Hagerty Inc. (NYSE: HGTY) reported a net loss of $13 million for the first quarter of 2026, driven by significant one-time costs, even as the company posted strong underlying growth in its core insurance metrics and reaffirmed its full-year outlook.
The specialty vehicle insurer's results reflect the financial impact of its new fronting arrangement for the Markel program. "The first quarter of 2026 was a pivotal period for Hagerty as we completed our strategic evolution to a capital-light insurance model," the company stated in its press release, highlighting the planned nature of the transition.
The quarterly loss, which compares to a $27 million net income in the same period last year, included $89 million in pre-tax transitional costs. Despite the net loss, Hagerty’s adjusted EBITDA increased 77% to $85 million, and total written premium grew 18% to $289 million. Earned premium saw a 42% year-over-year increase to $240 million.
The company’s performance signals confidence in its new operating structure, leading it to reaffirm its 2026 outlook for written premium growth of 15% to 16%. The results show a company absorbing a short-term planned loss to achieve a more flexible long-term model.
Hagerty's ability to grow its membership and premium base during this complex transition suggests the core business remains strong. Investors will be watching to see how the new capital-light model translates to profitability in the upcoming quarters, with the reaffirmed guidance providing a key benchmark.
This article is for informational purposes only and does not constitute investment advice.
