Hagerty Inc (HGTY)

History and Background

Hagerty, Inc. was founded in 1984 by Frank and Louise Hagerty as an insurance agency specializing in classic and collector cars. Initially a small family business, it has grown into a leading provider of specialty insurance for enthusiast vehicles and related services.

Core Business Areas

• Insurance: Provides insurance coverage for classic and collector cars, motorcycles, boats, and other enthusiast vehicles.
• Membership: Offers membership programs that include roadside assistance, valuation tools, and access to Hagerty Drivers Club events.
• Media and Events: Produces automotive content, including magazines, videos, and live events like concours d'elegance and driving tours.
• Marketplace: An online platform for buying and selling classic vehicles.

Leadership and Structure

McKeel Hagerty serves as the Chief Executive Officer. The company has a structured leadership team with executives overseeing various business units, including insurance, media, and membership. Post-SPAC, it operates with a board of directors.

Key Offerings

• Classic Car Insurance: Hagerty's core product, providing specialized insurance for collector vehicles. They hold a significant market share in this niche. Competitors include American Collectors Insurance, Heacock Classic, and Grundy Worldwide.
• Estimated Market Share (%): 40
• Hagerty Drivers Club: A membership program offering roadside assistance, valuation tools, and access to exclusive events and content. Competitors are AAA and various roadside assistance providers.
• Number of Users: 750000
• Hagerty Valuation Tools: Provides online valuation data for classic cars. Competitors include Kelly Blue Book and NADAguides.
• Revenue from Valuation Tools: 10000000

Industry Overview

The collector car market is driven by enthusiasts and investors seeking unique vehicles. The industry experiences cyclical trends influenced by economic conditions and collector preferences. Increased use of online marketplace and content drives the industry as well.

Positioning

Hagerty is positioned as a leader in the collector car insurance market, known for its expertise and enthusiast-focused approach. It differentiates itself through its strong brand, community engagement, and comprehensive service offerings.

Total Addressable Market (TAM)

The global classic car market is estimated to be worth billions of dollars annually. Hagerty aims to capture a significant portion of this TAM by expanding its product offerings and geographic reach.

Key Competitors

• GWH (Grundy Worldwide)
• ACI (American Collectors Insurance)
• HIG (The Hartford)

Competitive Landscape

Hagerty benefits from its brand recognition and enthusiast focus. Larger insurance companies offer broader coverage options but may lack Hagerty's specialized expertise. Niche players like American Collectors Insurance focus solely on collector vehicles but may have less comprehensive service offerings.

Broad Arrow Group

• Year: 2022
• Acquisition Price (USD millions): 76.7
• Strategic Rationale: To strengthen Hagerty's position in the classic car market by expanding its portfolio of enthusiast and automotive lifestyle offerings. This acquisition gives Hagerty further entry into collector car auctions.

Historical Growth: Hagerty has experienced growth through organic expansion and strategic acquisitions. The company has focused on expanding its product offerings and geographic reach.

Future Projections: Future growth is projected to come from continued expansion in the collector car market, growth in membership and media segments, and potential acquisitions. Analyst estimates should be reviewed for specific projections.

Recent Initiatives: Recent initiatives include expanding the Hagerty Drivers Club, investing in digital media content, and exploring international expansion opportunities. The SPAC merger was a significant strategic move to fuel growth.

Hagerty is a leading player in the collector car insurance market with a strong brand and loyal customer base. Its diversified revenue streams and enthusiast-focused approach are key strengths. However, the company faces challenges related to economic conditions and competition, and therefore will require continued growth initiatives and market adaptation to remain competitive.

Data Sources:

• Company reports
• Analyst reports
• Industry publications
• Company Website

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice. Actual results may vary.