Hagerty Inc. Surpasses Expectations with Strong Q3 2026 Financial Results and New Growth Outlook

Hagerty Inc. Reports Strong Q3 2026 Results

Hagerty Inc., the renowned provider of specialty vehicle insurance, has demonstrated remarkable operational performance in the third quarter of 2026, revealing substantial growth and positive trends across various financial metrics. The company reported a record increase in its written premiums, new members, and earned premiums, reinforcing its reputation within the automotive insurance sector.

Year-to-Date Highlights
As of the end of September 2026, Hagerty has recorded an 18% year-on-year growth in written premiums, accumulating an impressive $1,099 million. This substantial increase is underscored by the addition of 402,000 new members during the first three quarters of the year, marking an 18% year-on-year rise in policies in force, translating to a total of 1.9 million members. The earned premium for the year has also seen a robust 42% increase, totaling $757 million.

The company’s financial metrics reflect strong underlying business momentum, which is further evidenced by its ability to achieve a combined ratio of 85.2% for Hagerty Re. This figure includes an estimation of lower losses amounting to $32 million, comprising $26 million related to the current accident year and an additional $6 million related to the previous year.

Impact of Transition to 100% Quota Share
Since implementing the Markel Fronting Arrangement on January 1, 2026, Hagerty has observed a decrease in reported revenue, which was previously communicated to investors. However, the transition to a 100% quota share arrangement with Markel has allowed the company to retain all premiums and risk from historically low-volatility underwriting, significantly enhancing its revenue potential.

Financial Performance Metrics
Despite a decrease in total revenue to $354 million for Q3 2026—down 9% year-over-year—the adjusted EBITDA has notably increased by 64% year-on-year to $97 million. This reflects a significant return on investment and robust profitability momentum for the firm, driven by the aforementioned growth in written premiums. The Company aims to bolster its 2026 profit outlook, projecting net income to range between $48 to $60 million and adjusted EBITDA between $305 to $315 million.

Marketplace and Member Growth
The third quarter results also highlight strong growth in auction sales, up 83% year-to-date compared to the previous year, owing to increased member engagement and broader market interest. Sales from the Hagerty Drivers Club have also seen a 6% year-on-year increase, raising the number of paid members to over 977,000.

CEO McKeel Hagerty's Vision
“Our remarkable third-quarter results affirm the positive growth trajectory we established in the first half of 2026,” stated McKeel Hagerty, CEO and Chairman of Hagerty. He emphasized the success of their engaging membership model, which continues to attract new car enthusiasts and deepen relationships within the community. He further stated that this distinct strategy has empowered ongoing growth, leading to improved sales at notable events, including the renowned Monterey car week.

Future Projections
With the current operational recovery and enhanced premium growth expectations, Hagerty is optimistic about achieving continued success in the automotive insurance space. With a dedicated focus on further increasing membership and leveraging technological advancements for better member engagement, the company sees a solid foundation for future profitability and growth.

In conclusion, Hagerty's strong Q3 performance illustrates resilience and effective strategic execution, positioning the company for a fruitful close to 2026 and beyond, while continually creating value for its members and stakeholders alike.