Automobile specialist Hagerty Inc. improved to a $9 million net income in the fourth quarter from a $32.2 million net loss in the prior-year period.
Written premium increased 19% to $192.9 million. Hagerty reported increasing its quota share to about 80% from 70% a year earlier. Policies in force at year-end rose to 1.4 million from 1.32 million.
The loss ratio was nearly flat at 41.5%.
For the year, restructuring charges declined to $8.8 million from $18.3 million in 2022, largely on layoffs, reduced hiring and other cost containment measures, it said in a statement.
In late 2022, it said it was laying off 6% of its workforce.
This year, Hagerty plans to expand its insurance offerings, especially in the post-1980s collectible vehicle space. It anticipates growing written premium 12% to 14% this year, despite an “uncertain macro environment and challenging dynamics for the insurance industry with heightened inflationary pressures.”
Hagerty agreed recently to an $18.4 million deal to acquire all outstanding capital stock of Consolidated National Insurance Co. from Everspan Insurance Co. A direct underwriting carrier offers better underwriting profit control, Hagerty said. And it should improve consumer value by removing frictional costs.
“As we enter our 40th year in business, Hagerty is just beginning what we believe will be a multi-year period of sustained revenue growth and strong flow-through to the bottom line,” Chief Executive Officer McKeel Hagerty said in a statement.
Hagerty Reinsurance Ltd. currently has a Best’s Financial Strength Rating of A- (Excellent).