Kevin Wijendra's questions to Hagerty Inc (HGTY) leadership • Q2 2025
Question
Kevin Wijendra, on behalf of Pablo Singzon from JPMorgan Chase & Co., questioned why H1 2025 premium growth lagged the full-year outlook, what factors would drive a second-half recovery, and what the expected tax rate would be.
Answer
CFO Patrick McClymont attributed the slower H1 premium growth to an intentional slowdown in less profitable markets and a strategic shift in marketing toward customer lifetime value. He stated the second-half recovery will be driven by the significant ramp-up of the State Farm partnership. Regarding the tax rate, McClymont explained the situation is complex due to the company's partnership structure and did not provide a specific rate, but confirmed it is factored into the net income guidance.