Who Owns Hagerty Insurance?

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Introduction

Welcome to the world of insurance, where protection meets peace of mind. When it comes to safeguarding assets, finding the right insurance provider is crucial. One such industry player that has made a name for itself is Hagerty Insurance. With a strong focus on classic cars and collector vehicles, Hagerty Insurance has become a trusted partner for vintage car enthusiasts and collectors around the world.

In this article, we dive into the intriguing topic of who exactly owns Hagerty Insurance. Understanding the ownership structure of an insurance company not only sheds light on its stability and sustainability but also helps customers gain a better understanding of the values and principles that guide the company’s operations.

Founded in 1984 by Frank and Louise Hagerty, Hagerty Insurance has witnessed tremendous growth and success over the years. With its headquarters in Traverse City, Michigan, the company has become a household name in the classic car insurance industry. As a family-owned business, Hagerty Insurance has always prioritized its customers and built a reputation for exceptional customer service and industry expertise.

Classic cars hold a special place in the hearts of collectors and car aficionados. They are not just vehicles; they are a symbol of nostalgia, craftsmanship, and passion. Recognizing this unique market segment, Hagerty Insurance carved a niche for itself by offering specialized coverage and tailored policies for classic and collector vehicles.

As the classic car insurance industry has evolved, so has the ownership structure of Hagerty Insurance. In order to keep up with the demands of a growing business, the company has embraced changes and welcomed new strategic partners.

This article takes you on a journey through the history of Hagerty Insurance, explores its ownership structure, delves into recent ownership changes, and examines the impact these changes have had on the company’s operations. So, buckle up as we unveil the exciting world of who owns Hagerty Insurance!

History of Hagerty Insurance

Hagerty Insurance has a rich history that spans over three decades. It all began in 1984 when Frank Hagerty and his wife Louise, both classic car enthusiasts, recognized a need for specialized insurance coverage for vintage vehicles. Starting from their basement, the couple founded Hagerty Insurance, with a mission to protect and preserve classic cars.

Driven by their passion for classic cars and a vision to become the leading insurance provider in this niche market, the Hagertys set out to offer policies specifically tailored to the unique needs of classic car owners. Their understanding of the challenges faced by collectors and antique car enthusiasts propelled the company’s growth and popularity.

By the 1990s, Hagerty Insurance had firmly established itself as a trusted name in the classic car insurance industry. The company’s commitment to providing exceptional customer service and comprehensive coverage options helped them stand out in a competitive market. As the years went by, Hagerty Insurance continued to expand its offerings, providing not only insurance but also a variety of services, including valuation tools, vehicle resources, and a global network of trusted repair shops.

Hagerty Insurance’s dedication to the classic car community earned them a loyal customer base. Their passion for preserving automotive history was evident in their active involvement in various restoration projects, sponsorships of classic car events, and the publication of the Hagerty magazine.

With each passing year, Hagerty Insurance’s reputation grew, and the company’s reach extended beyond the United States. Today, Hagerty serves customers all around the world, offering coverage for classic cars, motorcycles, boats, and even vintage tractors.

Over the years, Hagerty Insurance has received numerous accolades and industry recognition. They have been consistently named as a top insurance provider for classic cars, and their commitment to customer satisfaction has been highly praised.

The legacy of Hagerty Insurance is built on the foundation of passion, expertise, and a deep understanding of the classic car community. Their journey from a small family-owned business to a global leader in the classic car insurance industry is a testament to their unwavering dedication.

Ownership of Hagerty Insurance

Understanding the ownership structure of an insurance company provides valuable insights into its stability, decision-making processes, and long-term vision. Hagerty Insurance, which was originally a family-owned business, has undergone several changes in its ownership over the years.

In 1995, Hagerty Insurance transitioned from being a family-owned enterprise to having outside investors. The company received a significant boost when it partnered with Summit Partners, a leading growth equity firm. This partnership allowed Hagerty Insurance to access additional resources and expertise to further expand its operations and solidify its position in the market.

With the support of Summit Partners, Hagerty Insurance experienced rapid growth and successfully differentiated itself from other insurance providers. The company’s commitment to the classic car community, combined with its innovative policies and exceptional customer service, helped it thrive in a competitive industry.

In 2020, another significant development took place in the ownership of Hagerty Insurance. Private equity firm, Summit Partners, sold its majority stake in the company to an investor group led by The Private Client Group of Goldman Sachs Asset Management (PCG), along with a consortium of investors including Tiger Global Management and Lightyear Capital.

As a result of this transaction, Hagerty Insurance became majority-owned by PCG. However, the Hagerty family, including CEO McKeel Hagerty, maintained a substantial ownership stake and remained actively involved in the company’s operations. This change in ownership allowed Hagerty Insurance to leverage the financial expertise and strategic guidance of PCG and further accelerate its growth trajectory.

The ownership shift has not altered Hagerty Insurance’s core values or its dedication to serving classic car enthusiasts and collectors. The company continues to focus on providing specialized coverage, expanding its services, and preserving automotive culture.

Since its humble beginnings as a family-owned business, Hagerty Insurance has embraced strategic partnerships and ownership changes to propel its growth and enhance its ability to cater to the unique needs of the classic car community. While the ownership structure has evolved, Hagerty Insurance remains true to its mission of protecting and celebrating classic cars.

Recent Developments and Changes in Ownership

The world of insurance is constantly evolving, and Hagerty Insurance is no exception. In recent years, the company has experienced significant developments and changes in ownership, further shaping its trajectory and strengthening its position in the market.

One notable recent development in the ownership of Hagerty Insurance occurred in 2021 when the company went public. In January, Hagerty Insurance announced that it would merge with a special purpose acquisition company (SPAC), Aldel Financial, to become a publicly traded company on the New York Stock Exchange (NYSE). This strategic move allowed Hagerty Insurance to access additional capital and expand its growth opportunities.

The merger with Aldel Financial was a result of a growing interest in the classic car insurance market and the increasing demand for alternative investment opportunities. Going public not only provided Hagerty Insurance with the necessary funding to fuel its future ventures but also allowed investors to participate in the company’s growth and success.

Furthermore, the merger with Aldel Financial brought new investors into the ownership structure of Hagerty Insurance. The transaction was supported by leading institutional shareholders, including funds and accounts managed by BlackRock and Fidelity Management & Research Company. This broader shareholder base signifies the confidence and trust in Hagerty Insurance’s business model and growth potential.

Despite going public, the Hagerty family remains deeply involved in the company’s operations and its ownership structure. CEO McKeel Hagerty, the third-generation family member to lead the company, continues to play a pivotal role in shaping Hagerty Insurance’s strategies and ensuring its commitment to the classic car community.

These recent developments and changes in ownership highlight Hagerty Insurance’s ability to adapt to the evolving insurance landscape and capitalize on emerging opportunities. Going public has not only expanded the company’s access to capital but also provided a platform for increased visibility and continued growth.

As Hagerty Insurance embraces its newfound status as a publicly traded company, it remains committed to its core values of exceptional customer service, specialized coverage, and preservation of automotive culture. The company’s dedication to serving the unique needs of classic car enthusiasts and collectors remains unwavering, and its new ownership structure enables it to continue innovating and expanding its services.

Impact of Ownership on Hagerty Insurance’s Operations

The ownership structure of an insurance company plays a significant role in shaping its operations and long-term strategies. For Hagerty Insurance, the recent changes in ownership have had a positive impact on its ability to serve customers, expand its offerings, and remain at the forefront of the classic car insurance industry.

One of the key advantages of the different ownership structures Hagerty Insurance has experienced is access to additional resources and expertise. The partnership with Summit Partners provided the company with the necessary support to fuel its growth and innovation. The financial backing and strategic guidance allowed Hagerty Insurance to enhance its product offerings, invest in advanced technology systems, and improve efficiency while maintaining its commitment to delivering exceptional customer service.

With the recent majority ownership by The Private Client Group of Goldman Sachs Asset Management, Hagerty Insurance has gained further financial strength and access to a robust network. This enables the company to explore new avenues for growth, expand its global presence, and invest in more comprehensive coverage options and cutting-edge technologies.

The ownership changes have also opened doors for strategic collaborations and partnerships. As a publicly traded company, Hagerty Insurance has a broader investor base and increased visibility in the market. This allows them to attract top-tier talent and form strategic alliances with key industry players, further enhancing their position as a leader in the classic car insurance space.

Furthermore, the changes in ownership have not deterred Hagerty Insurance from staying true to its core values and commitment to the classic car community. The company’s passion for preserving automotive history and providing specialized coverage remains unwavering, even amidst changes in ownership. Their continued involvement in restoration projects, classic car events, and community initiatives demonstrates their dedication and connection to the classic car enthusiast community.

Importantly, the ownership changes have not resulted in a significant shift in terms of customer experience. Hagerty Insurance continues to prioritize customer satisfaction, offering personalized policies, dedicated customer support, and an extensive network of trusted repair shops. This commitment to exceptional service remains a driving force behind their operations.

In summary, the ownership changes in Hagerty Insurance have brought about positive impacts on the company’s operations. Access to additional resources, strategic partnerships, and a broader investor base have fueled growth and allowed for more extensive offerings. Despite these changes, Hagerty Insurance has maintained its commitment to the classic car community and exceptional customer service. With a strong foundation and a newfound ability to invest and innovate, Hagerty Insurance is well-positioned to continue leading the way in the classic car insurance industry.

Conclusion

Over the years, Hagerty Insurance has established itself as a trusted and respected player in the classic car insurance industry. The company’s journey from its humble beginnings as a family-owned business to its recent developments in ownership reflects its commitment to excellence and the ability to adapt to an ever-changing industry.

Through strategic partnerships and changes in ownership, Hagerty Insurance has continued to thrive and expand its operations. The involvement of prominent investors and financial institutions has infused the company with greater resources, expertise, and opportunities for growth.

Importantly, despite these changes, Hagerty Insurance has remained true to its core values of providing specialized coverage and exceptional customer service to classic car enthusiasts and collectors. The company’s commitment to preserving automotive culture and actively participating in restoration projects and classic car events showcases its dedication to the classic car community.

As a publicly traded company, Hagerty Insurance’s recent ownership changes have provided increased financial stability and access to new avenues for expansion. These changes have allowed the company to leverage additional resources, form strategic partnerships, and invest in cutting-edge technologies, ensuring its continued success and ability to meet the evolving needs of its customers.

In conclusion, knowing who owns Hagerty Insurance provides valuable insights into the company’s stability, vision, and operations. With a rich history, a commitment to excellence, and recent developments in ownership, Hagerty Insurance is well-positioned to continue serving as a trusted partner for classic car enthusiasts and collectors around the world.