Hagerty Inc. reported full-year 2025 financial results on Thursday, posting a 17% rise in total revenue to US$1.46 billion (£1.08 billion) and a 91% jump in net income to US$149 million, as the specialty vehicle insurer added a record number of new members.
Written premium climbed 14% to US$1.19 billion, while the company added 371,000 new members.
Marketplace revenue more than doubled, rising 119% to US$119 million, driven by growth in private sales and the company’s expansion into Europe. Private sales surged 271% to US$286.8 million, while aggregate auction sales rose 56% to US$278.7 million. In the fourth quarter alone, marketplace revenue increased 80% year-over-year to $29 million.
Membership in the Hagerty Drivers Club, described by the company as the world’s largest community of car lovers, grew 6% year-over-year to approximately 930,000 paid members, up from 876,000 in 2024. Membership and other revenue increased 4% to US$82 million for the full year.
The total number of insured vehicles grew 9% year-over-year to 2.8 million, while policies in force reached 1.68 million, up nearly 12% from the prior year.
Income before taxes rose 49% to US$139 million for the full year, and 186% in the fourth quarter to US$40 million. Adjusted EBITDA, a non-GAAP measure of operating performance, increased 46% to US$237 million.
The company’s loss ratio improved to 39.3% from 46.4% a year earlier, and its combined ratio for Hagerty Re fell to 86.6% from 94.1%. Results included a $21-million reduction in reserves, primarily tied to favourable development for the 2024 accident year.
McKeel Hagerty (pictured), chief executive officer and chair, said the year was defined by strong momentum across the business.
“2025 was a standout year for Hagerty, defined by accelerating momentum and record new business count. Top-line gains of 17% were fuelled by written premium growth of 14%, and we efficiently converted this revenue into a 91% surge in net income,” he said.
“We also reinvested significantly in our business, including our technology transformation, the launch of Enthusiast+, the rollout of State Farm to 27 provinces and states, as well as our marketplace expansion into Europe.”
Looking ahead to 2026, the company flagged a significant structural shift in its relationship with long-term underwriting partner Markel. Hagerty will move to a 100% quota share arrangement with Markel, retaining the full premium and risk from its underwriting book. The transition is expected to result in approximately US$190 million in non-cash costs, driving a projected net loss of between US$41 million and US$51 million for the year.
Despite the anticipated net loss, the company projects written premium growth of 15% to 16% and adjusted EBITDA of between US$236 million and US$247 million for 2026.
Hagerty also said in its outlook that total revenue is expected to decline between 11% and 12%, reflecting the accounting impact of the Markel arrangement, which eliminates previously reported commission revenue from consolidation.
“In 2026, we will continue to invest back into our member-centric model to drive durable, compounding growth,” Hagerty said. “2026 also marks a major milestone for Hagerty as we move to a 100% quota share with our long-term partner, Markel.”
Hagerty protects 2.8 million vehicles across the United States, Canada, and the United Kingdom.
