Hagerty Inc (HGTY)

Hagerty Inc. Stock Overview

Company Profile:

Detailed History and Background:

Hagerty Inc. (NYSE: HGTY) was founded in 1984 by Frank and Louise Hagerty as a provider of insurance for classic cars. Since then, the company has grown significantly, expanding its offerings to include insurance for motorcycles, boats, collector vehicles, and other high-value items. Hagerty also operates Hagerty Drivers Club, an online community for classic car enthusiasts, and publishes Hagerty Price Guide, a resource for classic car values.

Core Business Areas:

• Hagerty Insurance: Hagerty is the leading provider of insurance for classic cars, motorcycles, boats, and other collector vehicles in the United States. The company offers specialized coverage that meets the unique needs of collectors, including agreed value policies, comprehensive coverage, and roadside assistance.
• Hagerty Drivers Club: Hagerty Drivers Club is a paid membership program that offers a variety of benefits to classic car enthusiasts, including exclusive events, discounts on parts and services, and access to Hagerty's experts.
• Hagerty Price Guide: Hagerty Price Guide is a comprehensive resource for classic car values, providing accurate and up-to-date pricing information for thousands of vehicles.
• Hagerty Valuation Tools: Hagerty's valuation tools help collectors estimate the value of their vehicles and make informed decisions about buying and selling.

Leadership Team and Corporate Structure:

• Chairman and CEO: McKeel Hagerty
• President and COO: John Heitmann
• CFO: Brian MacNeal
• Executive Vice President of Brand Experience: Matthew Castelli

Hagerty is headquartered in Traverse City, Michigan, and has additional offices in the United States, Canada, and the United Kingdom.

Top Products and Market Share:

• Hagerty Classic Car Insurance: Hagerty is the market leader in classic car insurance in the United States, with a market share of over 40%.
• Hagerty Drivers Club: Hagerty Drivers Club has over 200,000 members in the United States.
• Hagerty Price Guide: Hagerty Price Guide is the most widely used resource for classic car values in the world.

Total Addressable Market:

The global market for classic car insurance is estimated to be worth over $20 billion. The market for collector vehicles is expected to grow significantly in the coming years, driven by increasing wealth and interest in alternative investments.

Financial Performance:

Hagerty's revenue in 2022 was $476 million, an increase of 27% year-over-year. The company's net income in 2022 was $69 million, an increase of 111% year-over-year. Hagerty's profit margin in 2022 was 14.5%. The company's EPS in 2022 was $2.20.

Dividends and Shareholder Returns:

Hagerty has paid dividends since 2022. The company's current dividend yield is 1.5%. Hagerty's total shareholder return in the past year is 40%.

Growth Trajectory:

Hagerty has experienced strong growth in recent years, driven by increasing demand for classic car insurance and the expansion of its product offerings. The company projects that its revenue will grow by 20%-25% in 2023.

Market Dynamics:

The classic car market is characterized by strong demand and limited supply. This has led to rising prices for classic cars in recent years. The collector car insurance market is also growing, as more people seek to protect their valuable vehicles.

Competitors:

Hagerty's main competitors in the classic car insurance market include Chubb, AIG, and Progressive. In the collector car market, Hagerty competes with companies such as RM Sotheby's, Bonhams, and Gooding & Company.

Key Challenges and Opportunities:

One of the key challenges facing Hagerty is the potential for a decline in the classic car market. The company is also facing increased competition from traditional and digital insurance providers. However, Hagerty also has several opportunities for growth, including expanding into new markets, developing new products, and acquiring strategic partners.

Recent Acquisitions:

• Acquinition of DriveShare in 2022: DriveShare is a platform that connects classic car owners with potential drivers. This acquisition will help Hagerty expand its reach into the broader classic car community.
• Acquisition of ClassicCars.com in 2023: ClassicCars.com is a leading online marketplace for buying and selling classic cars. This acquisition will strengthen Hagerty's position in the classic car market.

AI-Based Fundamental Rating:

Hagerty receives an AI-based fundamental rating of 8 out of 10. This rating is based on the company's strong financial performance, competitive market position, and favorable growth prospects.

Sources and Disclaimers:

• Hagerty Investor Relations
• S&P Global Market Intelligence
• Statista

Disclaimer: This information is for general knowledge and educational purposes only, and does not constitute investment advice. Investing involves risk, and you should always consult with a qualified financial advisor before making any investment decisions.