Safety Insurance Group Reports 15.5% Increase in Net Earned Premiums for Q1 2025

Safety Insurance Group, Inc. reported a notable increase in its financial performance for the first quarter of 2025, with net earned premiums rising to $272.7 million, a 15.5% increase from $236.1 million in the same period of 2024. Total revenue for the quarter reached $301.4 million, up from $268.2 million year-over-year. The company’s net income also saw an increase, totaling $21.9 million, compared to $20.1 million in the prior year, resulting in earnings per diluted share of $1.48, up from $1.36.

The company experienced significant growth in direct written premiums, which increased by 11.8% to $299.0 million, driven by rate increases, improved retention, and new business production. The net written premiums also rose by 9.8% to $274.8 million. The growth in policy counts across various lines of business, including private passenger automobile and homeowners insurance, contributed to this positive trend. The company’s loss and loss adjustment expenses increased by 13.0% to $190.3 million, reflecting a rise in policy counts, but the loss ratio improved to 69.8% from 71.3% in the previous year.

In terms of operational developments, Safety Insurance Group has maintained a strong market presence, being the third largest private passenger automobile carrier in Massachusetts with a market share of approximately 9.7%. The company has also expanded its geographic footprint, having begun writing insurance in New Hampshire in 2008 and in Maine in 2016. As of March 31, 2025, the company had 828 independent agents across 1,079 locations in these states.

The company’s investment income showed a slight decline, with net investment income decreasing to $14.6 million from $15.2 million in the previous year, primarily due to lower earned interest from higher yield bonds. However, net realized gains on investments significantly increased to $4.3 million from $492,000, reflecting a favorable market environment for equity securities. The company’s cash flow from operating activities improved, generating $3.2 million compared to a cash outflow of $21.1 million in the prior year, indicating a stronger liquidity position.

Looking ahead, Safety Insurance Group remains optimistic about its growth trajectory, supported by ongoing rate increases and a focus on enhancing customer retention. The company plans to continue leveraging its strong market position and operational efficiencies to drive future profitability. The management has indicated that they expect to maintain positive cash flows and sufficient liquidity to meet operational needs, while also considering potential strategic investments or acquisitions to further bolster growth.