Industry Overview - The Property and Casualty (P&C) insurance sector is expected to benefit from improved pricing, prudent underwriting, increased exposure, and a strong capital position, ranking in the top 12% of the Zacks Industry Rank [1] - The industry is projected to outperform the market over the next three to six months due to these favorable conditions [1] Technological Advancements - Insurers are heavily investing in technology, with an expected generation of approximately $4.7 billion in annual global premiums from AI-related insurance by 2032, reflecting a CAGR of nearly 80% [2] - The adoption of technologies such as blockchain, AI, advanced analytics, telematics, and insurtech solutions is enhancing efficiency and reducing costs for P&C insurers [2] Company Highlights The Travelers Companies Inc. (TRV) - TRV has a strong market presence in auto, homeowners', and commercial property-casualty insurance, with a high retention rate and positive renewal premium changes [6] - Expected revenue and earnings growth rates for TRV are 3.4% and 6.7%, respectively, for the next year, with a 1.5% improvement in earnings estimates over the last 30 days [8] RenaissanceRe Holdings Ltd. (RNR) - RNR is experiencing steady premium growth, with a projected 5.4% year-over-year growth in net premiums earned in 2025 [10] - Expected revenue and earnings growth rates for RNR are -1.8% and 9.4%, respectively, for the next year, with a 0.9% improvement in earnings estimates over the last 30 days [11] The Allstate Corp. (ALL) - ALL is witnessing consistent premium growth, with a 7.6% year-over-year increase in net premiums earned in the first nine months of 2025 [12] - Expected revenue and earnings growth rates for ALL are 5.7% and -14.5%, respectively, for the next year, with a 5% improvement in earnings estimates over the last 30 days [14] Mercury General Corp. (MCY) - MCY is positioned for top-line growth due to sustained premium increases and a higher number of policies written [15] - Expected revenue and earnings growth rates for MCY are 6.7% and 23.5%, respectively, for the next year, with a 13.5% improvement in earnings estimates over the last 30 days [17] Hagerty Inc. (HGTY) - HGTY specializes in insurance services for collector cars and enthusiast vehicles, offering bundled memberships with various benefits [18][19] - Expected revenue and earnings growth rates for HGTY are 7.3% and -14.3%, respectively, for the next year, with a 6.1% improvement in earnings estimates over the last 30 days [20]

THE BILL SPURLING COLLECTION AND THE WELLINGTON MORTON COLLECTION OFFERED WITHOUT RESERVE AT MARCH 6-7 SALE | 2026 MARKS BROAD ARROW’S FOURTH YEAR AS THE OFFICIAL AUCTION HOUSE OF THE AMELIA CONCOURS D’ELEGANCE 1935 Duesenberg Supercharged Model J LaGrande Dual-Cowl Phaeton Credit - Ryan Merrill / Courtesy of Broad Arrow Auctions 1954 Mercedes-Benz 300 SL Gullwing Coupe Credit - Ryan Merrill / Courtesy of Broad Arrow Auctions Grosse Pointe, Michigan, Dec. 02, 2025 (GLOBE NEWSWIRE) -- Broad Arrow Auct ...

Grosse Pointe, Michigan, Dec. 02, 2025 (GLOBE NEWSWIRE) -- Broad Arrow Auctions, a Hagerty company (NYSE: HGTY) is delighted to announce two exciting private collections as early highlights for the company’s flagship Amelia Auction, set for March 6-7 at the Ritz-Carlton, Amelia Island in Florida. Celebrating its fourth year as the official auction house of the renowned Amelia Concours in 2026, Broad Arrow’s Amelia Auction will once again present approximately 150 exceptional collector cars across a two-day ...

Core Insights - Broad Arrow Auctions, a Hagerty company, is launching a new online auction series called Global Icons in January 2026, featuring collector cars and motorsport memorabilia [1][2] Auction Format and Offerings - Global Icons will consist of three parts: two online collector car auctions (Global Icons: Europe Online and Global Icons: UK Online) and an online memorabilia auction (Global Icons: Memorabilia Online) [1][2] - The auctions will feature a diverse selection of high-quality pre-war, post-war, and modern collector cars, with a focus on 'iconic' vehicles that hold historical significance [2][3] Featured Lots - A notable early consignment for the auctions includes a 1971 Lamborghini Miura P400 S, estimated between €1.600 million and €1.800 million, which has a rich history and has been carefully restored [3][4] Memorabilia Offerings - The memorabilia auction will include approximately 100 lots, featuring items associated with legendary drivers such as Ayrton Senna and Michael Schumacher [5] Auction Timeline - Bidding for the auctions will open on January 23, 2026, with the Europe and UK Online auctions closing on January 30, and the Memorabilia Online auction closing on February 1 [6] In-Person Previews - Broad Arrow will host in-person previews of many auction lots at various locations across Europe and at its UK headquarters, enhancing the auction experience for bidders [7] Consignment Information - Interested consignors are invited to connect with Broad Arrow for consignment opportunities, with buyer's premiums set at 10% for collector vehicles and 25% for memorabilia [8]

Core Insights - Greenhaven Road Capital reported a third-quarter 2025 return of approximately -9%, with year-to-date returns also at -9% [1] - The fund's performance was impacted by a lack of direct investment in AI, no overlap with major indices like the S&P 500 and Russell 2000, and insufficient holdings in small, high-growth, unprofitable companies that have benefited from the AI landscape [1] Company Focus: Hagerty, Inc. (NYSE:HGTY) - Hagerty, Inc. provides insurance services for collector cars and enthusiast vehicles, with a one-month return of 5.70% and a 52-week gain of 14.25% [2] - As of November 7, 2025, Hagerty's stock closed at $12.43 per share, with a market capitalization of $4.252 billion [2] - Greenhaven Road has more than doubled its shares in Hagerty during 2025, with a core thesis that earnings could grow fivefold from 2024 to 2029 due to a partnership with State Farm, operating leverage from policy growth, and normalization of loss ratios [3] Hedge Fund Interest - Hagerty, Inc. is not among the 30 most popular stocks among hedge funds, with 11 hedge fund portfolios holding the stock at the end of Q2 2025, down from 12 in the previous quarter [4] - While acknowledging Hagerty's potential, the company believes certain AI stocks present greater upside potential and less downside risk [4]

Core Insights - The fund experienced a return of approximately -9% during Q3, leading to a year-to-date return of approximately -9% [2] - The portfolio lacks direct exposure to AI, focusing instead on companies that are integrating AI into their operations, which has affected short-term performance [3][5] - The investment strategy emphasizes long-term growth potential and durable competitive advantages rather than short-term market trends [5][8] Portfolio Analysis - The top five holdings include PAR Technologies, Cellebrite, KKR, LifeCore, and Burford, all of which have faced declines in share price year-to-date [7][32] - LifeCore's share price dropped over 10% following a shelf offering announcement, despite positive business developments [12][15] - Cellebrite's valuation has been impacted by a general decline in software multiples, with a 26% drop in Enterprise Value to Next 12 Months Revenue for medium growth companies [17][18] Company-Specific Developments - LifeCore is expected to ramp up revenues significantly by 2026, driven by new customer wins and favorable regulatory changes [13][15] - Cellebrite is positioned to benefit from AI advancements, with plans to release investigative AI tools in January 2026 [20][22] - KKR's diversified asset management approach remains robust, with significant growth in Fee Related Earnings and a focus on expanding its investor base [25][31] Market Trends and Challenges - The current market environment has led to a compression of software multiples, affecting companies like Cellebrite and PAR Technologies [18][46] - Concerns regarding traditional private equity and private credit have emerged, but KKR's diversified model mitigates some of these risks [24][30] - The investment landscape is characterized by volatility, with a disconnect between share prices and underlying business progress [10][42] Future Outlook - The fund's strategy focuses on long-term value realization, with expectations that current market conditions will eventually improve for the companies held [9][43] - There is potential for significant growth in companies like Hagerty and Kingsway, driven by strategic partnerships and management quality [33][35] - The outlook for PAR Technologies hinges on winning key contracts, which could substantially increase recurring revenue and growth rates [51][60]

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $380 million in Q3 2025, driven by a 16% increase in written premium and 18% growth in commission revenue [12][6] - Net income rose by 143% to $46 million compared to $19 million a year earlier, with adjusted EBITDA increasing by 106% to $50 million [16][12] - Operating margins improved by 590 basis points to 9%, with operating profit reaching $34 million, a 240% increase [13][12] Business Line Data and Key Metrics Changes - Membership, marketplace, and other revenue surged by 34% to $56 million, attributed to the launch of the European auction business and growth in inventory sales [12][6] - Earned premium in Hagerty Reinsurance increased by 12%, while the loss ratio for the quarter was 42%, resulting in a year-to-date combined ratio of 89% [12][16] Market Data and Key Metrics Changes - The company reported the highest policy-in-force (PIF) growth in its history in October, with significant contributions from the conversion of State Farm policies [6][12] - The company has established itself as a leading auction house, with a total global vehicle value sold at Broad Arrow Live Auctions reaching $240 million through November 1st [10][12] Company Strategy and Development Direction - The company aims to expand its specialty insurance offerings, simplify the membership experience, and grow its marketplace business internationally [10][9] - A new partnership with Liberty Mutual and Safeco was announced, which is expected to enhance customer engagement and retention [9][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance, highlighting a strong growth trajectory and the importance of long-term planning in the insurance industry [69][4] - The company expects to achieve 14%-15% revenue growth for the full year, with net income projected to grow by 58%-65% [17][12] Other Important Information - The company is transitioning to a new fronting arrangement with Markel, allowing it to control 100% of the premium and risk starting in 2026 [11][12] - A valuation allowance of $38 million was released, contributing to an income tax benefit [15][12] Q&A Session Summary Question: Can you provide quantification on the Liberty Mutual and Safeco partnership? - Management indicated it represents tens of thousands of customers and is a significant opportunity, although specific details were not disclosed [20][21] Question: What is the expected impact of the Enthusiast Plus rollout on PIF growth? - Management stated it is early days for Enthusiast Plus, and while they are optimistic, specific loss results are not yet available [23][24] Question: What is driving the acceleration in written premium growth? - Management noted that the growth is influenced by the seasonal nature of the business and the ongoing conversion of State Farm policies [26][27] Question: How will the transition to the Markel agreement impact liquidity and asset allocation? - Management confirmed that they have allocated investments into high-grade corporate and government bonds, providing protection against interest rate cuts [40][41] Question: What are the expectations for EBITDA growth in Q4? - Management indicated that Q4 is typically a lighter quarter with tighter margins, but no specific spending increases are planned [54][55] Question: How will the new policy acquisition costs impact earnings? - Management stated that it is still a work in progress and details will be shared once finalized [64][63]

Financial Performance - For the three months ended September 30, 2025, the company reported net income of $46.2 million, a 142.9% increase compared to the prior year, and adjusted EBITDA of $49.7 million, a 105.7% increase [224]. - For the nine months ended September 30, 2025, net income reached $120.7 million, a 72.7% increase compared to the prior year, with total revenue of $1.07 billion, a 17.6% increase [225]. - Total revenue for Q3 2025 reached $380.0 million, reflecting a $56.6 million increase or 17.5% from Q3 2024 [250]. - Operating income surged to $34.3 million in Q3 2025, a significant increase of $24.2 million or 240.1% compared to Q3 2024 [250]. - Net income for Q3 2025 was $46.2 million, an increase of $27.2 million or 142.9% from Q3 2024 [250]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $153.1 million, compared to $104.6 million for the same period in 2024, reflecting a significant increase [334]. - Adjusted EPS for the nine months ended September 30, 2025, was $0.34, up from $0.22 in the same period of 2024 [340]. - Basic EPS for the nine months ended September 30, 2025, was $0.35, compared to $0.09 for the same period in 2024 [340]. Revenue Growth - Total written premium for the same period was $334.0 million, reflecting a 16.1% growth year-over-year, which drove an 18.0% increase in commission and fee revenue [224]. - Commission and fee revenue for Q3 2025 was $137.1 million, an increase of $20.9 million or 18.0% compared to Q3 2024, driven by both policy renewals and new policies [251]. - Membership, marketplace, and other revenue increased to $55.9 million in Q3 2025, a rise of $14.3 million or 34.5% compared to Q3 2024 [250]. - Membership, marketplace, and other revenue reached $153.4 million, up $53.9 million or 54.1%, with marketplace revenue increasing significantly due to higher inventory sales [280]. - Earned premium, net for Q3 2025 was $187.0 million, up $21.4 million or 12.9% from Q3 2024, primarily due to growth in subject premiums written through MGA subsidiaries [254]. - Earned premium, net rose to $534.2 million, an increase of $59.3 million or 12.5%, primarily due to a $88.3 million increase in subject premiums written through MGA subsidiaries [279]. Underwriting Performance - The Hagerty Re loss ratio improved to 42.0% for Q3 2025, down from 60.0% in the prior year, indicating better underwriting performance [229]. - The Hagerty Re combined ratio improved to 89.6% for Q3 2025, down from 107.7% in the prior year, indicating enhanced underwriting profitability [229]. - The loss ratio improved to 42.1% for the nine months ended September 30, 2025, down from 47.7% in the prior year, despite $10.3 million in pre-tax catastrophe losses [288]. - The company experienced a 47.9% increase in new policies written compared to the prior year, largely due to a master alliance agreement with State Farm [252]. Expenses and Costs - Salaries and benefits expenses rose to $68.1 million in Q3 2025, an increase of $20.9 million or 44.3% from Q3 2024 [250]. - General and administrative expenses were $24.4 million, up 17.3% from $20.8 million in 2024, driven by higher professional fees and software-related costs [267]. - Total operating expenses were $960.5 million, an increase of $112.6 million or 13.3%, with sales expenses rising by $52.9 million or 36.0% [275]. - General and administrative expenses increased to $69.2 million, up $7.1 million or 11.5%, primarily due to software-related costs and professional fees associated with recent transactions [290]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $189.9 million, a slight increase of $0.2 million or 0.1% compared to 2024 [319]. - Cash used in investing activities decreased by $439.7 million for the nine months ended September 30, 2025, compared to 2024, mainly due to diversification of the investment portfolio [321]. - Cash from financing activities increased by $57.5 million for the nine months ended September 30, 2025, primarily due to net proceeds from credit facility borrowings [322]. - As of September 30, 2025, the company believes its sources of liquidity will be sufficient to support its anticipated commitments and capital requirements [302]. Tax and Regulatory Matters - An income tax benefit of $32.8 million was recorded for the three months ended September 30, 2025, a significant increase of $31.8 million compared to 2024, primarily due to the release of a valuation allowance [274]. - The income tax benefit for the nine months ended September 30, 2025, was $21.2 million, an increase of $31.1 million compared to 2024, primarily due to the release of the valuation allowance [298]. - The company expects to have adequate capital resources to meet obligations under the TRA with Legacy Unit Holders [323]. - The estimated value of the Tax Receivable Agreement (TRA) liability was $39.9 million, with $2.0 million classified as a current liability [325]. Business Developments - The company launched a new insurance product, Enthusiast+, aimed at modern enthusiast vehicles, with an initial rollout in Colorado in Q3 2025 and plans for a nationwide rollout over the next four years [220][222]. - The company recognized approximately $4.0 million in losses and impairments related to the reorganization of certain businesses, including Hagerty Garage + Social and DriveShare, in 2023 [223].

Financial Performance - Total revenue grew by 18% to $1,068 million YTD Q3 2025[5] - Operating income increased by 78% to $108 million compared to $60 million[9] - Net income increased by 73% to $121 million compared to $70 million[9] - Adjusted EBITDA increased by 46% to $153 million compared to $105 million[9] Revenue Components - Commission and fee revenue increased by 14%[9] - Membership, Marketplace, and other revenue increased by 54%, with Marketplace growth at 135%[9] - Earned premium in Hagerty Re increased by 12%[9] Strategic Initiatives - Hagerty aims to double its policies in force to 3.0 million by 2030[10, 16] - Signed a new partnership with Liberty Mutual to offer enhanced collectible car insurance[7] - Announced a non-binding LOI for a new fronting arrangement with Markel, expecting to control 100% of the premium beginning in 2026[7, 17] Updated Outlook for 2025 - Total revenue is projected to be between $1,368 million and $1,380 million, representing a 14%-15% increase[44] - Net income is projected to be between $124 million and $129 million, representing a 58%-65% increase[44] - Adjusted EBITDA is projected to be between $170 million and $176 million, representing a 37%-41% increase[44]

Core Insights - Hagerty, Inc. (HGTY) reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.05 per share a year ago, resulting in an earnings surprise of +44.44% [1] - The company achieved revenues of $379.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.96% and increasing from $323.37 million year-over-year [2] - Hagerty has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Hagerty's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $322.21 million, while for the current fiscal year, the estimate is $0.34 on revenues of $1.37 billion [7] Industry Context - The Insurance - Property and Casualty industry, to which Hagerty belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Hagerty's stock performance [5]