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Mar 31, 2023

Safety Insurance Q1 2023 Earnings Report

Reported a net loss due to severe winter weather and inflationary pressures, partially offset by favorable loss reserve development and increased investment income.

Key Takeaways

Safety Insurance Group reported a net loss of $12.3 million, or $0.84 per diluted share, for Q1 2023, compared to a net income of $7.8 million, or $0.53 per diluted share, in Q1 2022. The results were significantly impacted by a severe winter weather event in February, which led to $32.1 million in incurred water damage. Despite the challenges, net written premium grew by 13.9% due to new business, improved retention, and rate increases, and investment income increased by 28.9%.

Net loss for Q1 2023 was $12.3 million, or $0.84 per diluted share, compared to net income of $7.8 million, or $0.53 per diluted share, for the comparable 2022 period.

Non-GAAP operating loss was $0.87 per diluted share, compared to non-GAAP operating income of $0.99 per diluted share in the prior year.

Net written premium increased by 13.9% due to new business production, improved retention, and rate increases.

Net investment income increased by 28.9%, driven by the bond portfolio.

Total Revenue
$214M
Previous year: $195M
+9.6%
EPS
-$0.87
Previous year: $0.99
-187.9%
Combined Ratio
118.5%
Previous year: 98.7%
+20.1%
Gross Profit
$213M
Previous year: $192M
+10.6%
Cash and Equivalents
$15.3M
Previous year: $35.2M
-56.5%
Free Cash Flow
-$13.4M
Previous year: -$16M
-15.9%
Total Assets
$1.99B
Previous year: $1.99B
+-0.0%

Safety Insurance

Safety Insurance

Forward Guidance

Safety Insurance anticipates continued rate increases in 2023.