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Jun 30, 2020
Safety Insurance Q2 2020 Earnings Report
Net income and non-GAAP operating income increased while direct and net written premiums decreased due to premium relief efforts and changes in eligibility requirements.
Key Takeaways
Safety Insurance Group reported increased net income and non-GAAP operating income for the second quarter of 2020, while direct and net written premiums decreased. The company's performance was influenced by premium relief efforts, changes in eligibility requirements, and the impact of the COVID-19 pandemic.
Net income for the quarter ended June 30, 2020, was $42.5 million, or $2.78 per diluted share, compared to $25.9 million, or $1.68 per diluted share, for the comparable 2019 period.
Non-GAAP operating income for the quarter ended June 30, 2020, was $1.95 per diluted share, compared to $1.47 per diluted share for the comparable 2019 period.
Direct written premiums for the quarter decreased by $28.3 million, or 12.1%, to $205.3 million.
Net written premiums for the quarter decreased by $19.6 million, or 9.0%, to $197.7 million.
Safety Insurance
Safety Insurance
Forward Guidance
This press release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from our forward-looking statements.
Positive Outlook
- Company continues to address the health and well-being of our employees.
- Company serves the needs of agents.
- Company serves the needs of insureds.
- Board of Directors approved a $0.90 per share quarterly cash dividend.
- Company is a leading writer of property and casualty insurance products.
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.