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Safety Insurance Group (NAS:SAFT) ROE %

: 1.00% (As of Sep. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Safety Insurance Group's annualized net income for the quarter that ended in Sep. 2023 was $7.8 Mil. Safety Insurance Group's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $781.7 Mil. Therefore, Safety Insurance Group's annualized ROE % for the quarter that ended in Sep. 2023 was 1.00%.

The historical rank and industry rank for Safety Insurance Group's ROE % or its related term are showing as below:

SAFT' s ROE % Range Over the Past 10 Years
Min: -2.05   Med: 9.46   Max: 16.33
Current: 3.94

During the past 13 years, Safety Insurance Group's highest ROE % was 16.33%. The lowest was -2.05%. And the median was 9.46%.

SAFT's ROE % is ranked worse than
70.81% of 483 companies
in the Insurance industry
Industry Median: 9.13 vs SAFT: 3.94

Safety Insurance Group ROE % Historical Data

The historical data trend for Safety Insurance Group's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Safety Insurance Group Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.72 13.04 16.33 14.43 5.35

Safety Insurance Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.09 12.34 -6.11 8.52 1.00

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Safety Insurance Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Safety Insurance Group ROE % Distribution

For the Insurance industry and Financial Services sector, Safety Insurance Group's ROE % distribution charts can be found below:

* The bar in red indicates where Safety Insurance Group's ROE % falls into.



Safety Insurance Group ROE % Calculation

Safety Insurance Group's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=46.561/( (927.173+811.999)/ 2 )
=46.561/869.586
=5.35 %

Safety Insurance Group's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=7.796/( (793.75+769.749)/ 2 )
=7.796/781.7495
=1.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Safety Insurance Group  (NAS:SAFT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=7.796/781.7495
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.796 / 906.112)*(906.112 / 2034.105)*(2034.105 / 781.7495)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.86 %*0.4455*2.602
=ROA %*Equity Multiplier
=0.38 %*2.602
=1.00 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=7.796/781.7495
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.796 / 9.904) * (9.904 / 10.46) * (10.46 / 906.112) * (906.112 / 2034.105) * (2034.105 / 781.7495)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.7872 * 0.9468 * 1.15 % * 0.4455 * 2.602
=1.00 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Safety Insurance Group ROE % Related Terms

Thank you for viewing the detailed overview of Safety Insurance Group's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Safety Insurance Group (NAS:SAFT) Business Description

Traded in Other Exchanges
N/A
Address
20 Custom House Street, Boston, MA, USA, 02110
Safety Insurance Group Inc is a provider of private passenger automobile insurance in Massachusetts. The company also offers property and casualty insurance products, including commercial automobiles, homeowners, dwelling fire, umbrella, and business owner policies. It operates in the business segment of Property and casualty insurance operations.
Executives
Glenn Hiltpold officer: VP of Actuarial Services 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Brophy Charles Joseph Iii director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Dennis J. Langwell director C/O LIBERTY MUTUAL GROUP, 175 BERKELEY STREET, BOSTON MA 02116
Srb Corp 10 percent owner 695 ATLANTIC AVENUE, BOSTON MA 02111
Peter J Manning director FLEETBOSTON FINANCIAL CORP, 100 FEDERAL STREET, BOSTON MA 02110
Christopher Thomas Whitford officer: VP, CFO and Secretary 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Stephen Albert Varga officer: VP - MIS 20 CUSTOM HOUSE STREET, BOSTON MA 02110
James Berry officer: VP - Insurance Operations C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Farina John Daniel Jr. director 20 CUSTOM HOUSE ST, BOSTON MA 02110
Deborah E Gray director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Frederic H Lindeberg director C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Ann Marie Mckeown officer: V.P Insurance Operations 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Moran Mary Coffey director DANVERS BANCORP, INC., ONE CONANT STREET, DANVERS MA 01923
David E Krupa officer: VP - Property Claims
David D Mckown director