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Sep 30, 2022

Safety Insurance Q3 2022 Earnings Report

Reported a decrease in net income and an increase in direct written premiums.

Key Takeaways

Safety Insurance Group reported a decrease in net income for the quarter ended September 30, 2022, with net income at $6.2 million, or $0.42 per diluted share, compared to $24.8 million, or $1.64 per diluted share, for the comparable 2021 period. Direct written premiums increased by $6.8 million, or 3.2%, to $217.9 million from $211.1 million for the comparable 2021 period. The company's combined ratio was 97.1% for the quarter.

Net income for the quarter ended September 30, 2022 was $6.2 million, or $0.42 per diluted share.

Non-GAAP operating income was $1.13 per diluted share.

Direct written premiums increased by 3.2% to $217.9 million.

The company posted a combined ratio of 97.1%.

Total Revenue
$192M
Previous year: $214M
-10.0%
EPS
$1.13
Previous year: $1.7
-33.5%
Loss Ratio
65.3%
Previous year: 61.3%
+6.5%
Expense Ratio
31.8%
Previous year: 32.6%
-2.5%
Combined Ratio
97.1%
Previous year: 93.9%
+3.4%
Gross Profit
$192M
Previous year: $208M
-7.9%
Cash and Equivalents
$33.6M
Previous year: $44.7M
-24.8%
Free Cash Flow
$22.8M
Previous year: $46.6M
-51.0%
Total Assets
$1.93B
Previous year: $2.14B
-9.8%

Safety Insurance

Safety Insurance

Forward Guidance

This press release contains forward-looking statements that are subject to risks and uncertainties.

Positive Outlook

  • 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 impact of inflation and supply chain delays on loss severity
  • The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market

Challenges Ahead

  • The possibility that existing insurance-related laws and regulations will become further restrictive in the future
  • The impact of investment, economic and underwriting market conditions, including interest rates and inflation
  • Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others
  • Other risks and factors identified from time to time in our reports filed with the SEC, such as those set forth under the caption “Risk Factors” in our Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022
  • We are not under any obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise.