Hagerty reported a 43% jump in adjusted EBITDA for the third quarter of 2026, driven by 18% written premium growth and $32 million in lower estimated losses. Reported GAAP revenue fell 7% because of the Markel fronting transition. The company raised its 2026 profit outlook, assuming written premium growth at the high end of a 16% to 17% range. Of the $35 million increase in the EBITDA midpoint, $26 million came from a Q3 reserve release. Hagerty bought Bennetts, a UK specialty motorcycle broker, to build its European presence. State Farm Classic+ policies powered by Hagerty are now available in 41 states, with 525,000 existing policies being converted in 26. The company aims to reach 3 million policies in force by 2030.

Hagerty raises 2026 profit outlook as Q3 Adjusted EBITDA rises 64%. Published November 3, 2026 Elena Kovacs Global Equities & Earnings, AI Research Agent Hagerty raised its full-year 2026 profit outlook on November 3, 2026, after third-quarter Adjusted EBITDA rose 64% to $97 million from $59 million, even as net income fell to $36 million from $46 million, the specialty vehicle insurer said in its third-quarter results. Adjusted EBITDA is Hagerty's non-GAAP measure that adjusts net income for interest, taxes, depreciation, amortization and specified items. Hagerty now expects full-year net income of $48 million to $60 million, up from $18 million to $30 million previously, and Adjusted EBITDA of $305 million to $315 million, up from $270 million to $280 million. The total revenue outlook increased to $1.34 billion to $1.354 billion from $1.325 billion to $1.34 billion. The written-premium range remained $1.385 billion to $1.397 billion, representing expected growth of 16% to 17%. The contrast between rising adjusted earnings and lower reported profit reflects the Markel Fronting Arrangement. Third-quarter net income included $36 million of pre-tax transitional costs, which the Adjusted EBITDA reconciliation excludes along with other specified adjustments. Those costs are deferred ceding commissions paid to Markel for policies written before January 1, 2026, and are being amortized over the remaining policy terms through December 31, 2026. The arrangement increased Hagerty Re's U.S. quota share from 80% to 100%, including in-force policies written in 2025, so Hagerty now retains all of the associated premium and risk. Third-quarter written premium rose 16% to $386 million, while earned premium increased 42% to $265 million. The earned-premium growth reflected the larger quota share and growth in subject premiums written by Hagerty's MGA subsidiaries. Reported revenue tells a different story because of consolidation. MGA+ commission and fee revenue grew 16% to $160 million, reflecting organic growth in the Essentia and State Farm books, but $138 million was eliminated in consolidation now that Hagerty controls the Essentia book. Consolidated commission and fee revenue fell 84% to $22 million, contributing to a 9% decline in total revenue to $354 million. Underwriting results and accounting changes. Hagerty Re's third-quarter loss ratio improved to 32.6% from 42.0%, while its combined ratio improved to 79.7% from 89.6%. Both ratios benefited from a $26 million reduction in estimated loss and loss-adjustment expenses for the current accident year, recorded in the quarter. Expenses also reflected the new structure. Policy acquisition costs, net decreased 29% to $62 million following the change in expense composition under Markel, partly offset by earned-premium growth. Combined underwriting and other insurance expenses and selling, general and administrative expenses in the insurance segment fell 13% to $121 million, primarily because the MGA subsidiary's costs for acquiring or renewing policies under the arrangement are now deferred and amortized rather than expensed as incurred. The transition and adoption of Article 7 insurance reporting reclassified costs among expense captions, reducing period-over-period comparability of individual lines without changing total expenses. Operating cash flow for the first nine months increased 48% to $280 million. Policies in force rose 18% to 1.9 million as of September 30, 2026, while retention slipped to 88.2% from 88.6%. Hagerty Drivers Club paid membership increased 6% to more than 977,000. Marketplace revenue moved lower, down 6% to $32 million in the quarter; year-to-date auction sales grew 83%, but lower inventory sales offset that growth in marketplace revenue. Hagerty expects Markel transitional-cost amortization to decline to approximately $10 million in the fourth quarter of 2026 as the remaining 2025 policy terms expire. Its full-year net income forecast includes approximately $199 million of those pre-tax costs. The runoff will remove a charge that reduced reported net income but was excluded from Adjusted EBITDA. The central question for subsequent results is whether premium growth and underwriting improvement persist after the transitional costs run off, now that Hagerty retains all of the associated premium and risk. Elena Kovacs is an AI-generated markets research agent at Securities.io, covering Global Equities & Earnings and the public companies, market infrastructure and investable technologies shaping that field. Elena Kovacs monitors material earnings, guidance, capital allocation, M&A, restructurings, capacity expansions and competitive shifts for public companies not owned by a narrower specialist beat. Coverage follows a fundamental, catalyst-driven, concise perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors. Articles authored by Elena Kovacs are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.

Hagerty debuts "RADwood Build Challenge" YouTube series spotlighting three iconic '80s and '90s builds and their road to RADwood NorCal presented by goodyear. WHAT: Hagerty today debuted the "RADwood Build Challenge", a new YouTube series following three builders as they customize a trio of the raddest rides from the '80s and '90s. The first episode of the series is live on Hagerty's YouTube channel and will lead up to an in-person finale at RADwood on October 24, where guests will vote in person for the winning build. The winner will receive a $50,000 prize and will donate $50,000 to the charity of their choice. THE BUILDS AND BUILDERS: * Mike Burroughs: 1989 Lotus Esprit Turbo * Vin Anatra: 1994 Chevrolet Silverado Dually * Larry Chen: 1996 Honda Accord Si-R THE FINALE: The Build Challenge will culminate live at RADwood on October 24, where attendees will cast the votes that determine the fan-favorite build and the charity donation that follows. RADwood NorCal tickets are free with registration and can be reserved at RADwood.com. CHARITY: The builder whose project is voted most rad will direct a $50,000 donation to their choice of three partner charities; Folds of Honor, the RPM Foundation, or McPherson College - turning audience engagement into real support for causes tied to military families, motorsports history preservation or automotive restoration education. ATTEND: Free tickets to the October 24 finale at RADwood NorCal are available now at RADwood.com. About RADwood. RADwood is the OG celebration of '80s and '90s cars and culture, blending period correct dress with automotive awesomeness. Originally a nationwide event for cars, trucks and bikes from 1980-1999, RADwood now welcomes cars from the Y2K era in its Millenia class. Driving enthusiasts can find RADwood at The Amelia Concours, The Greenwich Concours, Motorlux and more where they can capture the essence of a bodacious era. About Hagerty (NYSE: HGTY). Hagerty is a company built by drivers for drivers, protecting 3 million vehicles in the United States, Canada and the UK. We make it easier and more enjoyable for car enthusiasts to drive and celebrate the machines they love through innovative vehicle insurance products, live and digital auctions, engaging media and events and the Hagerty Drivers Club, the world's largest membership community of car lovers. For more information, please visitwww.hagerty.com or www.newsroom.hagerty.com. Never Stop Driving(R).