Hagerty raised its 2026 profit guidance on Tuesday after adding a record 402,000 new members in nine months. The Michigan-based specialty insurer detailed the figures in its third-quarter results.
Policies in force grew 18.1% year over year to 1.91 million. Written premium rose 17.7% to $1.10 billion. Retention slipped slightly to 88.2% from 88.6%.
For brokers and MGA leaders, the figures offer a benchmark for how a niche, enthusiast-focused book can grow at scale.
“We grew written premium 18% during the first nine months as we added a record 402,000 new members,” said McKeel Hagerty, the company’s CEO and chairman. “Given the strength of our results and current trajectory, we are again increasing our expectations for full year 2026.”
Since Jan. 1, Hagerty Re has taken 100% of the US quota share under its Markel Fronting Arrangement, up from 80%. That lifted net earned premium 41.7% to $757 million.
Total revenue still fell 7.1% to $1.02 billion. Commission revenue and ceding commissions are now eliminated in consolidation.
Net income was $31.6 million, down from $120.7 million. That includes $189 million in pre-tax transitional costs tied to deferred ceding commissions paid to Markel on pre-2026 policies. Hagerty expects those costs to fall to about $10 million in the fourth quarter.
Adjusted EBITDA, a non-GAAP measure, rose 42.5% to $256.7 million. In the third quarter alone, it reached $97.1 million, up 63.5%. Third-quarter net income was $36.3 million, down 21.4%.
Underwriting results improved. Hagerty Re’s combined ratio fell to 85.2% from 89.3%, and its loss ratio dropped to 37.8% from 42.1%.
The company said $32 million of lower estimated losses helped, including $26 million tied to the current accident year. Brokers weighing capacity partners may want to note that estimate changes contributed to the gain.
Hagerty now expects 2026 adjusted EBITDA of $305 million to $315 million, up from $270 million to $280 million. Net income guidance rose to $48 million to $60 million from $18 million to $30 million.
The outlook includes about $199 million of transitional costs. Written premium growth guidance is unchanged at 16% to 17%.
Marketplace results were mixed. Aggregate auction sales surged 82.8% to $351.4 million. Private sales totaled $180.9 million, down 18.4%, and third-quarter marketplace revenue fell 6%.
Hagerty Drivers Club paid members rose 6.2% to 977,456. That membership base feeds the insurance business, which could matter for brokers placing enthusiast-vehicle cover.
As of Sept. 30, Hagerty held $461 million in unrestricted cash and $247 million in total debt. Of that debt, $103 million backs Broad Arrow Capital’s collector car loans.
The results also refer to Hagerty’s recently completed acquisition of Bennetts. Insurance Business reported the £34 million deal in July.
Bennetts is the UK’s second-largest specialty motorcycle insurance broker. Hagerty has said the purchase should triple its UK revenue to about £25 million.
Taken together, the results show specialty programs can add policies quickly while carriers and MGAs rework how risk and commissions are shared.
