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Sep 30, 2021

Safety Insurance Q3 2021 Earnings Report

Net income decreased compared to the same period last year.

Key Takeaways

Safety Insurance Group reported a decrease in net income for the third quarter of 2021, with $24.8 million, or $1.64 per diluted share, compared to $44.7 million, or $2.96 per diluted share, for the comparable 2020 period. Direct written premiums decreased by 1.1% to $211.1 million. The combined ratio increased to 93.9% from 85.0% in the prior year.

Net income for the quarter was $24.8 million, or $1.64 per diluted share.

Non-GAAP operating income was $1.70 per diluted share.

Direct written premiums decreased by 1.1% to $211.1 million.

The combined ratio was 93.9% compared to 85.0% for the comparable 2020 period.

Total Revenue
$214M
Previous year: $222M
-3.9%
EPS
$1.7
Previous year: $2.53
-32.8%
Loss Ratio
61.3%
Previous year: 49.8%
+23.1%
Expense Ratio
32.6%
Previous year: 35.2%
-7.4%
Combined Ratio
93.9%
Previous year: 85%
+10.5%
Gross Profit
$208M
Previous year: $218M
-4.4%
Cash and Equivalents
$44.7M
Previous year: $59.7M
-25.2%
Free Cash Flow
$46.6M
Previous year: $48.1M
-3.2%
Total Assets
$2.14B
Previous year: $2.05B
+4.8%

Safety Insurance

Safety Insurance

Forward Guidance

The company's future performance is subject to various risks and uncertainties, including competition, regulatory changes, weather events, and the impact of COVID-19.

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 possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market.
  • The possibility that existing insurance-related laws and regulations will become further restrictive in the future.