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

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

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.)