•
Jun 30, 2021

Safety Insurance Q2 2021 Earnings Report

Net income decreased compared to the same quarter last year.

Key Takeaways

Safety Insurance Group reported a decrease in net income for the second quarter of 2021, with earnings of $37.7 million, or $2.49 per diluted share, compared to $42.5 million, or $2.78 per diluted share, in the same period of 2020. Non-GAAP operating income was $1.85 per diluted share, down from $1.95 per diluted share in the prior year.

Net income for Q2 2021 was $37.7 million, or $2.49 per diluted share, compared to $42.5 million, or $2.78 per diluted share, for Q2 2020.

Non-GAAP operating income for Q2 2021 was $1.85 per diluted share, compared to $1.95 per diluted share for Q2 2020.

Direct written premiums for Q2 2021 increased by $11.9 million, or 5.8%, to $217.2 million.

Net earned premiums for Q2 2021 increased by $12.4 million, or 6.8%, to $194.3 million.

Total Revenue
$194M
Previous year: $182M
+6.8%
EPS
$1.85
Previous year: $1.95
-5.1%
Loss Ratio
56.7%
Previous year: 50%
+13.4%
Expense Ratio
33.5%
Previous year: 34.9%
-4.0%
Combined Ratio
90.2%
Previous year: 84.9%
+6.2%
Gross Profit
$220M
Previous year: $211M
+4.2%
Cash and Equivalents
$82.4M
Previous year: $44.8M
+84.0%
Free Cash Flow
$47.5M
Previous year: $51.4M
-7.5%
Total Assets
$2.11B
Previous year: $2.02B
+4.4%

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 these statements due to various factors, including competition, regulatory conditions, weather-related claims, and the impact of COVID-19.

Positive Outlook

  • The Company may make written or oral forward-looking statements within the meaning of the U.S. federal securities laws.
  • Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.
  • All statements that address expectations or projections about the future are forward-looking statements.
  • The Company strategy includes growth, product development, and market position.
  • The Company expenditures and financial results are forward looking statements.

Challenges Ahead

  • The competitive nature of the 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 effects of emerging claim and coverage issues on the Company’s business are uncertain.
  • The impact of COVID-19 and related risks, including on the Company's employees, agents or other key partners, could materially affect the Company's results of operations, financial position and/or liquidity.