Today's Viewpoint: A MarshBerry Publication

Hagerty Announces 1Q2022 Earnings

Hagerty’s Q1 2022 earnings are up including membership subscription revenue and year-over-year total revenue. Please browse the earnings report below for more details.


Hagerty (NYSE:HGTY) reported a 332% rise in net income to $16M and adjusted Earnings Per Share of $0.04 for the quarter ended March 31, 2022.

Notable Takeaways from Hagerty Q1 2022 Earnings

  • The firm reported $168M in total revenue, up 30% year-over-year (YoY) with written premium increasing 16% to $155M. Commission and fee revenue grew 15% to $63M, driven primarily by the sale of roughly 48,000 new policies and policy in-force retention of 89%. Premium growth was also positively impacted by a 10-basis point increase in contractual reinsurance quota to 70%. During the quarter, the average written premium on new business grew 15%.
  • Membership subscription revenue, which is generated through membership offerings and other automotive services sold to policyholders, increased 40% to $16 million. Additionally, insurance policy adoption rates from paid members increased 100 basis points to 76%. Active membership grew 11% to 2.5 million through March 31, 2022, of which 1.3 million are paid members.
  • Within Hagerty’s reinsurance business, earned premium in the quarter grew 41% to $89M, benefits by new written premium growth, policy retention, and a 10-point increase in contractual reinsurance quota share to 70%. Total written premium grew 16% YoY to $155M and its loss ratio remained stable at 41%.
  • The combined Ratio for the first quarter was 89.5%, down slightly from 89.8% in the prior year.
  • Strategic alliances with distribution partners remain a key driver of Hagerty’s growth. Key partnerships include Essentia, a Markle company, for which Hagerty is the exclusive MGA, and Aviva, In Q4 2022, Hagerty expects to launch its partnership with State Farm. This strategic alliance will provide classic car coverage under the banner State Farm Classic+ and will allow owners to bundle their home and traditional auto insurance with classic car coverage.
  • Strategic priorities for the company through the balance of the year include growing its omni-channel distribution channels, expanding its share of the insurance underwriting profit, and improving its member experience. Within its reinsurance division, the company will seek to continue to increase contractual quota share.

Subscribe to MarshBerry’s Today’s ViewPoint blog for the latest news and updates and follow us on social media. Contact the experts at MarshBerry for customized financial advising solutions, investment banking, consulting services, and more.

Investment banking services offered through MarshBerry Capital, LLC, Member FINRA Member SIPC and an affiliate of Marsh, Berry & Company, LLC. 28601 Chagrin Boulevard, Suite 400, Woodmere, Ohio 44122 (440.354.3230)

This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

MarshBerry continues to be the #1 sell side advisor in the industry (as ranked by S&P Global). If you're considering selling your firm, we are the best choice to help you through the complicated process. If you don't hire MarshBerry, hire a reputable advisor that can help you navigate one of the most important business decisions you will ever make. You will be much better off having an advisor in your corner that knows the industry than trying to do this on your own.