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Hagerty, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $323,374,000 from $275,574,000 in the same quarter the previous year. This increase is attributed to higher commission and fee revenue, earned premium, and membership, marketplace, and other revenue.
Commission and fee revenue grew by 12.6% to $116,161,000, driven by increases in policy renewals and new policies, while earned premium rose by 18.5% to $165,686,000, primarily due to growth in subject premiums written through Hagerty's MGA subsidiaries.
Membership, marketplace, and other revenue increased by 27.3% to $41,527,000, with significant contributions from Marketplace revenue due to stronger auction results and increased inventory sales.
Operating expenses for the quarter were $313,285,000, up from $259,457,000 the previous year. This increase is mainly due to higher losses and loss adjustment expenses, which rose by 73.0% to $99,430,000, impacted by estimated losses related to Hurricane Helene.
Net income for the quarter was $19,007,000, slightly up from $18,623,000 in the previous year. The company reported a loss related to warrant liabilities of $463,000, compared to a gain of $850,000 in the prior year.
Interest and other income (expense), net increased to $8,359,000 from $6,260,000, driven by diversification of Hagerty Re's investment portfolio.
Cash provided by operating activities was $189,642,000, while cash used in investing and financing activities was $562,490,000 and $27,117,000, respectively.
Hagerty had a working capital of $1,008,870,000 as of September 30, 2024. The company maintains its focus on growth and profitability goals, with strategic investments and resources prioritized in areas offering strong potential.
The filing also details various financial agreements, including the JPM Credit Facility (JPM-0.29%) and BAC Credit Facility (BAC-1.00%), and highlights the company's compliance with financial covenants.
Hagerty does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on its core operations, including insurance and membership offerings, and the expansion of its Marketplace platform.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hagerty quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.