Safety Insurance Group Inc (SAFT) Reports Q3 2023 Earnings, Net Income Drops to $1.9 Million

Net Written Premiums Increase by 22.2% Despite Inflationary Pressures and Weather-Related Losses

  • Safety Insurance Group Inc (SAFT) reports Q3 2023 net income of $1.9 million, down from $6.2 million in the same period in 2022.
  • Net written premiums increased by 22.2% for Q3 2023, driven by an increase in policy counts and average written premium per policy.
  • Losses and loss adjustment expenses increased by 28.6% due to inflation and weather events.
  • The company's book value per share decreased to $52.04 at the end of Q3 2023 from $54.88 at the end of 2022.
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On November 1, 2023, Safety Insurance Group Inc (SAFT, Financial) released its third quarter 2023 earnings report. The company reported a net income of $1.9 million for the quarter, a significant decrease from the $6.2 million net income reported for the same period in 2022. Despite the drop in net income, the company saw strong growth in its net written premiums, which increased by 22.2% for the three months ended September 30, 2023.

Financial Performance and Challenges

According to the company's President and Chief Executive Officer, George M. Murphy, the financial results for the third quarter continue to be impacted by inflationary pressures on the company's Private Passenger Automobile book of business. The company's third quarter combined ratio of 104.8% also includes an increased amount of Private Passenger Automobile losses resulting from multiple flooding events and a wind event that impacted the Homeowners book of business.

We continue to see strong growth in our Net Written Premiums which increased by 22.2% and 19.2% for the three and nine months ended September 30, 2023, respectively. This is driven by an increase in policy counts of 11.5% and an increase in average written premium per policy of 7.6%."

Financial Achievements and Dividends

Despite the challenges, Safety Insurance Group Inc (SAFT, Financial) reported several financial achievements. The company's net written premiums for the quarter ended September 30, 2023 increased by $45.6 million, or 22.2%, to $251.1 million from $205.5 million for the comparable 2022 period. The company also declared a $0.90 per share quarterly cash dividend payable on December 15, 2023 to shareholders of record at the close of business on December 1, 2023.

Balance Sheet Summary

As of September 30, 2023, the company's total assets stood at $2,052,105,000, up from $1,972,569,000 at the end of 2022. However, the company's book value per share decreased to $52.04 at September 30, 2023 from $54.88 at December 31, 2022 due to net income offset by capital stock activities, specifically share repurchases and dividends paid.


Despite the challenges faced in the third quarter, Safety Insurance Group Inc (SAFT, Financial) remains committed to maintaining underwriting discipline and ensuring rate adequacy. The company continues to file rate increases to combat the ongoing industry-wide loss and severity trends in the private passenger automobile business.

Explore the complete 8-K earnings release (here) from Safety Insurance Group Inc for further details.