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Mar 31, 2022

Safety Insurance Q1 2022 Earnings Report

Safety Insurance Group reported a decrease in net income due to a return to pre-pandemic level frequency in the private passenger line of business and an increase in physical damage inflation costs.

Key Takeaways

Safety Insurance Group, Inc. reported first quarter 2022 results with a net income of $7.8 million, or $0.53 per diluted share, compared to $36.2 million, or $2.42 per diluted share, for the comparable 2021 period. The combined ratio was 98.7%, impacted by pre-pandemic frequency in the private passenger line and increased physical damage inflation costs. Direct written premiums decreased by 1.4% to $189.5 million.

Net income for the quarter was $7.8 million, or $0.53 per diluted share.

Non-GAAP operating income was $0.99 per diluted share.

Direct written premiums decreased by 1.4% to $189.5 million.

The combined ratio for the quarter was 98.7%.

Total Revenue
$195M
Previous year: $193M
+1.1%
EPS
$0.99
Previous year: $1.93
-48.7%
Loss Ratio
65.8%
Previous year: 57.8%
+13.8%
Expense Ratio
32.9%
Previous year: 33.7%
-2.4%
Combined Ratio
98.7%
Previous year: 91.5%
+7.9%
Gross Profit
$192M
Previous year: $217M
-11.6%
Cash and Equivalents
$35.2M
Previous year: $51.6M
-31.7%
Free Cash Flow
-$16M
Previous year: $9.65M
-265.5%
Total Assets
$1.99B
Previous year: $2.05B
-2.7%

Safety Insurance

Safety Insurance

Forward Guidance

This press release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those projected.

Challenges Ahead

  • The competitive nature of our industry and the possible adverse effects of such competition.
  • Conditions for business operations and restrictive regulations in Massachusetts.
  • The possibility of losses due to claims resulting from severe weather.
  • The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market.
  • Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others.