Hagerty, Inc. — Cyborg Score 7/10

Strong
Specialty Insurance & Automotive Lifestyle

Strategic Profile

Hagerty combines passion-driven brand loyalty with data-driven insurance, achieving 18% Q3 2025 revenue growth to $368.7M, with its dual-engine model spanning specialty insurance and a booming $12B classic car marketplace, with 327% year-over-year marketplace revenue surge. A new fronting arrangement effective January 1, 2026, will grant Hagerty control of 100% of the premium, eliminating third-party fees and boosting profitability.

Cyborg Score Rationale

Hagerty's fronting arrangement with Markel will eliminate third-party fees, aligned with its shift toward direct underwriting, which has expanded margins through its Duck Creek technology platform, enabling entry into high-risk markets like Florida and California. 2026 is highlighted as a possible turning point for scale and profitability.

Top Insights

  • 876K Hagerty Drivers Club members with 82 NPS, outpacing peers via emotional equity and proprietary valuation tools
  • Broad Arrow auction company achieved 97 percent year-over-year growth in total transaction value in 2025, exceeding $624 million
  • International expansion includes successful auctions in Europe with plans for Belgium, Switzerland, and Las Vegas events, tapping into global demand for classic vehicles and mitigating regional economic risks
  • Keefe Bruyette lifted its Hagerty price target to US$15 from US$14 and kept an Outperform rating

Named Competitors

  • Plymouth Rock Assurance — Auto insurance with specialty focus
  • CSAA Insurance Group — Regional auto and specialty insurance provider
  • Auto Insurance Specialists — Specialty vehicle insurance provider

Recent Developments

  • (February 2026) Marc Burns promoted to Chief Marketing Officer; Matt Teshera appointed SVP of Marketing
  • (December 2025) Released 2026 Bull Market List identifying 11 enthusiast vehicles expected to appreciate
  • (January 2026) New fronting arrangement with Markel effective January 1, grants full premium control

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