Hagerty, Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024. The company achieved total revenue of $1.2 billion, a 20% increase from $1 billion in 2023. This growth was driven by a 15.8% rise in commission and fee revenue, totaling $423.2 million, and a 21% increase in earned premium, which reached $643.3 million. Net income surged to $78.3 million, marking a 178% increase compared to $28.2 million in the previous year. Adjusted EBITDA also rose by 41.2% to $124.5 million, reflecting the company's strong operational performance.
The filing highlighted several strategic developments, including the acquisition of Drivers Edge Insurance Company in September 2024, which is expected to enhance Hagerty's market position. The company also reported a 15.1% increase in total written premium, reaching $1.04 billion, and a 9.5% growth in new insurance policies issued, totaling 278,556. Hagerty's customer base expanded, with 1.5 million policies in force and a retention rate of 89%. The Hagerty Drivers Club membership also grew, with 875,822 paid members, an increase of 7.5% from the previous year.
Operationally, Hagerty's marketplace revenue saw a substantial increase of 90.1%, totaling $54.3 million, driven by higher inventory sales and improved auction results. The company reported a loss ratio of 46.4%, which included significant losses from Hurricane Helene and Hurricane Milton, totaling $26.7 million. Despite these losses, Hagerty's investment portfolio diversification contributed to a 46.7% increase in interest income, amounting to $39.5 million.
Looking ahead, Hagerty expressed optimism about its growth trajectory, citing a favorable market environment for collector cars and enthusiast vehicles. The company aims to leverage its strong brand and customer loyalty to capture a larger share of the estimated $19 billion annual written premium market for insurable collector vehicles in the U.S. However, the filing also acknowledged potential risks, including economic fluctuations and regulatory challenges that could impact future performance.
About Hagerty, Inc.
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