AM Best has revised its outlook to positive from stable for Hagerty Reinsurance Ltd, the Bermudian-based reinsurer specialising in vintage and collector vehicles, while affirming its financial strength and credit ratings.

The rating agency affirmed Hagerty Re’s financial strength rating of A- (Excellent) and its long-term issuer credit rating of “a-”, alongside the same ratings for its reinsured affiliate, Drivers Edge Insurance Co.

Both entities are wholly-owned subsidiaries of Hagerty Insurance Holdings Inc.

AM Best said the ratings reflect Hagerty Re’s strong balance sheet, favourable reserve trends and solid liquidity, as well as consistent underwriting profitability. The positive outlook was driven by improving risk-adjusted capitalisation, supported by strong underwriting income and investment returns.

Hagerty Re operates in a niche corner of the insurance market, reinsuring classic, vintage and enthusiast vehicles rather than standard personal auto risks.

While AM Best described the company as a monoline writer with a relatively small share of the broader auto market, it noted the firm’s strong brand recognition within the collector vehicle space and its partnerships with large global auto insurers.

The agency highlighted Hagerty Re’s underwriting and valuation expertise, specialist claims handling and access to a global network of collector car repair experts and parts specialists. Its combined ratios have remained consistently below its peers, AM Best said.

Drivers Edge operates under a 100 per cent quota share arrangement with Hagerty Re.

This month, Hagerty announced its 2026 Bull Market List, the ninth annual report of enthusiast vehicles the brand anticipates may increase in value next year, representing a cross-section of cars and price points from less than $10,000 to over $1 million.