Safety Insurance Group Inc 10-Q for FY2026 Q2

Safety Insurance Group Inc (SAFT)

10-Q 2026-08-07 For: 2026-06-30

Added on August 07, 2026

About this 10-Q

Safety Insurance Group Inc filed this 10-Q on August 7, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $325.68M; up 3.0% from $316.34M a year earlier
Net income: $34.52M; up 19.3% from net income of $28.94M a year earlier
Diluted EPS: $2.36; up 21.0% from $1.95 a year earlier

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Delaware		13-4181699
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	SAFT	The Nasdaq Stock Market, LLC



Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

		Page No.
Part I. Financial Information
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Changes in Shareholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Information about Market Risk	43
Item 4.	Controls and Procedures	44
Part II. Other Information
Item 1	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	47
EXHIBIT INDEX		48
SIGNATURE		49


		June 30,			December 31,
		2026			2025
		(Unaudited)
Assets
Investments:
Fixed maturities, available for sale, at fair value (amortized cost: $1,365,368 and $1,337,235, allowance for expected credit losses of $355 and $0)		$	1,328,594		$	1,315,548
Equity securities, at fair value (cost: $189,372 and $201,591)			201,956			220,953
Other invested assets			154,036			151,020
Total investments			1,684,586			1,687,521
Cash and cash equivalents			67,918			73,901
Accounts receivable, net of allowance for expected credit losses of $890 and $802			332,530			320,187
Receivable for securities sold			527			4,269
Accrued investment income			11,702			12,169
Taxes recoverable			10,731			—
Receivable from reinsurers related to paid loss and loss adjustment expenses			25,074			9,433
Receivable from reinsurers related to unpaid loss and loss adjustment expenses			150,659			149,441
Ceded unearned premiums			43,317			39,674
Deferred policy acquisition costs			112,755			111,791
Deferred income taxes			6,253			4,116
Equity and deposits in pools			5,081			4,197
Operating lease right-of-use-assets			9,773			11,861
Goodwill			17,093			17,093
Intangible assets			6,309			6,783
Other assets			18,976			18,672
Total assets		$	2,503,284		$	2,471,108

Liabilities
Losses and loss adjustment expense reserves		$	808,264		$	761,739
Unearned premium reserves			664,746			654,803
Accounts payable and accrued liabilities			70,299			80,461
Payable for securities purchased			5,061			846
Payable to reinsurers			18,487			15,184
Taxes payable			—			3,903
Long-term debt			50,000			50,000
Operating lease liabilities			9,773			11,861
Total liabilities			1,626,630			1,578,797

Commitments and contingencies (Note 8)

Shareholders’ equity
Common stock: $0.01 par value; 30,000,000 shares authorized; 18,103,084 and 18,051,631 shares issued			181			181
Additional paid-in capital			238,435			235,693
Accumulated other comprehensive loss, net of taxes			(28,771)			(17,133)
Retained earnings			837,302			844,063
Treasury stock, at cost: 3,419,947 shares			(170,493)			(170,493)
Total shareholders’ equity			876,654			892,311
Total liabilities and shareholders’ equity		$	2,503,284		$	2,471,108


		Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025

Net earned premiums		$	291,653		$	282,113		$	582,639		$	554,803
Net investment income			16,559			15,724			33,597			30,298
Earnings from partnership investments			3,329			346			7,234			2,458
Net realized gains on investments			1,418			2,131			8,049			6,394
Change in net unrealized gains on equity securities			4,720			7,194			(6,777)			6,923
Credit loss (expense) benefit			(7)			66			(355)			(255)
Commission income			2,252			2,285			4,402			4,380
Finance and other service income			5,758			6,485			11,559			12,772
Total revenue			325,682			316,344			640,348			617,773

Losses and loss adjustment expenses			195,119			194,232			442,609			384,522
Underwriting, operating and related expenses			83,883			82,796			166,164			163,647
Other expense			2,110			2,047			4,247			4,001
Interest expense			814			442			1,432			546
Total expenses			281,926			279,517			614,452			552,716

Income before income taxes			43,756			36,827			25,896			65,057
Income tax expense			9,239			7,890			5,702			14,224
Net income		$	34,517		$	28,937		$	20,194		$	50,833

Earnings per weighted average common share:
Basic		$	2.36		$	1.95		$	1.38		$	3.44
Diluted		$	2.36		$	1.95		$	1.38		$	3.43

Cash dividends paid per common share		$	0.92		$	0.90		$	1.84		$	1.80

Number of shares used in computing earnings per share:
Basic			14,521,693			14,744,968			14,509,999			14,731,843
Diluted			14,558,294			14,782,244			14,552,290			14,763,732


					Accumulated
					Other
			Additional		Comprehensive						Total
	Common		Paid-in		Loss,		Retained		Treasury		Shareholders’
	Stock		Capital		Net of Taxes		Earnings		Stock		Equity
Balance at December 31, 2024	$	180	$	230,864	$	(51,047)	$	798,760	$	(150,293)	$	828,464
Net income, January 1 to March 31, 2025		—		—		—		21,896		—		21,896
Unrealized gains and losses on securities available for sale, net of deferred federal income taxes		—		—		12,276		—		—		12,276
Restricted share awards issued		—		477		—		—		—		477
Recognition of employee share-based compensation, net of deferred federal income taxes		1		923		—		—		—		924
Dividends paid and accrued		—		—		—		(13,370)		—		(13,370)
Balance at March 31, 2025		181		232,264		(38,771)		807,286		(150,293)		850,667
Net income, April 1 to June 30, 2025		—		—		—		28,937		—		28,937
Unrealized gains and losses on securities available for sale, net of deferred federal income taxes		—		—		5,917		—		—		5,917
Recognition of employee share-based compensation, net of deferred federal income taxes		—		1,127		—		—		—		1,127
Dividends paid and accrued		—		—		—		(13,384)		—		(13,384)
Balance at June 30, 2025	$	181	$	233,391	$	(32,854)	$	822,839	$	(150,293)	$	873,264


		Shares		Weighted		Performance-based		Weighted
		Under		Average		Shares Under		Average
		Restriction		Fair Value		Restriction		Fair Value
Outstanding at beginning of year		69,243		$	82.79	79,659		$	83.80
Granted		44,282			78.46	31,047	(1)		78.46
Vested and unrestricted		(39,197)			83.14	—			-
Forfeited		(115)			78.46	(23,761)			86.90
Outstanding at end of period		74,213		$	80.04	86,945		$	81.05


		As of December 31, 2025

		Cost or			Allowance for			Gross Unrealized					Estimated
		Amortized			Expected Credit								Fair
		Cost			Losses			Gains		Losses (3)			Value
U.S. Treasury securities		$	4,211		$	—		$	22	$	(28)		$	4,205
Obligations of states and political subdivisions			38,837			—			532		(1,651)			37,718
Residential mortgage-backed securities (1)			376,354			—			5,075		(15,382)			366,047
Commercial mortgage-backed securities			162,755			—			702		(6,439)			157,018
Other asset-backed securities			170,332			—			373		(1,196)			169,509
Corporate and other securities			584,746			—			7,431		(11,126)			581,051
Subtotal, fixed maturity securities			1,337,235			—			14,135		(35,822)			1,315,548
Equity securities (2)			201,591			—			27,327		(7,965)			220,953
Other invested assets (4)			151,020			—			—		—			151,020
Totals		$	1,689,846		$	—		$	41,462	$	(43,787)		$	1,687,521


		As of June 30, 2026
		Amortized			Estimated
		Cost			Fair Value
Due in one year or less		$	5,694		$	5,671
Due after one year through five years			340,433			332,248
Due after five years through ten years			278,972			273,275
Due after ten years through twenty years			18,882			18,795
Due after twenty years			831			850
Asset-backed securities			720,556			697,755
Totals		$	1,365,368		$	1,328,594


		As of December 31, 2025
		Less than 12 Months						12 Months or More						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
U.S. Treasury securities		$	—		$	—		$	1,474		$	28		$	1,474		$	28
Obligations of states and political subdivisions			1,199			6			10,684			1,645			11,883			1,651
Residential mortgage-backed securities			26,318			153			156,857			15,229			183,175			15,382
Commercial mortgage-backed securities			15,491			108			103,960			6,331			119,451			6,439
Other asset-backed securities			95,322			146			10,113			1,050			105,435			1,196
Corporate and other securities			91,652			464			176,063			10,662			267,715			11,126
Subtotal, fixed maturity securities			229,982			877			459,151			34,945			689,133			35,822
Equity securities			68,924			5,162			7,967			2,803			76,891			7,965
Total temporarily impaired securities		$	298,906		$	6,039		$	467,118		$	37,748		$	766,024		$	43,787


			As of and For the				As of and For the
			Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
			Accounts Receivable Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Accounts Receivable Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period		$	313,428	$	823	$	306,408	$	785
Current period change for expected credit losses					880				834
Writeoffs of uncollectable accounts receivable					(813)				(792)
Balance, end of period		$	332,530	$	890	$	333,014	$	827


			As of and For the				As of and For the
			Six Months Ended June 30, 2026				Six Months Ended June 30, 2025
			Accounts Receivable Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Accounts Receivable Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period		$	320,187	$	802	$	306,465	$	918
Current period change for expected credit losses					1,758				1,675
Writeoffs of uncollectable accounts receivable					(1,670)				(1,766)
Balance, end of period		$	332,530	$	890	$	333,014	$	827


		Operating Leases
2026		$	2,109
2027			3,995
2028			3,924
Total lease payments			10,028
Less imputed interest			(255)
Total		$	9,773


	Three Months Ended June 30,				Six Months Ended June 30,
Direct Written Premiums	2026		2025		2026			2025
Massachusetts	$	321,930	$	326,925	$	604,535		$	610,204
New Hampshire		15,027		14,731		28,286			27,154
Maine		4,878		4,173		8,789			7,441
Total	$	341,835	$	345,829	$	641,610		$	644,799


Line of Business		Effective Date		Rate Change
Massachusetts Private Passenger Automobile		July 1, 2026		3.3%
Maine Private Passenger Automobile		June 1, 2026		1.7%
Massachusetts Commercial Automobile		May 1, 2026		5.9%
Massachusetts Private Passenger Automobile		January 1, 2026		1.3%
Maine Commercial Automobile		December 1, 2025		14.8%
Maine Homeowners		November 1, 2025		6.6%
New Hampshire Commercial Automobile		November 1, 2025		8.2%
New Hampshire Homeowners		October 1, 2025		3.9%
New Hampshire Private Passenger Automobile		October 1, 2025		5.2%
Maine Private Passenger Automobile		September 1, 2025		9.6%
Massachusetts Homeowners		August 1, 2025		4.2%
Massachusetts Private Passenger Automobile		July 1, 2025		5.1%
Massachusetts Commercial Automobile		May 1, 2025		5.2%
Massachusetts Private Passenger Automobile		January 1, 2025		5.3%


		Three Months Ended June 30,				Six Months Ended June 30,
		2026		2025		2026		2025
GAAP ratios:
Loss ratio		66.9	%	68.8	%	76.0	%	69.3	%
Expense ratio		28.8		29.3		28.5		29.5
Combined ratio		95.7	%	98.1	%	104.5	%	98.8	%


Type of				Number of			Fair
Equity				Awards			Value per
Awarded		Effective Date		Granted			Share (1)		Vesting Terms
RS - Service		February 25, 2026		37,784		$	78.46		3 years, 30%-30%-40%
RS - Performance		February 25, 2026		31,047		$	78.46		3 years, cliff vesting (3)
RS		February 25, 2026		6,498		$	78.46		No vesting period (2)


		-1 Percent			No			+1 Percent
		Change in			Change in			Change in
		Frequency			Frequency			Frequency
Private passenger automobile retained loss and LAE reserves
-1 Percent Change in Severity
Estimated decrease in reserves		$	(6,124)		$	(3,062)		$	—
Estimated increase in net income			4,838			2,419			—
No Change in Severity
Estimated (decrease) increase in reserves			(3,062)			—			3,062
Estimated increase (decrease) in net income			2,419			—			(2,419)
+1 Percent Change in Severity
Estimated increase in reserves			—			3,062			6,124
Estimated decrease in net income			—			(2,419)			(4,838)

Commercial automobile retained loss and LAE reserves
-1 Percent Change in Severity
Estimated decrease in reserves			(2,037)			(1,019)			—
Estimated increase in net income			1,609			805			—
No Change in Severity
Estimated (decrease) increase in reserves			(1,019)			—			1,019
Estimated increase (decrease) in net income			805			—			(805)
+1 Percent Change in Severity
Estimated increase in reserves			—			1,019			2,037
Estimated decrease in net income			—			(805)			(1,609)

Homeowners retained loss and LAE reserves
-1 Percent Change in Severity
Estimated decrease in reserves			(2,837)			(1,419)			—
Estimated increase in net income			2,241			1,121			—
No Change in Severity
Estimated (decrease) increase in reserves			(1,419)			—			1,419
Estimated increase (decrease) in net income			1,121			—			(1,121)
+1 Percent Change in Severity
Estimated increase in reserves			—			1,419			2,837
Estimated decrease in net income			—			(1,121)			(2,241)

All other retained loss and LAE reserves
-1 Percent Change in Severity
Estimated decrease in reserves			(1,450)			(725)			—
Estimated increase in net income			1,146			573			—
No Change in Severity
Estimated (decrease) increase in reserves			(725)			—			725
Estimated increase (decrease) in net income			573			—			(573)
+1 Percent Change in Severity
Estimated increase in reserves			—			725			1,450
Estimated decrease in net income			—			(573)			(1,146)


		Six Months Ended June 30,
Accident Year		2026			2025
2016 & prior		$	(76)		$	(907)
2017			(68)			(222)
2018			(531)			(232)
2019			(47)			(1,179)
2020			387			(1,628)
2021			1,864			(1,978)
2022			877			(2,516)
2023			(1,173)			(7,256)
2024			(6,519)			(7,555)
2025			(15,832)			—
All prior years		$	(21,118)		$	(23,473)


			-100 Basis						+100 Basis
			Point Change			No Change			Point Change
As of June 30, 2026
Estimated fair value		$	1,386,528		$	1,328,594		$	1,379,117
Estimated increase (decrease) in fair value		$	57,934		$	—		$	50,523


		Total number		Average		Total number of shares		Approximate dollar value of
		of shares		price paid		purchased as part of publicly		shares that may yet be purchased
Period		purchase		per share		announced plans or programs		under the plans or programs
April 1-30, 2026		—			—	—		$	24,760
May 1-31, 2026		—			—	—		$	24,760
June 1-30, 2026		—			—	—		$	24,760
Total		—				—


Exhibit
Number		Description
11.0		Statement re: Computation of Per Share Earnings (1)

31.1		CEO Certification Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (2)
31.2		CFO Certification Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (2)

32.1		CEO Certification Pursuant to U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (2)

32.2		CFO Certification Pursuant to U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (2)

101.INS		Inline XBRL Instance Document (2)

101.SCH		Inline XBRL Taxonomy Extension Schema (2)

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase (2)

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase (2)

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase (2)

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase (2)

104		The cover page from this Current Report on form 10-Q, formatted in Inline XBRL (2)


August 7, 2026	SAFETY INSURANCE GROUP, INC. (Registrant)



	By:	/s/ CHRISTOPHER T. WHITFORD
		Christopher T. Whitford
		Vice President, Chief Financial Officer, Secretary and Principal Accounting Officer