Safety Insurance Group Inc - SAFT STOCK NEWS

Safety Insurance Group (NASDAQ:SAFT) reported Q3 2022 net income of $6.2 million ($0.42/share), a drop from $24.8 million ($1.64/share) in Q3 2021. The decline was attributed to a $14.4 million decrease in unrealized gains on equity securities. The combined ratio for the quarter was 97.1%, reflecting disciplined underwriting amid inflationary pressures. Notably, direct written premiums grew 3.2% year-over-year to $217.9 million. The company also announced a $0.90 dividend payable on December 15, 2022. Book value per share decreased to $53.21 from $62.47 since December 2021.

Safety Insurance Group, Inc. (NASDAQ:SAFT) announced a non-binding Letter of Intent to acquire the assets and operations of Northeast Insurance Agency, Inc., expected to complete in Q4 2022. With over $40 million in policy premiums, Northeast has been a strategic partner for over 20 years. This acquisition aims to strengthen Safety's position in the independent agency market and enhance policyholder services. Following the acquisition, Northeast will continue as a stand-alone operation under its current leadership, with employees joining Safety's subsidiary.

Safety Insurance Group, Inc. (NASDAQ:SAFT) reported its Q2 2022 results, showing a net income of $7.9 million ($0.53 per diluted share), down significantly from $37.7 million ($2.49) in Q2 2021. The combined ratio was 92.1%, indicating strong underwriting discipline. The firm reversed a $6.5 million legal reserve due to a favorable court ruling. Direct written premiums fell by 1.2% to $214.6 million. However, net investment income rose by 19% to $11.6 million, driven by higher interest rates. A quarterly dividend of $0.90 per share was approved, payable on September 15, 2022.

Safety Insurance Group, Inc. (NASDAQ: SAFT) announced a change for its 2022 Annual Meeting of Shareholders, now scheduled for June 1, 2022, at 10:00 a.m. Shareholders can dial in to listen via teleconference at (866) 705-2554, using participation code 410073. Voting procedures remain unchanged, with proxy materials previously distributed still applicable for voting. For further information, shareholders can refer to the company's proxy materials and the December 31, 2021, Form 10-K filed with the SEC on February 28, 2022.

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of 'a+' for Safety Insurance Group's subsidiaries, with a stable outlook. The ratings reflect Safety Group's strong balance sheet, operating performance, and appropriate enterprise risk management (ERM). Safety's risk-adjusted capitalization is at its strongest level, supported by favorable loss reserve trends. However, the business profile is neutral due to exposure to regulatory risks primarily in Massachusetts.

Safety Insurance Group, Inc. (NASDAQ:SAFT) reported its first quarter 2022 results. The company's net income was $7.8 million, or $0.53 per diluted share, down from $36.2 million, or $2.42 per diluted share in Q1 2021. The combined ratio stood at 98.7%, reflecting increased loss expenses and inflation. Direct written premiums decreased by 1.4% to $189.5 million. Despite these challenges, the company declared a quarterly cash dividend of $0.90 per share, payable on June 15, 2022. The book value per share also declined to $58.47 from $62.47 at the end of 2021.

Ides Capital Management has engaged with Safety Insurance Group to enhance corporate governance and promote shareholder value. Following their recommendations, Safety has made significant changes, including adding independent directors and implementing a share repurchase plan of $50 million. Since Ides' intervention, Safety's stock has risen by 14.6%, surpassing peers and indices. However, Ides expresses disappointment over the board's reluctance to fully declassify and improve governance and operational practices, indicating ongoing oversight and potential future actions to boost shareholder outcomes.

Safety Insurance Group, Inc. (NASDAQ: SAFT) announced the immediate appointments of John D. Farina and Deborah E. Gray to its Board of Directors, enhancing the board's expertise in insurance, finance, and governance. These changes come as part of a broader strategy to improve corporate governance, including proposals to enhance shareholder rights to be voted on at the upcoming Annual Meeting. The board has also seen the retirement of Frederic H. Lindeberg. The company plans to file a preliminary proxy statement with the SEC.

Ides Capital Management has expressed disappointment over Safety Insurance Group's lack of engagement regarding stock underperformance, ESG deficiencies, and capital allocation issues. The firm, holding about 1% of shares, critiques the company's recent $50 million buyback as insufficient. Ides urges for a more substantial repurchase of 10% of shares and highlights several governance gaps, including the need for diverse board members and better sustainability practices. Ides remains committed to advocating for all shareholders through director nominations and further engagement.