Company Performance - Hagerty, Inc. (HGTY) shares have increased by 3% over the past month, reaching a new 52-week high of $14, and have gained 40.9% year-to-date compared to 17.6% for the Zacks Finance sector and 10.2% for the Zacks Insurance - Property and Casualty industry [1] - The company has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters, with the latest EPS reported at $0.13 against a consensus of $0.09 [2] Earnings Forecast - For the current fiscal year, Hagerty is expected to post earnings of $0.37 per share on revenues of $1.39 billion, reflecting a 54.17% increase in EPS and a 16.17% increase in revenues [3] - The next fiscal year is projected to see earnings of $0.43 per share on the same revenue of $1.39 billion, indicating a year-over-year change of 14.86% in EPS and a slight decrease of 0.57% in revenues [3] Valuation Metrics - Hagerty's current valuation metrics show a Price-to-Earnings (P/E) ratio of 36.5X for the current fiscal year, significantly higher than the peer industry average of 11.5X, and a trailing cash flow ratio of 37.9X compared to 12.9X for its peers [6] - The stock has a Value Score of D, a Growth Score of A, and a Momentum Score of C, resulting in a VGM Score of B [6] Zacks Rank - Hagerty holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, indicating potential for further price appreciation [7] Industry Comparison - American Coastal Insurance Corporation (ACIC), a peer in the industry, also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, beating consensus estimates by 56.41% [8][9] - ACIC is expected to post earnings of $1.40 per share on revenues of $332.48 million for the current fiscal year, with shares gaining 5.5% over the past month [9][10] - The Insurance - Property and Casualty industry is performing well, ranking in the top 22% of all industries, suggesting favorable conditions for both HGTY and ACIC [10]

Younger buyers are collecting newer cars, according to a new report from Hagerty that shows a clear generational shift in top auction sales. https://t.co/LaaV1SGOBX ...

Core Insights - The classic-car market is expected to maintain its strength into 2026, driven by a new generation of collectors [1] Group 1: Market Performance - Auctions and online sales of collectible cars increased by 10% in 2025, reaching $4.8 billion [2] - Online classic-car sales surged by 12% this year, totaling $2.5 billion [3] Group 2: Demographic Shifts - A new generation of collectors, including Generation X, millennials, and Gen Z, is redefining the classic-car market as baby boomers exit [3] - Younger buyers are showing a preference for high-performance supercars from the '90s and later, moving away from the traditional 1950s and '60s sports cars [4]

Core Insights - Broad Arrow, a Hagerty company, reported a total transaction value of over $624 million in 2025, marking a 97% increase from $316 million in 2024 [1][2]. Auction Performance - Broad Arrow Auctions achieved total sales of $257 million across eight live auctions and two online memorabilia auctions in 2025, with an 88% sell-through rate for 949 lots sold [3][8]. - The company set 11 world record auction prices and attracted bidders from 52 countries, with significant growth in registered bidders, particularly in Europe [3][9]. Private Sales - Broad Arrow's Private Sales business generated over $281 million in transaction value across 190 transactions, surpassing auction totals for the first time, with an average transaction value of approximately $1.48 million [14][8]. - Notable sales included a 1995 McLaren F1 and a 2019 Ferrari FXX-K Evo, highlighting the company's expertise in high-value collector cars [15][16]. Financing Capabilities - Broad Arrow Capital facilitated over $85 million in new financing transactions in 2025, supporting clients in the U.S., U.K., and Europe [17][8]. Future Outlook - The company plans to expand its auction calendar in 2026 with new online sales and live events, including the flagship Amelia Auction scheduled for March 2026 [18][19].

Robert Frank speaks with McKeel Hagerty, Hagerty chairman and CEO, about the state of the classic-car market, collector optimism and the Hagerty 2026 Bull Market list. ...

Market Overview - The classic car market has shown strong performance in 2025, with significant activity in live auctions, digital sales, and private transactions, indicating a solid year overall [2][3] - There is optimism that this strength will continue into 2026, with no indicators suggesting a downturn [3] Supercar Segment - The supercar segment has emerged as the biggest story of 2025, with 80% of vehicles purchased by major collectors being supercars, particularly models from the 1990s and later [4][5][6] - New manufacturers and boutique brands are contributing to the growth of this segment, with high-value cars being sold rapidly [7] Generational Trends - The baby boomer generation is simplifying their collections as they age, while younger generations (Gen X, millennials, Gen Z) are beginning to enter the market and show interest in car collecting [10][11][12] - The anticipated wealth transfer of approximately $4 trillion annually is expected to influence the classic car market, as younger generations inherit and decide the fate of these vehicles [13][14] Market Dynamics - Luxury car manufacturers are producing and selling vehicles in greater numbers than in the past, with brands like Ferrari and Lamborghini setting record sales [17][18] - The market is also seeing a rise in interest for trucks, SUVs, and vintage restorations, indicating diverse opportunities for collectors [19][20] Collector Insights - A list of 11 cars has been identified as great value options for collectors, including iconic models like the Porsche Carrera GT and more affordable options like the Mazda Miata [22][23] - The Porsche 911 continues to be a strong investment, with various generations maintaining popularity among collectors [30] Economic Indicators - The strength of the classic car market is linked to consumers feeling positive about their financial situations, which encourages purchases despite uncertainties like tariffs [34][36] - The performance of the stock market is seen as a potential tailwind for the classic car market, as strong stock performance may lead to increased spending on luxury items [37]

Core Viewpoint - AM Best has revised the outlooks for Hagerty Reinsurance Limited and Drivers Edge Insurance Company to positive from stable, affirming their Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of "a-" (Excellent) [1] Group 1 - Hagerty Re and Drivers Edge are wholly owned subsidiaries of Hagerty Insurance Holdings Inc [1] - The revised ratings reflect the companies' strong financial performance and stability in the insurance market [1]

>> WE GOT TO HAVE SOME FUN RIGHT NOW. MCKEEL HAGERTY, CEO OF HAGERTY, WITH US, ALONG WITH ROBERT FRANK OF INSIDE WEALTH AND A MAN WHO KNOWS HOW TO GET SOME REALLY COOL CARS. MAN.>> WE HAVE SOME FOR THE BUSINESS RIGHT NOW. >> WELL, THERE'S A NEW GENERATION OF COLLECTORS COMING INTO THE SPACE, AND THEY. THEY LIKE NEWER, SPORTY CARS.AND IT'S NOT THAT THERE'S ANYTHING WRONG WITH ALL THE PREVIOUS GENERATIONS. IT'S JUST THE NEXT GENERATION IS SHOWING ITSELF. >> SO LIKE GEN X, MILLENNIALS, GEN ZERS THAT WE NEVER T ...

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its flagship Amelia Auction on March 6-7, 2026, featuring approximately 150 collector cars, marking its fourth year as the official auction house of the Amelia Concours d'Elegance [1][2] The Bill Spurling Collection - The Bill Spurling Collection includes 14 pre- and post-war American classics, offered without reserve, highlighting the passion of a dedicated collector [3][4] - The collection is led by a 1935 Duesenberg Supercharged Model J LaGrande Dual-Cowl Phaeton, estimated between $1,300,000 and $1,600,000, which has a notable history as the company car of Duesenberg President Lucius B. Manning [3][4] - Additional notable cars in the collection include: - 1954 Mercedes-Benz 300 SL Gullwing Coupe - 1931 Cadillac Series 452A V-16 Fleetwood Convertible Coupe, estimated at $425,000 to $525,000 [5][7] - 1931 Cadillac Series 370A V-12 Fleetwood Five-Passenger Phaeton, estimated at $200,000 to $250,000 [7] - 1934 LaSalle Series 50 Convertible Coupe, estimated at $120,000 to $160,000 [7] The Wellington Morton Collection - The Wellington Morton Collection features 14 European, British, and American collector cars, also offered without reserve, showcasing the diverse interests of a lifelong car enthusiast [9][10] - The collection is highlighted by a 1954 Mercedes-Benz 300 SL Gullwing Coupe, estimated between $1,400,000 and $1,800,000, which retains its original matching-numbers components [9][10] - Additional highlights from the collection include: - 1959 Ferrari 250 GT Pinin Farina Coupe Series I, estimated at $350,000 to $450,000 [16] - 2005 Ford GT, estimated at $350,000 to $450,000 [16] - 1967 BSA Lightning, estimated at $15,000 to $25,000 [16] Auction Details - Consignments for the Amelia Auction are open until mid-January 2026, inviting interested consignors to connect with Broad Arrow car specialists [11]

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]