Hagerty Lifts 2026 Outlook as Underlying Profit Jumps 32%
HGTY sits 40% above its 52-week low of $8.81.
Summary
Hagerty reported Q2 2026 results featuring record member growth and a 32% jump in adjusted EBITDA, driven by the Markel fronting arrangement. Management raised full-year guidance and announced the Bennetts acquisition, tripling UK scale.
Key Events · Earnings and Guidance · HGTY
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Record Operational Growth
Written premium grew 19% to $713M in H1 2026, fueled by the best six-month member addition ever—279,000 new members. Policies in force reached 1.9 million, up 19% year-over-year.
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Adjusted EBITDA Surges 32%
Adjusted EBITDA hit $160M in H1 2026, up from $121M a year ago. The GAAP net loss of $5M includes $153M in non-recurring Markel transitional amortization that will fully run off by year-end 2026.
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Full-Year Guidance Raised
Management increased its 2026 outlook: written premium growth is now 16–17%, net income $18–30M, and adjusted EBITDA $270–280M—up from prior guidance of $236–247M.
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Bennetts Acquisition Announced
Post-quarter, Hagerty agreed to acquire Bennetts, the UK's second-largest specialty motorcycle insurer, for £34 million. The deal triples Hagerty's UK scale and expands its member-focused model internationally.
Analysis · HGTY · Finance
Hagerty posted record operational growth in the first half of 2026, with written premium up 19% and adjusted EBITDA climbing 32% to $160 million. The GAAP net loss of $5 million stems entirely from $153 million in non-recurring amortization tied to the Markel fronting transition—costs that will burn off by year-end. Reflecting this momentum, management raised full-year guidance across the board and now expects $270–280 million in adjusted EBITDA. After the quarter closed, the company announced the acquisition of Bennetts for £34 million, a move that triples its UK scale. The core insurance flywheel is accelerating: 279,000 new members were added, retention held at 88%, and the combined ratio came in at a healthy 88%. This is a structural transition year in which reported earnings obscure the underlying earnings power that will emerge in 2027.
At the time of this filing, HGTY was trading at $12.35 on NYSE in the Finance sector, with a market capitalization of approximately $4B. The 52-week trading range was $8.81 to $14.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.