Hagerty Boston Consulting Group Matrix

The Hagerty Drivers Club (HDC) is a key component of Hagerty's strategy, acting as a strong cash cow. By July 2025, paid memberships are projected to reach nearly 890,000, building on approximately 876,000 members in 2024. This growth is supported by a 10% increase in membership revenue, highlighting its consistent financial performance.

This membership program is vital for Hagerty's ecosystem, driving engagement and referrals for other services. Its substantial market share within automotive enthusiast circles solidifies its position as a dominant force, ensuring continued financial stability and growth.

Hagerty's core insurance business for classic and collector vehicles is a true star in their portfolio, consistently showing impressive growth. In 2024, written premiums surged by 15% year-over-year, reaching $1.044 billion, with an additional 13-14% growth forecasted for 2025. This robust performance is fueled by a rising passion for classic automobiles and Hagerty's established, trusted brand within this specialized community.

The Hagerty Drivers Club (HDC) is a key component of Hagerty's strategy, acting as a strong cash cow. By July 2025, paid memberships are projected to reach nearly 890,000, building on approximately 876,000 members in 2024. This growth is supported by a 10% increase in membership revenue, highlighting its consistent financial performance and vital role in driving engagement and referrals.

Hagerty's auction segment, notably Broad Arrow Auctions, is a standout performer, seeing a remarkable 90% surge in revenue in 2024 to $54.3 million. This expansion is further fueled by new international events planned for late 2025 in Belgium and Switzerland, signaling a commitment to capturing a larger share of the global collector car market.

Hagerty's media content and publishing division, encompassing its magazine, video production, and online storytelling, serves as a robust cash cow within the company's portfolio. This established platform boasts a substantial and dedicated following among automotive enthusiasts, consistently driving engagement and reinforcing brand loyalty.

The media segment generates significant indirect value and fosters deep brand loyalty without requiring substantial investment for high growth. In 2024, Hagerty reported that its media properties continued to be a primary driver of member acquisition and retention, with digital content engagement up 15% year-over-year.

Hagerty's core insurance policies for collector vehicles are a quintessential Cash Cow. They possess a dominant market share in a specialized, mature market, generating consistent and substantial profits.

The high retention rates, such as the 89% policy in force retention as of December 31, 2024, mean that minimal investment is needed to maintain this strong position. This stability allows these products to be a reliable source of cash for the company.

Hagerty's valuation tools and data services are also firmly established Cash Cows. Their authority and comprehensive data give them a leading position in the collector car market, making them essential for industry participants.

These services consistently generate revenue, as evidenced by their role in supporting over $1 billion in insured vehicle value in 2023, demonstrating their foundational financial contribution without requiring high growth investment.

Hagerty's media and publishing division, including its magazine and digital content, acts as another significant Cash Cow. This segment benefits from a large, engaged audience, fostering brand loyalty and providing steady revenue streams.

With digital content engagement up 15% year-over-year in 2024, this division continues to be a key driver of member acquisition and retention, reinforcing its value without demanding extensive growth capital.

The Roadside Assistance for Collector Vehicles service is a prime example of a Cash Cow, leveraging Hagerty's existing expertise and customer base. This mature offering benefits from the company's strong position in collector car insurance, ensuring a predictable income.

This service contributes significantly to the overall revenue of the insurance segment, which is Hagerty's primary income generator, as reported in 2024. Its value lies in enhancing customer loyalty and providing a steady revenue stream.

Signature events like The Amelia Concours d'Elegance are Hagerty's Cash Cows in the experiential domain. These events hold a commanding share of prestige and attendance within the collector car world.

The Amelia's record attendance of over 25,000 enthusiasts in 2023 highlights its established appeal and consistent ability to draw crowds, translating into reliable income from sponsorships and ticket sales.

With restoration costs continuing to climb, buyers are gravitating towards immaculate, ready-to-drive collector cars. This trend makes it tougher to sell less desirable or significantly damaged vehicles, often necessitating a greater investment to find a buyer. For instance, Hagerty’s own data from 2024 indicates a widening gap in sale prices between concours-condition vehicles and those requiring substantial work, with the latter sometimes seeing 30-50% lower valuations depending on the extent of damage.

A substantial inventory of these harder-to-move vehicles within Hagerty’s marketplace or valuation services could translate into low-return assets. These cars tie up capital that could be deployed more effectively elsewhere, potentially impacting overall portfolio performance. The challenge lies in accurately assessing the true cost and time required for restoration versus the potential market value, a calculation that becomes increasingly complex with escalating labor and parts expenses.

In the Hagerty BCG Matrix, 'dogs' represent business units or ventures with low market share and low growth potential. These are typically underperforming assets that consume resources without generating significant returns. For Hagerty, this could include niche media content with stagnant engagement or legacy technology systems with high maintenance costs and no competitive advantage.

For example, a hypothetical niche podcast focusing on a very specific automotive restoration era might struggle to attract new listeners, showing minimal growth in engagement metrics. Similarly, outdated internal technology platforms, prior to significant investments in modernization like the $20 million Duck Creek platform in 2025, often represent dogs due to their inefficiency and inability to support growth.

These ventures often contribute negligibly to overall revenue, potentially less than 1%, while demanding disproportionate management attention and operational expenditure. They may also lack strategic alignment with Hagerty's core competencies and long-term vision.

Data from 2023 indicated a 5-8% circulation decline for niche print publications, a trend that could apply to similar content offerings within Hagerty that exhibit stagnant or declining audience engagement. By early 2024, a small digital platform launched to test a new market segment might be classified as a dog if it failed to gain substantial traction or generate meaningful revenue.

Hagerty's acquisition of CNIC is a strategic move to establish a new insurance carrier platform, targeting differentiated lines of business. This initiative aims to propel Hagerty beyond its core classic car market, tapping into potentially high-growth segments.

While this expansion offers significant opportunity, Hagerty's market share in these new, broader insurance offerings is currently minimal. Substantial strategic investment will be crucial to capture and grow its position in these emerging markets.

Question marks in the Hagerty BCG Matrix represent new ventures with high growth potential but low market share. These are areas where Hagerty is investing significant resources to build its presence. Success in these segments requires careful strategic planning and substantial capital to overcome initial market penetration challenges.

Hagerty's expansion into international markets, the digital classifieds platform, and collector car financing all fit the profile of question marks. These initiatives are designed to tap into emerging trends and new customer segments, aiming to transform from low-share players into future stars.

The company's strategic focus on newer collector car eras, like vehicles from the 1980s and 1990s, also positions it within this quadrant. While demand is rising rapidly, Hagerty's current market share in insuring and servicing these specific vehicles is still developing, necessitating further investment.

Hagerty's acquisition of CNIC to build a new insurance carrier platform is a prime example of a question mark. This move targets differentiated lines of business beyond classic cars, aiming for significant growth in new insurance segments where its current market share is minimal.