{"id":1017104,"date":"2026-11-05T03:34:27","date_gmt":"2026-11-05T08:34:27","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/safety-insurance-group-inc-announces-third-quarter-2026-results-and-declares-fourth-quarter-2026-dividend\/"},"modified":"2026-11-05T03:34:27","modified_gmt":"2026-11-05T08:34:27","slug":"safety-insurance-group-inc-announces-third-quarter-2026-results-and-declares-fourth-quarter-2026-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/safety-insurance-group-inc-announces-third-quarter-2026-results-and-declares-fourth-quarter-2026-dividend\/","title":{"rendered":"Safety Insurance Group, Inc. Announces Third Quarter 2026 Results and Declares Fourth Quarter 2026 Dividend"},"content":{"rendered":"

<\/p>\n

Safety Insurance Group, Inc. Announces Third Quarter 2026 Results and Declares Fourth Quarter 2026 Dividend<\/b><\/p>\n

BOSTON–(BUSINESS WIRE<\/a>)–
\nSafety Insurance Group, Inc. (NASDAQ:SAFT) (\u201cSafety\u201d or the \u201cCompany\u201d) today reported third quarter 2026 results.<\/p>\n

\nGeorge M. Murphy, Chairman of the Board of Directors, President and Chief Executive Officer, commented: \u201cFor the quarter ended September 30, 2026, our combined ratio improved to 96.3% compared to 98.9% in the same period in the prior year. The combined ratio of 96.3% reflects the impact of previous written premium growth earning into top-line revenue, as well as a decrease in losses and loss adjustment expenses incurred, driven by improved loss frequency in our private passenger automobile line. Net income for the quarter ended September 30, 2026 was $30.0 million, or $2.05 per diluted share, compared to net income of $28.3 million, or $1.91 per diluted share, for the comparable 2025 period. The increase in net income reflects the impact of improved underwriting results and the largest quarterly net investment income results in our Company\u2019s history.<\/p>\n

\nAs previously communicated, on July 23, 2026, the Company announced that it has entered into a definitive agreement under which an affiliate of Mapfre S.A. (\u201cMapfre\u201d) will acquire Safety in an all-cash transaction valued at approximately $1.54 billion. Under the terms of the agreement, Safety shareholders will receive $105 for each Safety common share in cash, which represents a premium of 44% on Safety\u2019s stock price as of July 23, 2026. On November 3, 2026, Safety\u2019s shareholders voted in favor of the transaction which remains subject to regulatory approval.\u201d<\/p>\n

Third Quarter 2026 Results and Recent Developments<\/b><\/p>\n

\nNet income for the quarter ended September 30, 2026 was $30.0 million, or $2.05 per diluted share, compared to net income of $28.3 million, or $1.91 per diluted share, for the comparable 2025 period. Net income for the nine months ended September 30, 2026 was $50.2 million, or $3.43 per diluted share, compared to net income of $79.1 million, or $5.33 per diluted share, for the comparable 2025 period. Non-generally accepted accounting principles (\u201cnon-GAAP\u201d) operating income, as defined below, for the quarter ended September 30, 2026 was $1.95 per diluted share, compared to $1.48 per diluted share for the comparable 2025 period. Non-GAAP operating income for the nine months ended September 30, 2026 was $3.28 per diluted share compared to $4.19 per diluted share for the comparable 2025 period.<\/p>\n

\nSafety\u2019s book value per share decreased to $58.29 at September 30, 2026 from $60.98 at December 31, 2025, primarily due to decreases in the value of our fixed maturity portfolio. Safety paid $0.92 per share in dividends to investors during the quarters ended September 30, 2026 and 2025. Safety paid $3.64 per share in dividends to investors during the year ended December 31, 2025.<\/p>\n

\nToday, our Board of Directors approved a $0.92 per share quarterly cash dividend on our issued and outstanding common stock payable on December 15, 2026, to shareholders of record at the close of business on December 1, 2026.<\/p>\n

\nDirect written premiums for the quarter ended September 30, 2026 decreased by $14.5 million, or 4.3%, to $319.7 million from $334.2 million for the comparable 2025 period. Direct written premiums for the nine months ended September 30, 2026 decreased by $17.7 million, or 1.8%, to $961.3 million from $979.0 million for the comparable 2025 period. Net written premiums for the quarter ended September 30, 2026 decreased by $13.0 million, or 4.2%, to $296.2 million from $309.2 million for the comparable 2025 period. Net written premiums for the nine months ended September 30, 2026 decreased by $18.4 million, or 2.0%, to $885.1 million from $903.5 million for the comparable 2025 period.<\/p>\n

\nThe decreases in direct written premiums and net written premiums are due to a softening, more competitive market, in addition to the cancellation of certain underperforming agency relationships. For the nine months ended September 30, 2026, the Company experienced policy count declines in Private Passenger Automobile and Homeowners lines, partially offset by growth in Commercial Automobile policies, compared to the same period in 2025. Average written premium per policy increased 2.0%, 6.0% and 9.7% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2025 reflecting the result of rate increases.<\/p>\n

\nNet earned premiums for the quarter ended September 30, 2026 increased by $2.9 million, or 1.0%, to $293.9 million from $291.0 million for the comparable 2025 period. Net earned premiums for the nine months ended September 30, 2026 increased by $30.7 million, or 3.6%, to $876.5 million from $845.8 million for the comparable 2025 period. The increase in net earned premium is the result of rate increases earning into top-line results.<\/p>\n

\nFor the quarter ended September 30, 2026, losses and loss adjustment expenses incurred decreased by $7.4 million, or 3.6%, to $197.6 million from $205.0 million for the comparable 2025 period. For the nine months ended September 30, 2026, losses and loss adjustment expenses incurred increased by $50.7 million, or 8.6%, to $640.2 million from $589.5 million for the comparable 2025 period. The increase in losses during the nine months ended September 30, 2026 is due to the impact of two severe winter weather events that occurred during the quarter ended March 31, 2026.<\/p>\n

\nLoss, expense, and combined ratios calculated for the quarter ended September 30, 2026 were 67.2%, 29.1%, and 96.3%, respectively, compared to 70.4%, 28.5%, and 98.9%, respectively, for the comparable 2025 period. The decrease in loss and expense ratios is driven by the increase in net earned premiums. Loss, expense, and combined ratios calculated for the nine months ended September 30, 2026 were 73.0%, 28.7%, and 101.7%, respectively, compared to 69.7%, 29.2%, and 98.9%, respectively, for the comparable 2025 period. The increase in the combined ratio during the nine months ended September 30, 2026 was primarily driven by the increase in losses discussed above. Other expenses for the quarter ended September 30, 2026 included approximately $3.8 million of legal fees incurred in connection with the proposed transaction, which are excluded from the calculation of the expense ratio.<\/p>\n

\nTotal prior year favorable development included in the pre-tax results for the quarter ended September 30, 2026 was $10.1 million compared to $9.7 million for the comparable 2025 period. Total prior year favorable development included in the pre-tax results for the nine months ended September 30, 2026 was $31.3 million compared to $33.2 million for the comparable 2025 period.<\/p>\n

\nNet investment income for the quarter ended September 30, 2026 increased by $2.4 million, or 15.0%, to $17.9 million from $15.5 million for the comparable 2025 period. Net investment income for the nine months ended September 30, 2026 increased by $5.7 million, or 12.3%, to $51.5 million from $45.8 million for the comparable 2025 period. The increase is primarily driven by higher assets under management, reinvestment rates that exceeded the yields on maturing securities, and strong alternative asset returns. Net effective annualized yield on the investment portfolio was 4.2% for the quarter ended September 30, 2026 compared to 4.0% for the comparable 2025 period. Net effective annualized yield on the investment portfolio was 4.1% for the nine months ended September 30, 2026 compared to 4.0% for the comparable 2025 period. The investment portfolio\u2019s duration on fixed maturities was 3.8 years at September 30, 2026 compared to 3.9 years at December 31, 2025.<\/p>\n

Non-GAAP Measures<\/b><\/p>\n

\nManagement has included certain non-GAAP financial measures in presenting the Company\u2019s results. Management believes that these non-GAAP measures are useful to explain the Company\u2019s results of operations because they facilitate period-to-period comparisons of our performance and allow for a more complete understanding of the underlying trends in the Company\u2019s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (\u201cGAAP\u201d). In addition, our definitions of these items may not be comparable to the definitions used by other companies.<\/p>\n

\nNon-GAAP operating income and non-GAAP operating income per diluted share consist of our GAAP net income adjusted by the net realized gains on investments, change in net unrealized gains on equity securities, credit loss benefit (expense) and taxes related thereto. For the quarter ended September 30, 2026, a decrease of $8.5 million for the change in unrealized gains on equity securities was recognized in income before income taxes, compared to an increase of $6.3 million recognized in the comparable 2025 period. For the nine months ended September 30, 2026, a decrease of $15.3 million for the change in unrealized gains on equity securities was recognized in income before income taxes, compared to an increase of $13.2 million recognized in the comparable 2025 period. Net income and earnings per diluted share are the GAAP financial measures that are most directly comparable to non-GAAP operating income and non-GAAP operating income per diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.<\/p>\n

About Safety:<\/span><\/b> Safety Insurance Group, Inc., based in Boston, MA, is the parent of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, Safety Northeast Insurance Company, and Safety Northeast Insurance Agency. Operating exclusively in Massachusetts, New Hampshire, and Maine, Safety is a leading writer of property and casualty insurance products, including private passenger automobile, commercial automobile, homeowners, dwelling fire, umbrella and business owner policies.<\/p>\n

Additional Information:<\/span><\/b> Press releases, announcements, U. S. Securities and Exchange Commission (\u201cSEC\u201d) Filings and investor information are available under \u201cAbout Safety,\u201d \u201cInvestor Information\u201d on our Company website located at www.SafetyInsurance.com<\/a>. Safety filed its December 31, 2025 Form 10-K with the SEC on February 27, 2026 and urges shareholders to refer to this document for more complete information concerning Safety\u2019s financial results.<\/p>\n

Cautionary Statement under “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995<\/i>:<\/b><\/p>\n

This press release contains, and Safety may from time to time make, written or oral “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as \u201cbelieve,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201cestimate,\u201d \u201caim,\u201d \u201cprojects,\u201d or words of similar meaning and expressions that indicate future events and trends, or future or conditional verbs such as \u201cwill,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201ccould,\u201d or \u201cmay\u201d. All statements that address expectations or projections about the future, including statements about the Company\u2019s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.<\/i><\/p>\n

Forward-looking statements are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. There are a number of factors, many of which are beyond our control, that could cause actual future conditions, events, results or trends to differ significantly and\/or materially from historical results or those projected in the forward-looking statements. These factors include but are not limited to:<\/i><\/p>\n