Hagerty Inc., an automotive lifestyle brand and a leading specialty insurance provider for the automotive enthusiast market based in Traverse City, announced that shares of its common stock and warrants will begin trading today on the New York Stock Exchange (NYSE) under the ticker symbols HGTY and HGTY.WS, respectively.
This move follows the company’s previously announced business combination with Aldel Financial, a special purpose acquisition company (SPAC), which was approved at a special meeting on Dec. 1. Hagerty executives will ring the bell to open the trading day at the NYSE on Monday, Dec. 6.
“Today is a milestone for Hagerty and a testament to the talent and dedication of the entire Hagerty team and their commitment to our purpose of saving driving and car culture for future generations,” says McKeel Hagerty, the company’s CEO.
“We have built the company to optimize growth across the vast automotive enthusiast market, which today stands strong at an estimated 69 million enthusiasts in the U.S. alone. Our goal is not only to provide car lovers with great insurance but to help them connect with one another and have fun with their cars.”
Hagerty is a provider of specialty automotive insurance with approximately 2 million cars insured globally, an industry-leading 84 Net Promoter Score (NPS), and partnerships with nine of the top 10 U.S. automotive insurers.
It has invested in a business model that integrates omni-channel distribution, risk management, reinsurance, subscriptions, and memberships with first-party data to drive multiple revenue streams. Hagerty says the model positions it to scale through national insurance partners, local agents and brokers, and direct distribution.
“Aldel’s mission was to partner with a great business with a large and growing market opportunity, as well as a differentiated operating model. Hagerty meets those criteria and more,” says Robert I. Kaufman, chairman and CEO of Aldel.
“It is a company not only primed for growth, but one with a unique culture and visionary leadership team, as well as a record of financial success. We look forward to supporting Hagerty in its efforts to drive profitable growth in the years ahead.”
The company’s portfolio of automotive offerings includes Hagerty Drivers Club (1.8 million members), Hagerty Drivers Club magazine (1.2 million readership), Hagerty YouTube (1.75 million subscribers), three major concours events, a nationwide collection of premium social and car storage membership facilities called Hagerty Garage + Social, and DriveShare — a peer-to-peer service that lets people rent vintage and cool cars.
Hagerty’s business model has resulted in a record of consistent success, including:
- 29 percent compounded annual revenue growth rate from 2018 to 2020.
- Customer retention at 90 percent.
- Average loss ratio of 41 percent, which is lower than U.S. personal lines auto insurance industry ratio of 76 percent.
“We are focused on preserving the parts of driving that created American car culture in the first place – family, fun, community, competition, road trips and so much more,” says Hagerty. “Being listed on the NYSE marks the start of an exciting new chapter in Hagerty’s history.
“We are confident that we have sufficient capital to advance our strategy, which remains focused on investing in the Company’s digital user experience to support and accelerate growth in our membership base, while expanding our portfolio of engaging and exciting car-focused events and services. We believe this strategy will create rewarding new experiences for car lovers and sustainable value for our shareholders over the long term.”
