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Hagerty Q3 adjusted EPS beats on strong premium growth, lifts 2026 profit outlook

By Reuters News


Overview

  • US specialty vehicle insurer's Q3 adjusted EPS beat analyst expectations

  • Q3 total revenue fell 9% yr/yr, reflecting Markel Fronting Arrangement transition

  • Company raised 2026 profit outlook on strong premium growth and operational performance


Outlook

  • Hagerty raises 2026 net income outlook to $48 mln–$60 mln, up from $18 mln–$30 mln

  • Company now expects 2026 adjusted EBITDA of $305 mln–$315 mln, up from $270 mln–$280 mln

  • Hagerty forecasts 2026 written premium growth of 16%–17% and total revenue to decline 7%–8%


Result Drivers

  • PREMIUM GROWTH - Co said record increase in written and earned premium, driven by new member additions, supported results

  • MARKEL FRONTING ARRANGEMENT - Co said transition to Markel Fronting Arrangement reduced reported revenue but increased profitability

  • AUCTION SALES - Co said 83% yr-to-date growth in auction sales offset by lower inventory sales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$0.10

$0.01 (6 Analysts)

Q3 Net Income

$36 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "hold"

  • Wall Street's median 12-month price target for Hagerty Inc is $15.00, about 5.6% below its November 2 closing price of $15.89

  • The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 40 three months ago


Reuters Recommended Reads

  • Nov 2 - Hannover Re and Kemper lead gains as P&C stocks rally in October

  • Nov 1 - P&C CEOs’ dissatisfaction with market conditions grows in Q3

  • Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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