Hagerty in Traverse City Reports 2022 Results, Revenue Grows 27%

Hagerty in Traverse City Reports 2022 Results, Revenue Grows 27%
Classic muscle car
Hagerty has announced 2022 financial results.//photo courtesy of Hagerty

Hagerty Inc., a Traverse City-based automotive lifestyle brand and leading specialty insurance provider focused on the global automotive enthusiast market, has announced financial results for the three months and year that ended Dec. 31, 2022.

Hagerty’s fourth-quarter total revenue increased 28 percent to $197 million compared with the prior year period, and its full-year total revenue increased 27 percent to $787.6 million compared with the prior year.

In addition, fourth-quarter commission and fee revenue grew 11 percent compared with the previous year’s fourth quarter to $63.8 million, and full-year commission and fee revenue grew 13 percent compared with the previous year to $307.2 million.

Earned premium also saw large increases, driven by the 15 percent written premium growth as well as the increased quota share of 70 percent compared with 60 percent in the prior year period. In the fourth quarter, earned premium increased 35 percent compared with 2021 to $112.3 million, while full year earned premium for 2022 increased 36 percent compared with the previous year to $403.1 million.

Hagerty’s acquisition of the Broad Arrow Group in Grosse Pointe last August led to $86 million in total vehicle sales, resulting in $5.7 million in Marketplace revenue during the fourth quarter and $13.7 million during the year.

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

Other key business milestones included that Hagerty reached 1.3 million paid members as of Dec. 31, 2022; generated more than 100 million views on YouTube, and accumulated over 4.7 million followers on social media; acquired Radwood, an automotive lifestyle event organizer in San Francisco, and hosted multiple events serving 12,000 attendees; and announced partnerships with Exxon Mobil and Hendrick Motorsports.

The company anticipates similar results in the coming year.

“We expect to maintain our business momentum into 2023, with 22 to 26 percent growth in total revenue powered by sustained double-digit growth in written premium,” Hagerty says. “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.

“Importantly, we took decisive action during the fourth quarter to position Hagerty for significantly improved profitability in 2023 as our cost containment and efficiency programs take hold. We have aligned our teams around the 2023 plan to deliver improved margins and profitability despite the continued investments in our Marketplace platform and the State Farm partnership that is on track to launch in 2023.”

View the full annual report and a recording of the company’s most recent investor presentation at investor.hagerty.com.