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Dec 31, 2020
Safety Insurance Q4 2020 Earnings Report
Safety Insurance reported increased net income and non-GAAP operating income, but decreased direct written premium for Q4 2020.
Key Takeaways
Safety Insurance Group, Inc. reported a strong fourth quarter in 2020, with net income increasing to $53.0 million, or $3.55 per diluted share, compared to $28.1 million, or $1.82 per diluted share, in the same period of 2019. Non-GAAP operating income also rose to $2.55 per diluted share from $1.44 per diluted share in the prior year. However, direct written premiums saw a decrease of 3.7% during the quarter.
Net income for Q4 2020 was $53.0 million, or $3.55 per diluted share, up from $28.1 million, or $1.82 per diluted share, in Q4 2019.
Non-GAAP operating income for Q4 2020 was $2.55 per diluted share, compared to $1.44 per diluted share in Q4 2019.
Direct written premiums for Q4 2020 decreased by 3.7% to $182.6 million from $189.7 million in Q4 2019.
The loss ratio for Q4 2020 improved to 48.8% from 63.4% in Q4 2019, primarily due to fewer cars on the road.
Safety Insurance
Safety Insurance
Forward Guidance
The press release contains forward-looking statements, which are subject to risks and uncertainties. The impact of COVID-19 and related risks could materially affect the Company's results of operations, financial position and/or liquidity. Other risks and factors identified from time to time in the company's reports filed with the SEC.
Positive Outlook
- Company is taking actions to address the health and well-being of employees.
- Company is still serving the needs of agents.
- Company is still serving the needs of insureds.
- Loss ratio improved due to decreased frequency of claims.
- Prior year favorable development included in the pre-tax results increased.
Challenges Ahead
- Competitive nature of the industry
- Conditions for business operations and restrictive regulations in Massachusetts
- Possibility of losses due to claims resulting from severe weather
- Possible need for and availability of additional financing
- Effects of emerging claim and coverage issues on the Company’s business are uncertain