Shares of Hagerty (HGTY) plummeted over 6% in early trading on Wednesday after the specialty vehicle insurance provider reported mixed third quarter 2024 results and lowered its profit outlook for the full year due to impacts from Hurricane Helene.

While Hagerty posted strong revenue growth of 17% year-over-year to $323.4 million in Q3, driven by solid gains in written premiums and its marketplace business, the company was hit hard by catastrophe losses related to Hurricane Helene. The hurricane resulted in $24.7 million in pre-tax losses for Hagerty in the quarter, causing its loss ratio to spike to 60% from 41.1% a year ago.

As a result, Hagerty's adjusted EBITDA declined by $13.2 million compared to the prior year quarter. The company also missed Wall Street's expectations for adjusted earnings per share in Q3, reporting $0.05 vs. estimates of $0.39.

For the full year 2024, Hagerty raised its revenue growth outlook to 18-19% but lowered its net income and adjusted EBITDA guidance to account for the impacts of Hurricane Helene as well as estimated losses from Hurricane Milton. The company now expects net income growth of 131-163% and adjusted EBITDA growth of just 25-36%, down from its prior projections.