• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The End of an Era for Rolls-Royce
  • South Carolina Provides $1.29 Billion Incentive for new Scout Factory
  • Hyundai and Kia Criticized about Stolen Car Problems by Attorneys General
  • Dodge Rolls Out Final “Last Call” Model: a 1,025-Hp Challenger SRT Demon 170
  • Acura’s New Integra Type S Launching with 320 Hp
  • First Look: Ferrari Roma Spider
  • What do Americans Think of EV Ownership Today?
  • Challenger Fain Edges Closer to UAW Presidency
  • Week Ahead: All About the Cars — Except for the UAW Part
  • The Rearview Mirror: Birth of a Sports Car Legend
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • First Drive: 2023 Genesis Electrified GV70
    • First Drive: 2023 Nissan Ariya e-4orce AWD
    • A Week With: 2023 Jeep Compass Limited
    • A Week With: 2023 Cadillac Escalade V-Series
    • A Week With: 2023 Volvo XC40 AWD Ultimate
    • First Drive: 2024 Subaru Crosstrek
    • First Drive: 2023 Lexus RZ 450e
    • A Week With: 2023 Toyota GR Supra 3.0 Manual
    • First Impression: 2024 Volkswagen ID.Buzz
    • A Week With: 2023 Chevrolet Blazer RS AWD
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Earnings and financials > Hagerty Takes Expensive Hit from Hurricane, But Posts Profit

        Hagerty Takes Expensive Hit from Hurricane, But Posts Profit

        Specialty car insurer and auction house predicting strong results in 2023.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        March 17, 2023

        Despite watching claims for damage to classic cars it insures climb after Hurricane Ian swept through Florida, Hagerty Inc. saw its total revenue increase 27% in 2022 and predicts strong growth in 2023.

        McKeel-Hagerty-speaking
        McKeel Hagerty, CEO of Hagerty Inc., believes the company will outperform 2022 in 2023.

        The company reported revenue of $787.6 million and net income of $2.4 million. However, the Traverse City, Michigan-based classic car insurer and auction house reported an adjusted EBITDA loss of $1.9 million. 

        The lost on adjusted EBITDA was due to the impact of Hurricane Ian, the decision to increase the company’s 2022 loss reserves, as well as $29.8 million of pre-revenue costs related to scaling the company’s infrastructure, new digital platforms and legacy systems, human resources and occupancy to accommodate our alliance with State Farm and other potential distribution partnerships as well as to further develop our Marketplace transactional platform, the company said.

        “Hagerty has excellent business momentum entering 2023 and we are focused on positioning the company for sustained profitable growth over the coming years,” McKeel Hagerty, the company’s top executive, predicted as it released its financial report for 2022.

        Confident forecast

        “We are confident that the opportunities we have identified to monetize our significant addressable revenue from its insurance and the company’s new classic-car oriented market will expand our share,” Hagerty said.

        Hagerty Marketplace
        Hagerty created several new digital platforms in 2022, including Hagerty Marketplace.

        The company expects total lifestyle business to grow by 22%-26% powered by written premium growth of 11%-13%.

        During the fourth quarter of 2022, Hagerty’s total revenue increased 28% year-over-year to $197 million, in addition to the full-year results.

        “We delivered industry-leading revenue growth of 27% during fiscal 2022, fueled by auto enthusiasts love of their cars despite a weakening macroeconomic environment,” Hagerty said. “These impressive results were powered by consistent 15% written premium growth throughout the year, higher quota share in Hagerty Re, as well as $14 million in revenue from Marketplace.

        “We have spent the last several decades building Hagerty into one of the most beloved consumer brands in the auto enthusiast space and believe our affinity model positions us to provide our members with the necessary resources to enjoy their passion.”

        Hurricane piled up losses

        Dodge Challenger
        Hagerty Insurance is still one of the top insurers of collector cars.

        Hagerty took its lumps as the full-year loss ratio was 45.3% in 2022 compared to 41.3% in the prior year. The full year loss ratio includes the $10 million in claims linked to Hurricane Ian, which came ashore in late September amid the wealthy enclaves on southwest Florida’s Gulf Coast.

        Hagerty’s fourth quarter adjusted EBITDA was a $2 million loss compared to a $2.6 million loss for the year-ago period. The adjusted EBITDA was a loss of $1.9 million compared to a profit $25.4 million for the previous year.

        The fourth quarter operating loss was $35.7 million compared to a loss of $21 million in the prior year period, while the full year operating loss was $67.6 million compared to a loss of $10.1 million for 2021.

        The insurance policies offered by Hagerty offer coverage for collectible vehicles that are not driven daily, and offer lower prices than standard insurers. It says it has insured more than 2 million vehicles globally.

        The company was launched in 1984 by Frank and Louise Hagerty after they could not find good insurance coverage for their wooden boats. The company initially focused on providing coverage for antique boats, and later expanded into cars and other vehicles. It went public in 2021 through a SPAC.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        2023 Rolls-Royce Black Badge Wraith Black Arrow nose REL

        The End of an Era for Rolls-Royce

        Yesterday
        Scout in neon on grille

        South Carolina Provides $1.29 Billion Incentive for new Scout Factory

        Yesterday
        2018 Hyundai Sonata front

        Hyundai and Kia Criticized about Stolen Car Problems by Attorneys General

        Yesterday

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: