Safety Insurance Group reports improved Q2 results, raises dividend

Published 06/08/2025, 21:42
Safety Insurance Group reports improved Q2 results, raises dividend

BOSTON - Safety Insurance Group, Inc. (NASDAQ:SAFT) reported second quarter 2025 net income of $28.9 million, or $1.95 per diluted share, up from $16.6 million, or $1.13 per diluted share, in the comparable 2024 period. The company, currently trading at an attractive P/E ratio of 14.4x, appears undervalued according to InvestingPro analysis.

The company’s Board of Directors approved a dividend increase from $0.90 to $0.92 per share, payable on September 15, 2025, to shareholders of record as of September 2, 2025. This marks the company’s 23rd consecutive year of dividend payments, with a current yield of 5.13%.

Safety’s combined ratio improved to 98.1% in the second quarter compared to 99.9% in the same period last year. The company noted that 2024 results had included a favorable impact from the Massachusetts Property Insurance Underwriting Association restructuring. InvestingPro data shows the company maintains strong financial health with sufficient cash flows to cover interest payments.

Net earned premiums for the quarter increased by 14.2% to $282.1 million from $246.9 million in the comparable 2024 period, driven by rate increases and new business production. Direct written premiums rose 9.6% to $345.8 million.

"The year-over-year improvement in combined ratio reflects the impact of our prior year growth in policy counts and rate increases earning into top-line results," said George M. Murphy, Chairman, President and Chief Executive Officer, in a statement based on the company’s press release.

For the six months ended June 30, 2025, net income was $50.8 million, or $3.43 per diluted share, compared to $36.7 million, or $2.48 per diluted share, for the comparable 2024 period.

The company’s book value per share increased to $58.63 at June 30, 2025, from $55.83 at December 31, 2024, resulting from net income and increases in the value of its fixed maturity portfolio, offset by dividends paid. With the stock trading near its 52-week low, InvestingPro subscribers can access additional insights and 6 more exclusive ProTips about Safety Insurance Group’s valuation and growth prospects.

In other recent news, Safety Insurance Group, Inc. held its Annual Meeting of Stockholders, where significant decisions were made. The meeting included voting on key matters such as the election of directors and the ratification of the company’s independent registered public accounting firm. Deborah E. Gray and George M. Murphy were elected as Class II directors for a three-year term. Gray received 12,036,162 votes in favor, with 338,989 votes withheld, while Murphy garnered 12,241,549 votes in favor, with 133,602 votes withheld. Both directors faced 1,590,233 broker non-votes. These developments reflect the company’s ongoing governance and leadership strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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