Hagerty 2Q26 First Take: Strong Quarter, Management Raised 2026 Outlook

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Hagerty

2Q26 First Take: Strong Quarter, Management Raised

2026 Outlook

Neutral

HGTY, HGTY US

Price (04 Aug 26):$11.72

Insurance - Life & Nonlife

Results were robust, marked by healthy revenues and strong growth trends

(written premiums and PIF). Management raised 2026 guidance, and we think

written premiums and EBITDA are running ahead of the full-year outlook.

Pablo S. Singzon AC

(1-212) 622-2295

Kevin Wijendra

Adjusted EBITDA higher than assumed. 2Q26 adjusted EBITDA of $74.5

million was above our $60.6 million estimate and consensus of $55.6 million.

Compared with our model, the upside was mainly driven by higher revenues

ex. earned premiums and lower expenses, more than offsetting a shortfall in

underwriting income (earned premiums less loss expenses), which was $141.2

million versus our $147.1 million estimate. The unfavorable pre-tax impact of

transitional costs related to the Markel fronting arrangement ($64 million) was

slightly lower than our $69 million estimate, and was reported in the policy

acquisition cost line. The adjusted net loss of $6 million was better than our

estimated adjusted loss of $37 million.

Revenues ex. earned premiums higher, earned premiums slightly lower.

Total revenues of $354.8 million were well above our $337.3 million estimate,

primarily driven by higher membership and other revenues ($61.0 million vs.

$49.5 million estimate; marketplace $39.7 million vs. $25.7 million estimate;

membership $21.4 million vs. $23.8 million estimate). Earned premiums were

a touch lower ($252.0 million vs. $253.7 million estimate), while net

investment income ($11.0 million vs. $10.8 million estimate) and

commissions ($23.7 million vs. $23.3 million estimate) were slightly higher.

Written premium growth was better than assumed and PIF growth

accelerated, both continue to benefit from State Farm. Written premium

growth of +19.2% to $424.5 million was faster than our +15.0% ($402.3

million) estimate. Year-on-year PIF growth accelerated, up +19% in 2Q26

compared to +15% in 1Q26, +12% in 4Q25, and +6% in 2Q25, helped by

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