Who Owns Hagerty Company?

Who Owns Hagerty?

Understanding Hagerty's ownership is key to its strategy in the collector vehicle market. A major shift occurred in December 2021 when it became a public company via a SPAC merger, valuing it at approximately $3.13 billion.

Founded in 1984, Hagerty has evolved from specialized marine insurance to a broad automotive lifestyle brand. Its offerings now include valuation tools, roadside assistance, a marketplace, and community engagement through events and memberships, reflecting a significant expansion from its family-owned roots.

Hagerty, Inc. is now publicly traded on the NYSE under HGTY. Its ownership is varied, including the founding family, institutional investors, and the public. This structure influences its market approach and growth strategies. Analyzing its Hagerty BCG Matrix can offer insights into its product portfolio's market position.

The story of Hagerty began in 1984, founded by Frank and Louise Hagerty in Traverse City, Michigan. Their initial focus was on providing insurance for antique boats, a venture born from their own need for specialized coverage. This family-driven initiative laid the groundwork for what would become a significant player in the collector car and boat insurance market.

Founding Vision

Frank and Louise Hagerty established the company to address a gap in insurance coverage for their own classic marine assets. This personal need directly fueled the creation of the business.

Early Focus

The company's initial operations centered on Hagerty Classic Marine Insurance. This specialization allowed them to build expertise in a niche market.

Expansion into Classic Cars

A pivotal moment occurred in 1991 when the company expanded its offerings to include classic cars. This strategic move significantly broadened its market reach and became a primary growth driver.

Family Business Roots

The company began as a family business, with ownership concentrated within the Hagerty family. This structure allowed for a cohesive vision and focused development in its early years.

Leadership Transition

In 2000, McKeel Hagerty, son of the founders, assumed the role of CEO. His leadership was instrumental in evolving the company into a globally recognized brand.

Self-Funded Origins

The company's inception was largely bootstrapped, indicating a self-funded origin rather than substantial early-stage venture capital investment.

The early ownership of the company was firmly rooted within the Hagerty family, reflecting a concentrated control that facilitated a focused development strategy within the specialized insurance market. This family-centric approach allowed for a clear vision and commitment to building expertise in niche insurance segments, aligning with the Mission, Vision & Core Values of Hagerty.

Founders and Early Ownership Structure

The foundation of the company was laid by Frank and Louise Hagerty, establishing it as a family business. While specific details on early equity splits or initial investors are not widely publicized, the ownership was initially concentrated within the founding family.

• Founded in 1984 by Frank and Louise Hagerty.
• Initial focus on classic marine insurance.
• Expanded to classic car insurance in 1991.
• McKeel Hagerty took over as CEO in 2000.
• Early ownership was primarily family-based.

The ownership of Hagerty shifted significantly in December 2021 when the company merged with Aldel Financial Inc., a SPAC, and began trading on the NYSE under HGTY. This transaction valued the company at approximately $3.13 billion.

Control of the company remains largely with insiders, specifically the founding family and management. Hagerty Holding Corp. (HHC), which is owned by members of the Hagerty family, including McKeel Hagerty and Tammy Hagerty, holds beneficial ownership of over 50% of the company's total voting control. HHC's ownership of all Class V Common Stock, with ten votes per share, grants the family approximately 67.9% of the company's voting power as of March 2024. This structure allows for public market participation while maintaining strong internal direction. The company's financial performance shows growth, with revenue increasing by 24% year-over-year to $288.6 million in Q1 2024, and full-year 2024 revenue reaching $1.200 billion, a 20% increase.

Key Stakeholders in Hagerty

Major institutional investors play a crucial role in Hagerty's shareholder base. These entities provide significant capital and strategic influence.

• State Farm Mutual Automobile Insurance Co.: Holds 56.04 million shares (16.40% as of April 25, 2025) and 51.8 million shares as of July 2025.
• Neuberger Berman Group LLC: Owns 5,468,793 shares as of Q1 2025.
• Markel Group Inc.: Holds 3,108,000 shares as of July 2025.
• Vanguard Group Inc.: Possesses 2,633,193 shares as of July 2025.
• These investors were instrumental in the $704 million PIPE financing that supported the SPAC merger, as detailed in this Brief History of Hagerty.

As of June 4, 2025, Hagerty's Board of Directors comprises nine members, with McKeel Hagerty holding the positions of Chief Executive Officer and Chairman of the Board. William (Bill) Swanson serves as the Lead Independent Director, and the board includes F. Michael (Mike) Crowley, Laurie Harris, Robert (Rob) Kauffman, Sabrina Kay, Mika Salmi, Randall (Rand) Harbert, Anthony J. Kuczinski, and Mike Heaton.

Hagerty's voting power is significantly influenced by its dual-class share structure. Class A Common Stock holders receive one vote per share, while Class V Common Stock holders are granted ten votes per share. This arrangement concentrates control with Class V shareholders. Hagerty Holding Corp. (HHC), a family-owned entity, holds all Class V Common Stock and beneficially owns over 50% of the company's total voting control. As a result, HHC has the authority to elect the majority of directors and commands approximately 67.9% of the company's voting power as of March 2024. This 'controlled company' designation provides Hagerty with exemptions from certain NYSE corporate governance rules. The current governance structure has remained stable, with no publicly reported proxy battles or significant activist investor campaigns impacting it.

Understanding Hagerty's Ownership Structure

Hagerty's ownership is characterized by a dual-class share system that grants superior voting rights to a specific group of shareholders. This structure is key to understanding who controls the company's strategic direction.

• Hagerty employs a dual-class share structure with Class A and Class V common stock.
• Class V shares carry ten times the voting power of Class A shares.
• Hagerty Holding Corp. (HHC), controlled by the Hagerty family, owns all Class V shares.
• HHC's ownership of Class V shares gives it majority voting control, impacting decisions and director appointments.
• This structure means Hagerty is a 'controlled company' under NYSE rules, affecting governance requirements.
• For a deeper dive into how the company generates revenue, explore the Revenue Streams & Business Model of Hagerty.

In recent years, Hagerty has seen shifts in its ownership structure, notably through warrant exchanges and strategic investments. The company's focus on technology and growth is reshaping its financial landscape and shareholder base.

Hagerty's financial performance in 2024 demonstrated significant growth, with total revenue reaching $1.200 billion, a 20% increase year-over-year. Written premium also saw a 15% rise to $1.044 billion. The company anticipates continued expansion in 2025, projecting written premium growth of 13-14% and total revenue growth of 12-13%. These projections are supported by strategic investments, including approximately $20 million in elevated technology for 2025, aimed at accelerating growth through modern risk rating architecture.

Financial Outlook for 2025

Hagerty expects net income growth of 30-40% and Adjusted EBITDA growth of 21-29% for the full year 2025. The rollout of the State Farm Classic Plus program is also anticipated to boost top-line growth.

Long-Term Growth Strategy

The company has set an ambitious goal to more than double its policy count to three million by 2030. This expansion is underpinned by technological advancements and strategic partnerships.

Insider and Institutional Holdings

As of April 25, 2025, State Farm Mutual Automobile Insurance Co. is the largest shareholder, holding 16.40% of the company's stock. While insider selling has been noted, institutional investors like Neuberger Berman Group LLC have increased their stakes, indicating continued interest.

Strategic Technology Investments

A significant investment of $20 million is planned for 2025 in a new technology platform, Duck Creek. This initiative is crucial for modernizing risk rating and enhancing segmentation, supporting future growth and a deeper understanding of the Competitors Landscape of Hagerty.