Hagerty Inc. shared its financial results for 2025, revealing a year of strong growth and record achievements. The specialty vehicle insurer saw its total revenue rise 17% to $1.46 billion, while net income nearly doubled, jumping 91% to $149 million. This growth was fueled by a surge in new members and expanding business lines.
The company’s written premium increased by 14% to $1.19 billion, with 371,000 new members joining Hagerty last year. The Hagerty Drivers Club, known as a large community of car enthusiasts, grew by 6% to about 930,000 paid members. Membership and other related revenue edged up 4% to $82 million.
One of the standout areas was the marketplace segment, which more than doubled its revenue, soaring 119% to $119 million. This jump was driven by private sales that climbed 271% to nearly $287 million and auction sales that rose 56% to $279 million. In the fourth quarter alone, marketplace revenue grew 80% year-over-year to $29 million.
On the insurance front, Hagerty saw the total number of insured vehicles increase 9% to 2.8 million, while policies in force went up nearly 12% to 1.68 million. The company also improved its loss ratio from 46.4% to 39.3%, and its combined ratio for its reinsurance segment dropped from 94.1% to 86.6%. These improvements helped push income before taxes up 49% to $139 million for 2025.
CEO and Chair McKeel Hagerty highlighted the year’s momentum, citing record new business wins and efficient revenue growth. He pointed out the company’s investments in technology, the launch of the Enthusiast+ program, expansion of its partnership with State Farm into 27 provinces and states, and its move into Europe’s marketplace as key drivers.
Looking to 2026, Hagerty announced a major change with its long-standing underwriter partner, Markel. The company plans to shift to a 100% quota share deal, which means Hagerty will retain all premium and risk from its underwriting portfolio. This change is expected to bring about roughly $190 million in non-cash costs and is likely to lead to a net loss between $41 million and $51 million for the year.
Despite this, Hagerty expects written premium to grow by 15% to 16%, and projects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to range from $236 million to $247 million. Total revenue, however, is forecasted to decline by 11% to 12% due to accounting changes linked to the Markel agreement, specifically the removal of commission revenues that were previously included.
The company protects about 2.8 million vehicles across the U.S., Canada, and the U.K. As Hagerty moves forward, it plans to keep focusing on its members and building long-term growth, according to the company’s plans.
Overall, 2025 was a high point for Hagerty, with gains across multiple areas and moves that set the stage for the next phase of growth—even as it adjusts to some short-term challenges in the coming year.