Core Insights - Broad Arrow Auctions announces the Zoute Concours Auction scheduled for October 10, 2025, in collaboration with Zoute Grand Prix Car Week, featuring approximately 70 exceptional collector cars [1][2][3] Company Overview - Broad Arrow Auctions is a Hagerty company, recognized as a leading global collector car auction house, founded in 2021 by industry veterans [5] - The company has rapidly expanded its presence in Europe, recently debuting at the Concorso d'Eleganza Villa d'Este as BMW AG's official auction partner [8] Recent Achievements - The inaugural European auction at the Concorso d'Eleganza Villa d'Este achieved €31.2 million in sales, with 78% of lots sold, including a record sale of a 1948 Ferrari 166 Spyder Corsa for €7,543,750 [3][2] Event Details - The Zoute Concours Auction will take place at Approach Golf in Knokke-Heist, coinciding with the prestigious Zoute Concours d'Élégance on October 11-12, 2025 [1][2] - Zoute Grand Prix Car Week is a five-day festival that combines exceptional automobiles, art, and luxury lifestyle, attracting collectors and enthusiasts globally [10][11] Strategic Partnerships - The partnership with Zoute Grand Prix aims to enhance the international character of the event and expand Broad Arrow's global reach [3][10] - The collaboration is seen as a natural fit, driven by a shared vision of excellence and ambition between Broad Arrow and Zoute Grand Prix [3]

Group 1 - The article discusses the author's interest in Hagerty (NYSE: HGTY) due to its connection with Markel, which is a significant holding for the author [1] - Markel is compared to Berkshire Hathaway, highlighting its trust-based and fair dealing culture that positively impacts long-term capitalism [1] - The author emphasizes the importance of knowledge compounding and references investment philosophies from notable investors like Warren Buffett and Charlie Munger [1] Group 2 - The author has a beneficial long position in Markel shares, indicating a personal investment interest [2] - The article expresses the author's opinions without any compensation from the companies mentioned, ensuring an independent viewpoint [2]

Core Insights - Broad Arrow Auctions, a subsidiary of Hagerty, successfully held its first European auction at the Concorso d'Eleganza Villa d'Este, achieving total sales of €31,172,625 with 78% of lots sold [2][3][11] Auction Highlights - The standout sale was a 1948 Ferrari 166 Spyder Corsa, which set a new auction record by selling for €7,543,750 [4][11] - Other notable sales included a 1989 Ferrari F40 Competizione for €2,312,500 and a 2003 Honda NSX-R for €934,375, which also set a world auction record [6][12] - The auction featured a dedicated BMW-only sale, with a 1980 BMW M1 selling for €602,500 [8][11] Sales Performance - The auction took place over two days, May 24 and 25, with over 8,000 viewers watching live on YouTube [3][11] - The auction included over 70 vehicles, showcasing a mix of classic and modern cars, attracting bidders from various countries [6][12] Future Plans - Broad Arrow Auctions plans to expand its European sale calendar throughout 2025, following the success of this inaugural event [9][12]

Event Overview - The California Mille, a 1,000-mile driving adventure, celebrated its 34th running from April 27th to May 1st, featuring cars from the original Mille Miglia era (1927-1957) [1] - This year's featured class was the Ferrari 250, including models like the 250 GT LWB 'Tour de France', 250 GT Boano, and 250 PF Cabriolet Special [1] Event Details - The event featured 80 cars and began at The Ritz-Carlton, Half Moon Bay, traveling through the Bay Area and Napa Valley, with scenic routes around Santa Rosa and along the coast [3] - Participants enjoyed luxury accommodations, exclusive collection tours, and fine dining throughout the 5-day tour [3] Charity Contributions - The California Mille raised over $85,000 for non-profit organizations, including the California Firefighters Benevolent Fund and CHP 11-99 foundation [4] - Proceeds included a live charity auction of a painting featuring the Ferrari 250, commissioned from artist Brian Kesling [4] Sponsorship and Partnerships - Chopard returned as the "Official Timekeeper" for the California Mille in 2025, emphasizing its long-standing connection to motorsport [2]

Hagerty (HGTY) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants Jay Koval - SVP - IR & CommunicationsMcKeel Hagerty - Chairman & CEOPatrick McClymont - Chief Financial OfficerPablo Singzon - Executive Director Conference Call Participants None - AnalystMark Hughes - Analyst Operator Greetings, and welcome to the Hagerty First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Question and answer session will follow the formal presentation. ...

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $320 million in Q1 2025, driven by a 12% increase in written premium and a 13% growth in commission revenue [7][14] - Net income rose by 233% to $27 million compared to $8 million a year earlier, with adjusted EBITDA growing by 45% to $40 million [9][19] - Operating margin improved by 360 basis points to 8%, with operating profit reaching $26 million, a 110% increase [17][19] Business Line Data and Key Metrics Changes - Membership marketplace and other revenue surged by 60% to $50 million, supported by successful auctions [8][15] - Earned premium from the risk-taking entity, AgriLife Reinsurance, increased by 12% to $169 million [14][19] - The MGA membership and marketplace businesses accounted for nearly half of total revenue, with rapidly expanding margins [17] Market Data and Key Metrics Changes - The company operates primarily in the U.S., generating over 90% of its revenue domestically, which positions it well against tariff-related risks [12] - The company reported a loss ratio of 42%, which includes $10 million in losses from Southern California wildfires [14][19] Company Strategy and Development Direction - The strategic priorities for 2025 focus on expanding specialty insurance offerings, simplifying the membership experience, and expanding the marketplace business internationally [9][10] - The company is investing in technology transformation, including a transition to a cloud-based insurance platform, which is expected to enhance efficiency and scalability [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high rates of profitable growth, citing a compound annual growth rate in written premium of over 13% since 2005 [12][13] - The company reaffirmed its 2025 guidance, expecting top-line revenue growth of 12% to 13% and net income of $102 million to $110 million, reflecting a 30% to 40% increase [20] Other Important Information - The company is preparing for significant auctions, including a partnership with BMW at the Villa D'Este Concorso in Italy [10][15] - The company ended the quarter with $128 million in cash and $147 million in total debt, including $32 million in back leverage for loans collateralized by collectible cars [19] Q&A Session Summary Question: Can you provide an update on the relative margins generated from marketplace revenues? - Management indicated that the live auction business significantly contributed to profitability, with contribution profit margins around 30% to 35% for successful sales, compared to about 10% for the risk-taking business [23][27] Question: What is the impact of tariffs on Hagerty's business? - Management believes tariffs will have a muted impact on their business, as many vehicles are older and parts are often manufactured domestically, thus not significantly affected by tariff changes [34][36][38] Question: How has shopping behavior changed recently? - Management noted strong shopping activity industry-wide, although growth was slightly slower than anticipated due to weather and large events causing pauses in activity [39][41][45] Question: What is the outlook for membership and marketplace revenue growth for the full year? - Management affirmed guidance for the entire business, indicating a good start to live auctions and a solid schedule for the remainder of the year [47][48] Question: Can you elaborate on the new Enthusiast Plus program? - The program aims to cater to younger buyers interested in newer vehicles, allowing the company to expand its underwriting capabilities and capture more business [49][50][51] Question: How will the $20 million in annual expenses impact future quarters? - Management indicated that expenses would be incurred ratably throughout the year, with approximately 15% of the $20 million appearing in Q1 [64][66]

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $320 million in Q1 2025, driven by a 12% increase in written premium and a 13% growth in commission revenue [6][12] - Net income rose by 233% to $27 million compared to $8 million a year earlier, with adjusted EBITDA increasing by 45% to $40 million [7][16] - Operating margin improved by 360 basis points to 8%, with operating profit reaching $26 million, a 110% increase [14][16] Business Line Data and Key Metrics Changes - Membership marketplace and other revenue surged by 60% to $50 million, supported by successful auctions [6][13] - Earned premium from the risk-taking entity, AgriLife Reinsurance, increased by 12% to $169 million [12][16] - The MGA membership and marketplace businesses accounted for nearly half of total revenue, with rapidly expanding margins [14] Market Data and Key Metrics Changes - The company maintains a strong retention rate of 89%, contributing to the growth in written premium [12] - The auction business, particularly live auctions, significantly contributed to revenue growth, with successful events at Amelia Island and the American Academy of Art University [13][22] Company Strategy and Development Direction - The company aims to expand specialty insurance offerings to cover more collectible vehicles, including modern enthusiast vehicles [7][8] - Plans to simplify and better integrate the membership experience across products and services to create revenue synergies and drive cost efficiencies [8] - International expansion of the marketplace business is a priority, with upcoming auctions in Italy as part of a multi-year partnership with BMW [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high rates of profitable growth, supported by a differentiated business model and strong customer retention [10][11] - The company reaffirmed its 2025 guidance, expecting top-line revenue growth of 12% to 13% and net income growth of 30% to 40% [17] - Management noted that while the start of 2025 was solid, growth is anticipated to ramp up in the second half of the year, particularly with State Farm partnerships [40] Other Important Information - The company is investing in technology transformation, including a transition to a cloud-based insurance platform, which is expected to enhance long-term efficiency [9][10] - The company ended the quarter with $128 million in cash and $147 million in total debt, including $32 million in back leverage for loans collateralized by collectible cars [16] Q&A Session Summary Question: Can you provide an update on the relative margins generated from marketplace revenues? - Management indicated that the live auction business had strong contribution profit margins of 30% to 35%, significantly higher than the risk-taking business, which operates at about a 10% profit margin [20][23] Question: What is the anticipated impact of tariffs on Hagerty's book? - Management believes tariffs will have a muted impact on the business, as many vehicles are not affected by changes in the tariff regime, particularly those over 25 years old [29][32] Question: Can you update on shopping behavior as the driving season approaches? - Management noted strong shopping activity industry-wide, with quote volume remaining robust, although growth was slightly slower than anticipated due to various factors, including weather and large events [36][40] Question: What is the outlook for membership and marketplace revenue growth for the full year? - Management affirmed guidance for the entire business, indicating a good start to the year in live auctions, with several events scheduled for the remainder of the year [43] Question: Can you elaborate on the new Enthusiast Plus program? - The program aims to cater to younger buyers interested in newer cars, allowing the company to expand its underwriting capabilities and capture more business [45][46] Question: How will the $20 million in annual expenses from technology spending impact future margins? - Management clarified that the expenses are not one-time but will continue as part of ongoing operations, impacting margins in 2025 while supporting future growth [50][55]

Financial Performance - For the three months ended March 31, 2025, the company reported net income of $27.3 million, a 232.9% increase compared to the prior year[197]. - Adjusted EBITDA for the same period was $39.6 million, reflecting a 44.9% increase year-over-year, driven by an 11.9% growth in written premium[197]. - Total revenue for the quarter was $319.6 million, representing a 17.6% increase compared to $271.7 million in the prior year[199]. - Total revenue for the three months ended March 31, 2025, was $319.6 million, an increase of $47.9 million, or 17.6%, compared to the same period in 2024[220]. - Operating income for the three months ended March 31, 2025, was $25.7 million, a significant increase of $13.5 million, or 110.5%, compared to 2024[220]. - Adjusted EPS for Q1 2025 was $0.08, compared to $0.04 in Q1 2024, reflecting improved net income performance[282]. Premium and Revenue Growth - Total written premium reached $244.3 million, up by $26.0 million or 11.9% from the previous year[199]. - Earned premium at Hagerty Re was $169.4 million, an increase of $17.7 million, or 11.7%, primarily due to growth in subject premiums written through MGA subsidiaries[225]. - Membership, marketplace, and other revenue reached $50.0 million, an increase of $18.7 million, or 59.8%, with marketplace revenue alone increasing by $18.5 million, or 175.8%[226][228]. - Commission and fee revenue increased to $100.3 million, up $11.4 million, or 12.9%, driven by policy renewals contributing $11.9 million[221]. Expenses and Losses - The company recognized approximately $4.0 million in losses and impairments related to the reorganization of certain businesses in 2023[196]. - Losses and loss adjustment expenses were $71.1 million, an increase of $8.8 million, or 14.1%, driven by the increase in earned premium[232]. - Sales expenses increased by $15.0 million, or 37.7%, to $54.6 million for the three months ended March 31, 2025, primarily due to higher marketplace inventory sales and increased broker expenses[234]. - General and administrative expenses were $22.2 million, an increase of $2.3 million, or 11.7%, expected to decrease as a percentage of revenue over time[220]. - General and administrative expenses rose by $2.3 million, or 11.7%, to $22.2 million for the three months ended March 31, 2025, mainly due to increased software-related costs[235]. Loss Ratios and Claims - The Hagerty Re loss ratio was reported at 42.0%, slightly up from 41.1% in the prior year[199]. - For the three months ended March 31, 2025, the loss ratio was 42.0%, compared to 41.1% for the same period in 2024, with $10.4 million in pre-tax catastrophe losses from the Southern California wildfires[233]. Cash Flow and Financing - Net cash provided by operating activities decreased by $14.4 million, or 24.7%, to $43.8 million for the three months ended March 31, 2025[261]. - Cash from financing activities increased by $51.5 million in Q1 2025 compared to Q1 2024, primarily due to net proceeds from credit facility borrowings[265]. - As of March 31, 2025, total outstanding borrowings under the 2025 JPM Credit Facility were $88.8 million, with an aggregate borrowing capacity of $375.0 million[247]. - The BAC Credit Facility has an aggregate borrowing capacity of $75.0 million, with outstanding borrowings of $32.1 million as of March 31, 2025[249]. Tax and Other Financial Metrics - The effective income tax rate decreased to 17% for the three months ended March 31, 2025, down from 39% in the same period in 2024[240]. - Income tax expense increased by $0.4 million, or 7.0%, to $5.5 million for the three months ended March 31, 2025, driven by a $1.8 million increase in pre-tax income[241]. - The decrease in net cash from operating assets and liabilities was primarily driven by a $31.9 million net decrease in operating cash flows due to the timing of CUC receivables and payables[263]. - There were no material off-balance sheet arrangements as of March 31, 2025[269]. Membership and Engagement - The number of policies in force increased to 1,524,927, a 1.2% growth from the previous period[199]. - Hagerty Drivers Club (HDC) paid member count rose to 889,390, marking a 1.5% increase year-over-year[199]. - The net promoter score (NPS) remained stable at 82, indicating strong brand loyalty and engagement among members[199].

Core Viewpoint - Hagerty, Inc. (HGTY) reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, marking a 300% earnings surprise compared to $0.04 per share a year ago [1][2] Financial Performance - The company achieved revenues of $319.59 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.97% and showing an increase from $271.71 million year-over-year [2] - Over the last four quarters, Hagerty has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance and Outlook - Hagerty shares have declined approximately 8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $356.86 million, and for the current fiscal year, it is $0.31 on revenues of $1.35 billion [7] Industry Context - The Insurance - Property and Casualty industry, to which Hagerty belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Investor Presentation Q1 2025 SPEAKERS: McKeel Hagerty | Chief Executive Officer and Chairman Patrick McClymont | Chief Financial Officer FORWARD LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements we provide, other than statements of historical fact, are forward-looking statements, including those regarding our future operating results and financial position, our ...