Q3 2024 Hagerty Inc Earnings Call Transcript
Key Points
- Hagerty Inc (HGTY) reported a 20% revenue growth over the first nine months of 2024, marking the seventh consecutive quarter of increased profitability.
- The company is on track to add a record 275,000 new members in 2024, driven by its diverse portfolio of offerings such as events, live auctions, and the Hagerty Drivers Club.
- Year-to-date operating income, excluding the impact of Hurricane Helene, was approximately five times higher than the previous year.
- Hagerty Inc (HGTY) achieved a net promoter score of 82, more than double the industry average, highlighting strong customer satisfaction.
- The company increased its full-year revenue outlook to approximately $1.18 billion, reflecting strong business momentum and operational efficiencies.
- Hurricanes Helene and Milton resulted in significant catastrophe losses, impacting the company's financial performance with a $30 million estimated loss.
- The year-to-date loss ratio increased by 6 points to 47% due to unusual catastrophe losses, affecting overall profitability.
- Despite revenue growth, the adjusted EBITDA declined by $13 million year-over-year in the third quarter due to the impact of Hurricane Helene.
- The combined ratio of 94% was slightly above the long-term target of 90%, primarily due to catastrophe losses.
- The underlying loss ratio for the quarter was 44%, higher than the traditional range, indicating potential volatility in loss ratios.
Greetings, and welcome to the Hagerty third quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce Jay Koval, Senior Vice President of Investor Relations. Thank you. You may begin.
Thank you, operator. Good morning, everyone and thank you for joining us to discuss Hagerty's results for the third quarter of 2024. I'm joined this morning by McKeel Hagerty, Chief Executive Officer and Chairman; and Patrick McClymont, Chief Financial Officer.
During this morning's conference call, we will refer to an accompanying presentation that is available on Hagerty's Investor Relations section of the company's corporate website at investor.hagerty.com. Our earnings release, slides and letter to stockholders covering this period are also posted on the IR website as well as our 8-K filing.
Today's discussion contains forward-looking statements and non-GAAP financial metrics, as
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