Insurance Daily News

Hagerty Expands UK Market Reach with Bennetts Acquisition

Specialist collector car insurer Hagerty projects its UK revenue will triple to approximately £25 million following the completion of its £34 million acquisition of Bennetts during the third quarter. Bennetts is the second-largest specialty motorcycle insurance broker in the UK. The deal expands Hagerty's footprint in the UK market for performance and classic bikes, providing increased capacity for high-value collector accounts while competing directly for motorcycle business.

On a global scale, Hagerty expanded its total policies in force by 18.1% year over year to reach 1.91 million during the first nine months of 2026. Over this timeframe, the firm brought in a record 402,000 new members, while written premium expanded 17.7% to $1.10 billion. Policy retention experienced a minor decrease, moving to 88.2% from 88.6%. Hagerty Drivers Club paid memberships rose 6.2% to 977,456.

Strong financial results led the insurer to raise its full-year 2026 outlook for adjusted EBITDA to between $305 million and $315 million, up from the previous range of $270 million to $280 million. Net income guidance was also lifted to $48 million to $60 million, while written premium growth guidance remains at 16% to 17%. For the nine-month period, adjusted EBITDA grew 42.5% to $256.7 million.

Total reported revenue dropped 7.1% to $1.02 billion due to an accounting restructuring. Effective January 1, Hagerty Re assumed a 100% US quota share under the Markel Fronting Arrangement, increasing net earned premium by 41.7% to $757 million. Net income fell to $31.6 million from $120.7 million, impacted by $189 million in pre-tax transitional costs associated with deferred ceding commissions paid to Markel, which are projected to drop to roughly $10 million in the fourth quarter.

Underwriting performance strengthened as Hagerty Re’s combined ratio declined from 89.3% to 85.2%, supported by a fall in the loss ratio to 37.8% from 42.1%. Across marketplace operations, auction sales increased 82.8% to $351.4 million, whereas private sales decreased 18.4% to $180.9 million. As of September 30, Hagerty maintained $461 million in unrestricted cash against $247 million in total debt.

For brokers and market participants in the specialty vehicle sector, Hagerty's expanding capacity and acquisition-led distribution growth present both new competitive pressures and potential opportunities in high-value enthusiast accounts.

Why it matters

Hagerty's strategic expansion in the UK motorcycle market and improved global underwriting metrics signal key shifts in specialty vehicle distribution and broker competition.

FAQ

How much is the Bennetts acquisition expected to add to Hagerty's UK revenue?
The acquisition of Bennetts is expected to triple Hagerty's UK revenue to around £25 million.

What were Hagerty's global policy and membership growth figures?
Hagerty added a record 402,000 new members in the first nine months of 2026, bringing policies in force to 1.91 million, an 18.1% year-over-year increase.

Why did Hagerty's reported total revenue decline despite operational growth?
Total reported revenue fell 7.1% due to an accounting restructuring where Hagerty Re took 100% of the US quota share under its Markel arrangement, eliminating commission revenue and ceding commissions in consolidation.

Source: Insurance Business UK. See the original source for full details.