Deep Dive: Hagerty Stock With CFO Fred Turcotte
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Show Notes
This week on the show we had the pleasure of bringing on the Chief Financial Officer (CFO) of Hagerty, Fred Turcotte. Hagerty is a little-known stock among public market investors but is the leading automobile insurer for sports, luxury, and classic cars. Here are some questions we asked Fred on the show:
Before getting into the business, maybe give listeners a little bit of info about yourself. What did your career look like and how did you end up at Hagerty? And for anyone who isn’t familiar with Hagerty could you give sort of the elevator pitch around what the business does?
What is enthusiast vehicle insurance? How did Hagerty get to where it is today?
Can you give us a sense of the size of the market Hagerty is going after? What makes collectible cars such an attractive market to insure?
Let’s go through the business model. When Hagerty Insurance brings in a dollar of insurance premiums, where does it go? What are your costs and how much do you earn in profit?
You guys joined the public markets a little over 6 months ago if I’m not mistaken. Why the SPAC as opposed to the traditional IPO route?
What’s Hagerty’s relationship with Markel? How did that come about? (same with State Farm)
As the CFO, what is your role at Hagerty, or more generally, what does an insurance CFO do?
What metrics do you track to evaluate the success of Hagerty’s Insurance business? How does Reinsurance fit into things?
What are the company’s long-term goals with the Hagerty Drivers Club?
Of the other new initiatives you guys are building, what has you the most excited? How do you evaluate where to invest more capital for growth across these segments?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.