Hagerty, Inc. (HGTY) · Nov 3, 2026 · Earnings
Guidance raised — FY adjusted EBITDA raised to $305–315M from $270–280M
Hagerty’s Q3 earnings show 18% written-premium growth, stronger underlying profitability and a sharply higher 2026 EBITDA outlook despite accounting-driven revenue declines.
Hagerty is in the middle of a planned shift from sharing underwriting economics with Markel to controlling 100% of the premium and risk through its fronting structure, while using its insurance, membership and auction ecosystem to grow collector-car policies. That transition was already known; the new information is that execution is running ahead of the company’s own August outlook. Hagerty’s 2026 arrangement gives it 100% quota share and expanded underwriting authority, but also leaves it with more insurance risk.
The underlying business is clearly gaining momentum. Nine-month written premium rose 18% to $1.099 billion, policies in force increased 18% to 1.9 million, and adjusted EBITDA climbed 43% to $257 million. The reported revenue decline is largely an accounting consequence of eliminating Markel-related commission revenue, not a collapse in demand.
| Metric | Q3 2026 | Q3 2025 | Prior outlook / comparison |
|---|---|---|---|
| Adjusted EBITDA (Financial Highlights) | $97M (+63.5%) | $59M | |
| Net income (Income Statement) | $36M (-21.4%) | $46M | |
| Written premium (Key Performance Indicators) | $1,099M (+17.7%) | $934M | |
| Hagerty Re combined ratio (Key Performance Indicators) | 85.2% (-4.1 pts) | 89.3% | |
| FY adjusted EBITDA outlook (2026 Outlook) | $305–315M | $270–280M |
The profit improvement is real but not yet cleanly visible in GAAP earnings. Q3 adjusted EBITDA rose to $97 million, while nine-month net income fell to $32 million because the company recognized $189 million of Markel transition costs. Those charges are expected to decline to about $10 million in Q4 as legacy policies run off, so the earnings profile should become easier to read after 2026.
The outlook increase is the main surprise and materially strengthens the story. Hagerty left written-premium guidance unchanged, but raised full-year adjusted EBITDA from $270–280 million to $305–315 million and net income from $18–30 million to $48–60 million. That is a meaningful reset toward stronger underlying profitability, although part of the quarter’s underwriting improvement benefited from a $26 million reduction in estimated current-year losses and a further $6 million favorable adjustment to 2025 losses.
Bottom line: Hagerty is executing ahead of its prior plan: customer and premium growth are strong, underwriting remains favorable, and the transition to full economics is producing a much higher profit outlook. The headline GAAP decline is mostly transitional accounting noise, though the company now carries more insurance risk as it retains 100% of the book.
Q4 results and final Markel transition costs, early 2027
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