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Hagerty Inc. (HGTY) reported its financial results for Q4 2024, surpassing earnings expectations with an EPS of $0.02 compared to the forecasted $0.01. Revenue also exceeded estimates, reaching $292 million against a projected $279.53 million. The company, currently valued at $3.4 billion, appears undervalued according to InvestingPro analysis. Despite these positive results, Hagerty’s stock fell 2.8% in pre-market trading, closing at $10.01, with a decline of $0.28 from the previous close.
Key Takeaways
- Hagerty’s Q4 2024 EPS beat the forecast by 100%.
- Revenue growth was robust at 19% year-over-year.
- Stock price decreased by 2.8% in pre-market action despite earnings beat.
- Company plans significant investments in technology and market expansion.
- Strong performance in commission and fee revenue with a 15% increase.
Company Performance
Hagerty demonstrated strong performance in Q4 2024, with a 19% increase in total revenue. This growth was driven by a 13% rise in written premiums and a notable 15% jump in commission and fee revenue. The company’s strategic initiatives, including the launch of new products and expansion into new markets, have contributed to its robust financial performance.
Financial Highlights
- Revenue: $292 million, up 19% from the previous year.
- Earnings per share: $0.02, exceeding the forecast by 100%.
- Operating income: $66 million, a six-fold increase year-over-year.
- Net income: $78 million, a 178% rise from the previous year.
- Adjusted EPS for the full year: $0.24.
Earnings vs. Forecast
Hagerty’s actual EPS of $0.02 doubled the forecast of $0.01, marking a significant earnings surprise. Revenue also surpassed expectations by approximately 4.3%, reflecting the company’s strong operational execution.
Market Reaction
Despite beating earnings forecasts, Hagerty’s stock fell by 2.8% in pre-market trading. The stock’s performance contrasts with its 52-week high of $12.35, indicating investor caution despite positive financial results.
Outlook & Guidance
For 2025, Hagerty projects written premiums growth of 13-14% and total revenue growth of 12-13%. The company expects net income to grow by 30-40%, reaching between $102 million and $110 million. Adjusted EBITDA is forecasted to be between $150 million and $160 million. InvestingPro data shows the company maintains a "GOOD" overall Financial Health Score, with particularly strong marks in growth metrics. The company’s five-year revenue CAGR of 27% demonstrates its consistent growth trajectory.
Executive Commentary
CEO Mikheel Hagerty stated, "We are on track to deliver the next 1,500,000 members in just five years," emphasizing the company’s growth strategy. CFO Patrick Maclimat highlighted, "This is really investing smartly to create a scalable platform for growth," underscoring the importance of technology investments.
Risks and Challenges
- Potential impacts of tariff changes on operational costs.
- Market saturation risks in the specialty insurance sector.
- Economic uncertainties that could affect consumer spending on collectible cars.
- Challenges in technology replatforming and integration.
- Competitive pressures from other insurance providers.
Q&A
During the earnings call, analysts inquired about Hagerty’s cross-selling strategies and potential impacts of tariffs on costs. They also sought clarity on the company’s significant technology investments and growth drivers, particularly the partnership with State Farm.
Full transcript - Hagerty Inc (HGTY) Q4 2024:
Conference Operator: Greetings, and welcome to the Hagerty Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Koval, Senior Vice President of Investor Relations.
Thank you, sir. You may begin.
Mikheel Hagerty, Chief Executive Officer and Chairman, Hagerty: Thank you, operator, and good morning, everyone. Thank you for joining us to discuss Hagerty’s results for the fourth quarter of twenty twenty four. I’m joined this morning by Mikheel Hagerty, Chief Executive Officer and Chairman and Patrick Maclimat, 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 eight K filing.
Today’s discussion contains forward looking statements and non GAAP financial metrics as described further on Slide two of the earnings presentation. Forward looking statements include statements about our expected future business and financial performance and are not promises or guarantees of future performance. They are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of material risks and important factors that could affect our actual results, please refer to those contained in our filings with the SEC, which are also available on our Investor Relations website and at sec.gov. The appendix of the presentation also contains reconciliations of our non GAAP metrics to the most directly comparable GAAP measures that are further supplemented by this morning’s eight K filing.
And with that, I’ll turn the call over to Mikheel. Thanks, Jay, and good morning, everyone. We appreciate you taking the time to join Hagerty’s fourth quarter twenty twenty four earnings call. This quarter marks the eighth straight quarter in a row of executing on our strategy to deliver high rates of top line growth while more efficiently translating that revenue into profitability and cash flow. Slide three shows how we exceeded our original expectations from a year ago in terms of both revenue and net income.
Over the last two years, we added more than a half a million car lovers to the Hagerty ecosystem and grew revenue by four twelve million dollars while increasing operating income by $134,000,000 and tripling operating cash flow to $177,000,000 While these results are impressive, we have a long straightaway ahead given only a 5% share today of the 48,000,000 collectible car opportunity in The U. S.
: Let me share
Mikheel Hagerty, Chief Executive Officer and Chairman, Hagerty: some highlights from the full year shown on slide four. First, our business strategy, brand and marketing initiatives drove another year of excellent revenue gains, up 20% as we welcomed a record 02/9000 new members this year to Hagerty’s ecosystems of products and services. Written premium gains of 15% are in line with our ten year compound annual growth rate of 15%. This CAGR demonstrates the predictable nature of our recurring revenue model fueled by high single digit annual additions from net new business count plus industry leading retention that climbed to 89% in 2024. Operating income jumped six fold in 2024 to $66,000,000 despite the $27,000,000 impact from Hurricanes Selene and Milton.
Cost discipline, resource prioritization, and terrific execution by One Team Hagerty powered the margin expansion of our MGA and provides the funds to reinvest in extending our leadership position. We have continued to deepen our bench strength through several strategic hires across insurance, claims, technology, and marketplace. These people bring the expertise and leadership that should position Hagerty well for our next wave of growth. Equally important, our technology and digital teams are making strong progress as we transition from our legacy technology platform to a modern cloud based architecture that will drive future efficiency gains and scalable growth. Let me move on to slide five and walk you through Hagerty’s twenty twenty five priorities built around three themes: simpler, faster, and better integrated.
First, and most impactful to our long term trajectory, is to expand our specialty insurance offerings to protect more collectible vehicles. This includes launching new products and pricing with a slightly wider aperture for underwriting, particularly in the more modern enthusiast vehicle space. Second is to simplify and better integrate our membership experience across products and services, creating revenue synergies and driving cost efficiencies. We have built OneTEAM Hagerty to deliver service levels that surpass the expectations of automotive enthusiasts while simultaneously creating on ramps for car lovers. But we want to be even better as we welcome the next 1,500,000 members by 02/1930.
Third is to expand our marketplace business, leveraging the trust we have built in The United States through the Broad Arrow team’s work, helping members to buy and to sell their prized possessions. In May, we will host our inaugural sale at the prestigious Villa D’Este Concours on Lake Como, Italy, which should help them fuel our private party sales and financing businesses in new markets outside of The United States. We are also developing our online marketplace given the opportunity to capitalize on the $15,700,000,000 worth of vehicles that Hagerty members bought and sold in 2024, up 10% from 2023. Fourth, we will continue to leverage Hagerty’s unique and authentic car culture as our key differentiator for new and future members, but with further improvements to our operating capabilities through the alignment and engagement of our team. As I mentioned before, we are investing in the once in a generation technology replatforming that will enable scalable growth over the coming years, delivering excellent experiences for our members with greater efficiency.
Let me expound on the final priority around technology shown on Slide six as it is a meaningful near term investment that should position us well to continue our torrid growth while improving our margin structure in 2026 and 2027. Our technology transformation began in 2022 when we brought in new IT leadership that identified several challenges and risks associated with our aging IT infrastructure, which was built in the 2000s and remains the central platform supporting our business. Most problematic was that our legacy IT would be unable to support our rapid growth trajectory. In addition to it limiting our scalability, the current technology stack was also negatively impacting our operational efficiency, creating a suboptimal user experience and inefficient workflow for our member service center team. In late twenty twenty three, we began the process to transition to Duck Creek, a leading provider of insurance software solutions, which is a key part of our larger transformational program we call Apex.
While these multi year implementations are complex and expensive, Apex will simplify and improve the member experience with enhanced security and workflow automation, all while lowering marginal operating costs. Additional benefits of Apex and Duck Creek include more self-service and rule based functionality, more modern risk rating architecture with greater segmentation, and liberating our technology team to invest in our key differentiators around personalized ratings, valuation, parts finders, repair networks, CRM and integration with member content to name a few. These near term investments should result in greater long term efficiency for our teams and better experiences for our members, which drives future growth and margin expansion. We are willing to make these short term tradeoffs because we are looking to maximize shareholder value over periods of time measured in years and decades, not quarters. In total, we estimate that we will make over $20,000,000 in elevated investments in 2025 due primarily to having two redundant systems operating with the requisite people and software expenses.
This spend will remain heightened in absolute terms, but should trend down as a percent of revenue as we accelerate the top line in 2026 and 2027, not to mention realizing greater efficiency from the technology benefits as we double our policies in force to $3,000,000 by 02/1930 and drive higher margins. Let me now turn the call over to Patrick to share more detail on our 2024 results and initial 2025
Patrick Maclimat, Chief Financial Officer, Hagerty: outlook. Thank you, and good morning, everyone. Let me walk you through our results for the fourth quarter ended December 31, shown on slides seven and eight. In the fourth quarter, total revenue grew 19% to $292,000,000 Written premiums grew 13% due to robust new business count and 89% retention. Commission and fee revenue jumped 15% to $89,000,000 Membership, marketplace and other revenue increased 68% to $34,000,000 boosted by marketplace inventory sales.
We also continue to invest in our Broad Arrow team of automotive specialists, particularly outside The United States, as we build out our European business in preparation for the May at the Villa de Estes Concours. The team is off to a strong start in 2025, producing results that surpassed expectations at the Academy of Arts University auction two weeks ago. Earned premium grew 14% to $168,000,000 and our loss ratio in the quarter came in at 43%, including over a point of impact related to the catastrophe claims from the hurricane season. Now turning to profitability shown on slides nine and ten. We reported a fourth quarter operating profit of $3,000,000 We better leveraged G and A down 1% in the quarter and salaries and benefits grew by 6%.
Adjusted EBITDA of $20,000,000 increased $10,000,000 year over year due to the improved margins. We delivered fourth quarter net income of $8,000,000 slightly below the prior year’s result. Net income this year was helped by the continued expansion of our capital base and better diversified investments, while the prior year benefited from the change in fair value of our private and public warrants of $13,000,000 dollars Recall, the warrants were limited from our capital structure through an exchange offer last summer. Net income attributable to Class A common shareholders was $1,000,000 after attribution of earnings to the non controlling interest and accretion on the preferred stock. And GAAP basic and diluted earnings per share was $0.01 for the quarter based on 90,000,000 weighted average shares of Class A common stock outstanding.
Adjusted earnings per share defined as consolidated net income before the gains and losses related to our warrants, divided by $360,000,000 diluted shares came in at $0.02 for the fourth quarter. Let me also run through a few of the full year highlights from 2024. Commission and fee revenue jumped 16% membership, marketplace and other revenue grew 30% and earned premium for risk taking entity, Hagerty Reinsurance, increased 21%. Full year loss ratio of 46 included six points of impact from cat losses. With ceding commission for Hagerty Re at 47% of earned premium, our combined ratio of 94% is slightly above our long term target of 90% due to the hurricanes.
Hagerty Reed delivered a healthy 24 return on equity despite the cat losses. 2024 operating income jumped $56,000,000 to $66,000,000 Full year operating margins expanded four fifty basis points, powered by operating leverage in our MGA business, where we held total expense growth to only 3% in the year, including a 3% decline in G and A and a 2% increase in salaries and benefits. Investment income jumped 57% in 2024 to $36,000,000 as our capital builds and we have transitioned from short term cash like products to a diversified high quality portfolio of largely fixed income investments. This translated into full year net income of $78,000,000 up 178%, zero point one zero dollars of earnings per diluted share and $0.24 of adjusted EPS. Adjusted EBITDA, which excludes the $36,000,000 of investment income, grew 41% to $124,000,000 as margins expanded to exceed 10%.
Full year operating cash flow jumped 32% to $177,000,000 allowing us to fund the substantial technology investments that Mikheel discussed to support efficient long term growth. Hagerty’s business model is highly differentiated from traditional P and C carriers, resulting in retention of over 92% after adjusting for policies lost when a vehicle is sold. Best in class retention plus sustained additions to new business count allows us to deliver predictable revenue growth with limited underwriting volatility. AM Best reaffirmed our A- rating and we successfully renegotiated reinsurance terms for 2025 despite a challenging hurricane season for the industry with similar coverage on our growing base of business at a lower cost. We ended December with an unrestricted cash balance of $105,000,000 versus long term debt also at $105,000,000 Debt, excluding back leverage for Broad Arrow Capital’s portfolio of loans collateralized by collector cars, was only $75,000,000 Let me wrap up with our 2025 outlook shown on Slide 11.
We anticipate that 2025 will be another year of strong results, driven by record new business count and great customer retention. 13% to 14% growth in written premiums should translate into total revenue gains of 12% to 13%. We are on track to expand the State Farm Classic Plus program to 25 states in 2025, including a tranche of three more states over the coming weeks. More important to the near term growth trajectory is that we’re beginning the renewal conversion process of the initial State Farm launch dates over the coming months. These four states had 70,000 vehicles that will become part of the new Classic Plus program by the end of twenty twenty five, leading to accelerating growth in written premiums as we move from the first quarter towards the fourth quarter.
We expect the large ramp in our volumes will occur in 2026 and 2027 when the majority of State Farm’s five hundred and twenty thousand antique vehicles convert over to our program. We could not be prouder of the work our team is doing and what this program will mean to classic car lovers as we set a new standard for how partnerships can operate. Our margin expansion story will continue in 2025, albeit at a measured rate due to the investments we are making to support the Duck Creek implementation. This is the year where we begin paying full license fees for the new platform, are launching Enthusiast plus and staffing up for State Farm, all before the revenue fully kicks in. While the elevated investments result in a near term slowdown in our rate of profit margin expansion, accelerating rates of top line growth combined with operational efficiencies and the benefits of scale should fuel bottom line performance in the ensuing years.
In 2025, we expect net income gains of 30% to 40% equating to a range of 102,000,000 to $110,000,000 Adjusted EBITDA should increase 21% to 29% to a range of $150,000,000 to $160,000,000 This outlook also incorporates $11,000,000 of pretax losses from the Southern California wildfires, resulting in an expected combined ratio in our risk taking entity of 90%. In summary, 2025 is on track to be another great year of results at Hagerty, and our technology investments will position us for sustained compounding profit growth over the ensuing years. With that, let us now open the call to your questions.
Conference Operator: Thank you. We will now be conducting a question and answer session. Thank you. Our first question comes from the line of Matt Carletti with Citizens JMP. Please proceed
Matt Carletti, Analyst, Citizens JMP: First, I was hoping kind of a
: high level question, you could give a
Matt Carletti, Analyst, Citizens JMP: little color. Can you just update me on kind of the trends that you’re seeing in the business in terms of I’m thinking about like cross sell or maybe cross engagement is the right word between like insurance membership marketplace kind of as you build those kind of legs of the stool kind of what you see with kind of your Assurant (NYSE:AIZ) or your members kind of taking advantage or being in growth to different parts of the business?
Mikheel Hagerty, Chief Executive Officer and Chairman, Hagerty: Yes. Thank you, Matt. Thanks for the question. This is Mikheel. The main thing for us is that we sell membership as an additional offering to our insurance product.
And the uptake on that historically has been about 80% of everybody buys the full HDC, Hagerty Drivers Club product at $70 each. That tool is what is the main engagement lever, right? So it’s a revenue line in and of itself. It’s a profitable line of business in and of itself, but it’s where the bulk of our engagement happens. So newsletters, magazine, all the different points of contact that we have when somebody is fully a member of the business.
It’s through those vehicles that we cross promote our marketplace offerings, both Broad Arrow and the digital marketplace business, which is just sort of beginning of the scale up phase of its life. So it’s gone really, really well. The main thinking around Hagerty Drivers Club though is to drive engagement, it’s to drive retention, it’s to drive word-of-mouth. It’s not necessarily meant to be a top of funnel kind of product. You can buy.
You have been able historically to buy Hagerty Drivers Club just independently of buying insurance, but it’s really insurance is the front door and then we engage them from there. Hopefully, that answers your question.
Matt Carletti, Analyst, Citizens JMP: It does. Absolutely. And then a follow-up, if I could, just maybe timely given the what’s going on currently, just tariffs, what you might think might be the impact on the business, I’m thinking parts and things like that. At least that’s what we think about with auto broadly, whether it be like Mexico or China. I’d imagine your supply chains might look a little different than kind of the industry at large.
So just curious what impact you might expect, if any?
Patrick Maclimat, Chief Financial Officer, Hagerty: Sure. It’s Patrick, Matt. So obviously, our frequency is much, much lower than what we see in daily driver. And the types of parts that are used for our vehicles are it’s a much more diverse and fragmented supply chain. So it’s hard for us to quantify what the impact could be, just the nature of our business.
Some of those parts are clearly coming from Canada, some are clearly coming from Mexico. So we do expect there’ll be an inflationary effect from this over time. But similar to our overall dynamics, we think it will be less of an impact for us. It will hit us more gradually. We don’t have big players in the supply chain that send us letters saying prices are going up by 25%, right?
That’s just not the nature of our business. So it will take longer for us for it to unfold, and it’s just really hard for us to quantify the nature of the supply chain.
Matt Carletti, Analyst, Citizens JMP: Okay, great. That’s very helpful. Thank you. I appreciate it.
Conference Operator: Our next question comes from the line of Maxwell Fritchard with Truist. Please proceed with your question.
Maxwell Fritchard, Analyst, Truist: Hi, good morning. I’m calling in for Mark Hughes. Have you seen any slowdown in shopping behavior recently from consumers? And if not, do you expect this to continue to be a tailwind for you in 2025 assuming that you’re currently a net beneficiary of this?
Mikheel Hagerty, Chief Executive Officer and Chairman, Hagerty: No. Thank you. It’s a great question. Mikheel again here. There are this time of year is the slower time of the year.
It starts ramping up for us. We’re a big seasonal business in a lot of ways. There’s a big bell curve of new business that comes in starting kind of late March and then rolling through kind of the October. But two things that can definitely affect the differences in shopping behavior. So we’ve talked about in the past how shopping behavior has been driven by also rising values in cars.
So when people have held a car for a long time and suddenly realize it’s appreciated significantly and they realize it’s the time to sell, we benefit from that if we can insure the car after they sell it or if they buy it and add it to a policy. And we saw over the last twelve months an increase in the volume of our customers and members buying cars and selling them. So the transactional volume is good. That’s good for us. We get more sort of swings at the ball.
But two things that maybe change that slightly is that California is a big market in the car world. The California wildfires had a dampening effect on a lot of people. Anytime you get those kind of big shocks, people just sort of sit tight. Doesn’t mean they don’t have cars that need to be insured, doesn’t mean they don’t want to buy, but that can have a sort of effect as well as cold weather because while the northern parts of The United States are kind of their cars are all asleep, slumbering and waiting for spring to go out and be driven, in the South when it’s still driving season, but yet it’s colder in the South sometimes, that can actually sort of that can have some sort of effect. But again, it all tends to ramp up in the next sort of thirty to sixty days.
Maxwell Fritchard, Analyst, Truist: Yes, that’s helpful color. And then you had just mentioned tariffs shouldn’t have too much of an immediate impact on the business. But are the possible effects implemented into current pricing or will those pricing actions be implemented as you see the effects come through?
Patrick Maclimat, Chief Financial Officer, Hagerty: The nature of the business is all pricing changes require regulatory approval. And so, we’ve worked through over the last two years most of the states. A lot of that was focused on changes on the liability side. And so we’ve been able to get price increases for that. There’s nothing that we’ve contemplated for tariffs specifically and it will have to play out, right?
We’ll have to figure out what the impact is, prove that impact and then we have to apply for price increases. So as you know in this industry, these things are measured in long, long cycle times.
Maxwell Fritchard, Analyst, Truist: Perfect. Thank you. Thanks for taking my questions.
Patrick Maclimat, Chief Financial Officer, Hagerty: Thank you. Thank you.
Conference Operator: Our next question comes from the line of Pablo Singzon with JPMorgan. Please proceed with your question.
: Hi, good morning. First question is for Patrick. So in just thinking about how the expense savings or reduction will phase out over the coming years, right? So $20,000,000 drops out in $26,000,000 but outside of normal course efficiency initiatives, are there more substantial expense savings to think about as a result of the debt migration?
Patrick Maclimat, Chief Financial Officer, Hagerty: Yes. And first thing to say is we’re not suggesting that $20,000,000 drops out after 2026. A fair bit of the elevated expenses we have right now are license costs related to the new platform and so those will continue. And then a chunk of it is also depreciation in the mind that we’ve spent over the last couple of years building out the new platform, so that too will continue. And then some of it is people costs, right?
With the State Farm really ramping up, the launching of the new Enthusiast plus product, there are staff costs associated with that growth. And so the message is not that that drops away, the message is we’re making those investments now and the revenue associated with it starts to ramp up at the second half of this year, but really doesn’t come into play until 2026, ’20 ’20 ’7. So this is really investing smartly to create a scalable platform for growth. And once you have that scalable platform, we’ll see that those costs relative to the revenue growth, the revenue they decline as a percent. So we’re creating scalability.
It just happens to be that 2025 is a little bit of a pinch point where the expenses are here and the revenue is not quite here yet. So hopefully that clarifies how we’re thinking about it. We continue to look at continuous improvement throughout the business. We did a very good job in 2023 and very much held the line in 2024 on the cost structure. Because of these new initiatives, we are investing in 2025, but we have initiatives throughout the organization to look for ways to create efficiency.
A lot of it is around the operating system, creating that scalable system that when we talk about growing from 1,500,000 customers right now and 2,400,000 vehicles, 2,500,000 and doubling that over the next four or five years, that’s a huge amount of growth and we have to do a very scalable platform. And so that’s what you should focus on on a go forward basis is that we are creating operating leverage through this approach.
: Yes. Thanks for clarifying. And then just to follow-up on that last comment about doubling the policy count, that was actually my second question. So, to the extent, can you speak through the drivers of that strong growth, right? So if I just look at your policy count 24 over 23, I think it was up eight percent.
Now clearly you’re expanding your underwriting aperture. I’m not sure if you’re counting State Farm and that policy around growth, but maybe walk through the main drivers that build up to that target in 02/1930? Thank you.
Patrick Maclimat, Chief Financial Officer, Hagerty: Sure. And you obviously know us well because those are the key elements, right? So State Farm, absolutely, there’s 500,000 plus vehicles that are currently on the State Farm books that transition to our program over the next handful of years. That starts this year. We’ll start doing conversions in the original four states in the next couple of few months.
We’re growing in new states with them. We’ll be in 25 states or more by the end of the year. And so that’s a huge chunk of it. And servicing those customers and delivering the Hagerty value proposition for them is a big opportunity for us. Enthusiast plus is another big opportunity.
We’ve talked a lot about how we actually have really attractive market penetration in some of the older cohorts. Think about pre war vehicles, 50s, 60s. There’s still room for us to grow there and we do continue to grow our account in those cohorts. As you get to the more modern vehicles, 80s, 90s, 2000s, 2010s, our penetration is quite small. And a big reason for that is we say no a lot of the time.
We don’t have a product that’s appropriately designed for a lot of those vehicles and that’s what Enthusiast plus is. And so creating a product that allows us to say yes to the customer, price that appropriately and for the risk that we’re taking on, that’s a big growth opportunity for us, a big lever. We continue to grow in the core book. We continue to see opportunities both on the direct side and with our partners, agents, brokers and as you know we’re in business with nine of the top 10 insurance companies. And we do think there’s other opportunities for partnerships and deepening the partnerships we have with our existing those existing companies.
So when you put it all together, that’s how we’re talking about in the neighborhood of doubling the number of customers we serve over the next five years or so.
: Yes. Just to clarify, Patrick, are you assuming any new partnerships in that trajectory or is it really just State Farm and other things you mentioned? Thank you.
Patrick Maclimat, Chief Financial Officer, Hagerty: I would say we’re not explicitly saying there’s a partner or two partners, but implicitly to get to these kind of numbers, yes, we’ve been very successful building these relationships. So yes, over that long range planning horizon, we assume there’ll be new partners.
: Okay. Thank you.
Conference Operator: Thank you. We have no further questions at this time. Mr. Hagerty, I would like to turn the floor back over to you for closing comments.
Mikheel Hagerty, Chief Executive Officer and Chairman, Hagerty: Thank you, operator, and thank you, everyone. Thank you especially to One Team Hagerty for delivering authentic experiences and service delivery for car lovers seen in our industry leading Net Promoter Score of 82, more than doubled the industry average of 39. NPS is a leading indicator for us as it helps to fuel our direct business with high rates of new business growth through word-of-mouth referrals. Our strong brand and reputation for excellent service and automotive expertise enables us to create long lasting partnerships with national insurance carriers who returned to Hagerty to protect their members and customers’ special vehicles and to preserve their bundled insurance business. It took us forty years to get to 1,500,000 members and we are on track to deliver the next 1,500,000 members in just five years, augmented by growth from our partners.
Our investment posture positions us to accelerate our top line over the coming years and to keep driving margins higher. In other words, the best is yet to come for profit growth creating value for Hagerty shareholders. We hope to see you this weekend at the Amelia Concours near Jacksonville, Florida where we will celebrate the thirtieth anniversary of the event, including two days of Broad Arrow auctions with 166 enthusiast vehicles offered for sale, Cars and Community on the main show field, a dinner honoring four time winner of the Indianapolis five hundred, Helio (WA:HEL) Castroneves, as well as the renowned thirtieth Concours d’Elegance on Sunday, March 9. It should be a fun weekend for all. Until then, never stop driving.
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