8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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May 7, 2025

Date of Report (Date of earliest event reported)

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SAFETY INSURANCE GROUP, INC.

(Exact name of registrant as specified in its charter)

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Delaware	000-50070	13-4181699
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

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20 Custom House Street , Boston , Massachusetts **** 02110

(Address of principal executive offices including zip code)

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(617) **** 951-0600

(Registrant's telephone number, including area code)

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Not Applicable

(Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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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

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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Emerging growth company ☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

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In a press release dated May 7, 2025, Safety Insurance Group, Inc. (the “Registrant”) announced its first quarter 2025 results. The Registrant’s press release dated May 7, 2025 is furnished herewith as Exhibit 99.1.

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Item 9.01 Financial Statements and Exhibits.

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(d)  Exhibits. The following exhibit is furnished herewith:

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Exhibit Number	Description<br><br>​
99.1	Text of press release issued by the Registrant dated May 7, 2025

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104The cover page from this Current Report on form 8-K, formatted in Inline XBRL

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​	Safety Insurance Group, Inc.<br><br>**** (Registrant)
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Date: May 7, 2025	By:	/s/ CHRISTOPHER T. WHITFORD
​	​	Christopher T. Whitford
​	​	V.P., Chief Financial Officer and Secretary

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Exhibit 99.1

SAFETY INSURANCE GROUP, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND DECLARES SECOND QUARTER 2025 DIVIDEND ​​

Boston, Massachusetts, May 7, 2025. Safety Insurance Group, Inc. (NASDAQ:SAFT) (“the Company” or “Safety”) today reported first quarter 2025 results.

George M. Murphy, Chairman of the Board of Directors, President and Chief Executive Officer, commented: “Safety’s first quarter combined ratio in 2025 improved to 99.4% compared to 101.9% in the first quarter of 2024. The year-over-year change reflects the impact of our prior year growth in direct written premiums earning into top-line results and improvements in our private passenger automobile loss ratio. Positive trends in other revenue lines resulted in strong earnings per share of $1.48 per share and a $22.2 million increase in total shareholders’ equity.”

Net income for the quarter ended March 31, 2025 was $21.9 million, or $1.48 per diluted share, compared to net income of $20.1 million, or $1.36 per diluted share, for the comparable 2024 period. Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, for the quarter ended March 31, 2025 was $1.28 per diluted share, compared to $0.93 per diluted share, for the comparable 2024 period.

Safety’s book value per share increased to $57.12 at March 31, 2025 from $55.83 at December 31, 2024 resulting from the net income and increases in the value of our fixed maturity portfolio, offset by dividends paid. Safety paid $0.90 per share in dividends to investors during the quarters ended March 31, 2025 and 2024. Safety paid $3.60 per share in dividends to investors during the year ended December 31, 2024.

Today, our Board of Directors approved and declared a $0.90 per share quarterly cash dividend on its issued and outstanding common stock, payable on June 13, 2025 to shareholders of record at the close of business on June 2, 2025.

Direct written premiums for the quarter ended March 31, 2025 increased by $31.7 million, or 11.8%, to $299.0 million from $267.3 million for the comparable 2024 period. Net written premiums for the quarter ended March 31, 2025 increased by $24.5 million, or 9.8%, to $274.8 million from $250.3 million for the comparable 2024 period. Net earned premiums for the quarter ended March 31, 2025 increased by $36.6 million, or 15.5%, to $272.7 million from $236.1 million for the comparable 2024 period. The year-over-year increase in net earned premiums is the result of prior year growth in direct written premiums earning into top-line results.

The increases in direct written premiums and net written premiums are a result of new business production and rate increases. For the three months ended March 31, 2025, the Company achieved policy count growth across all lines of business, including 1.3%, 2.5% and 5.4% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024. Additionally, for the three months ended March 31, 2025, average written premium per policy increased 9.5%, 8.4%, and 11.0% in Private Passenger Automobile, Commercial Automobile and Homeowners lines, respectively, compared to the same period in 2024.

For the quarter ended March 31, 2025, loss and loss adjustment expenses incurred increased by $21.9 million, or 13.0%, to $190.3 million from $168.4 million for the comparable 2024 period. The slight increase is driven by larger policy counts offset by improved results in our Private Passenger Automobile line.

Loss, expense, and combined ratios for the quarter ended March 31, 2025 were 69.8%, 29.6%, and 99.4%, respectively, compared to 71.3%, 30.6%, and 101.9%, respectively, for the comparable 2024 period. The decrease in the loss and expense ratios is driven by the increase in earned premiums. Total prior year favorable development included in the pre-tax results for the quarter ended March 31, 2025 was $12.2 million compared to $11.0 million for the comparable 2024 period.

Net investment income for the quarter ended March 31, 2025 decreased by $0.6 million, or 4.3%, to $14.6 million from $15.2 million for the comparable 2024 period. The decrease is primarily driven by lower earned interest from our higher yield bonds and variable-rate secured and senior bank loans. Net effective annualized yield on the investment portfolio was 3.9% for the three months ended March 31, 2025 compared to 4.3% for the comparable 2024 period. Our duration on fixed maturities was 3.6 years at March 31, 2025 and 3.5 years at December 31, 2024.

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Non-GAAP Measures

Management has included certain non-GAAP financial measures in presenting the Company’s results. Management believes that these non-GAAP measures better explain the Company’s results of operations and allow for a more complete understanding of the underlying trends in the Company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“GAAP”). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Non-GAAP operating income and non-GAAP operating loss per diluted share consist of our GAAP net income adjusted by the net realized gains on investments, change in net unrealized gains on equity securities, credit loss expense and taxes related thereto. For the quarter ended March 31, 2025, a decrease of $0.3 million for the change in unrealized gains on equity investments was recognized within income before income taxes, compared to an increase of $7.7 million for the change in unrealized gains on equity investments in the comparable 2024 period. Net income and earnings per diluted share are the GAAP financial measures that are most directly comparable to non-GAAP operating income and non-GAAP operating income per diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the financial highlights below.

About Safety: Safety Insurance Group, Inc., based in Boston, MA, is the parent of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, Safety Northeast Insurance Company, and Safety Northeast Insurance Agency, Inc.  Operating exclusively in Massachusetts, New Hampshire, and Maine, Safety is a leading writer of property and casualty insurance products, including private passenger automobile, commercial automobile, homeowners, dwelling fire, umbrella and business owner policies.

Additional Information: Press releases, announcements, U. S. Securities and Exchange Commission (“SEC”) Filings and investor information are available under “About Safety,” “Investor Information” on our Company website located at www.SafetyInsurance.com. Safety filed its December 31, 2024 Form 10-K with the SEC on February 27, 2025 and urges shareholders to refer to this document for more complete information concerning Safety’s financial results.

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Contacts:

Safety Insurance Group, Inc.

Office of Investor Relations

877-951-2522

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InvestorRelations@SafetyInsurance.com

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Cautionary Statement under "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Safety may from time to time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “aim,” “projects,” or words of similar meaning and expressions that indicate future events and trends, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.

Forward-looking statements are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. There are a number of factors, many of which are beyond our control, that could cause actual future conditions, events, results or trends to differ significantly and/or materially from historical results or those projected in the forward-looking statements. These factors include but are not limited to:

●	The competitive nature of our industry and the possible adverse effects of such competition;
●	Conditions for business operations and restrictive regulations in Massachusetts;
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●	The possibility of losses due to claims resulting from severe weather;
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●	The impact of inflation, changes in tariffs and supply chain delays on loss severity;
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●	The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market;
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●	The possibility that existing insurance-related laws and regulations will become further restrictive in the future;
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●	The impact of investment, economic and underwriting market conditions, including interest rates and inflation;
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●	Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others; and
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●	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, 2024 filed with the SEC on February 27, 2025.
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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. You should carefully consider the possibility that actual results may differ materially from our forward-looking statements.

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Safety Insurance Group, Inc. and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, except share data)

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​	​	​	​	​	​	​
​	****	March 31,		****	December 31,
​	​	2025		​	2024
​	​	(Unaudited)		​	​	​
Assets	​	​	​	​	​	​
Investments:	​	​	​	​	​	​
Fixed maturities, available for sale, at fair value (amortized cost: $1,190,688 and $1,181,038, allowance for expected credit losses of $1,519 and $1,198)	​	$	1,140,093	​	$	1,115,218
Short-term investments, at fair value (cost: $0 and $19,970)	​	****	—	​		19,975
Equity securities, at fair value (cost: $202,623 and $201,258)	​	****	222,516	​		221,422
Other invested assets	​	****	158,574	​		156,444
Total investments	​	****	1,521,183	​		1,513,059
Cash and cash equivalents	​	****	64,708	​		58,974
Accounts receivable, net of allowance for expected credit losses of $785 and $918	​	****	306,408	​		306,465
Receivable for securities sold	​	****	496	​		568
Accrued investment income	​	****	7,866	​		7,426
Receivable from reinsurers related to paid loss and loss adjustment expenses	​	****	35,103	​		26,386
Receivable from reinsurers related to unpaid loss and loss adjustment expenses	​	****	136,510	​		130,792
Ceded unearned premiums	​	****	41,553	​		41,413
Deferred policy acquisition costs	​	****	104,902	​		105,474
Deferred income taxes	​	****	7,683	​		11,200
Equity and deposits in pools	​	****	4,489	​		3,740
Operating lease right-of-use-assets	​	​	14,673	​		15,733
Goodwill	​	​	17,093	​	​	17,093
Intangible assets	​	​	7,493	​	​	7,730
Other assets	​	****	21,142	​		24,037
Total assets	​	$	2,291,302	​	$	2,270,090
​	​	​	​	​	​	​
Liabilities	​	​	​	​	​	​
Losses and loss adjustment expense reserves	​	$	682,717	​	$	671,669
Unearned premium reserves	​	****	622,146	​		619,916
Accounts payable and accrued liabilities	​	****	59,524	​		77,276
Payable for securities purchased	​	****	9,913	​		6,949
Payable to reinsurers	​	****	20,442	​		19,074
Taxes payable	​	​	1,220	​	​	1,009
Short-term debt	​	​	—	​	​	30,000
Long-term debt	​	​	30,000	​	​	—
Operating lease liabilities	​	​	14,673	​	​	15,733
Total liabilities	​	****	1,440,635	​		1,441,626
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Shareholders’ equity	​	​	​	​	​	​
Common stock: $0.01 par value; 30,000,000 shares authorized; 18,051,280 and 17,995,584 shares issued	​	​	181	​	​	180
Additional paid-in capital	​	****	232,264	​		230,864
Accumulated other comprehensive loss, net of taxes	​	****	(38,771)	​		(51,047)
Retained earnings	​	****	807,286	​		798,760
Treasury stock, at cost: 3,157,577 shares	​	****	(150,293)	​		(150,293)
Total shareholders’ equity	​	****	850,667	​		828,464
Total liabilities and shareholders’ equity	​	$	2,291,302	​	$	2,270,090

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Safety Insurance Group, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share and per share data)

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​	​	​	​	​	​	​	​
​	​	Three Months Ended March 31,					****
​	****	2025		****	2024		****
​	​	​	​	​	​	​	​
Net earned premiums	​	$	272,690	​	$	236,053	​
Net investment income	​	****	14,574	​		15,231	​
Earnings from partnership investments	​	****	2,112	​		1,772	​
Net realized gains on investments	​	****	4,263	​		492	​
Change in net unrealized gains on equity securities	​	​	(271)	​	​	7,665	​
Credit loss expense	​	​	(321)	​	​	(142)	​
Commission income	​	​	2,095	​	​	1,808	​
Finance and other service income	​	****	6,287	​		5,354	​
Total revenue	​	****	301,429	​		268,233	​
​	​	​	​	​	​	​	​
Losses and loss adjustment expenses	​	****	190,290	​		168,399	​
Underwriting, operating and related expenses	​	****	80,851	​		72,267	​
Other expense	​	****	1,954	​		1,837	​
Interest expense	​	****	104	​		123	​
Total expenses	​	****	273,199	​		242,626	​
​	​	​	​	​	​	​	​
Income before income taxes	​	****	28,230	​		25,607	​
Income tax expense	​	****	6,334	​		5,529	​
Net income	​	$	21,896	​	$	20,078	​
​	​	​	​	​	​	​	​
Earnings per weighted average common share:	​	​	​	​	​	​	​
Basic	​	$	1.48	​	$	1.36	​
Diluted	​	$	1.48	​	$	1.36	​
​	​	​	​	​	​	​	​
Cash dividends paid per common share	​	$	0.90	​	$	0.90	​
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Number of shares used in computing earnings per share:	​	​	​	​	​	​	​
Basic	​	****	14,718,572	​		14,667,107	​
Diluted	​	****	14,745,015	​		14,696,590	​
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Reconciliation of Net Income to Non-GAAP Operating Income	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​
Net income	​	$	21,896	​	$	20,078	​
Exclusions from net income:	​	​	​	​	​	​	​
Net realized gains on investments	​	​	(4,263)	​	​	(492)	​
Change in net unrealized gains on equity securities	​	​	271	​	​	(7,665)	​
Credit loss expense	​	​	321	​	​	142	​
Income tax expense on exclusions from net income	​	​	771	​	​	1,683	​
Non-GAAP operating income	​	$	18,996	​	$	13,746	​
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Net income per diluted share	​	$	1.48	​	$	1.36	​
Exclusions from net income:	​	​	​	​	​	​	​
Net realized gains on investments	​	​	(0.29)	​	​	(0.03)	​
Change in net unrealized gains on equity securities	​	​	0.02	​	​	(0.52)	​
Credit loss expense	​	​	0.02	​	​	0.01	​
Income tax expense on exclusions from net income	​	​	0.05	​	​	0.11	​
Non-GAAP operating income per diluted share	​	$	1.28	​	$	0.93	​

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Safety Insurance Group, Inc. and Subsidiaries

Additional Premium Information

(Unaudited)

(Dollars in thousands)

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​	​	​	​	​	​	​	​
​	​	Three Months Ended March 31,					​
​		2025		****	2024		****
Written Premiums	​	​	​	​	​	​	​
Direct	​	$	298,970	​	$	267,339	​
Assumed	​	****	6,805	​		9,438	​
Ceded	​	****	(30,995)	​		(26,482)	​
Net written premiums	​	$	274,780	​	$	250,295	​
​	​	​	​	​	​	​	​
Earned Premiums	​	​	​	​	​	​	​
Direct	​	$	296,819	​	$	251,884	​
Assumed	​	****	6,725	​		8,968	​
Ceded	​	****	(30,854)	​		(24,799)	​
Net earned premiums	​	$	272,690	​	$	236,053	​

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