Hagerty Reports 3rd Quarter 2022 Results.

TRAVERSE CITY, Mich: Hagerty, Inc. (NYSE: HGTY), an automotive lifestyle brand and a leading specialty insurance provider focused on the global automotive enthusiast market, today announced financial results for the three and nine months ended September 30, 2022.

"We delivered accelerated revenue growth of 29% during the third quarter despite a weakening macroeconomic environment," said McKeel Hagerty, Chief Executive Officer of Hagerty. "These impressive results were powered by 16% written premium growth, higher quota share in Hagerty Reinsurance, as well as solid revenue contribution from the recently acquired Broad Arrow Group."

Mr. Hagerty continued, "The collector car transaction market is a large and growing opportunity for our Marketplace platform. The team transacted over $55.3 million in total vehicle sales at Motorlux in Monterey during the third quarter, validating the synergies across the Hagerty ecosystem and we expect to leverage our many owned and operated events in 2023 to build on this success. We also recently launched our online auction platform, which should enable us to leverage Hagerty's hard earned position as the trusted brand for auto enthusiasts to capitalize on the opportunity."

We are also investing methodically in value-added and best-in-class services for our members, which we believe will allow us to grow our loyal base of car lovers and provide them with the necessary resources to enjoy their passion. Excellent customer service drives our industry leading net promoter scores and high retention rates which are the foundation for future growth. We expect our strong top-line momentum to continue, and we are focused on prudently managing our cost structure to drive enhanced profitability and cash flow generation in 2023.

FINANCIAL HIGHLIGHTS

Third quarter Total Revenue increased 29% to $216.8 million compared to $168.1 million in the prior year period, and year-to-date Total Revenue increased 27% to $590.6 million compared to $464.7 million in the prior year period.

This strong growth was attributable to strong written premium growth of 16% in the quarter as well as a 10% increase in contractual quota share in Hagerty Reinsurance.

The recently acquired Broad Arrow Group delivered $5.9 million in revenue during the quarter.

Hagerty Driver's Club (HDC) paid members as of September 30, 2022 increased 5% to approximately 750,000 compared to 712,000 as of September 30, 2021.

Third quarter Revenue per paid member increased 25% to $164 compared to $131 in the prior year period, and year-to-date Revenue per paid member increased 21% to $456 compared to $378 in the prior year...