Latest news with #McKeelHagerty
3 days ago
- Automotive
Horsepower used to matter. Is electrification changing that?
What makes a supercar "super"? Is it horsepower, 0-60 mph records or the gratification of rowing your own gears? Sophisticated engineering and the addition of electric motors have boosted the performance and heart-stopping acceleration of modern cars, though these once-lauded and brag-worthy stats are becoming less important for a growing number of drivers. "We're seeing a slight backlash to the ultimate performance ... people want more of an analog experience," McKeel Hagerty, CEO of Hagerty, an automotive enthusiast brand, told ABC News. "It feels like zero to 60 times are now so low and so fast. I am not sure that matters anymore, or if horsepower matters anymore." McKeel pointed to the T.50 supercar being built by Gordon Murray, the founder of British carmaker Gordon Murray Automotive and creator of the legendary McLaren F1 road car. The T.50's naturally aspirated V12 engine produces 661 hp and is capable of 12,100 rpm. It also has a six-speed manual gearbox, an anomaly in the supercar realm. The company said it engineered the T.50 "to be the most driver-centric supercar ever built" and Hagerty expects similar manufacturers to follow Murray's lead. "With the T.50, Murray is saying, 'I don't care if it races at Le Mans,'" Hagerty said. "He's building a supercar that has more analog features, that's high revving and has an outrageous motor -- I think we'll see more of that. This trend of people wanting more of an analog experience bodes well for vintage cars and some of these RestoMod vehicles." Titillating horsepower numbers will continue to generate headlines and sales for some automakers. The Corvette ZR1X, which debuted last month, can produce a hair-raising 1,250 hp from its turbocharged LT7 engine and electric front-drive unit. The "regular" ZR1 delivers 1,064 hp, making these models the most powerful Corvettes in the marque's history. Jason Cammisa, host of Hagerty's "ICON" YouTube series, declared that the ZR1 "belongs in a different world ... a world without speed limits, or city streets, or reckless driving tickets." "The ZR1 needs to work as a car on roads where it will be the vast majority of the time, and it's great," he said in his review. "But all that composure on the racetrack is replaced by genuine fear of that gas pedal because violent wheel spin is always looming as a reminder that 1,000 hp road cars probably should not be legal." Cammisa's argument has legitimacy; few drivers who purchase high-performance vehicles are capable of harnessing and controlling all that power. "People need to know what they're doing with this horsepower," Frank Markus, technical director at MotorTrend, told ABC News. "Most of the people who buy these cars can't risk bodily harm or jail sentence." Markus noted that horsepower has long been linked to tire development. Years ago, when Bugatti first unveiled its 1,000+ horsepower cars, "the industry wasn't ready for that horsepower," he said. "It was so dangerous ... tires can only survive for 15 minutes at those top speeds." Bugatti's latest invention, thec hybrid Tourbillion, generates 1,800 hp, 300 more than the Chiron, the last model to showcase the brand's famed W16 engine. With the added weight from battery packs and motors, Markus questioned whether the rubber on hybrid and electric sports cars can keep up. "Sports cars need so much downforce. Is putting 6,000 lbs on tires at these speeds really safe?" he said. "Rubber technology has maxed out what you can put down on a dry pavement." Electrification has also complicated the horsepower element, he explained. "In the combustion era, you had to rev the engine a lot for it to get up to power," Markus noted. "With electrics, the torque is right there at zero." Take the Rimac Nevera R all-electric supercar. The 2,107-hp car sprinted from 0-60 mph in a blistering 1.66 seconds at Germany's Automotive Testing Papenburg (ATP) facility this month, beating a previous company record. The Nevera R also set a new record for the fastest EV top speed: 268.2 mph. Then there's the Tesla Model S Plaid, which boasts supercar-like stats: 1,020 hp and 0-60 mph in 1.99 seconds. Markus, like Hagerty, agreed that drivers are searching for sports cars that provide exhilaration and visceral feedback without the assistance of electrification. "Electric sports cars are flopping in the market. They're antiseptic," he said. "People want an engine. They want to feel the steering wheel vibrate." In an interview this month with TopGear, Christian von Koenigsegg, the founder of Swedish hypercar maker Koenigsegg, said his next car would not be electric, noting that the "appetite in the market for this level of car, fully electric, is extremely low." "You want the throbbing, the pumping, the heat, the sounds, the shifts, all of these aspects that just make [a car] come alive. I would say an electric car is a bit more of a robot," von Koenigsegg said. Some sports car brands, like Lamborghini, are looking to electrification to enhance horsepower and output. The Italian marque has three electrified models now for sale: the Temerario, Urus SE and Revuelto. The Urus SE, the third iteration of the brand's SUV, pairs a twin-turbocharged V8 engine with an electric motor and a lithium-ion battery, allowing the rowdy ute to travel short distances solely on electricity. The Urus SE delivers nearly 800 hp, making it "most powerful Urus ever." Rouven Mohr, Lamborghini's chief technical officer, said Urus owners will immediately notice the increase in horsepower. "In general, we've been working to exploit the benefits of added power in a way that ensures the car remains responsive at every RPM. The 'fun to drive' feeling is the aspect that has benefited most from the power increase, but we've also developed new center and rear differentials to handle that power," he said. "Progress in technology has continually led to increases in power since the first car was introduced. We aim to provide a genuine, authentic Lamborghini driving experience that goes beyond mere figures. Having said that, as Lamborghini, our performances must be best in class, as expected." Tony Roma, chief engineer for the global Corvette and performance cars team, acknowledged that horsepower standards have reached astronomical heights. Yet the debate over horsepower -- and what's acceptable -- has been going on for years. "I worked on the C5 Corvette when it made 405 hp in 2002. And we had this exact same dialect, 'OMG 400 hp in a Corvette, OMG it's uncontrollable,'" he told ABC News. "Then we did 500 hp on the C6. The ZR1 is crazy fast ... and 1,000 hp is a silly number. I think tire technology, suspension technology, the aero -- the other things we've done -- when we get it right and the chassis can handle the power you're making, it's a joy to drive. If you would have put 1,000 hp in that C5, it would scare people to death." He added, "The numbers are so intimidating that the ZR1 keeps a lot of people in check. If you put your right foot down, it goes really fast. That's a choice the driver gets to make." Hagerty said if an enthusiast had to decide between performance bragging rights or a primal driving experience, he expects the latter to win. "Nürburgring lap times were everything a few years ago," he said. "People now want to go out and have the wind in their hair. It doesn't have to be the ultimate anymore."
Yahoo
6 days ago
- Automotive
- Yahoo
Hagerty Announces LOI for New Fronting Arrangement with Markel; Hagerty Re to Assume 100% of the Premium
TRAVERSE CITY, Mich., July 24, 2025 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and a leading specialty vehicle insurance provider, today announced that the company has entered into a non-binding letter of intent with Markel. Upon effectiveness and subject to regulatory approval, this proposed arrangement will result in Hagerty assuming 100% of the underwriting and investment economics while paying an initial fronting fee of 2% to Markel, with the fronting fee decreasing based on the volume of policies issued in each calendar year, commencing January 1, 2026. "Today's announcement marks the continued evolution of our highly successful partnership with Markel that began with their acquisition of Essentia in 2013. Under the newly proposed fronting arrangement, Hagerty will control 100% of the premium from our consistent, high-quality underwriting, positioning us to deliver better profitability and operational control with no disruption to policyholders," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty. The company has posted a presentation about the proposed fronting arrangement to Hagerty's investor relations section of the company's corporate website. These slides are available at About Hagerty, is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of nearly 890,000 who can't get enough of cars. For more information, please visit or connect with us on Facebook, Instagram, Twitter and LinkedIn. Forward-Looking StatementsSome of the statements contained in this press release, including those regarding entering into the proposed fronting arrangement with Markel, its anticipated terms and the expected impacts to Hagerty's financial statements as a result of this proposed arrangement, constitute forward-looking statements within the meaning of the federal securities laws. The forward-looking statements contained in this press release reflect Hagerty's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances, many of which are beyond Hagerty's control, that may cause actual results and future events to differ significantly from those expressed in any forward-looking statement. These risks and uncertainties include, but are not limited to, Hagerty's ability to enter into and successfully implement the proposed fronting arrangement, the performance of Markel and Essentia under the new arrangement, and the impact of regulatory developments and other factors that may affect Hagerty's business, financial condition, and results of operations. For further discussion of these and other factors that could cause Hagerty's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in Hagerty's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on March 4, 2025, as updated by Hagerty's subsequent periodic reports filed with the Securities and Exchange Commission from time to time. While forward-looking statements reflect Hagerty's good faith beliefs, they are not guarantees of future performance or events. Any forward-looking statement speaks only as of the date hereof. Hagerty disclaims any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, future events, or other matters, except as required by law. The newly proposed arrangement remains subject to the negotiation and execution of definitive documentation and the receipt of all required regulatory approvals, and there can be no assurance that the new arrangement will be completed on the terms described in this press release or at all. More information can be found at Category: Financial View original content to download multimedia: SOURCE Hagerty Sign in to access your portfolio
Forbes
21-07-2025
- Automotive
- Forbes
Collectible Car Insurer Hagerty Eyes Off Australian Expansion
McKeel Hagerty is considering taking the listed Hagerty collectable car insurance success story to ... More Australia. Photo: Steve Jessmore Photography. The Shannons stranglehold on the Australian insurance market for rare, expensive and collectible cars could be nearing an end, with America's Hagerty Insurance eying up the Australasian market. Speaking during the Concorso d'Eleganza on Lake Como, Hagerty CEO McKeel Hagerty admitted his company had been approached to enter the market there. 'There are a significant number of people who want us to enter Australia,' Hagerty admitted. 'Those requests have come from other insurance companies and the only problem is the resource it would take us to do. 'But Australia would be a place we eventually get to, I think.' Any move into the Australian market would tread directly on the toes of Shannons Insurance business, with both companies specializing in the car-enthusiast and collector business, rather than mainstream car insurance. It's a niche, with cars often appreciating in value, with spare parts sometimes incredibly difficult or impossible to source and with valuers needing an encyclopedic knowledge of one-off cars from even a century ago. Incumbent Australian collectable car insurance firm Shannons is a long-term supporter of both niche ... More and mainstream Australian motorsport, including the Bathurst 1000. Photo:Traditional insurance companies prefer business models they're more familiar with, and often approach companies like Hagerty and Shannons to handle collectible cars for their clients, Hagerty said. 'The big insurance companies think of themselves as department stores and have to sell everything, but we are a boutique and not a department store,' Hagerty said. 'Nine out of the 10 biggest insurance companies in the US partner with us. They are the fiercest competitors and they all have agreements with us. 'The simple reason is that 2% to 3% of their general policies would include a car that we would be interested in, and they don't know what to do with it. 'The whole model of insurance is to handle depreciating assets and we only deal with appreciating assets, so we take a problem away from them and they can keep insuring the cars and houses and buildings they know how to do.' Hagerty Insurance does the opposite of most car insurers by mainly insuring appreciating assets. ... More Photo: Hagerty Insurance Hagerty has been making other moves, too, including poaching AT&T marketing wizard Marc Burns for its newly created Senior Vice-President of Brand and Marketing role, and it has a strong track record of beating financial forecasts. Unlike Shannons, Hagerty runs a growing auctions business, with the Broad Arrow auction house selling more than €31 million in sales, with a 78% clearance rate, at its recent Concorso d'Eleganza sale. Shannons ran Australia's most interesting car auctions for more than 40 years, but shuttered its Brisbane, Sydney and Melbourne showrooms in 2023 after being absorbed by Suncorp. Shannons, founded by Bob Shannon more than 40 years ago, was absorbed by its long-term corporate partner, Royal & Sun Alliance Insurance Limited, in 2000, and has more recently fallen under the Suncorp umbrella. A long-time favorite of the Australian collectible-car scene, Shannons also supports more than 1,200 car and motorcycle events a year in Australia, and runs the Shannons Club, which it claims is Australia's largest online motoring enthusiast community. Hagerty does similar things largely in the USA, the UK and Canada, ranging from the highest of the high end events at Concorso d'Eleganza at the Hotel Villa d'Este on Lake Como and the Pebble Beach Concours d'Elegance, to Radwood, Cars and Caffeine and the British Festival of the Unexceptional. Its Drivers Club magazine is one of the biggest-circulation car magazines in the world.
Yahoo
19-03-2025
- Automotive
- Yahoo
Hagerty CEO Sees Classic Car Market Shifting, Aims to Expand Data-Driven Strategy
⚡️ Read the full article on Motorious As classic car enthusiasts gathered at the 2025 Amelia Concours d'Elegance, Hagerty CEO McKeel Hagerty highlighted a significant shift in collector preferences and laid out plans to position his company as the automotive industry's version of Bloomberg, using data-driven insights to guide the market. The Amelia Concours crowned a rare 1938 Alfa Romeo 8C 2900B "Best in Show," underscoring the event's traditional focus on racing heritage. Valued near $20 million, the Alfa exemplifies classic automotive prestige. But even amid celebrations of automotive history, Hagerty noted changes sweeping the collector car marketplace. While blue-chip vintage cars like classic Ferraris have traditionally dominated high-dollar auctions, younger collectors are increasingly drawn to newer classics. Vehicles from the 1970s and '80s, including Porsche sports cars, Mercedes AMG models, and even Japanese performance cars, have surged in popularity and price. "There's definitely room for a classic-focused event like Amelia, much like Pebble Beach out west," Hagerty explained in an interview. "Yet, we also see the market gradually shifting towards newer generations of collectible cars." That transition offers Hagerty a unique opportunity. With its longstanding insurance business and recent expansion into auctions through its Broad Arrow subsidiary, Hagerty is positioned to leverage vast amounts of data. According to Hagerty, becoming a definitive source of market insights, akin to how Bloomberg operates in finance, would help the company guide customers navigating these changing trends. "We want to establish the intellectual high ground in our industry," Hagerty said. "Right now, no single source is recognized as the Bloomberg equivalent for automotive collectors. We can fill that void." Hagerty already provides valuation data through specialized indices like its "Muscle Car Index," which tracks collector car prices. As the market diversifies, the company's data analytics could become indispensable for collectors deciding where to invest. Additionally, Hagerty reported strong financial performance, posting a 20% revenue increase in 2024 and attracting 279,000 new members. The company projects up to 400,000 additional members in 2025, buoyed by a partnership with State Farm Insurance. By 2030, membership could grow by 1.5 million, essentially doubling Hagerty's current size. "The classic car business is evolving quickly," Hagerty concluded. "We must prepare for rapid growth and new directions. Using our data strategically, we'll help collectors make informed choices in an increasingly complex market."
Yahoo
10-03-2025
- Automotive
- Yahoo
Hagerty CEO: On.the classic car market and highlights from "the Pebble Beach of the East"
AMELIA ISLAND, Fla. — In keeping with tradition, the Amelia Concours classic car show picked, what else, a sports car with racing heritage as its best in show. The 1938 Alfa Romeo 8C 2900B, a car considered the best sports car of its day with a chassis derived from motorsport, took top honors. (The Amelia historically tends to focus on sports and racing cars.) Classic car insurer Hagerty (HGTY), which has been running the Amelia for four years now, noted that getting your hands on the ultra-rare 8C 2900 will set you back a sizable amount — perhaps as much as $20 million. But that's life — and a familiar price point — at the Amelia. McKeel Hagerty, president and CEO of Hagerty, believes the Amelia is becoming something of a Pebble Beach for the Eastern US, where ultra-rare cars are winning prizes and coming up for auction. 'If there's one event like this, you know, with Pebble Beach in the summer, we think there's a place for Amelia to be here [in the spring], sort of permanently in people's minds,' Hagerty said in a roundtable interview. 'I think we proved that there's still really this room for a classic car display and not just keep this inevitable drift towards newer and newer cars.' The drift to newer and newer cars can be seen in auction results, especially this spring. The preliminary totals for the spring season — which includes RM Sotheby's last week and Gooding & Company and Hagerty's own Broad Arrow this weekend — hit $190.3 million across the three auctions, up from $183.8 million a year ago. But the cars that have traditionally brought in the big bucks, like the Amelia-winning Alfa and other highly prized Ferraris, are seeing softness in the market. In their place, Porsche sports cars from the 70s and up, newer Mercedes AMG vehicles, and even Japanese sports cars from the 80s and 90s are seeing higher sales. For Hagerty, this transition in the classic car market is an opportunity. That's because the company's insurance business has all the data from writing policies for classic cars, as well as from its relatively new auction business acquisition. That can help clients transition out of cars that may not be getting traditional values these days to other more desirable autos. Hagerty can also use that data for newer collectors looking to get into the classic car game. 'What is the intellectual high ground in your industry? Who has it? When you think, you think Bloomberg, right [in finance]? They own the data for people who are professional traders with the Bloomberg terminals. It's a data company underneath the media side,' he said. Hagerty believes the 'intellectual high ground' in his space is not well understood and that the company and its data could bring clarity to the market. In particular, valuation data. (The company is already pursuing this through its "Muscle Car Index' and various other metrics.) And, of course, there is the business of Hagerty Insurance. Last week, the company reported 20% revenue growth in 2024., with 279,000 new members joining. Hagerty believes it can hit 400,000 new members in 2025, partly because its State Farm Insurance partnership will funnel new classic car insurance shoppers its way. The company believes it could possibly add 1.5 million new policy members by 2030, doubling the business. 'So it is coming to us, and it's going to come really fast,' Hagerty said. 'We have to figure out how to handle that much new business coming our way on top of what we normally would grow.' Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
