Specialty insurance provider Hagerty has raised $105 million in capital from strategic investors, including State Farm, Markel Group and the Hagerty family.
According to the firm, the capital raise is comprised of $80 million of convertible preferred equity, which closed on June 23 2023, as well as a $25 million commitment of long-term debt financing for Hagerty Reinsurance Limited.
These funds will support the company’s profitable growth initiatives focused on serving the car enthusiast community, which includes evolving the company’s risk appetite and core product to expand its offerings to current members and reach new members.
At the same time, the capital will also allow Hagerty to make technology investments that should play a key role in driving operating efficiencies while improving customer facing interactions.
State Farm’s Chairman, President and Chief Executive Officer Michael Tipsord, commented: “We are pleased to continue to grow our investment in Hagerty and help support their strategic business objectives as we prepare for the upcoming launch of our commercial relationship.”
Markel Group’s Chief Executive Officer Tom Gayner, said: “Hagerty is an important partner for our insurance business, and we are excited to see them further expand their insurance offerings by finding new and innovative ways to serve automotive enthusiasts.”
Hagerty’s Chief Executive Officer McKeel Hagerty, added: “We have been working diligently over the last six months to deliver improved profitability and margin expansion, while making the investments necessary to sustain our growth trajectory for many years to come. We believe that the additional capital positions us well during uncertain economic times to execute against our significant growth opportunities.”
