SAFETY INSURANCE GROUP INC

Previous wording

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 wording

The table below shows the amount of direct written premiums written in each state during the three and nine months ended September 30, 2025 and 2024.

Previous 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.

Current wording

*Direct and Net Written Premiums.*For the three months ended September 30, 2025 direct written premium growth and net written premium growth were 5.0% and 5.7%, respectively, compared to the prior period. The increase in premium is driven by rate increases. For the nine months ended September 30, 2025, average written premium per policy increased 8.7%, 6.2% and 9.8% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.

Previous wording

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 wording

Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the three months ended September 30, 2025 increased by $22,493, or 12.3%, to $204,982 from $182,489 for the comparable 2024 period. Losses and loss adjustment expenses incurred for the nine months ended September 30, 2025 increased by $65,874, or 12.6%, to $589,504 from $523,630 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 September 30, 2025 decreased to 70.4% from 70.6% for the comparable 2024 period. Our losses and loss adjustment expense ratio for the nine months ended September 30, 2025 decreased to 69.7% 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.

Previous 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.

Current wording

Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, was $21,883 for the three months ended September 30, 2025 and $62,397 for the nine months ended September 30, 2025. Non-GAAP operating income was $16,524 for the three months ended September 30, 2024 and $47,542 for the nine months ended September 30, 2024. The increase in non-GAAP operating income for the three and nine months ended September 30, 2025 was primarily the result of an increase in net earned premiums. Non-GAAP operating income was $1.48 per diluted share for the three months ended September 30, 2025, and $4.19 per diluted share, for the nine months ended September 30, 2025, compared to non-GAAP operating income of $1.10 per diluted share for the three months ended September 30, 2024, and $3.21 per diluted share, for the nine months ended September 30, 2024.

Previous wording

The maximum number of shares of common stock between both the Amended 2018 Plan and 2002 Incentive Plan with respect to which awards may be granted is 3,200,000. No further grants will be allowed under the 2002 Incentive Plan. At June 30, 2025, there were 236,326 shares available for future grant.

Current wording

The maximum number of shares of common stock between both the Amended 2018 Plan and 2002 Incentive Plan with respect to which awards may be granted is 3,200,000. No further grants will be allowed under the 2002 Incentive Plan. At September 30, 2025, there were 235,663 shares available for future grant.

Previous wording

A summary of share based awards granted under the Incentive Plan during the six months ended June 30, 2025 is as follows:

Current wording

A summary of share based awards granted under the Incentive Plan during the nine months ended September 30, 2025 is as follows:

Previous wording

At June 30, 2025, we had $171,516 recoverable from CAR, which consisted of loss adjustment expense reserves, unearned premiums and reinsurance recoverable.

Current wording

At September 30, 2025, we had $160,638 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 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

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 diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.

Previous wording

Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Current wording

Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024

Previous wording

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 wording

Direct Written Premiums. Direct written premiums for the three months ended September 30, 2025 increased by $15,999, or 5.0%, to $334,181 from $318,182 for the comparable 2024 period. Direct written premiums for the nine months ended September 30, 2025 increased by $77,948, or 8.7%, to $978,980 from $901,032 for the comparable 2024 period. The increases in direct written premiums and net written premiums are a result of rate increases. For the nine months ended September 30, 2025, average written premium per policy increased 8.7%, 6.2% and 9.8% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.

Previous 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.

Current wording

Net Written Premiums. Net written premiums for the three months ended September 30, 2025 increased by $16,603, or 5.7%, to $309,215 from $292,612 for the comparable 2024 period. Net written premiums for the nine months ended September 30, 2025 increased by $65,628, or 7.8%, to $903,470 from $837,842 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 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.

Current wording

Net Earned Premiums. Net earned premiums for the three months ended September 30, 2025 increased by $32,364, or 12.5%, to $291,021 from $258,657 for the comparable 2024 period. Net earned premiums for the nine months ended September 30, 2025 increased by $104,170, or 14.0%, to $845,824 from $741,654 for the comparable 2024 period. The increases were primarily due to prior year growth in policy counts and rate increases earning into top-line results.

Previous wording

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 wording

Net Investment Income. Net investment income for the three months ended September 30, 2025 increased $3,325, or 27.2%, to $15,535 from $12,210 for the comparable 2024 period. Net investment income for the nine months ended September 30, 2025 increased by $4,892, or 11.9%, to $45,833 from $40,941 for the comparable 2024 period. The increase for the three and nine months ended September 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 4.0% for the three months September 30, 2025 compared to 3.4% for the comparable 2024 period. Net effective annualized yield on the investment portfolio was 4.0% for the nine months ended September 30, 2025 compared to 3.9% for the comparable 2024 period. The investment portfolio’s duration on fixed maturities was 3.8 years at September 30, 2025 compared to 3.5 years at December 31, 2024.

Previous 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.

Current wording

Earnings from Partnership Investments. Earnings from partnership investments were $2,929 for the three months ended September 30, 2025 compared to $4,345 for the comparable 2024 period. Earnings from partnership investments were $5,387 for the nine months ended September 30, 2025 compared to $8,597 for the comparable 2024 period. The year-over-year decline reflects lower investment appreciation and the impact of timing differences between valuation changes and the recognition of realized gains. Cash distributions received from partnerships may not correspond to earnings recognized in the same period, as gains are typically recognized over time based on changes in fair value. The timing and magnitude of these returns can vary depending on the performance and transactional activity of the underlying partnerships.

Previous 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.

Current wording

Net Realized Gains on Investments. Net realized gains on investments were $1,338 for the three months ended September 30, 2025 compared to $1,314 for the comparable 2024 period. Net realized gains on investments was $7,732 for the nine months ended September 30, 2025 compared to $4,521 for the comparable 2024 period. The increase in net realized gains during the nine-month period reflects the sale of equity securities in a gain position during the first quarter of 2025.

Previous wording

(3)Our investment portfolio includes 795 securities in an unrealized loss position at June 30, 2025.

Current wording

(3)Our investment portfolio includes 706 securities in an unrealized loss position at September 30, 2025.

Previous wording

The composition of our fixed income security portfolio by Moody’s rating was as follows:

Current wording

The composition of our fixed income security portfolio as defined by Nationally Recognized Statistical Rating Organizations was as follows:

Previous 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.

Current wording

As of September 30, 2025 and December 31, 2024, the Company concluded that $966 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 September 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 $2,285 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.

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 $2,415 and $1,963 for the three months ended September 30, 2025 and 2024, respectively. Commission income was $6,795 and $5,798 for the nine months ended September 30, 2025 and 2024, respectively. The year-over-year change is driven by policy count growth and increased premium rates across the property and casualty insurance market.

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 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.

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 September 30, 2025 increased by $336, or 5.4%, to $6,589 from $6,253 for the comparable 2024 period. Finance and other service income for the nine months ended September 30, 2025, increased by $2,117, or 12.3%, to $19,361 from $17,244 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

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 wording

Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the three months ended September 30, 2025 increased by $22,493, or 12.3%, to $204,982 from $182,489 for the comparable 2024 period. Losses and loss adjustment expenses incurred for the nine months ended September 30, 2025 increased by $65,874, or 12.6%, to $589,504 from $523,630 for the comparable 2024 period.

Previous 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.

Current wording

Our GAAP loss ratio for the three months ended September 30, 2025 decreased to 70.4% from 70.6% for the comparable 2024 period. Our GAAP loss ratio for the nine months ended September 30, 2025 decreased to 69.7% from 70.6% for the comparable 2024 period. Our GAAP loss ratio excluding loss adjustment expenses for the three months ended September 30, 2025 was 63.1% compared to 62.7% for the comparable 2024 period. Our GAAP loss ratio excluding loss adjustment expenses for the nine months ended September 30, 2025 was 61.8% compared to 61.8% for the comparable 2024 period. Total prior year favorable development included in the pre-tax results for the three months ended September 30, 2025 was $9,707 compared to $8,563 for the comparable 2024 period. Total prior year favorable development included in the pre-tax results for the nine months ended September 30, 2025 was $33,180 compared to $38,938 for the comparable 2024 period. The decrease in favorable prior year development in 2025 is primarily attributable to the inclusion of $8,644 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 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.

Current wording

Underwriting, Operating and Related Expenses. Underwriting, operating and related expenses for the three months ended September 30, 2025 increased by $5,159, or 6.6%, to $83,027 from $77,868 for the comparable 2024 period. Underwriting, operating and related expenses for the nine months ended September 30, 2025 increased by $22,618, or 10.1%, to $246,674 from $224,056 for the comparable 2024 period. The increase in the three and nine months ended September 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 September 30, 2025 decreased to 28.5% from 30.1% for the comparable 2024 period. Our GAAP expense ratio for the nine months ended September 30, 2025 decreased to 29.2% from 30.2% for the comparable 2024 period due to higher earned premium.

Previous 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.

Current wording

Interest Expense. Interest expense was $426 and $124 for the three months ended September 30, 2025 and 2024, respectively. Interest expense was $972 for the nine months ended September 30, 2025 compared to $385 for the comparable 2024 period. The credit facility commitment fee included in interest expense was $14 and $45 for the nine months ended September 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 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.

Current wording

Income Tax Expense. Our effective tax rate was 21.8% and 21.3% for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate was 21.8% and 21.5% for the nine months ended September 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 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.

Current wording

*Net Income.*Net income for the three months ended September 30, 2025 was $28,310 compared to net income of $25,889 for the comparable 2024 period. Net income for the nine months ended September 30, 2025 was $79,143 compared to $62,603 for the comparable 2024 period.

Previous 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.

Current wording

Non-GAAP Operating Income. Non-GAAP operating income, as defined above, was $21,883 for the three months ended September 30, 2025 compared to $16,524 for the comparable 2024 period. Non-GAAP operating income was $62,397 for the nine months ended September 30, 2025 compared to $47,542 for the comparable 2024 period.

Previous 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.

Current wording

Net cash provided by operating activities was $120,948 and $78,269 during the nine 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 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.

Current wording

Net cash used for investing activities was $83,276 and $13,730 during the nine months ended September 30, 2025 and 2024, respectively. Fixed maturities, equity securities, and other invested assets purchased were $349,275 for the nine months ended September 30, 2025 compared to $237,338 for the comparable prior year period. Proceeds from maturities, redemptions, calls and sales, of securities were $266,399 during the nine months ended September 30, 2025 compared to $229,884 for the comparable prior year period.

Previous wording

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 wording

Net cash used for financing activities was $40,413 and $40,093 during the nine months ended September 30, 2025 and 2024, respectively. Net cash used for financing activities during the nine months ended September 30, 2025 consisted of dividend payments to shareholders and debt activity.

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 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.

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 nine months ended September 30, 2025, Safety Insurance paid dividends to Safety of $38,859.

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

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 affect an insurer’s ratings or competitive position, the amount of premiums that can be written and the ability to pay future dividends.

Previous 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.

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. 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 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.

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 September 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 nine months ended September 30, 2025. As of September 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

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.

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 $537,736 to $603,892 as of September 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 $577,917 as of September 30, 2025.

Previous 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.

Current wording

At September 30, 2025, our total IBNR reserves for our private passenger automobile line of business was comprised of ($102,934) related to estimated ultimate decreases in the case reserves, including anticipated recoveries (i.e. salvage and subrogation), and $43,585 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 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.

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 42.4% of our total reserves for CAR assumed commercial automobile business as of September 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

Establishment of appropriate reserves is an inherently uncertain process. There can be no certainty that currently established reserves based on our key assumptions regarding frequency and severity in our lines of business, or our assumptions regarding our share of the CAR loss will prove adequate in light of subsequent actual experience. To the extent that reserves are inadequate and are strengthened, the amount of such increase is treated as a charge to earnings in the period that the deficiency is recognized. To the extent that reserves are redundant and are released, the amount of the release is a credit to earnings in the period the redundancy is recognized. For the six months ended June 30, 2025, a 1 percentage-point change in the loss and LAE ratio would result in a change in reserves of $5,549. Each 1 percentage-point change in the loss and LAE ratio would have had a $4,384 effect on net income, or $0.30 per diluted share.

Current wording

Establishment of appropriate reserves is an inherently uncertain process. There can be no certainty that currently established reserves based on our key assumptions regarding frequency and severity in our lines of business, or our assumptions regarding our share of the CAR loss will prove adequate in light of subsequent actual experience. To the extent that reserves are inadequate and are strengthened, the amount of such increase is treated as a charge to earnings in the period that the deficiency is recognized. To the extent that reserves are redundant and are released, the amount of the release is a credit to earnings in the period the redundancy is recognized. For the nine months ended September 30, 2025, a 1 percentage-point change in the loss and LAE ratio would result in a change in reserves of $8,459. Each 1 percentage-point change in the loss and LAE ratio would have had a $6,683 effect on net income, or $0.45 per diluted share.

Previous wording

Our assumptions consider that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for establishing our reserves. Our individual key assumptions could each have a reasonable possible range of plus or minus 5 percentage-points for each estimation, although there is no guarantee that our assumptions will not have more than a 5 percentage point variation. The following sensitivity tables present information for each of our primary lines of business on the effect each 1 percentage-point change in each of our key assumptions on unpaid frequency and severity could have on our retained (i.e., direct minus ceded) loss and LAE reserves and net income for the six months ended June 30, 2025. In evaluating the information in the table, it should be noted that a 1 percentage-point change in a single assumption would change estimated reserves by 1 percentage-point. A 1 percentage-point change in both our key assumptions would change estimated reserves within a range of plus or minus 2 percentage-points.

Current wording

Our assumptions consider that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for establishing our reserves. Our individual key assumptions could each have a reasonable possible range of plus or minus 5 percentage-points for each estimation, although there is no guarantee that our assumptions will not have more than a 5 percentage point variation. The following sensitivity tables present information for each of our primary lines of business on the effect each 1 percentage-point change in each of our key assumptions on unpaid frequency and severity could have on our retained (i.e., direct minus ceded) loss and LAE reserves and net income for the nine months ended September 30, 2025. In evaluating the information in the table, it should be noted that a 1 percentage-point change in a single assumption would change estimated reserves by 1 percentage-point. A 1 percentage-point change in both our key assumptions would change estimated reserves within a range of plus or minus 2 percentage-points.

Previous wording

reserves and net income for the six months ended June 30, 2025. In evaluating the information in the table, it should be noted that a 1 percentage-point change in our assumptions would change estimated reserves by 1 percentage-point.

Current wording

The following sensitivity table presents information of the effect each 1 percentage-point change in our assumptions on our share of reserves for CAR and other residual markets could have on our assumed loss and LAE reserves and net income for the nine months ended September 30, 2025. In evaluating the information in the table, it should be noted that a 1 percentage-point change in our assumptions would change estimated reserves by 1 percentage-point.