Hagerty, Inc. (HGTY): A Bull Case Theory

We came across a bullish thesis on Hagerty, Inc. on Value Investors Club by unlatchmergers. In this article, we will summarize the bulls’ thesis on HGTY. Hagerty, Inc.'s share was trading at $12.69 as of January 13th. HGTY’s trailing and forward P/E were 43.20 and 27.03 respectively according to Yahoo Finance.

Hagerty, Inc. (HGTY) offers investors exposure to a founder-led, high-quality niche insurer that dominates the U.S. collector and enthusiast vehicle market while steadily evolving into a broader, capital-light ecosystem of recurring, fee-based businesses. Although the stock is not optically cheap, its premium valuation is supported by durable underwriting profitability, high customer retention, and a long runway for structural growth.

Hagerty insures more than 2.4 million vehicles and writes nearly $1.2 billion in annual premiums, benefiting from a highly favorable risk profile that produces loss ratios around 40% and a combined ratio near 60%, among the best in personal lines insurance. Large national insurers frequently outsource classic car programs to Hagerty, extending its reach to roughly 40% of the U.S. auto insurance market.

The company’s transition from a pure managing general agent to a hybrid insurer, enabled by the creation of Hagerty Re, has allowed it to retain a much larger share of underwriting economics while maintaining an asset-light structure supported by Markel as a fronting partner. Beyond insurance, Hagerty is building a vertically integrated enthusiast platform through its membership program, digital marketplace, auctions, events, media, and valuation data, all of which monetize engagement and carry higher incremental margins.

These non-insurance businesses remain modest in revenue today but are growing rapidly and provide meaningful long-term optionality. Management expects this diversification to lift margins and reduce cyclicality over time. Unlatchmergers shares a similar view for HGTY, emphasizing its fundamentals and asset-light structure, positioning itself as a market leader in its niche.

Trading at roughly 28x 2026E EPS, shares reflect quality but still offer attractive upside as the ecosystem scales. A $15 YE 2026 target implies about 25% upside, valuing Hagerty as an insurance-led compounding platform with expanding high-multiple revenue streams and strong long-term earnings visibility.

Previously, we covered a bullish thesis on Lemonade, Inc. (LMND) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s resilience through a diversified insurance portfolio, limited tariff exposure, and insulation from macroeconomic volatility. LMND’s stock price has appreciated by 189.64% since our coverage.

Hagerty, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held HGTY at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the potential of HGTY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.