Core Insights - Broad Arrow Auctions, a subsidiary of Hagerty, is set to launch The Zürich Auction on November 1, 2025, in partnership with Auto Zürich, featuring approximately 60 exceptional collector cars [1][2][3] Company Overview - Broad Arrow Auctions is a leading global collector car auction house, founded in 2021, and has rapidly expanded its presence in Europe [6] - The company has recently achieved significant success in its European auctions, including a record €31.2 million in sales at the Concorso d'Eleganza Villa d'Este auction [4] Industry Context - Auto Zürich, established in 1987, is recognized as one of the most successful motor shows in Europe, attracting tens of thousands of visitors and showcasing a wide variety of automobile brands [3][7] - The Dolder Grand, a prestigious five-star hotel in Zürich, will host The Zürich Auction, enhancing the event's appeal to collectors and enthusiasts [2][4] Strategic Partnerships - The collaboration between Broad Arrow Auctions and Auto Zürich aims to create a premier collector car auction experience in Europe, capitalizing on Switzerland's strong collector car market [3][4] - The partnership is expected to attract renowned collectors to Zürich, further solidifying the city's reputation in the classic and sports car community [4]

Core Insights - Broad Arrow Auctions, a subsidiary of Hagerty, is launching a new auction event called the Zoute Concours Auction in collaboration with Zoute Grand Prix Car Week, scheduled for October 10, 2025, in Belgium [1][2][3] - The auction will feature approximately 70 exceptional collector cars, showcasing a variety of categories and price points, enhancing Broad Arrow's presence in the European market [1][2][3] Company Overview - Broad Arrow Auctions was founded in 2021 and has quickly become a leading global collector car auction house, known for its high-quality offerings and rapid growth in the auction segment [5] - The company recently debuted in Europe as the official auction partner for BMW AG at the Concorso d'Eleganza Villa d'Este, achieving €31.2 million in sales with 78% of lots sold [3][5] Event Details - The Zoute Grand Prix Car Week is a prestigious five-day festival that combines exceptional automobiles, art, and luxury lifestyle, attracting collectors and enthusiasts from around the world [2][7] - The Zoute Concours Auction will coincide with the Zoute Concours d'Élégance, further elevating the event's profile and providing a platform for showcasing automotive elegance [2][3][7] Strategic Partnerships - The partnership between Broad Arrow and Zoute Grand Prix aims to enhance the international character of the event and expand both companies' global reach [3][7] - This collaboration is seen as a natural fit, driven by a shared vision of excellence and ambition [3]

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]

Core Viewpoint - Broad Arrow Auctions, a subsidiary of Hagerty, is set to auction a rare 2003 Honda NSX-R, one of fewer than 140 produced, at the inaugural Concorso d'Eleganza Villa d'Este Auction on May 24-25, 2025, highlighting its significance in the collector car market [1][5][8]. Company Overview - Broad Arrow Auctions is a leading global collector car auction house, founded in 2021, and has rapidly expanded its presence, including launching its first European auction in May 2025 [9]. - Hagerty, the parent company of Broad Arrow, is a prominent brand in automotive enthusiast culture, providing specialty vehicle insurance and car valuation services, with a community of over 875,000 car enthusiasts [10]. Auction Details - The auction will feature the Honda NSX-R, which is celebrated for its engineering excellence and performance, including a 3.2-litre VTEC V6 engine producing 290hp [3][4]. - The NSX-R is noted for its rarity and is the first of its kind to be auctioned publicly outside Japan in many years, expected to attract significant interest from collectors globally [6][8]. Event Context - The auction will take place at the Concorso d'Eleganza Villa d'Este, a prestigious event in Italy, further enhancing the profile of the auction and the vehicles presented [9]. - The Gelleråsen Arena in Sweden, where the NSX-R was showcased, has a rich motorsport history, adding to the allure of the vehicle being auctioned [2][8].

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 growing by 45% to $40 million [7][16] - Operating margin improved by 360 basis points to 8%, reflecting strong operational performance [14] 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% [6][12] - 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 operates primarily in the U.S., with over 90% of revenue generated domestically, providing a buffer against tariff-related impacts [10] - The company reported a loss ratio of 42%, which includes $10 million in losses from Southern California wildfires [12][16] 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 [7][8] - The company is investing in technology transformation, including a transition to a cloud-based insurance platform, which is expected to enhance efficiency and scalability [9][15] - The company aims to double its policies in force to 3 million by 2030, positioning itself for long-term growth [7][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high rates of profitable growth, despite potential market volatility [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 accelerate in the second half of the year, particularly with State Farm partnerships [41] Other Important Information - 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] - The company is preparing for significant upcoming auctions, including a partnership with BMW at the Villa D'Este Concorso in Italy [8][66] 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% [20][23] Question: What was the impact of catastrophes on the loss ratio? - Management explained that the loss ratio includes catastrophe losses, but without them, the loss ratio would be in the mid-30s, which is typical for the first quarter [25][27] Question: How are tariffs impacting the business? - Management stated that tariffs are not expected to have a direct impact on the business, with anticipated effects being muted due to the nature of the vehicles insured [30][34] Question: What has been observed regarding shopping behavior recently? - Management noted strong shopping activity industry-wide, although growth was slightly slower than anticipated due to various factors, including weather and large events [35][41] Question: Can you provide visibility on membership and marketplace revenue growth for the full year? - Management affirmed guidance for the entire business, indicating a good start to live auctions and upcoming events that are expected to contribute positively [44][45] Question: What is the status of the Duck Creek technology spending? - Management clarified that the technology spending is ongoing and will not be a one-time expense, as it supports future growth and efficiency [52][56]

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]