SAFETY INSURANCE GROUP INC
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
SAFT$104.27-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001172052-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001172052-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 133 current paragraphs.
71 unchanged; 48 reworded; 9 added; 6 removed; 7 previous and 5 current paragraphs rearranged.
Tables are not compared: 39 previous and 39 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the three months ended June 30, 2025 increased by $21,490, or 12.4%, to $194,232 from $172,742 for the comparable 2024 period. Losses and loss adjustment expenses incurred for the six months ended June 30, 2025 increased by $43,381, or 12.7%, to $384,522 from $341,141 for the comparable 2024 period. The increase in losses and loss adjustment expenses is primarily driven by increased loss severity as compared to the same periods in the prior year. Our losses and loss adjustment expenses ratio for the three months ended June 30, 2025 decreased to 68.8% from 70.0% for the comparable 2024 period. Our losses and loss adjustment expense ratio for the six months ended June 30, 2025 decreased to 69.3% from 70.6% for the comparable 2024 period. The decrease in the ratio is due to growth in earned premiums, slightly offset by increased loss severity.
Current report
Direct Written Premiums. Direct written premiums for the three months ended June 30, 2025 increased by $30,318, or 9.6%, to $345,829 from $315,511 for the comparable 2024 period. Direct written premiums for the six months ended June 30, 2025 increased by $61,949, or 10.6%, to $644,799 from $582,850 for the comparable 2024 period. The increases in direct written premium and net written premium are a result of rate increases that are now earning into the financial results. For the six months ended June 30, 2025, the Company achieved moderate policy count growth across most lines of business, including 0.4%, 2.8% and 3.9% in Private Passenger Automobile, Commercial
Current report
Net Investment Income. Net investment income for the three months ended June 30, 2025 increased $2,224, or 16.5%, to $15,724 from $13,500 for the comparable 2024 period. Net investment income for the six months ended June 30, 2025 increased by $1,567, or 5.5%, to $30,298 from $28,731 for the comparable 2024 period. The increase for the three and six months ended June 30, 2025, compared to the same periods in 2024, is primarily due to higher earned interest from our bond portfolio, resulting from additional bond purchases made during 2025. Net effective annualized yield on the investment portfolio was 4.2% for the three months June 30, 2025 compared to 3.9% for the comparable 2024 period. Net effective annualized yield on the investment portfolio was 4.0% for the six months ended June 30, 2025 compared to 3.9% for the comparable 2024 period. The investment portfolio’s duration on fixed maturities was 3.6 years at June 30, 2025 compared to 3.5 years at December 31, 2024.
Current report
deferred compensation plan.
Current report
Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the three months ended June 30, 2025 increased by $21,490, or 12.4%, to $194,232 from $172,742 for the comparable 2024 period. Losses and loss adjustment expenses incurred for the six months ended June 30, 2025 increased by $43,381, or 12.7%, to $384,522 from $341,141 for the comparable 2024 period.
Current report
Net cash used for financing activities was $26,844 and $26,848 during the six months ended June 30, 2025 and 2024, respectively. Net cash used for financing activities during the six months ended June 30, 2025 consisted of dividend payments to shareholders and debt activity.
Current report
Investment Impairments
Current report
We use a systematic methodology to evaluate declines in fair values below cost or amortized cost of our investments. Some of the factors considered in assessing impairment of fixed maturities due to credit losses include the extent to which the fair value is less than amortized cost, the financial condition of and the near and long-term prospects of the issuer, whether the debtor is current on its contractually obligated interest and principal payments, changes to the rating of the security by a rating agency, the historical volatility of the fair value of the security and whether it is more likely than not that we will be required to sell the investment prior to an anticipated recovery in value. This methodology ensures that we evaluate available evidence concerning any declines in a disciplined manner.
Current report
For fixed maturities that we do not intend to sell or for which it is more likely than not that we would not be required to sell before an anticipated recovery in value, we separate the expected credit loss component of the impairment from the amount related to all other factors. The expected credit loss component is recognized as an allowance for expected credit losses. The allowance is adjusted for any additional credit losses and subsequent recoveries, which are booked in income as either credit loss expense or credit loss benefit, respectively. Upon recognizing a credit loss, the cost basis is not adjusted. The impairment related to all other factors (non-credit factors) is reported in other comprehensive income.
Removed paragraphs (6)
Previous report
MANAGEMENT’S DISCUSSION AND ANALYSIS
Previous report
Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the three months ended March 31, 2025 increased by $21,891 or 13.0%, to $190,290 from $168,399 for the comparable period. The increase is driven by larger policy counts. Our losses and loss adjustment expenses ratio for the three months ended March 31, 2025 improved to 69.8% from 71.3% for the comparable 2024 period.
Previous report
Direct Written Premiums. Direct written premiums for the three months ended March 31, 2025 increased by $31,631, or 11.8%, to $298,970 from $267,339 for the comparable 2024 period. The increase in direct written premiums is the result of rate increases, improved retention, and new business production.
Previous report
Net Investment Income. Net investment income for the three months ended March 31, 2025 decreased by $657, or 4.3%, to $14,574 from $15,231 for the comparable 2024 period. The decrease is primarily driven by lower earned interest from our higher yield bonds and variable-rate secured and senior bank loans. Net effective annualized yield on the investment portfolio was 3.9% for the three months ended March 31, 2025 compared to 4.3% for the three months ended March 31, 2024. The investment portfolio’s duration was 3.6 years at March 31, 2025 compared to 3.5 years at December 31, 2024.
Previous report
Losses and Loss Adjustment Expenses. Loss and loss adjustment expenses incurred for the three months ended March 31, 2025 increased by $21,891, or 13.0%, to $190,290 from $168,399 for the comparable 2024 period. The increase is driven by larger policy counts.
Previous report
Net cash used for financing activities was $13,568 and $13,615 during the three months ended March 31, 2025 and 2024, respectively. On March 27, 2025, the Company borrowed $30,000 under its revolving credit facility with Citizens Bank, bearing interest at SOFR plus 1.25%. Interest is payable monthly and the principal is due upon the maturity of the Credit Agreement. Principal may be repaid at any time without penalty. The proceeds from this borrowing were offset by the repayment of principal on the FHLB-Boston loan of $30,000 which was paid at maturity on March 17, 2025, in addition to dividend payments to shareholders.
Reworded paragraphs (48)
Previous wording
Our Insurance Subsidiaries began writing insurance in New Hampshire during 2008 and in Maine in 2016. In November 2020, we formed a fourth insurance subsidiary, Safety Northeast, which became licensed to write insurance products in Massachusetts. The table below shows the amount of direct written premiums written in each state during the three months ended March 31, 2025 and 2024.
Current wording
Our Insurance Subsidiaries began writing insurance in New Hampshire during 2008 and in Maine in 2016. In November 2020, we formed a fourth insurance subsidiary, Safety Northeast, which became licensed to write insurance products in Massachusetts.
Previous wording
Direct and Net Written Premiums. For the three months ended March 31, 2025, the Company achieved its tenth consecutive quarter of double-digit growth in direct written premiums. For the three months ended March 31, 2025, direct written premium growth and net written premium growth were 11.8% and 9.8%, respectively. The increase in premium is driven by rate increases, improved retention, and new business production. For the three months ended March 31, 2025, the Company achieved policy count growth across most lines of business, including 1.3%, 2.5% and 5.4% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024. Additionally, for the three months ended March 31, 2025, average written premium per policy increased 9.5%, 8.4% and 11.0% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.
Current wording
*Direct and Net Written Premiums.*For the three months ended June 30, 2025 direct written premium growth and net written premium growth were 9.6% and 8.3%, respectively, compared to the prior period. The increase in premium is driven by new business production and rate increases. For the six months ended June 30, 2025, average written premium per policy increased 9.0%, 7.2% and 10.6% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024. Additionally, for the six months ended June 30, 2025, the Company achieved policy count growth across all lines of business, including 0.4%, 2.8% and 3.9% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.
Previous wording
Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, was $18,996 for the three months ended March 31, 2025, compared to $13,746 for the comparable 2024 period. The increase in non-GAAP operating income was primarily the result of an increase in net earned premiums compared to the prior period. Non-GAAP operating income for the quarter ended March 31, 2025 was $1.28 per diluted share, compared to non-GAAP operating loss of $0.93 per diluted share for the comparable 2024 period.
Current wording
Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, was $21,519 for the three months ended June 30, 2025 and $40,515 for the six months ended June 30, 2025. Non-GAAP operating income was $17,272 for the three months ended June 30, 2024 and $31,018 for the six months ended June 30, 2024. The increase in non-GAAP operating income for the three and six months ended June 30, 2025 was primarily the result of an increase in net earned premiums. Non-GAAP operating income was $1.45 per diluted share for the three months ended June 30, 2025, and $2.74 per diluted share, for the six months ended June 30, 2025, compared to non-GAAP operating income of $1.18 per diluted share for the three months ended June 30, 2024, and $2.09 per diluted share, for the six months ended June 30, 2024.
Previous wording
The following rate changes have been filed and approved by the insurance regulators of Massachusetts, New Hampshire and Maine in 2025 and 2024. Our Massachusetts private passenger automobile rates include a 13% commission rate for agents.
Current wording
The following rate changes have been filed and approved by the insurance regulators of Massachusetts, New Hampshire and Maine in 2025 and 2024.
Previous wording
The property and casualty insurance industry uses the combined ratio as a measure of underwriting profitability. The combined ratio is the sum of the loss ratio (losses and loss adjustment expenses incurred as a percent of net earned premiums) plus the expense ratio (underwriting and other expenses as a percent of net earned premiums, calculated on a
Current wording
The property and casualty insurance industry uses the combined ratio as a measure of underwriting profitability. The combined ratio is the sum of the loss ratio (losses and loss adjustment expenses incurred as a percent of net earned premiums) plus the expense ratio (underwriting and other expenses as a percent of net earned premiums, calculated on a Generally Accepted Accounting Principles (“GAAP”) basis). The combined ratio reflects only underwriting results and does not include income from investments or finance and other service income. Underwriting profitability is subject to significant fluctuations due to competition, catastrophic events, weather, economic and social conditions, and other factors.
Previous wording
A summary of share based awards granted under the Incentive Plan during the three months ended March 31, 2025 is as follows:
Current wording
A summary of share based awards granted under the Incentive Plan during the six months ended June 30, 2025 is as follows:
Previous wording
those companies that we consider to be financially stable and adequately capitalized. In an effort to minimize exposure to the insolvency of a reinsurer, we continually evaluate and review the financial condition of our reinsurers. Most of our other reinsurers have an A.M. Best rating of “A+” (Superior) or “A” (Excellent).
Current wording
We reinsure with other insurance companies a portion of our potential liability under the policies we have underwritten, thereby protecting us against an unexpectedly large loss or a catastrophic occurrence that could produce large losses, primarily in our homeowners line of business. We are selective in choosing our reinsurers, seeking only those companies that we consider to be financially stable and adequately capitalized. In an effort to minimize exposure to the insolvency of a reinsurer, we continually evaluate and review the financial condition of our reinsurers. Most of our reinsurers have an A.M. Best rating of “A+” (Superior) or “A” (Excellent).
Previous wording
For 2025, we have purchased three layers of excess catastrophe reinsurance providing $675,000 of coverage for property losses in excess of $75,000 up to a maximum of $750,000. Our reinsurers’ co-participation is 85.0% of $75,000 for the 1st layer, 85.0% of 250,000 for the 2nd layer and 85.0% of $350,000 for the 3rd layer.
Current wording
For 2025, we have purchased three layers of excess catastrophe reinsurance providing $675,000 of coverage for property losses in excess of $75,000 up to a maximum of $750,000. Our reinsurers’ co-participation is 85.0% of $75,000 for the 1st layer, 85.0% of $250,000 for the 2nd layer and 85.0% of $350,000 for the 3rd layer.
Previous wording
At March 31, 2025, we had $167,649 recoverable from CAR comprised of loss adjustment expense reserves, unearned premiums and reinsurance recoverable.
Current wording
At June 30, 2025, we had $171,516 recoverable from CAR, which consisted of loss adjustment expense reserves, unearned premiums and reinsurance recoverable.
Previous wording
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, changes in net unrealized gains on equity securities, credit loss benefit (expense) and taxes related thereto. Net income (loss) and earnings (loss) per diluted share are the GAAP financial measures that are most directly comparable to non-GAAP operating income (loss) and non-GAAP operating income (loss) per diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.
Current wording
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, changes in net unrealized gains on equity securities, credit loss benefit (expense) and taxes related thereto. 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
Previous wording
Three Months Ended March 31, 2025 compared to Three Months Ended March 31, 2024
Current wording
Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024
Previous wording
Net Written Premiums. Net written premiums for the three months ended March 31, 2025 increased by $24,485, or 9.8%, to $274,780 from $250,295 for the comparable 2024 period. The increase was primarily due to the factors that increased direct written premiums.
Current wording
Net Written Premiums. Net written premiums for the three months ended June 30, 2025 increased by $24,540, or 8.3%, to $319,475 from $294,935 for the comparable 2024 period. Net written premiums for the six months ended June 30, 2025 increased by $49,025, or 9.0%, to $594,255 from $545,230 for the comparable 2024 period. The increases were primarily due to the factors that increased direct written premiums.
Previous wording
Net Earned Premiums. Net earned premiums for the three months ended March 31, 2025 increased by $36,637, or 15.5%, to $272,690 from $236,053 for the comparable 2024 period. The increase was primarily due to the factors that increased direct written premiums.
Current wording
Net Earned Premiums. Net earned premiums for the three months ended June 30, 2025 increased by $35,169, or 14.2%, to $282,113 from $246,944 for the comparable 2024 period. Net earned premiums for the six months ended June 30, 2025 increased by $71,806, or 14.9%, to $554,803 from $482,997 for the comparable 2024 period. The increases were primarily due to the factors that increased direct written premiums.
Previous wording
Earnings from Partnership Investments. Earnings from partnership investments was $2,112 for the three months ended March 31, 2025 compared to $1,772 for the comparable 2024 period. The three-month earnings reflect an increase in investment appreciation and distribution of investment returns compared to the prior year. Timing and generation of these returns on capital can vary based on the results and transactions of the underlying partnerships.
Current wording
Earnings from Partnership Investments. Earnings from partnership investments were $346 for the three months ended June 30, 2025 compared to $2,480 for the comparable 2024 period. Earnings from partnership investments were $2,458 for the six months ended June 30, 2025 compared to $4,252 for the comparable 2024 period. Earnings for the three and six months ended June 30, 2025 reflect lower investment appreciation and the impact of timing differences in the receipt of cash proceeds, compared to the same periods in the prior year. Timing and generation of these returns on capital can vary based on the results and transactions of the underlying partnerships.
Previous wording
Net Realized Gains on Investments. Net realized gains on investments was $4,263 for the three months ended March 31, 2025 compared to $492 for the comparable 2024 period. The increase is driven by higher realized gains from the sale of equity securities compared to prior years.
Current wording
Net Realized Gains on Investments. Net realized gains on investments were $2,131 for the three months ended June 30, 2025 compared to $2,715 for the comparable 2024 period. Net realized gains on investments was $6,394 for the six months ended June 30, 2025 compared to $3,207 for the comparable 2024 period. The decrease in net realized gains during the three-month period is driven primarily by the sale of equity securities in a loss position, whereas the increase in net realized gains during the six-month period reflects the sale of equity securities in a gain position during the first quarter.
Previous wording
The gross unrealized gains and losses on investments in fixed maturity securities, including redeemable preferred stocks that have characteristics of fixed maturities, equity securities, including interests in mutual funds, and other invested assets were as follows for the periods indicated:
Current wording
The gross unrealized gains and losses on investments in fixed maturity securities, including redeemable preferred stocks that have characteristics of fixed maturities, short term investments, equity securities, including interests in mutual funds, and other invested assets were as follows for the periods indicated:
Previous wording
(1)Residential mortgage-backed securities consists primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).
Current wording
(1)Residential mortgage-backed securities consist primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).
Previous wording
(2)Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.
Current wording
(2)Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive
Previous wording
(3)Our investment portfolio included 938 securities in an unrealized loss position at March 31, 2025.
Current wording
(3)Our investment portfolio includes 795 securities in an unrealized loss position at June 30, 2025.
Previous wording
As of March 31, 2025 and December 31, 2024, the Company concluded that $1,519 and $1,198, respectively, of unrealized losses were due to credit factors and were recorded as an allowance for expected credit losses expense. The Company concluded that outside of the securities that were recognized as credit impaired, the unrealized losses recorded on the fixed maturity portfolio at March 31, 2025 and December 31, 2024 resulted from fluctuations in market interest rates and other temporary market conditions as opposed to fundamental changes in the credit quality of the issuers of such securities. Based upon the analysis performed, the Company’s decision to hold these securities, the Company’s current level of liquidity and our history of positive operating cash flows, management believes it is more likely than not that it will not be required to sell any of its securities before the anticipated recovery in the fair value to its amortized cost basis.
Current wording
As of June 30, 2025 and December 31, 2024, the Company concluded that $1,453 and $1,198, respectively, of unrealized losses were due to credit factors and were recorded as an allowance for expected credit losses expense. The Company concluded that outside of the securities that were recognized as credit impaired, the unrealized losses recorded on the fixed maturity portfolio at June 30, 2025 and December 31, 2024 resulted from fluctuations in market interest rates and other temporary market conditions as opposed to fundamental changes in the credit quality of the issuers of such securities. Based upon the analysis performed, the Company’s decision to hold these securities, the Company’s current level of liquidity and our history of positive cash flows, management believes it is more likely than not that it will not be required to sell any of its securities before the anticipated recovery in the fair value to its amortized cost basis.
Previous wording
*Commission Income:*Commission income includes revenues from new and renewal commissions paid by insurance carriers, which we recognize when earned. Commission income was $2,095 and $1,808 for the three months ended March 31, 2025 and 2024, respectively.
Current wording
*Commission Income:*Commission income includes revenues from new and renewal commissions paid by insurance carriers, which we recognize when earned. Commission income was $2,285 and $2,027 for the three months ended June 30, 2025 and 2024, respectively. Commission income was $4,380 and $3,835 for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Finance and Other Service Income. Finance and other service income includes revenues from premium installment charges, which we recognize when earned, and other miscellaneous income and fees. Finance and other service income for the three months ended March 31, 2025 increased by $933, or 17.4%, to $6,287 from $5,354 for the comparable 2024 period. The increase is primarily driven by the increase in policy counts and changes to our fee assessment policies.
Current wording
Finance and Other Service Income. Finance and other service income includes revenues from premium installment charges, which we recognize when earned, and other miscellaneous income and fees. Finance and other service income for the three months ended June 30, 2025 increased by $848, or 15.0%, to $6,485 from $5,637 for the comparable 2024 period. Finance and other service income for the six months ended June 30, 2025, increased by $1,781, or 16.2%, to $12,772 from $10,991 for the comparable 2024 period. The increase is primarily driven by the increase in policy counts and changes to our fee assessment policies.
Previous wording
Our GAAP loss ratio for the three months ended March 31, 2025 decreased to 69.8% from 71.3% for the comparable 2024 period. Our GAAP loss ratio excluding loss adjustment expenses for the three months ended March 31, 2025 was 61.4% compared to 62.2% for the comparable 2024 period. Total prior year favorable development included in the pre-tax results for the three months ended March 31, 2025 was $12,238 compared to $10,958 for the comparable 2024 period.
Current wording
Our GAAP loss ratio for the three months ended June 30, 2025 decreased to 68.8% from 70.0% for the comparable 2024 period. Our GAAP loss ratio for the six months ended June 30, 2025 decreased to 69.3% from 70.6% for the comparable 2024 period. Our GAAP loss ratio excluding loss adjustment expenses for the three months ended June 30, 2025 was 60.9% compared to 60.6% for the comparable 2024 period. Our GAAP loss ratio excluding loss adjustment expenses for the six months ended June 30, 2025 was 61.1% compared to 61.4% for the comparable 2024 period. Total prior year favorable development included in the pre-tax results for the three months ended June 30, 2025 was $11,235 compared to $19,417 for the comparable 2024 period. Total prior year favorable development included in the pre-tax results for the six months ended June 30, 2025 was $23,473 compared to $30,375 for the comparable 2024 period. The decrease in favorable prior year development in 2025 is primarily attributable to the inclusion of FAIR Plan development in the prior year.
Previous wording
Underwriting, Operating and Related Expenses. Underwriting, operating and related expenses for the three months ended March 31, 2025 increased by $8,584, or 11.9%, to $80,851 from $72,267 for the comparable 2024 period. The increase is due to an increase in base commissions resulting from the increase in written premiums. Our GAAP expense ratio for the three months ended March 31, 2025 decreased to 29.6% from 30.6% for the comparable 2024 period.
Current wording
Underwriting, Operating and Related Expenses. Underwriting, operating and related expenses for the three months ended June 30, 2025 increased by $8,875, or 12.0%, to $82,796 from $73,921 for the comparable 2024 period. Underwriting, operating and related expenses for the six months ended June 30, 2025 increased by $17,459, or 11.9%, to $163,647 from $146,188 for the comparable 2024 period. The increase in the three and six months ended June 30, 2025 is driven by an increase in base commissions resulting from the increase in written premiums. Our GAAP expense ratio for the three months ended June 30, 2025 decreased to 29.3% from 29.9% for the comparable 2024 period. Our GAAP expense ratio for the six months ended June 30, 2025 decreased to 29.5% from 30.3% for the comparable 2024 period due to higher earned premium.
Previous wording
Interest Expense. Interest expense was $104 and $123 for the three months ended March 31, 2025 and 2024. The credit facility commitment fee included in interest expense was $15 for the three months ended March 31, 2025 and 2024.
Current wording
Interest Expense. Interest expense was $442 and $138 for the three months ended June 30, 2025 and 2024, respectively. Interest expense was $546 for the six months ended June 30, 2025 compared to $261 for the comparable 2024 period. The credit facility commitment fee included in interest expense was $14 and $31 for the six months ended June 30, 2025 and 2024, respectively. The increase in interest expense during the current quarter is primarily due to the new loan agreement entered into with Citizens Bank on March 27, 2025, which carries an interest rate of SOFR rate plus 1.25%, compared to the repaid FHLB loan that had a fixed rate of 1.42%. Additionally, the Company no longer incurs a credit facility commitment fee as of March 27, 2025, since a loan is currently outstanding under the facility.
Previous wording
Income Tax Expense. Our effective tax rate was 22.4% and 21.6% for the quarters ended March 31, 2025 and 2024, respectively. The effective tax rate for the quarter ended March 31, 2025 and 2024 were higher than the statutory rate primarily due to the effects of executive compensation expense.
Current wording
Income Tax Expense. Our effective tax rate was 21.4% and 21.7% for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate was 21.9% and 21.6% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate in 2025 was higher than the statutory rate primarily due to the effects of stock-based compensation and permanent differences regarding executive compensation.
Previous wording
Net Income. Net income for the three months ended March 31, 2025 was $21,896 compared to net income of $20,078 for the comparable 2024 period.
Current wording
*Net Income.*Net income for the three months ended June 30, 2025 was $28,937 compared to net income of $16,636 for the comparable 2024 period. Net income for the six months ended June 30, 2025 was $50,833 compared to $36,714 for the comparable 2024 period.
Previous wording
Non-GAAP Operating Income. Non-GAAP operating income as defined above was $18,996 for the three months ended March 31, 2025 compared to $13,746 for the comparable 2024 period. The increase in Non-GAAP operating income was primarily the result of an increase in net earned premiums compared to the prior year.
Current wording
Non-GAAP Operating Income. Non-GAAP operating income, as defined above, was $21,519 for the three months ended June 30, 2025 compared to $17,272 for the comparable 2024 period. Non-GAAP operating income was $40,515 for the six months ended June 30, 2025 compared to $31,018 for the comparable 2024 period.
Previous wording
Net cash provided by operating activities was $3,173 during the three months ended March 31, 2025 compared to net cash used for operating activities of $21,135 during the three months ended March 31, 2024. Our operations typically generate positive cash flows from operations as most premiums are received in advance of the time when claim and benefit payments are required. Net cash used for operating activities during the three months ended March 31, 2024 was the result of the timing of expense payments and changes in other liabilities which is driven by the reclassification of cash to offset outstanding claims checks. Positive operating cash flows are expected in the future to meet our liquidity requirements.
Current wording
Net cash provided by operating activities was $35,496 and $4,454 during the six months ended 2025 and 2024, respectively. Our operations typically generate positive cash flows from operations as most premiums are received in advance of the time when claim and benefit payments are required. Positive operating cash flows are expected in the future to meet our liquidity requirements.
Previous wording
Net cash provided by investing activities was $16,129 and $27,399 during the three months ended March 31, 2025 and 2024, respectively. Fixed maturities, equity securities, and other invested assets purchased were $59,383 for the three months ended March 31, 2025 compared to $50,199 for the comparable prior year period. Proceeds from maturities, redemptions, calls and sales, of securities were $75,844 during the three months ended March 31, 2025 compared to $81,665 for the comparable prior year period.
Current wording
Net cash used for investing activities was $18,217 and net cash provided by invested activities was $28,821 during the six months ended June 30, 2025 and 2024, respectively. Fixed maturities, equity securities, and other invested assets purchased were $159,014 for the six months ended June 30, 2025 compared to $102,580 for the comparable prior year period. Proceeds from maturities, redemptions, calls and sales, of securities were $141,197 during the six months ended June 30, 2025 compared to $136,009 for the comparable prior year period.
Previous wording
Our Insurance Subsidiaries are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid to their parent without prior approval of the Commissioner of the Division of Insurance of Massachusetts (the “Commissioner”). The Massachusetts statute limits the dividends an insurer may pay in any twelve-month period, without the prior permission of the Commissioner, to the greater of (i) 10% of the insurer’s surplus as of the preceding December 31 or (ii) the insurer’s net income for the twelve-month period ending the preceding December 31, in each case determined in accordance with statutory accounting practices. Our insurance company subsidiaries may not declare an “extraordinary dividend” (defined as any dividend or distribution that, together with other distributions made within the preceding twelve months, exceeds the limits established by Massachusetts statute) until thirty days after the Commissioner has received notice of the intended dividend and has not objected. As historically administered by the Commissioner, this provision requires the Commissioner’s prior approval of an extraordinary dividend. Under Massachusetts law, an insurer may pay cash dividends only from its unassigned funds, also known as earned surplus, and the insurer’s remaining surplus must be both reasonable in relation to its outstanding liabilities and adequate to its financial needs. At December 31, 2024, the statutory surplus of Safety Insurance was $758,789, and its statutory net income for 2024 was $43,387. As a result, a maximum of $75,879 is available in 2025
Current wording
Our Insurance Subsidiaries are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid to their parent without prior approval of the Commissioner of the Division of Insurance of Massachusetts (the “Commissioner”). The Massachusetts statute limits the dividends an insurer may pay in any twelve-month period, without the prior permission of the Commissioner, to the greater of (i) 10% of the insurer’s surplus as of the preceding December 31 or (ii) the insurer’s net income for the twelve-month period ending the preceding December 31, in each case determined in accordance with statutory accounting practices. Our insurance company subsidiaries may not declare an “extraordinary dividend” (defined as any dividend or distribution that, together with other distributions made within the preceding twelve months, exceeds the limits established by Massachusetts statute) until thirty days after the Commissioner has received notice of the intended dividend and has not objected. As historically administered by the Commissioner, this provision requires the Commissioner’s prior approval of an extraordinary dividend. Under Massachusetts law, an insurer may pay cash dividends only from its unassigned funds, also known as earned surplus, and the insurer’s remaining surplus must be both reasonable in relation to its outstanding liabilities and adequate to its financial needs. At December 31, 2024, the statutory surplus of Safety Insurance was $758,789, and its statutory net income for 2024 was $43,387. As a result, a maximum of $75,879 is available in 2025 for such dividends without prior approval of the Commissioner. As a result of this Massachusetts statute, the Insurance Subsidiaries had restricted net assets in the amount of $682,910 at December 31, 2024. During the six months ended June 30, 2025, Safety Insurance paid dividends to Safety of $25,750.
Previous wording
The maximum dividend permitted by law is not indicative of an insurer’s actual ability to pay dividends, which may be constrained by business and regulatory considerations, such as the impact of dividends on surplus, which could affect an insurer’s ratings or competitive position, the amount of premiums that can be written and the ability to pay future dividends.
Current wording
The maximum dividend permitted by law is not indicative of an insurer’s actual ability to pay dividends, which may be constrained by business and regulatory considerations, such as the impact of dividends on surplus, which could
Previous wording
On May 7, 2025, our Board of Directors approved and declared a quarterly cash dividend of $0.90 per share which will be paid on June 13, 2025 to shareholders of record on June 2, 2025. We plan to continue to declare and pay quarterly cash dividends in 2025, depending on our financial position and the regularity of our cash flows.
Current wording
On August 6, 2025, our Board approved and declared an increase in the quarterly cash dividend from $0.90 to $0.92 per share which will be paid on September 15, 2025 to shareholders of record on September 2, 2025. We plan to continue to declare and pay quarterly cash dividends, depending on our financial position and the regularity of our cash flows.
Previous wording
On February 23, 2022, the Board of Directors approved a share repurchase program of up to $50,000 of the Company’s outstanding common shares. As of March 31, 2025, the Board of Directors has cumulatively authorized increases to the existing share repurchase program of up to $200,000 of its outstanding common shares. Under the program, the Company may repurchase shares of its common stock for cash in public or private transactions, in the open market or otherwise. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The program does not require us to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notice. No share repurchases were made by the Company under the program during the three months ended March 31, 2025. As of March 31, 2025 and December 31, 2024, the Company had purchased 3,215,690 shares of common stock at a cost of $155,240.
Current wording
On February 23, 2022, the Board of Directors approved a share repurchase program of up to$50,000 of the Company’s outstanding common shares. As of June 30, 2025, the Board of Directors has cumulatively authorized increases to the existing share repurchase program of up to $200,000 of its outstanding common shares. Under the program, the Company may repurchase shares of its common stock for cash in public or private transactions, in the open market or otherwise. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The program does not require us to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notice. No share repurchases were made by the Company under the program during the three and six months ended June 30, 2025. As of June 30, 2025 and December 31, 2024, the Company had purchased 3,215,690 shares of common stock at a cost of $155,240.
Previous wording
The NAIC has adopted a formula and model law to implement risk-based capital requirements for most property and casualty insurance companies, which are designed to determine minimum capital requirements and to raise the level of protection that statutory surplus provides for policyholder obligations. Under Massachusetts law, insurers having less total adjusted capital than that required by the risk-based capital calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. The risk-based capital law provides for four levels of regulatory action. The extent of regulatory intervention and action increases as the level of total adjusted
Current wording
The NAIC has adopted a formula and model law to implement risk-based capital requirements for most property and casualty insurance companies, which are designed to determine minimum capital requirements and to raise the level of protection that statutory surplus provides for policyholder obligations. Under Massachusetts law, insurers having less total adjusted capital than that required by the risk-based capital calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. The risk-based capital law provides for four levels of regulatory action. The extent of regulatory intervention and action increases as the level of total adjusted capital to risk-based capital falls. As of December 31, 2024, the Insurance Subsidiaries had total capital of $758,789, which is in excess of amounts requiring company or regulatory action at any prescribed risk-based capital action level. Minimum statutory capital and surplus, or company action level risk-based capital, was $236,219 at December 31, 2024.
Previous wording
using generally accepted actuarial techniques. The key assumption in most actuarial analysis is that past patterns of frequency and severity will repeat in the future unless a significant change in the factors described above takes place.
Current wording
Management determines our loss and LAE reserves estimate based upon the analysis of our actuaries. A reasonable estimate is derived by selecting a point estimate within a range of indications as calculated by our actuaries using generally accepted actuarial techniques. The key assumption in most actuarial analysis is that past patterns of frequency and severity will repeat in the future, unless a significant change in the factors described above takes place.
Previous wording
Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting our ultimate losses, total reserves, and resulting IBNR reserves. It is possible that the final outcome may fall above or below these amounts as a result of a number of factors, including immature data, sparse data, or significant growth in a line of business. Using these methodologies our actuaries established a range of reasonably possible estimations for net reserves of approximately $500,469 to $572,420 as of March 31, 2025. In general, the low and high values of the ranges represent reasonable minimum and maximum values of the indications based on the techniques described above. Our selected point estimate of net loss and LAE reserves based upon the analysis of our actuaries was $546,207 as of March 31, 2025.
Current wording
Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, is an appropriate basis for predicting our ultimate losses, total reserves, and resulting IBNR reserves. It is possible that the final outcome may fall above or below these amounts as a result of a number of factors, including immature data, sparse data, or significant growth in a line of business. Using these methodologies our actuaries established a range of reasonably possible estimations for net reserves of approximately $510,482 to $579,378 as of June 30, 2025. In general, the low and high values of the ranges represent reasonable minimum and maximum values of the indications based on the techniques described above. Our selected point estimate of net loss and LAE reserves based upon the analysis of our actuaries was $550,315 as of June 30, 2025.
Previous wording
At March 31, 2025, our total IBNR reserves for our private passenger automobile line of business was comprised of ($105,151) related to estimated ultimate decreases in the case reserves, including anticipated recoveries (i.e. salvage and subrogation), and $42,363 related to our estimation for not yet reported losses.
Current wording
At June 30, 2025, our total IBNR reserves for our private passenger automobile line of business was comprised of ($107,338) related to estimated ultimate decreases in the case reserves, including anticipated recoveries (i.e. salvage and subrogation), and $44,750 related to our estimation for not yet reported losses.
Previous wording
Our IBNR reserves consist of our estimate of the total loss reserves required less our case reserves. The IBNR reserves for CAR assumed commercial automobile business are 39.4% of our total reserves for CAR assumed commercial automobile business as of March 31, 2025, due to the reporting delays in the information we receive from CAR, as described further in the section onResidual Market Loss and Loss Adjustment Expense Reserves.
Current wording
Our IBNR reserves consist of our estimate of the total loss reserves required less our case reserves. The IBNR reserves for CAR assumed commercial automobile business are 40.2% of our total reserves for CAR assumed commercial automobile business as of June 30, 2025, due to the reporting delays in the information we receive from CAR, as described further in the section onResidual Market Loss and Loss Adjustment Expense Reserves.
Previous wording
We are a participant in CAR and other various residual markets and assume a portion of losses and LAE on business ceded by the industry participants to the residual markets. We were a participant in the FAIR Plan until the recent FAIR Plan Restructuring in 2024. We estimate reserves for assumed losses and LAE that have not yet been reported to us by the residual markets. Our estimations are based upon the same factors we use for our own reserves, plus additional factors due to the nature of and the information we receive.
Current wording
We are a participant in CAR and other various residual markets and assume a portion of losses and LAE on business ceded by the industry participants to the residual markets. We were a participant in FAIR Plan until the recent FAIR Plan Restructuring in 2024. We estimate reserves for assumed losses and LAE that have not yet been reported to us by the residual markets. Our estimations are based upon the same factors we use for our own reserves, plus additional factors due to the nature of and the information we receive.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The table below shows the amount of direct written premiums written in each state during the three and six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.
Current report — wording carried from elsewhere
Automobile and Homeowners lines, respectively, compared to the same period in 2024. Additionally, for the six months ended June 30, 2025, average written premium per policy increased 9.0%, 7.2% and 10.6% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.
Current report — wording carried from elsewhere
affect an insurer’s ratings or competitive position, the amount of premiums that can be written and the ability to pay future dividends.
Current report — wording carried from elsewhere
For further information, see “Results of Operations*.”*
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Generally Accepted Accounting Principles (“GAAP”) basis). The combined ratio reflects only underwriting results and does not include income from investments or finance and other service income. Underwriting profitability is subject to significant fluctuations due to competition, catastrophic events, weather, economic and social conditions, and other factors.
Previous report — wording carried elsewhere
We reinsure with other insurance companies a portion of our potential liability under the policies we have underwritten, thereby protecting us against an unexpectedly large loss or a catastrophic occurrence that could produce large losses, primarily in our homeowners line of business. We are selective in choosing our reinsurers, seeking only
Previous report — wording carried elsewhere
for such dividends without prior approval of the Commissioner. As a result of this Massachusetts statute, the Insurance Subsidiaries had restricted net assets in the amount of $682,910 at December 31, 2024. During the three months ended March 31, 2025, Safety Insurance paid dividends to Safety of $12,875.
Previous report — wording carried elsewhere
Under the program, Safety may repurchase shares of its common stock for cash in public or private transactions, in the open market or otherwise, at management’s discretion. The timing of such repurchases and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable regulatory and corporate requirements. The program does not require Safety to repurchase any specific number of shares and may be modified, suspended or terminated at any time without prior notices.
Previous report — wording carried elsewhere
capital to risk-based capital falls. As of December 31, 2024, the Insurance Subsidiaries had total capital of $758,789, which is in excess of amounts requiring company or regulatory action at any prescribed risk-based capital action level. Minimum statutory capital and surplus, or company action level risk-based capital, was $236,219 at December 31, 2024.
Previous report — wording carried elsewhere
Management determines our loss and LAE reserves estimate based upon the analysis of our actuaries. A reasonable estimate is derived by selecting a point estimate within a range of indications as calculated by our actuaries
Previous report — wording carried elsewhere
A 1 percentage-point change in both our key assumptions would change estimated reserves within a range of plus or minus 2 percentage points.