HGTY

Business Positioning & Scale

• Hagerty is positioned as the fastest-growing specialty insurance franchise in the collector car market, with a stable recurring revenue model, low volatility, a consistent 90% combined ratio, and consumer-focused pricing
• The firm is actively scaling to reach its target of 3 million policies by 2030, and leadership views the market opportunity as well-aligned with the company's unique positioning in the insurance industry

Partnership Performance

• All existing carrier and referral partnerships are well-managed and performing strongly, with consistent year-over-year growth in distribution network penetration
• Partnerships are long-standing (some over 20 years old) and highly sticky, with the firm continuing to add new partnerships while growing existing relationships
• Growth is driven by ongoing field engagement including meetings with carrier field teams and territory managers, and activation at agent and industry events

New Product Line Details

• The Enthusiast Plus line, covering newer modern enthusiast vintage vehicles, is an early-stage startup offering
• Enthusiast Plus caters to vehicles that are driven more frequently and has different underwriting standards for vehicle storage, resulting in higher average premiums compared to the legacy collector car insurance business
• Legacy traditional collector car insurance pricing is primarily tied to the vehicle's upfront agreed value and underwriting criteria, with consistent rates for special-interest vehicles

Upcoming Events

• The company will host its inaugural auction during Monterey Car Week, with additional activations at the Quail Motorsports Gathering, Pebble Beach Concours, Motorlux Gathering, and Laguna Seca Historic races on the Monterey Peninsula

No forward-looking financial guidance or guidance revisions were provided in the excerpted transcript. The only long-term directional target shared is the goal of reaching 3 million total policies by 2030.

No financial performance data for specific product segments was provided in the excerpted transcript.

No explicit discussion of business risks, operational challenges, or operational failures was provided in the excerpted transcript.

Q: What are the differences in average premium per policy and loss experience between Hagerty's modern enthusiast (newer vintage) vehicle business and its legacy older collector car business?

A: Legacy traditional collector car insurance pricing is based on the vehicle's agreed value and underwriting, with consistent rates for special-interest vehicles. The newer Enthusiast Plus modern enthusiast segment, an early-stage startup, covers vehicles driven more often and uses different storage underwriting, resulting in higher premiums.

Q: How is productivity and flow-through performing for Hagerty's existing carrier referral partnerships, outside of the new State Farm relationship?

A: All existing partnerships are performing well, with growing penetration of carrier distribution networks driven by ongoing field engagement. These partnerships are long-standing, sticky, and collectively contribute to the company's current strong growth trajectory, with new partnerships still being added regularly.