Hagerty outlines improved numbers in Q2

Hagerty outlines improved numbers in Q2 | Insurance Business Canada

Motor & Fleet

Hagerty outlines improved numbers in Q2

CEO cites “laser focus” on profitability

Motor & Fleet

By
Terry Gangcuangco

Specialty vehicle insurance provider Hagerty has released its earnings report for the second quarter of 2024, announcing improved financial results in the period.

Here’s how the automotive enthusiast brand performed in the three months ended June 30:

Metric

Q2 2024

Change from Q2 2023

Total revenue

US$313.2 million

20%

Written premium

US$321.2 million

16%

Earned premium

US$157.6 million

24%

Operating income

US$38.1 million

121%

Net income

US$42.7 million

175%

Chief executive and chairman McKeel Hagerty commented: “We delivered excellent top-line growth and margin expansion during the first half of 2024 as our differentiated business model delivers sustained, compounding growth.

“Total revenue gains of 22% were fuelled by written premium growth of 18% as our vehicle count increased 8% over the prior year. High rates of growth, combined with more efficient and effective business processes drove operating margin expansion of 840 basis points.”

“This laser focus on profitability resulted in net income of US$51 million and Adjusted EBITDA of US$80 million during the first six months of 2024, ahead of expectations.”

Meanwhile, because of the “strong start to the year and continued business momentum,” the CEO said they have increased Hagerty’s 2024 growth outlook.

“We now expect written premium growth of 14-15% for the year, powered by strong new business count,” he noted. “Operating margin expansion is expected to drive net income growth of 170-198% and adjusted EBITDA growth of 47-59% as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles.”

It was highlighted that despite the uncertain macro environment and challenging dynamics for the industry amid heightened inflationary pressures, 2024 is on track to be another year of strong top-line growth and margin expansion for Hagerty.

“We remain focused on growing our insurance, membership, and marketplace businesses, positioning us to deliver sustained, compounding profit growth over the coming years and fund our purpose to save driving and to fuel car culture for future generations,” the company said.

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