Hagerty shares down 6.8% as company posts $61.4mn 2021 net loss
Classic car underwriter Hagerty’s shares fell 6.8% to $12.80 the morning after the company posted a $61.4mn 2021 net loss in its first earnings release following its public trading debut.
The company’s stock dropped while the S&P insurance select index jumped 0.7%, but other growth insurance firms declined between 4% and 5%.
The MGA recorded an adjusted full-year loss per share of $0.17.
However, the underwriter’s 2021 loss ratio remained unchanged at 41.3% compared to 2020.
Policies-in-force retention at the classic car specialist slipped slightly to 89% from 90% a year ago, but gross written premium grew around 17% year-on-year to $674mn.
The firm deferred the launch of its partnership with State Farm until later in the year as the companies work through state licensing and product rate filing processes, as well as policy and membership systems integration.
The partnership with the State Farm is a 10-year contract that includes a $500mn investment and one seat on the firm's board of directors.
In a statement, Hagerty CEO McKeel Hagerty said: “We see clear opportunities to further monetize our sizable addressable market and expand our market share; therefore, we plan to continue to invest in our capabilities in 2022 to capitalize on these opportunities.”
Hagerty completed its special purpose acquisition company merger and started trading publicly in late 2021.
In a recent interview with Inside P&C, the CEO of the eponymously named Hagerty said that the company’s status as publicly traded would fuel its growth ambitions, as it doubles down on the niche car segment.