Hagerty Inc. reported fourth‑quarter 2025 results that surpassed expectations, with total revenue of $357.3 million, up 18.5% year‑over‑year, and net income of $28.6 million, a 238% jump from the same period a year earlier. Earnings per share were $0.08, beating the consensus estimate of $0.04 by $0.04, or 100% of the expected figure. The company’s core collector‑car insurance book drove the performance, with written premium rising 19% to $259 million and earned premium increasing 14% to $193 million. Loss ratio fell sharply to 31.4% from 42.8% in Q4 2024, and a $21 million reduction in reserves further boosted profitability.
The marketplace segment posted a 80% year‑over‑year increase, reaching $29 million, while membership revenue grew 8% to $19 million. These gains were supported by a record number of new business contracts and a continued expansion of the State Farm partnership. The company’s full‑year 2025 results also beat expectations, with revenue of $1.456 billion, up 17% from $1.216 billion in 2024, and net income of $149.2 million, a 91% increase from $78.3 million in 2024.
Management highlighted the sharp improvement in underwriting performance, noting that the lower loss ratio and reserve reduction were key drivers of the earnings beat. The company also emphasized that written premium growth of 15–16% is expected for 2026, reflecting confidence in the underlying business momentum. However, Hagerty cautioned that total revenue is projected to decline to $1.28 billion–$1.30 billion in 2026 due to accounting changes related to a new fronting arrangement with Markel, and net income is expected to turn a loss of $51 million to $41 million as a result of $190 million in transitional, non‑cash costs.
"2025 was a standout year for Hagerty, defined by accelerating momentum and record new business count," said CEO and Chairman McKeel Hagerty. "In 2026, we will continue to invest back into our member‑centric model to drive durable, compounding growth, with written premiums expected to increase 15% to 16%." He added, "2026 also marks a major milestone for Hagerty as we move to a 100% quota share with our long‑term partner, Markel. We believe this evolution, combined with our technology‑led efficiency initiatives, positions us to generate even higher rates of underlying profit growth and cash flow for our shareholders over the coming years."
Analysts largely responded positively to the results, with several issuing "Outperform" ratings. Investors reacted favorably to the earnings beat and the company’s guidance, reflecting confidence in Hagerty’s growth trajectory and its strategic partnership with Markel.
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