AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Hagerty's Q2 2026 total revenue was $354.8M, down 6.5% YoY, as the Markel Fronting Arrangement cut commission revenue 83.5% while earned premium rose 41.7%; net income fell to $8.0M.
Biggest Revenue Drivers
Earned premium, net$252.0M+41.7% YoY
Primarily driven by entry into the Markel Fronting Arrangement, increasing Hagerty Re's U.S. quota share from approximately 80% to 100%.
Commission and fee revenue$23.7M-83.5% YoY
Decrease primarily due to transition of business under the Markel Fronting Arrangement; Essentia-originated commission no longer recognized.
Biggest Revenue Drivers
Total revenue: $354.8M-6.5% YoY
Earned premium, net$252.0M+41.7% YoY
Primarily driven by entry into the Markel Fronting Arrangement, increasing Hagerty Re's U.S. quota share from approximately 80% to 100%.
Commission and fee revenue$23.7M-83.5% YoY
Decrease primarily due to transition of business under the Markel Fronting Arrangement; Essentia-originated commission no longer recognized.
Marketplace revenue$39.7M+47.5% YoY
Increased auction revenue driven by an 80.3% increase in Net Auction Sales from the 2026 Concorso d'Eleganza Villa d'Este Auction.
Membership and other revenue$21.4M+3.0% YoY
Increase attributable to new insurance policies issued with a bundled HDC membership, partially offset by lower advertising revenue.
Largest Expense Items
Losses and loss adjustment expenses, net$110.7M+47.2% YoY
Primarily the result of the Markel Fronting Arrangement increasing Hagerty Re's U.S. quota share to 100%, plus growth in subject premiums.
Underwriting and other insurance expenses$62.9MN/M
Reclassification of risk-taking operating costs following the transition of business under the Markel Fronting Arrangement.
Margins: Income before taxes fell to $2.2M from $53.4M, with the Insurance segment's pre-tax income down $58.0M due to lower commission revenue and non-cash amortization of 2025 deferred ceding commissions. Adjusted EBITDA rose 2.6% to $74.5M.
Watch Items from the Filing
Markel Fronting Arrangement shifts 100% of Essentia risk to Hagerty Re, increasing exposure to underwriting volatility, catastrophes, and reinsurance counterparty risk.
Essentia-originated commission revenue is no longer recognized; Q2 commission and fee revenue fell to $23.7M from $143.3M year over year.
Pending acquisition of Bennetts Motorcycling Services for approximately £34.0M (about $43.0M), expected to close in Q3 2026.
Hagerty Re Loss Ratio of 42.7% in Q2 2026 versus 42.3% a year earlier; Hagerty Re Combined Ratio held at 89.6%.
Series A Convertible Preferred Stock redemption value of $100.8M may be triggered by fundamental transactions or change of control, creating potential cash obligations.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Hagerty, Inc. (HGTY): stock profile, AI score and financials
Hagerty, Inc. (HGTY) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores HGTY at 54.3/100 on a composite quality score built from its SEC filings, placing it at rank #1,335 of 2,925 stocks — the top half of the AI-ranked universe. HGTY scores in the top quartile across earnings quality (93.3). Shareholder dilution risk is elevated at 48.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Hagerty, Inc. reports quarterly revenue of $354.8M, net income of $8.0M, an operating margin of 0.6%. Top institutional holders of HGTY by reported 13-F value include STATE FARM MUTUAL AUTOMOBILE INSURANCE, Neuberger Berman Group, T. Rowe Price Investment Management, based on the most recent SEC filings. HGTY trades on the NYSE exchange and files with the SEC under CIK 1840776. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate HGTY daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Hagerty, Inc. directly from SEC EDGAR.