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 - 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]

Summary of Hagerty (HGTY) 2025 Conference Call Company Overview - **Company**: Hagerty (HGTY) - **Industry**: Automotive Insurance - **Focus**: Specializes in insurance for classic and collector cars, leveraging emotional connections to vehicles to drive business growth [5][6][11] Key Points and Arguments Business Model and Distribution - **Omnichannel Distribution**: Hagerty employs a multifaceted distribution model, selling directly to consumers, through agents, and partnering with major insurance companies [6][7][11] - **Membership Model**: Customers are viewed as members rather than just clients, enhancing customer loyalty and engagement [7][8][10] Market Position and Growth - **Market Dynamics**: The classic and collector car market is unique, with vehicles often appreciating in value, which traditional insurers struggle to manage [12][13][14] - **Insurance Coverage**: Hagerty currently insures approximately 2.5 million vehicles, with clients buying and selling over 300,000 vehicles annually, totaling around $15 billion in transactions [9][10] Strategic Partnerships - **State Farm Partnership**: A significant partnership with State Farm aims to manage a large book of business, expected to add approximately 525,000 new clients [50][52][58] - **Risk Management**: Hagerty has transitioned from a Managing General Agent (MGA) to taking on more risk, moving towards 100% risk retention by 2026 [20][21] New Initiatives - **Enthusiast Plus Program**: A new insurance program targeting younger car enthusiasts, allowing for more flexible pricing and underwriting [23][24][63] - **Technological Investments**: Ongoing investments in technology, including AI, to enhance customer service and operational efficiency [33][81] Financial Performance - **Loss Ratios**: Hagerty has maintained stable loss ratios, differentiating itself from traditional auto insurers, which face more volatility [16][17][18] - **Future Projections**: The company aims to double its policy count by 2030, with growth expected from State Farm, the Enthusiast Plus program, and core business [61][64] Additional Important Insights - **Economic Resilience**: The classic car market is relatively immune to economic cycles and tariffs, as owners tend to retain their vehicles regardless of economic conditions [18][27][28] - **Auction Business**: Hagerty's auction business is growing, providing a complementary revenue stream to its insurance operations [35][37][39] - **Liquidity Concerns**: The company is aware of liquidity issues related to its stock and is considering future secondary offerings to increase float [90][91] This summary encapsulates the key insights from the Hagerty conference call, highlighting the company's unique position in the automotive insurance market, its strategic initiatives, and future growth prospects.

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $369 million, driven by an 11% increase in written premium and a 12% growth in commission revenue [6][12] - Net income rose by 11% to $47 million compared to $43 million a year earlier, with adjusted EBITDA increasing by 20% to $64 million [16][17] - Operating margins improved by 70 basis points to 13%, with operating profit reported at $48 million [14][17] Business Line Data and Key Metrics Changes - Earned premium for Hagerty Reinsurance increased by 12% [7] - Membership marketplace and other revenue surged by 68% to $48 million, attributed to higher inventory sales and the launch of the European auction business [7][13] - Commission revenue grew by 11% to $143 million [12][13] Market Data and Key Metrics Changes - The company reported a retention rate of 89%, which is considered industry-leading [12] - The two-year rate of written premium growth during the first half was over 30%, with expectations for mid-teen growth in the second half [12][17] Company Strategy and Development Direction - The company aims to expand specialty insurance offerings, simplify the membership experience, and grow its marketplace business internationally [8][9] - A new fronting arrangement with Markel will allow Hagerty to control 100% of the premium and risk starting in 2026, enhancing profitability and operational control [10][11] - The Enthusiast Plus program was launched to target modern enthusiast vehicles, aiming to capture a larger share of the collectible market [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 13% to 14% revenue growth for 2025, driven by strong marketplace gains and written premium growth [17] - The partnership with State Farm is expected to significantly contribute to new business, with plans to expand into 25 states by the end of the year [46][52] - The company sees a long runway for growth, with only 6.7% penetration in its target market of 35 million collectible cars [19] Other Important Information - The company has filled three key positions to strengthen its leadership team, which is expected to contribute to long-term success [84] - The technology spending is expected to trend down as revenue accelerates in 2026 and 2027, following significant investments in a new cloud-based insurance platform [9][29] Q&A Session Summary Question: Marketplace revenue performance and outlook for Q3 and Q4 - Management noted strong private sales and inventory sales in Q2, with upcoming auctions expected to drive incremental growth in the second half [23][27] Question: Incremental technology spending outlook for 2026 - Management clarified that the increased spending is not a one-time expense but necessary for ongoing technology and marketplace initiatives [28][30] Question: Earnings impact from the Markel shift - The transition to 100% quota share is expected to yield significant underwriting profit and investment income, enhancing overall profitability [33][34] Question: Current market dynamics and customer shopping behavior - Management indicated a balanced market with muted growth expectations, but strong quote volume and confidence in new business [37][38] Question: Addressable market for European expansion - Management expressed excitement about the European auction expansion, focusing on high-demand segments and building a strong team [41][44] Question: State Farm integration progress - The integration is progressing well, with new business already operational in 17 states and plans to roll over existing business [46][48] Question: Pricing trends and competition - Management acknowledged soft pricing trends in the collector car market but noted stability in premium rates and competitive dynamics [75][79] Question: Initiatives to increase vehicles per policy - The launch of the Enthusiast Plus program aims to increase acceptance of additional vehicles on policies, potentially raising average premiums [80][82]

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $369 million, driven by an 11% increase in written premium and a 12% growth in commission revenue [6][13] - Net income rose by 11% to $47 million compared to $43 million a year earlier, with adjusted EBITDA increasing by 20% to $64 million [15][16] - Operating margins improved by 70 basis points to 13%, with a significant increase in operating profit to $48 million [15][16] Business Line Data and Key Metrics Changes - Earned premium for Hagerty Reinsurance increased by 12%, while membership marketplace and other revenue surged by 68% due to higher inventory sales and the launch of the European auction business [6][7] - Mission and fee revenue grew by 11% to $143 million, and earned premium increased by 13% to $178 million [14] Market Data and Key Metrics Changes - The company reported a strong retention rate of 89%, contributing to the growth in written premium [13] - The marketplace revenue showed strong performance, particularly in private sales and inventory sales, which were key drivers for year-to-date revenue [24][25] Company Strategy and Development Direction - The company aims to expand specialty insurance offerings, simplify the membership experience, and grow the marketplace business internationally [8][9] - A new fronting arrangement with Markel will allow the company to control 100% of the premium and risk starting in 2026, enhancing profitability and operational control [12][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 13% to 14% revenue growth for 2025, supported by strong business momentum and the integration with State Farm [18][65] - The company is optimistic about the long-term growth potential, particularly in the collectible car market, where current penetration is only 6.7% [20] Other Important Information - The company has filled key positions with experienced talent to support long-term success, including new hires in distribution, insurance products, and brand marketing [86] - The technology spending is expected to trend down as revenue accelerates in 2026 and 2027, following significant investments in a new cloud-based insurance platform [10][29] Q&A Session Summary Question: Marketplace revenue performance and future trajectory - Management noted strong second-quarter performance in private sales and inventory sales, with expectations for continued growth in the second half due to upcoming auctions [24][25] Question: Incremental technology spending outlook for 2026 - Management clarified that the $20 million in technology spending is not a one-time expense but rather an investment in future revenue generation [28][29] Question: Earnings impact from the Markel shift - The transition to a 100% quota share arrangement is expected to yield significant underwriting profit and investment income, enhancing overall profitability [33][34] Question: Customer shopping behavior and market dynamics - Management indicated a balanced market with muted growth expectations, but strong quote volume and confidence in new business generation [37][38] Question: European expansion and addressable market - The company is optimistic about its European expansion, focusing on high-end auctions and private sales, with plans for a larger auction calendar in the coming years [42][45] Question: State Farm integration progress - The integration is progressing well, with the company live in 17 states and plans to expand to 25 states by the end of the year, focusing on both new business and existing customer rollovers [47][52] Question: Pricing trends and competition - Management acknowledged a stable pricing environment in the collector car niche, with no significant changes in competition dynamics [76][81] Question: Initiatives to increase vehicles per policy - The launch of the Enthusiast Plus program aims to increase the number of vehicles per policy by allowing the company to underwrite more diverse vehicle types [82][84]

Core Viewpoint - Hagerty, Inc. has entered into a non-binding letter of intent with Markel to assume 100% of the underwriting and investment economics, with an initial fronting fee of 2% to Markel, decreasing based on policy volume starting January 1, 2026 [1][2] Company Overview - Hagerty, Inc. is a leading specialty vehicle insurance provider and automotive enthusiast brand, committed to preserving driving culture for future generations [4] - The company serves approximately 67 million Americans who identify as car enthusiasts and operates in Canada and the U.K. [4] - Hagerty has a community of nearly 890,000 members in the Hagerty Drivers Club [4] Proposed Arrangement Details - The new fronting arrangement allows Hagerty to control 100% of the premium from its high-quality underwriting, enhancing profitability and operational control without disrupting policyholders [2] - The arrangement is subject to regulatory approval and the negotiation of definitive documentation [6]

GRAND CAYMAN, Cayman Islands, May 01, 2025 (GLOBE NEWSWIRE) -- Greenlight Reinsurance, Ltd. (“Greenlight Re” or the “Company”), a subsidiary of Greenlight Capital Re, Ltd. (NASDAQ: GLRE), today announced the appointment of Martin Vezina as Head of Underwriting Analytics with immediate effect. In this capacity, Vezina will play a pivotal role in overseeing Greenlight Re’s underwriting analytics and pricing function and will be based out of the Company’s headquarters in Grand Cayman. “I am excited to join Gre ...