Hagerty, Inc. reported significant financial performance improvements in its third quarter and the first nine months of 2024, driven by increased revenue across various segments. For the three months ended September 30, 2024, total revenue reached $323.4 million, a 17.3% increase from $275.6 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $908.3 million, up 20.3% from $755.2 million year-over-year.
Key revenue components included commission and fee revenue, which rose to $116.2 million in Q3 2024 from $103.2 million in Q3 2023, and earned premium, which increased to $165.7 million from $139.8 million. Membership, marketplace, and other revenue also saw a notable rise, reaching $41.5 million, up from $32.6 million in the prior year.
Despite the revenue growth, total operating expenses for Q3 2024 increased by 20.7% to $313.3 million, leading to a decrease in operating income to $10.1 million from $16.1 million in Q3 2023. The company reported net income of $19.0 million for Q3 2024, a slight increase from $18.6 million in the same quarter of 2023. For the nine-month period, net income surged to $69.9 million, a 265.1% increase compared to $19.1 million in 2023.
Hagerty's strategic developments included the acquisition of Consolidated National Insurance Company, renamed Drivers Edge Insurance Company, for $19.3 million on September 1, 2024. This acquisition is expected to enhance written premium growth and optimize underwriting profits. Additionally, the company amended its alliance agreement with Markel Group, increasing the base commission rate on personal lines U.S. auto business to 37%.
The company also faced challenges, including estimated pre-tax losses of $24.7 million from Hurricane Helene, which impacted the loss ratio, rising to 60.0% in Q3 2024 from 41.1% in Q3 2023. Hagerty's total liabilities increased to $1.2 billion as of September 30, 2024, up from $1.1 billion at the end of 2023, while total assets rose to $1.8 billion.
In terms of cash flow, Hagerty reported net cash provided by operating activities of $189.6 million for the nine months ended September 30, 2024, a 43.4% increase from $132.2 million in the prior year. The company’s liquidity position remains strong, with sufficient resources to meet its commitments and capital requirements.
About Hagerty, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.