Core Thesis - Hagerty, Inc. is positioned as a compelling investment opportunity within the classic-car insurance and enthusiast ecosystem, characterized by high-growth revenues and expanding margins [2][4]. Company Overview - Hagerty, Inc. shares were trading at $12.29 as of September 23rd, with trailing and forward P/E ratios of 61.45 and 27.32 respectively [1]. - The company dominates a niche market with high barriers to entry due to pricing complexity associated with vintage car rarity and VIN variability [2]. Business Model and Competitive Advantage - Hagerty utilizes proprietary data and valuation tools, providing a multi-year advantage in accurately pricing collectible cars [2]. - The company has a direct-to-consumer platform, agency partnerships, and ecosystem offerings such as the Hagerty Drivers Club and a marketplace for auctions and private sales, which enhance customer retention and create a defensible network effect [2]. Financial Performance - The insurance operation is highly profitable, featuring a low combined ratio and strong underwriting discipline [3]. - A transition to a fronting agreement with Markel allows for regulatory efficiency and full control over premiums and investments [3]. - Projected ROIC is above 18% against a 9% cost of capital, indicating substantial economic value creation [3]. Management and Customer Loyalty - The management team is deeply embedded in the business, contributing to operational excellence and brand loyalty, as evidenced by a high Net Promoter Score and over 90% customer retention [3]. Growth Potential - The auction business, led by experienced executives from Sotheby's and RM Sotheby's, is expected to grow significantly, leveraging Hagerty's niche brand and network for domestic and international expansion [3]. - The combination of a differentiated insurance franchise, ecosystem flywheel, and high-quality management provides a strong competitive moat and multi-year growth potential [4].