Hagerty Inc. posted strong full-year 2025 financial results, with total revenue rising 17% to US$1.46 billion (CA$2.00 billion) and net income surging 91% to US$149 million.
The specialty classic and enthusiast car insurer added a record number of new members during the year, fueling growth across insurance and marketplace operations.
Written Premium and Membership Growth
Hagerty’s core insurance business continued to expand in 2025:
- Written premium: Up 14% to US$1.19 billion
- 371,000 new members added
- Insured vehicles: Increased 9% to 2.8 million
- Policies in force: Rose nearly 12% to 1.68 million
Membership in the Hagerty Drivers Club grew 6% year-over-year to approximately 930,000 paid members. Membership and related revenue increased 4% to US$82 million.
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Marketplace Revenue Surges
Hagerty’s marketplace division delivered standout performance in 2025:
- Marketplace revenue: Up 119% to US$119 million
- Private sales: Surged 271% to US$286.8 million
- Auction sales: Increased 56% to US$278.7 million
- Q4 marketplace revenue: Up 80% year-over-year to US$29 million
Growth was driven by expansion into Europe and increased activity in private collector vehicle sales.
Profitability and Improved Loss Ratios
Hagerty significantly improved profitability in 2025:
- Income before taxes: Up 49% to US$139 million
- Q4 income before taxes: Increased 186% to US$40 million
- Adjusted EBITDA: Rose 46% to US$237 million
- Net income: Up 91% to US$149 million
The company’s loss ratio improved to 39.3%, down from 46.4% in 2024. Meanwhile, the combined ratio for Hagerty Re declined to 86.6%, compared to 94.1% the prior year.
Results included a US$21 million reserve reduction, primarily due to favorable 2024 accident year development.
CEO McKeel Hagerty described 2025 as a standout year defined by accelerating momentum, strong revenue growth, and significant reinvestment in technology and product innovation.
Expansion and Strategic Investments
During 2025, Hagerty invested heavily in:
- Technology transformation initiatives
- Launch of Enthusiast+
- Expansion of its State Farm distribution partnership to 27 provinces and states
- Marketplace growth across Europe
These investments aim to strengthen Hagerty’s member-centric model and long-term growth strategy.
2026 Outlook and Markel Partnership Shift
Looking ahead, Hagerty announced a major structural change with its long-term underwriting partner, Markel.
In 2026, Hagerty will transition to a 100% quota share arrangement, retaining full premium and underwriting risk from its insurance book.
The shift is expected to result in approximately US$190 million in non-cash costs, leading to a projected net loss of between US$41 million and US$51 million in 2026.
Despite this accounting impact, Hagerty expects:
- Written premium growth of 15% to 16%
- Adjusted EBITDA between US$236 million and US$247 million
- Total revenue is expected to decline 11% to 12%, reflecting the new accounting treatment
The company emphasized that it will continue investing in its member-focused ecosystem to drive sustainable, long-term growth.
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Company Profile: Hagerty Inc.
Hagerty Inc. is a specialty insurance provider focused on classic, collector, and enthusiast vehicles. Headquartered in the United States, the company protects approximately 2.8 million vehicles across the U.S., Canada, and the United Kingdom.
Beyond insurance, Hagerty operates a rapidly growing automotive marketplace and the Hagerty Drivers Club, one of the world’s largest communities for car enthusiasts. Through insurance, events, content, and marketplace services, Hagerty positions itself as a lifestyle brand dedicated to car culture and collector vehicle ownership.
