Hagerty, Inc. (NYSE: HGTY) recently announced its financial results for the first quarter of 2026.
“First quarter results and the breadth of momentum across our ecosystem give us increasing confidence in our full year outlook that we reaffirmed today,” said McKeel Hagerty, chief executive officer and chairman of Hagerty. “We delivered 18% written premium growth in the first quarter, ahead of our full year outlook, and earned premium growth of 42% with the January 1, 2026, increase in quota share to 100%. 2026 is performing better than expected economically, even if the financial presentation looks different as we transition to the new Markel Fronting Arrangement. The presentation is different, but the business is not, as we delivered another quarter of record growth.
“Our business momentum is showing up across the ecosystem—and Broad Arrow is no exception. During the first quarter, Broad Arrow hosted the most successful sale in the 31-year history of Amelia Car Week, delivering $111 million in total sales with a 92% sell-through rate and over 1,000 bidders from 23 countries. Results like this are the product of four decades of building trust, one member and one partner at a time, and they reflect exactly the kind of member-centric company that Hagerty is building for the long-term.”
First Quarter 2026 Financial Highlights
- First quarter 2026 Written Premium increased 18% year-over-year to $289 million
- First quarter 2026 Earned Premium increased 42% year-over-year to $240 million, driven by the combination of strong written premium growth and the January 1, 2026, transition to 100% quota share under the new fronting arrangement
- Policies in Force Retention was 88.5% as of March 31, 2026, compared to 89.0% in the prior year period, and policies in force count increased 15% year-over-year to 1.8 million
- First quarter 2026 Commission and fee revenue decreased 84% year-over-year to $16 million, as Markel commission revenue is eliminated upon consolidation under the new fronting arrangement
- First quarter 2026 Marketplace revenue decreased 12% year-over-year to $26 million, with strong year-over-year growth in auction sales at The Amelia offset by lower inventory sales from the prior year’s one-time sale of vehicles acquired from The Academy of Art University Collection
- First quarter 2026 Membership and other revenue increased 6% year-over-year to $22 million
- Hagerty Drivers Club (HDC) paid members increased 6% year-over-year to over 940,000
- First quarter 2026 Net investment income increased 13% year-over-year to $10 million
- First quarter 2026 Total Revenue decreased 5% year-over-year to $312 million, reflecting the transition to the Markel Fronting Arrangement
- First quarter 2026 Loss before taxes of $21 million, including $89 million of Markel Fronting Arrangement transitional costs
- First quarter 2026 Hagerty Re Loss Ratio was 38.4% compared to 42.0% in the prior year period, including $6 million of favorable prior accident year loss development
- First quarter 2026 Hagerty Re Combined Ratio was 86.5% compared to 88.5% in the prior year period
- Transition to new fronting arrangement and Article 7 reporting results in a different classification of certain expenses, impacting the period-to-period comparability of Policy acquisition costs, net (+$25 million), Underwriting and other insurance expenses (+$58 million), and Selling, general, and administrative expenses (-$72 million)
- First quarter 2026 Net Loss of $13 million, including $89 million of pre-tax Markel Fronting Arrangement transitional costs, compared to Net Income of $27 million in the prior year period
- First quarter 2026 Adjusted EBITDA (a non-GAAP measure) increased 77% year-over-year to $85 million, compared to $48 million in the prior year period
- First quarter 2026 Basic and Diluted Loss Per Share were $(0.06); Adjusted Diluted Loss Per Share (a non-GAAP measure) was $(0.04)
- The Company had $212 million of unrestricted cash and $229 million of total debt, $110 million of which was back leverage for Broad Arrow Capital’s portfolio of loans collateralized by collector cars
For more in-depth details regarding Hagerty’s first quarter results and all related footnotes, check out the full press release. At the end of the full press release, the definitions and reconciliations of non-GAAP financial measures are provided under the heading “Key Performance Indicators and Certain Non-GAAP Financial Measures.”
2026 Outlook – Sustained Compounding Growth
Hagerty stated that it believes 2026 is on track to be another great year of underlying profit growth for the company as its team executes on its long-term plan to deliver compounding premium growth through investing in its long-term competitive advantages with its member-centric approach. As of January 1, 2026, Hagerty moved to a 100% quota share arrangement with its long-term partner, Markel, where the company retains 100% of the premium and risk from its high-quality, historically low volatility underwriting. The company says that it also remains focused on delivering this growth more efficiently through the benefits of scale, continued cost discipline, and investments in its technology platform.
For full year 2026, Hagerty anticipates:
- Written Premium growth of 15% to 16%
- Total Revenue change of (12)% to (11)%, as Markel-related commission revenue is eliminated under the Markel Fronting Arrangement
- Net Loss of $(51) million to $(41) million, including ~$190 million of Markel Fronting Arrangement transitional costs
- Adjusted EBITDA of $236 million to $247 million
| 2026 Outlook ($) | 2026 Outlook (%) | ||||
|---|---|---|---|---|---|
| in thousands | 2025 Results | Low End | High End | Low End | High End |
| Total Written Premium | $1,193,548 | $1,373,000 | $1,385,000 | 15% | 16% |
| Total Revenue | $1,456,389 | $1,280,000 | $1,300,000 | (12)% | (11)% |
| Net Income (Loss) | $149,225 | $(51,000) | $(41,000) | N/M | N/M |
| Adjusted EBITDA | $236,791 | $236,000 | $247,000 | —% | 4% |
Conference Call Details
Hagerty held a conference call to discuss the financial results on Wednesday, May 6, 2026. A webcast of the conference call, including its Investor Presentation highlighting first quarter 2026 financial results, is available on Hagerty’s investor relations website at investor.hagerty.com.