By Josh Recamara
Hagerty, an automotive enthusiast brand and specialty vehicle insurance provider, reported strong results for Q3 and first nine months of 2025, driven by premium growth, improved underwriting and margin expansion.
For the first nine months of the year, Hagerty’s total revenue rose 18% year-over-year to $1.07 billion, while net income increased 73% to $120.7 million. Written premiums climbed 13% to $934.4 million, supported by steady policy retention at 88.6% and a 7% increase in total insured vehicles to 2.7 million. The company’s loss ratio improved to 42.1% from 47.7% in the prior year, reflecting reduced catastrophe losses and disciplined underwriting.
Hagerty’s Q3 performance was equally strong, with total revenue up 18% to $380 million and adjusted EBITDA doubling to $49.7 million. Operating income rose 240% to $34.3 million, while operating margins expanded by nearly six percentage points. The company ended the quarter with $160.4 million in unrestricted cash and $178 million in total debt.
According to CEO and chairman McKeel Hagerty, the company’s focus on scaling its insurance, membership, and marketplace businesses continues to fuel profitability.
Meanwhile, Hagerty raised its full-year 2025 outlook for the second consecutive quarter, now projecting revenue growth of 14 to 15%, net income growth of 58 to 65%, and adjusted EBITDA growth of 37 to 41%.
When compared to larger property and casualty peers, Hagerty’s performance stands out. Major insurers such as Travelers and AIG reported combined ratios of around 92% and 86.8% respectively in recent quarters, while Hagerty’s 42% loss ratio highlights the advantages of its niche specialty focus.
Industry data from S&P Global also showed that specialty insurers have generally outperformed broader auto markets, where underwriting results remain pressured by inflation and claims costs.
Hagerty’s consistent growth, expanding margins, and underwriting strength demonstrate the resilience of its specialty insurance model. Its focus on collector and enthusiast vehicles continues to deliver stable profitability and strong policyholder loyalty, an increasingly valuable position in a competitive and volatile insurance market.
Hagerty posts 73% net income growth in 2025 so far – Insurance Business America
