Safety Insurance Group Inc. has a market cap of $714.5 million; its shares were traded at around $47.97 with a P/E ratio of 13.1 and P/S ratio of 0.9. The dividend yield of Safety Insurance Group Inc. stocks is 4.2%. Safety Insurance Group Inc. had an annual average earning growth of 17.7% over the past 10 years.SAFT is in the portfolios of Whitney Tilson of T2 Partners Management, LP, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of SAFT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SAFT.
Highlight of Business Operations:We are a leading provider of private passenger automobile insurance in Massachusetts. In addition to private passenger automobile insurance (which represented 69.2% of our direct written premiums in 2009), we offer a portfolio of other insurance products, including commercial automobile (12.0% of 2009 direct written premiums), homeowners (14.7% of 2009 direct written premiums), dwelling fire, umbrella and business owner policies (totaling 4.1% of 2009 direct written premiums). Operating exclusively in Massachusetts and New Hampshire through our insurance company subsidiaries, Safety Insurance, Safety Indemnity, and Safety P&C, (together referred to as the Insurance Subsidiaries), we have established strong relationships with independent insurance agents, who numbered 861 in 999 locations throughout Massachusetts during 2009. We have used these relationships and our extensive knowledge of the Massachusetts market to become the second largest private passenger automobile and the third largest commercial automobile insurance carrier in Massachusetts, capturing an approximate 11.7% and 11.0% share, respectively, of the Massachusetts private passenger and commercial automobile markets in 2010, according to the Commonwealth Automobile Reinsurers (CAR) Cession Volume Analysis Report of October 22, 2010, based on automobile exposures. These statistics total, for each vehicle insured, the number of months during the year insurance for that vehicle is in effect, to arrive at an aggregate number of car-months for each insurer; this aggregate number, divided by 12, equals the insurers number of car-years, a measure we refer to in this discussion as automobile exposures.
Under Managed Competition, we decreased our rates an average 6.7% in 2008. During 2009, we increased our rates an average of 2.6% in a series of rate filings during the year. We began using three rating tiers effective April 1, 2009. We filed and were approved for a 0.3% rate decrease effective June 1, 2009 and a 2.9% rate increase effective October 1, 2009. We also filed and have been approved for a rate increase of 0.4% and began using four rating tiers effective January 1, 2010. A Companion Policy
Client Tier, which is policyholders that have a non-private passenger automobile policy with us, receives a rate decrease of 2.5% from our filed base rates. A Loyal Automobile Client Tier, which is policyholders who have been insured with Safety two or more years, receives our filed base rates. A New Insurance Client Tier, which is policyholders with 12 or more months of continuous coverage or who qualify for a multi-car discount, receives a rate increase of 2.5% from our filed base rates. A New Policyholder Tier, which is policyholders that dont qualify for the other three tiers, receives MAIP rates. We filed and were approved for a 1.9% increase in our rates effective April 19, 2010 and we also filed and were approved for a 0.5% decrease in our rates effective June 15, 2010. Our rates include a 13.0% commission rate for agents. Our direct written premiums decreased by 2.4% in 2009 primarily as a result of Managed Competition rate decreases effective on and after April 1, 2008.
Our IBNR reserves for CAR assumed commercial automobile business are 40.0% of our total reserves for CAR assumed commercial automobile business as of September 30, 2010 due to the reporting delays in the information we receive from CAR, as described further in the section CAR Loss and Loss Adjustment Expense Reserves. Our IBNR reserves for FAIR Plan assumed homeowners are 51.3% of our total reserves for FAIR Plan assumed homeowners at September 30, 2010 due to similar reporting delays in the information we receive from FAIR Plan.
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