Hagerty reported 18% year-over-year growth in written premiums, driven by new business and policy additions, despite GAAP losses from accounting changes.
Hagerty posted its strongest first-quarter performance, with written premiums climbing 18% to $289 million and adjusted EBITDA surging 77% to $85 million. Growth was fueled by record policy additions and new business, not rate increases, management said.
GAAP results were impacted by accounting changes tied to a new reinsurance structure with Markel, leading to a 5% revenue decline and a $13 million net loss. The company expects the deferred ceding commission amortization drag to phase out by year-end 2026.
Partnerships and auctions contributed to growth, with Broad Arrow’s Amelia auction sales reaching $111 million. Hagerty reaffirmed its full-year 2026 guidance, indicating results are trending toward the high end of targets.