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Hagerty's Financial Triumph in 2024

Hagerty, Inc., a prominent player in the specialty vehicle insurance sector, has announced its remarkable financial results for the year ended December 31, 2024. The company demonstrated a robust year-over-year growth of 20% in total revenue, reaching an impressive $1.2 billion. This surge is attributed largely to the addition of 279,000 new members, indicating a growing affinity toward the Hagerty brand among automotive enthusiasts.

In detail, the written premium rose by 15% to $1.044 billion, reflecting sustained demand for Hagerty's insurance offerings. Notably, the marketplace revenue saw an astounding increase of 90%, underscoring the company’s successful expansion into digital automotive services. Operating income experienced a staggering rise of 538%, amounting to $66.4 million, while net income jumped by 178% to $78.3 million. This financial success came alongside an increase in adjusted EBITDA of 41%, totaling $124.5 million, illustrating efficient operational management and strong market positioning.

As Chief Executive Officer McKeel Hagerty stated, 2024 was characterized by strategic investments aimed at enhancing efficiency and member services, which translated into fruitful profit growth. The company’s commitment to maintaining a high net promoter score of 82 indicates a positive reception from customers.

A Promising Outlook for 2025

Looking ahead, Hagerty is optimistic about 2025, projecting total revenue growth between 12% and 13%. The anticipated rise in written premiums is estimated at 13% to 14%, showcasing confidence in their customer-centric model and industry knowledge. Notably, Hagerty aims to accelerate growth in the latter half of the year, particularly with the launch of the State Farm Classic Plus program in over 25 states.

With plans to significantly invest in technology, including the Duck Creek platform, the company is poised to leverage newer methodologies for risk assessment and customer segmentation. This modernization is expected to drive future efficiency and margin growth, enhancing the overall customer experience.

The financial metrics from 2024 serve as a strong foundation for Hagerty's ambitions. With a focus on high revenue growth and profitability metrics, the company is aiming for net income growth of 30% to 40% and adjusted EBITDA growth between 21% and 29% in 2025.

Key Financial Highlights

Hagerty’s fourth quarter 2024 results provided additional context to their performance. Total revenue surged by 19% year-over-year to $291.7 million, with written premiums increasing 13% to $217.4 million. Membership and marketplace revenues also exhibited significant growth, reflecting the diversified strengths of Hagerty’s offerings.

Operationally, Hagerty maintained a strong policy retention rate of 89%, with the total number of insured vehicles rising to 2.6 million. This positive growth trajectory emphasizes the increasing trust from policyholders in Hagerty's unique specialty vehicle insurance products.

As Hagerty forges ahead, their commitment to optimizing operations through strategic investments and technological advancements sets a promising course for 2025 and beyond. The company looks to not only enhance its core offerings but also provide exceptional value to its members, effectively saving driving culture for future generations. With ambitious plans and a strong financial base, Hagerty is set to navigate the evolving landscape of automotive insurance with confidence and strategic foresight.

In conclusion, as 2025 approaches, Hagerty's strong performance in 2024 serves as a testament to its resilience and forward-thinking approach, making it an exciting company to watch in the automotive insurance sector.