{"id":523387,"date":"2021-08-04T16:11:35","date_gmt":"2021-08-04T20:11:35","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/safety-announces-second-quarter-2021-results-and-declares-third-quarter-2021-dividend\/"},"modified":"2021-08-04T16:11:35","modified_gmt":"2021-08-04T20:11:35","slug":"safety-announces-second-quarter-2021-results-and-declares-third-quarter-2021-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/safety-announces-second-quarter-2021-results-and-declares-third-quarter-2021-dividend\/","title":{"rendered":"Safety Announces Second Quarter 2021 Results and Declares Third Quarter 2021 Dividend"},"content":{"rendered":"

<\/p>\n

Safety Announces Second Quarter 2021 Results and Declares Third Quarter 2021 Dividend<\/b><\/p>\n

BOSTON–(BUSINESS WIRE<\/a>)–
\nSafety Insurance Group, Inc. (NASDAQ:SAFT) (\u201cthe Company\u201d) today reported second quarter 2021 results.\n<\/p>\n

\nNet income for the quarter ended June 30, 2021 was $37.7 million, or $2.49 per diluted share, compared to net income of $42.5 million, or $2.78 per diluted share, for the comparable 2020 period. Net income for the six months ended June 30, 2021 was $73.8 million, or $4.93 per diluted share, compared to net income of $40.5 million, or $2.64 per diluted share, for the comparable 2020 period. Non-generally accepted accounting principles (\u201cnon-GAAP\u201d) operating income, as defined below, for the quarter ended June 30, 2021 was $1.85 per diluted share, compared to $1.95 per diluted share, for the comparable 2020 period. Non-GAAP operating income for the six months ended June 30, 2021 was $3.78 per diluted share, compared to $3.52 per diluted share, for the comparable 2020 period.\n<\/p>\n

\nSafety\u2019s book value per share increased to $61.43 at June 30, 2021 from $59.40 at December 31, 2020. Safety paid $0.90 per share in dividends to investors during the quarters ended June 30, 2021 and 2020, respectively. Safety paid $3.60 per share in dividends to investors during the year ended December 31, 2020.\n<\/p>\n

\nDirect written premiums for the quarter ended June 30, 2021 increased by $11.9 million, or 5.8%, to $217.2 million from $205.3 million for the comparable 2020 period. Direct written premiums for the six months ended June 30, 2021 increased by $6.9 million, or 1.7% to $409.5 million from $402.6 million for the comparable 2020 period. The 2020 direct written premium reflects the Safety Personal Auto Relief Credit, a 15% policyholder credit that was applied to personal auto policies for the months of April, May and June 2020 and was booked as an adjustment to premiums during the second quarter of 2020.\n<\/p>\n

\nNet written premiums for the quarter ended June 30, 2021 increased by $9.1 million, or 4.6%, to $206.8 million from $197.7 million for the comparable 2020 period. Net written premiums for the six months ended June 30, 2021 increased by $4.4 million, or 1.1%, to $391.0 million from $386.6 million for the comparable 2020 period. Net earned premiums for the quarter ended June 30, 2021 increased by $12.4 million, or 6.8%, to $194.3 million from $181.9 million for the comparable 2020 period. Net earned premiums for the six months ended June 30, 2021 increased by $7.4 million, or 1.9%, to $387.1 million from $379.7 million for the comparable 2020 period. The increases in both periods are a result of the increase in direct written premiums as described above.\n<\/p>\n

\nFor the quarter ended June 30, 2021, losses and loss adjustment expenses incurred increased by $19.2 million, or 21.1%, to $110.2 million from $91.0 million for the comparable 2020 period. For the six months ended June 30, 2021, losses and loss adjustment expenses incurred increased by $10.0 million, or 4.7%, to $221.7 million from $211.7 million for the comparable 2020 period. The 2020 losses and loss adjustment expenses in both periods reflect a decrease in frequency, primarily in our private passenger automobile line of business as a result of the COVID-19 pandemic.\n<\/p>\n

\nTotal prior year favorable development included in the pre-tax results for the quarter ended June 30, 2021 was $13.3 million compared to $9.7 million for the comparable 2020 period. Total prior year favorable development included in the pre-tax results for the six months ended June 30, 2021 was $25.8 million compared to $19.3 million for the comparable 2020 period.\n<\/p>\n

\nLoss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the quarter ended June 30, 2021 were 56.7%, 33.5%, and 90.2%, respectively, compared to 50.0%, 34.9%, and 84.9%, respectively, for the comparable 2020 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the six months ended June 30, 2021 were 57.3%, 33.6%, and 90.9%, respectively, compared to 55.7%, 33.3%, and 89.0%, respectively, for the comparable 2020 period.\n<\/p>\n

\nNet investment income for the quarter ended June 30, 2021 decreased by $0.1 million, or 1.4%, to $9.8 million from $9.9 million for the comparable 2020 period. The decrease is a result of lower yields on our fixed maturity assets compared to the prior year. Net investment income for the six months ended June 30, 2021 increased by $0.7 million, or 3.3%, to $21.3 million from $20.6 million for the comparable 2020 period. The increase is a result of an increase in the average invested asset balance compared to the prior year. Net effective annualized yield on the investment portfolio for the quarter ended June 30, 2021 was 2.7% compared to 2.9% for the comparable 2020 period. Net effective annualized yield on the investment portfolio for the six months ended June 30, 2021 was 2.9% compared to 3.0% for the comparable 2020 period. Our duration on fixed maturities was 3.2 years at June 30, 2021 and December 31, 2020, respectively.\n<\/p>\n

\nToday, our Board of Directors approved a $0.90 per share quarterly cash dividend on its issued and outstanding common stock payable on September 15, 2021 to shareholders of record at the close of business on September 1, 2021.\n<\/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 better explain the Company\u2019s results of operations 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.\n<\/p>\n

Non-GAAP operating income and non-GAAP operating income per diluted share consist of our GAAP net income adjusted by the net realized gains (losses) on investments, change in net unrealized gains on equity securities, credit loss benefit (expense) and taxes related thereto. For the three months ended June 30, 2021, an increase of $8.6 million for the change in unrealized gains on equity securities was recognized within income before income taxes, compared to an increase of $16.8 million recognized in the comparable 2020 period. For the six months ended June 30, 2021, an increase of $14.9 million for the change in unrealized gains on equity securities was recognized in income before income taxes, compared to a decrease of $13.2 million recognized in the comparable 2020 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.<\/span><\/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, and Safety Northeast Insurance Company. 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.\n<\/p>\n

Additional Information:<\/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, 2020 Form 10-K with the SEC on February 26, 2021 and urges shareholders to refer to this document for more complete information concerning Safety\u2019s financial results.\n<\/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