Hagerty Inc (NYSE:HGTY) stock fell 6.62% (As on Mar 25, 11:19:25 AM UTC-4, Source: Google Finance) after the company in the FY 21 has reported 24% rise in the total revenue to o $619.1 million. Commission and Fee revenue grew 15% to $271.6 million driven by solid premium fee growth of 17%, a pickup in average new business count growth of 3% and solid Policies in Force (PIF) retention of 89%. Earned Premium grew 4% to $295.8 million, driven by 17% written premium growth and continued expansion of the U.S. contractual quota share. Finally, Membership and other revenue increased 21% to $51.7 million benefitting from Hagerty Drivers Club (HDC) paid membership count growth of 12%, an increase in average total membership, and a pickup in average New Business insurance adoption to 75%.

Moreover, Written premium grew 17% year-over-year to $674.3 million due to solid underwriting performance in Hagerty’s insurance business. The Loss ratio remained stable year-over-year at 41%. The company has increased the new members joining the ultimate community for car lovers through HDC, as paid member count increased to 719,000, or a 12% increase. The revenue per member increased 13% to $499, as members expanded their use of fee based Hagerty products and services. The Policies in Force retention levels remained very strong at 89%. Contribution margin was strong, increasing 9% to $159.6 million, driven mainly by revenue growth. The company has reported a net operating loss of $10.1 million, driven by expenses related to the business combination.

For the full year 2022, the company expects Total Written Premium Growth to be between 14% and 18%, Total Revenue is expected to grow between 24% and 28%, Total Member count is expected to grow in the range of 9% to 12%, the company expects growth in Total Revenue per Paid Member of 7% to 10%, Hagerty Drivers Club (HDC) Paid Member count is expected to increase in the range of 7% to 10%, Policies in Force Retention level is expected to be in the range of 89% to 90%, Net Income (Loss) and GAAP Earnings (Loss) per Share is expected to improve 35% to 75% and Adjusted EBITDA is expected to grow in the range of 10% to 20%.

Meanwhile, the company has successfully completed the previously announced business combination with Aldel Financial Inc. The company will now use the net proceeds of this transaction to advance the strategic growth opportunities, including digital innovation initiatives.