Key Highlights

  • Adjusted diluted EPS of USD 0.10 beat the consensus estimate of USD 0.01, while GAAP diluted EPS was USD 0.08.
  • Revenue of USD 354.2 million fell 9.5% but topped the consensus estimate of USD 338.99 million.
  • Adjusted EBITDA rose 63.5% to USD 97.1 million, and Earned Premium climbed 41.7% to USD 265.1 million.
  • Hagerty Re combined ratio improved to 79.7% from 89.6%, supported by a USD 26.0 million reduction in loss estimates.

Hagerty, Inc. (NYSE:HGTY) reported third quarter 2026 total Revenue of USD 354.2 million, down 9.5% from USD 391.4 million a year earlier and above a consensus estimate of USD 338.99 million. Adjusted diluted EPS, a non-GAAP measure, was USD 0.10 against a consensus estimate of USD 0.01 and USD 0.09 a year earlier. GAAP diluted EPS was USD 0.08 versus USD 0.11, and Net Income was USD 36.3 million versus USD 46.2 million. Income before taxes rose 210.4% to USD 41.4 million, and adjusted EBITDA rose to USD 97.1 million from USD 59.4 million.

Fronting Arrangement Reshapes Insurance Revenue

In the Insurance segment, earned premium rose USD 78.1 million, or 41.7%, as the Quota share percentage moved from 80% to 100% under the Markel Fronting Arrangement, while commission and fee revenue fell 84.3% to USD 21.6 million. Segment income before taxes was USD 48.9 million versus USD 50.8 million. Policies in force grew 18.1% to 1,909,254, Written Premium rose 15.5% to USD 386.0 million and retention was 88.2%. The Hagerty Re loss ratio improved to 32.6% from 42.0%. In Marketplace, the pre-tax loss narrowed to USD 2.6 million from USD 5.6 million, with Net Auction Sales up 65.9% to USD 102.5 million and the Quail Auction contributing USD 87.6 million, up 84.1%.

Nine Month Results and Financing Position

Nine month adjusted EBITDA rose 42.5% to USD 256.7 million, while nine month net income fell to USD 31.6 million from USD 120.7 million and adjusted diluted EPS dropped to USD 0.05 from USD 0.28. Cash and cash equivalents stood at USD 460.8 million, and borrowings under the 2025 JPM Credit Facility, which has USD 375.0 million of capacity, were USD 119.3 million. The company said it was in compliance with financial covenants, and on October 29, 2026 amended the credit agreement to lift a permitted amount from USD 150.0 million to USD 275.0 million. It completed the Bennetts acquisition, a United Kingdom motorcycle insurance broker, on October 8, 2026 for about GBP 34.5 million, or about USD 46.0 million.

Third Quarter Ratios and Balances Against Year Earlier Levels

The Hagerty Re combined ratio of 79.7% compares with 89.6% a year earlier, and the loss ratio of 32.6% compares with 42.0%, with a USD 26.0 million reduction to current accident year loss estimates recorded in the quarter. Cash and cash equivalents of USD 460.8 million compare with USD 160.4 million at September 30, 2025. The BAC Loan portfolio reached USD 162.3 million against USD 100.1 million, and the Bennetts purchase of about USD 46.0 million follows the quarter end. Nine month adjusted EBITDA of USD 256.7 million compares with USD 180.1 million a year earlier.