Hagerty increased quarterly written premiums by 16 per cent, but consolidated revenue fell after a change in its Markel arrangement altered commission accounting. The specialist insurer expanded its policy base and reported a lower combined ratio at Hagerty Re. Transitional costs weighed on nine-month net income. Management nevertheless raised its annual net-income outlook. The number of policies in force increased 18 per cent.
Specialist vehicle insurer Hagerty reported 386 million dollars of written premiums in the third quarter, up 16 per cent from a year earlier. Earned premiums increased 42 per cent to 265 million dollars. Consolidated revenue nevertheless declined 9 per cent to 354 million dollars. Zacks’ assessment of the same quarterly announcement put revenue and adjusted earnings above its consensus estimates.[1], [2]
A January arrangement with insurance partner Markel raised Hagerty’s US reinsurance quota share from 80 per cent to 100 per cent, including some earlier policies. Commissions earned within the group are consequently eliminated on consolidation. That removed 138 million dollars from the quarter’s commission-and-fee revenue line. The company attributed the lower consolidated revenue to this change in financial presentation. Premiums increased during the same period.[1]
At the end of September, policies in force numbered 1.9 million, an annual increase of 18 per cent. Retention declined to 88.2 per cent from 88.6 per cent a year earlier. Over the first nine months, written premiums increased 18 per cent to 1.099 billion dollars. These figures cover policy activity and premium production separately from the consolidated revenue presentation.[1]
Hagerty Re’s combined ratio, measuring claims and expenses against premiums, improved from 89.6 per cent to 79.7 per cent for the quarter. Its loss ratio fell from 42.0 per cent to 32.6 per cent. The nine-month combined ratio of 85.2 per cent included 32 million dollars of lower estimated losses: 26 million dollars for the current accident year and 6 million dollars for 2025.[1]
Nine-month net income was 32 million dollars, below the year-earlier level, including 189 million dollars of pretax transitional costs associated with Markel. Adjusted earnings before interest, taxes, depreciation and amortization increased 43 per cent to 257 million dollars over those nine months. Management raised its annual net-income forecast to a range of 48 million to 60 million dollars.[1]
