return to auctions for future purchases.
• AI technology now automatically handles call summaries for the Member Service Center, allowing representatives to focus on roadside assistance and complex coverage explanations.
• The company protects 3.1 million vehicles globally.
• The company's 2026 Road of the Year was a 1983 Porsche 911SC.