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Dec 31, 2024
Hagerty Q4 2024 Earnings Report
Hagerty reported a 19% revenue increase and improved operating income in Q4 2024.
Key Takeaways
Hagerty's Q4 2024 revenue grew by 19% year-over-year to $291.7 million, driven by strong growth in earned premium and membership revenue. The company achieved operating income of $6.0 million, reversing a loss from the prior year. Net income was $8.4 million, while adjusted EBITDA improved to $19.9 million. Hagerty added 133,000 new members during the quarter and maintained strong customer retention.
Revenue increased 19% year-over-year to $291.7 million.
Earned premium grew 14% to $168.4 million.
Net income reached $8.4 million despite increased loss ratios.
Adjusted EBITDA improved to $19.9 million, a $10.2 million increase.
Hagerty
Hagerty
Hagerty Revenue by Segment
Hagerty Revenue by Geographic Location
Revenue by Segment
Commission & Fee Revenue
CapyFin.comEarned Premium Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Hagerty expects revenue growth of 12-13% in 2025, driven by a 13-14% increase in written premiums. Net income is projected to grow by 30-40%, while adjusted EBITDA is expected to increase by 21-29% as the company continues investing in technology and efficiency improvements.
Positive Outlook
- Expected revenue growth of 12-13% in FY25.
- Written premiums projected to increase 13-14%.
- Net income anticipated to grow 30-40% due to efficiency improvements.
- Investment in technology expected to streamline operations and support growth.
- Expansion of the State Farm Classic Plus program to over 25 states.
Challenges Ahead
- Higher investment spending in technology expected to impact short-term margins.
- Potential impact from regulatory changes in the insurance market.
- Macroeconomic conditions may affect policy growth and premium rates.
- Loss ratios could fluctuate due to catastrophic events and claims activity.
- Competitive pressure in the specialty vehicle insurance segment.