Hagerty, an automotive enthusiast brand and specialty vehicle insurance provider, said its revenue rose by 19% year-over-year to US$291.7 million during the fourth quarter of 2024.
Operating income for the fourth quarter was US$6 million, an increase of US$12.5 million from the previous year. Fourth-quarter net income was US$8.4 million, down US$0.6 million from the prior year.
Written premium for the quarter grew 13% to US$217.4 million, while commission and fee revenue increased by 15%.
The fourth-quarter loss ratio was 42.8% including a 2.4% impact from catastrophe losses, compared with 41.5% in the previous year. Earned premium for the fourth quarter increased 14% to US$168.4 million.
For the full year, revenue increased 20% to US$1.2 billion. Written premium for the year added 15% to US$1.04 billion, while commission and fee revenue increased 16%. For the full year, the loss ratio was 46.4%, with a 5.6% impact from catastrophe losses, up from 41.5% in 2023.
Full-year operating income reached US$66.4 million, an increase of US$56 million, or 538%, year-over-year. Operating income margin for the full year expanded by 450 basis points, despite a 470-basis-point decline in the fourth quarter.
Full-year net income increased by US$50.1 million to US$78.3 million, a 178% rise. The company attributed a US$13 million increase in interest and other income to diversification in Hagerty Re's investment portfolio. A full-year loss of US$8.5 million was recorded due to changes in fair value and settlement of warrant liabilities.
Policies in force retention stood at 89% as of Dec. 31, 2024, up from 88.7% in the prior year. The total number of insured vehicles increased 8% year-over-year to 2.6 million.
The company ended 2024 with US$105 million in cash and availability, offset by US$105 million in total debt. Adjusted EBITDA for the fourth quarter was US$19.9 million, an increase of US$10.2 million, while full-year adjusted EBITDA grew 41% to US$124.5 million.
Looking ahead to 2025, Hagerty projected written premium growth of 13-14% and expects profit growth to outpace revenue expansion. The company plans to roll out the State Farm Classic Plus program in over 25 states later in the year. By 2030, it aims to double its policy count to three million.
Hagerty also plans to increase investment in technology, focusing on modernising risk rating architecture and improving segmentation. It plans to invest US$20 million in its technology platform, Duck Creek, to support long-term growth.
