Hagerty Q1 revenue falls 5%, misses expectations

Hagerty

06/05/2026 12:02

Overview

US specialty vehicle insurer's Q1 revenue fell 5% and missed analyst expectations

Adjusted EPS for Q1 met analyst expectations

Company reaffirmed 2026 written premium growth outlook of 15% to 16%

Outlook

Hagerty sees 2026 written premium growth of 15% to 16%

Company expects 2026 total revenue to decline 11% to 12% due to Markel arrangement

Hagerty projects 2026 net loss of $51 mln to $41 mln, including ~$190 mln transitional costs

Company expects 2026 adjusted EBITDA of $236 mln to $247 mln

Result Drivers

FRONTING ARRANGEMENT TRANSITION - Reported revenue decreased due to the shift to a fronting arrangement with Markel, which eliminated commission revenue and affected period-to-period comparability

PREMIUM AND POLICY GROWTH - Written premium increased 18% and policies in force rose 15%, reflecting strong underlying operational performance

TRANSITIONAL COSTS - Net loss included $89 mln of pre-tax transitional costs related to the Markel Fronting Arrangement

Company press release: ID:nPn7dTnqla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$26 mln
$283.22 mln (5 Analysts)
Q1 Adjusted EPS
Meet
-$0.04
-$0.04 (7 Analysts)
Q1 Net Income
-$13 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Hagerty Inc is $14.50, about 40.9% above its May 5 closing price of $10.29

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 28 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)