Hagerty, Inc.

Q1 2026 written premium was $289 million, up 18% year over year. Earned premium was $240 million, up 42%, and adjusted EBITDA was $85 million, up 77%. Reported revenue declined 5%, net loss was $13 million, net loss attributable to Class A common shareholders was $7 million, and GAAP basic/diluted loss per share was $0.06; adjusted diluted loss per share was $0.04. Hagerty Re’s combined ratio was 87% and loss ratio was 38%, with $6 million of reserve reduction from favorable prior-year development. Operating cash flow was $16 million versus $44 million a year ago, but management said the quarter included roughly $65 million of double-paid claims timing under the new structure. The company ended Q1 with $212 million in unrestricted cash, more than $1.1 billion in investments, and $229 million of debt, including $110 million of back leverage for Broad Arrow. Full-year 2026 guidance was reaffirmed: written premium growth of 15% to 16%, adjusted EBITDA of $236 million to $247 million, and GAAP net loss of $41 million to $51 million.

McKeel Hagerty framed the quarter as a structural milestone and an operating high point, emphasizing that the company now controls 100% of the economics on its U.S. book. He stressed that the business is compounding through new-member growth, partnerships like State Farm, and a growing marketplace/Auction flywheel, while investing in claims, technology, and distribution. His tone was upbeat and confident, and he repeatedly pointed to the company’s long-term opportunity, including doubling PIF to 3 million by 2030.

Patrick McClymont focused on the accounting transition, explaining that the new Markel Fronting Arrangement causes MGA commission revenue and ceding commission expense to net to zero in consolidation, which is why revenue fell 5% even as written premium rose 18%. He called out $89 million of deferred ceding commission amortization in Q1, said that charge burns off by year-end 2026, and highlighted adjusted EBITDA of $85 million, operating cash flow of $16 million, and the quarter-end balance sheet of $212 million in cash, more than $1.1 billion in investments, and $229 million of debt. He also said the company is trending toward the high end of its 2026 ranges and expects 2027 to be more normalized, with written premium still growing in the mid-teens.

Analysts pressed on seasonality, with management saying Q1 is usually the lowest PIF-growth quarter and that expenses ramp through the year, so investors should not annualize Q1. They also asked about competition in standard auto, and McKeel said Hagerty is not being hurt by a lateral pricing environment; if anything, the long-term flywheel and State Farm conversions are supporting growth. Other questions covered international expansion, claims operations, reserve development, and Enthusiast Plus; management said Europe is being approached first through Broad Arrow auctions, claims are increasingly being handled in-house because it improves speed and economics, the $6.5 million reserve release was mostly from the 2025 accident year maturing favorably, and Enthusiast Plus is still very small and limited to Colorado.