Hagerty Q3 2022 Earnings Report
Key Takeaways
Hagerty's Q3 2022 highlights include the acquisition of Broad Arrow Group and a successful first live auction as Hagerty Marketplace, with $55 million in sales and 88% of lots sold. The company focuses on expanding its vehicle marketplace and managing expenses for future growth, while the insurance business continues to show double-digit written premium growth.
Completed the acquisition of Broad Arrow Group to build high-trust platforms for members.
Hagerty Marketplace tallied $55 million in sales at its first live auction.
Collectible cars are a durable asset class, appreciating over 8% annually for the last 15 years.
Insurance business continues to drive double-digit written premium growth with a high Net Promoter Score.
Hagerty
Hagerty
Forward Guidance
Hagerty is focused on managing expenses and allocating resources to high-growth profit opportunities to weather economic headwinds and position the company for the next economic up-cycle.
Positive Outlook
- Actively managing expenses to allocate resources to high growth profit opportunities
- Right-sized cost structure will position Hagerty to weather near-term economic headwinds
- Team is focused on efficiently executing against strategic priorities
- Delivering excellent customer experiences and a superior value proposition
- Hagerty is well positioned to emerge from this economic downturn stronger than ever
Challenges Ahead
- Battening down the hatches against the rough seas of the current economy
- Elements of non-insurance offerings expected to become increasingly material drivers of revenue and profitability
- Insurance still represents over 90% of current revenue
- Durability and resilience will be key themes for us in the quarters to come
- The bar is high