Hagerty Raises 2026 Adjusted EBITDA Outlook to $305–315 Million

Key Facts

Hagerty raised its 2026 adjusted EBITDA outlook to a range of $305–315 million, from $270–280 million previously, after reporting results for the three and nine months ended September 30. CEO McKeel Hagerty said the “strength of our results and the current trajectory of the business” prompted the company to raise its outlook for the year again. The company reported its results on November 3, 2026, while MarketBeat data showed market estimates of $338.99 million for third-quarter revenue and $0.0107 for earnings per share. Results exceeded estimates for revenue and earnings per share, according to the official earnings release. The higher adjusted earnings outlook puts growth in insurance activity and operating profitability at the forefront of the results, alongside the continuing impact of the accounting change related to the Markel arrangement on reported revenue.

Third-quarter total revenue was $354 million, down 9.5% year over year. Hagerty attributed the decline to the transition to the Markel Fronting Arrangement, which resulted in the elimination of commission revenue and ceding expenses associated with policies upon consolidation after control of the Essentia book transferred. The company said commission revenue and ceding expenses for policies issued through the arrangement “are now eliminated upon consolidation.” The decline in reported revenue therefore reflects a change in how some items are presented following the transition, alongside expansion in written and earned premiums. Despite this impact, the company widened its annual revenue outlook to $1.340–1.354 billion, compared with the previous range of $1.325–1.340 billion.

In its insurance business, third-quarter written premiums rose 16% to $386 million, while earned premiums increased 42% to $265 million. Management said written premiums grew 18% in the first nine months, with 402,000 new members added. Net income for those months was $32 million, while adjusted EBITDA rose 43% to $257 million. These figures offer a different picture from reported revenue: premium flows and adjusted earnings growth increased, while the revenue line was affected by the change in the arrangement with Markel. The increase in members and premiums reflects the expansion of the business base during the period on which the company based its higher outlook.

Third-quarter adjusted EBITDA rose 63.5% to $97.051 million, compared with $59.351 million in the year-earlier period. By contrast, quarterly net income was $36 million, compared with $46 million a year earlier. Hagerty said quarterly net income included $36 million in pretax costs related to the transition to the Markel arrangement. The comparison shows adjusted earnings growth coinciding with a decline in reported net income as the company incurred transition costs. In August, the annual net income outlook was $18–30 million, with an estimated $199 million in transition costs, while the adjusted EBITDA range was $270–280 million.

Hagerty Re’s combined loss ratio, a measure of the relationship between losses and premiums, improved to 79.7% in the third quarter from 89.6% a year earlier. For the first nine months, the ratio fell to 85.2% from 89.3% in the year-earlier period. The improvement coincided with growth in written premiums in the quarter and their increase over the first nine months. The company also recorded net income of $32 million and adjusted EBITDA of $257 million during those months. The performance combines expanding premium volume, an improved combined ratio and growth in adjusted earnings, factors that coincided with the decision to raise the annual EBITDA range.

Hagerty’s 2026 performance extends growth recorded in the previous year: in 2025, revenue rose 17% to $1.456 billion, net income climbed 91% to $149 million, and adjusted EBITDA increased 46% to $237 million. The company had said 2026 would bring its transition to a 100% reinsurance share with its long-term partner Markel. In February, the CEO linked that transition and technology investments to the goal of strengthening core earnings and cash flow growth in the following years. He also said at the time that written premiums were expected to grow 15% to 16% in 2026. In the first half of the year, written premiums rose 19% to $713 million, while adjusted EBITDA increased 32% to $160 million from $121 million a year earlier.

Hagerty’s third-quarter earnings conference call was scheduled for November 3 at 10 a.m. Eastern time. The revised outlook puts annual EBITDA at $305–315 million, compared with $270–280 million previously. The company also raised its revenue outlook, while acknowledging the continuing impact of eliminating commission revenue related to the Markel arrangement. The update follows results showing growth in written premiums and adjusted earnings over the first nine months, alongside net income of $32 million. Quarterly net income remains affected by transition costs, which the company said totaled $36 million before tax for the period.