Hagerty's stock price plummeted 7.24% during intraday trading on Monday, reflecting a sharp negative reaction from investors to the company's latest financial guidance.

The decline followed Hagerty's release of 2026 guidance that forecasts a net loss of US$41–US$51 million, despite the company reporting strong 2025 results with improved net income. The expected loss is attributed to changes in the company's structure with Markel, where commission revenue from Markel will drop out as Hagerty transitions to retaining 100% of premiums.

While Hagerty's 2025 performance showed sales growth and profitability improvement, investors focused on the 2026 guidance that calls for lower reported revenue of approximately US$1.28–US$1.30 billion under the new Markel fronting arrangement. The guidance highlights increased underwriting risk and the prospect of earnings pressure before potential benefits from the new structure materialize.