Hagerty Boosts Growth Outlook Despite Markel Transition Costs — Hagerty, Inc.

Event summary

Hagerty reported a 19% year-over-year increase in written premiums for the first half of 2026, reaching $713 million.
The company added a record 279,000 new members, bringing total policies in force to 1.9 million.
First-half net loss was $5 million, including $153 million in pre-tax Markel Fronting Arrangement transitional costs.
Adjusted EBITDA increased by 32% year-over-year to $160 million.
Hagerty raised its full-year outlook, anticipating written premium growth of 16% to 17% and Adjusted EBITDA of $270 million to $280 million.

The big picture

Hagerty's strong operational performance in the first half of 2026, marked by significant growth in members and written premiums, underscores the company's strategic shift towards controlling 100% of the economics on its U.S. book through the Markel Fronting Arrangement. Despite transitional costs, the company's raised outlook reflects confidence in its long-term competitive advantages and member-centric approach. The acquisition of Bennetts Motorcycling Services Limited further highlights Hagerty's expansion ambitions in the UK market.

What we're watching

Integration Challenges: The pace at which Hagerty can fully integrate the Markel Fronting Arrangement and realize anticipated benefits will be critical to sustaining profitability.
Market Expansion: Whether Hagerty can successfully expand its scale in the UK market through the acquisition of Bennetts Motorcycling Services Limited.
Operational Efficiency: How Hagerty's investments in technology and cost discipline will impact its ability to deliver growth more efficiently.