Safety Insurance Group, Inc. Announces Third Quarter 2024 Results and Declares Fourth Quarter 2024 Dividend
Safety Insurance Group (NASDAQ:SAFT) reported strong Q3 2024 results with net income of $25.9 million ($1.73 per diluted share), up from $1.9 million ($0.13 per share) in Q3 2023. Direct written premiums increased 19.1% to $318.2 million, driven by new business and rate increases. The combined ratio improved to 100.7% from 104.8% year-over-year. The company saw significant growth across all business lines, with private passenger auto exposure up 10.7%, commercial auto up 5.2%, and homeowners up 9.4%. Book value per share increased to $57.38, and the Board approved a $0.90 quarterly dividend.
Safety Insurance Group (NASDAQ:SAFT) ha riportato risultati solidi per il terzo trimestre del 2024, con un reddito netto di 25,9 milioni di dollari (1,73 dollari per azione diluita), in aumento rispetto a 1,9 milioni di dollari (0,13 dollari per azione) nel terzo trimestre del 2023. I premi diretti scritti sono aumentati del 19,1% raggiungendo 318,2 milioni di dollari, grazie a nuovi affari e aumenti delle tariffe. Il rapporto combinato è migliorato al 100,7% rispetto al 104,8% dell'anno precedente. L'azienda ha registrato una crescita significativa in tutte le linee di business, con l'esposizione alle auto private in aumento del 10,7%, le auto commerciali in aumento del 5,2% e le abitazioni in aumento del 9,4%. Il valore contabile per azione è aumentato a 57,38 dollari e il Consiglio ha approvato un dividendo trimestrale di 0,90 dollari.
Safety Insurance Group (NASDAQ:SAFT) informó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 25.9 millones de dólares (1.73 dólares por acción diluida), un aumento desde los 1.9 millones de dólares (0.13 dólares por acción) en el tercer trimestre de 2023. Las primas directas escritas aumentaron un 19.1% hasta llegar a 318.2 millones de dólares, impulsadas por nuevos negocios y aumentos de tarifas. La relación combinada mejoró al 100.7% desde el 104.8% del año anterior. La compañía vio un crecimiento significativo en todas las líneas de negocio, con una exposición de automóviles de pasajeros privados que aumentó un 10.7%, automóviles comerciales un 5.2%, y propietarios de viviendas un 9.4%. El valor contable por acción aumentó a 57.38 dólares, y la Junta aprobó un dividendo trimestral de 0.90 dólares.
세이프티 보험 그룹 (NASDAQ:SAFT)는 2024년 3분기 강력한 실적을 보고하며, 순이익이 2,590만 달러(희석주당 1.73 달러)로, 2023년 3분기의 190만 달러(주당 0.13 달러)에서 증가했습니다. 직접 서면 보험료는 19.1% 증가하여 3억 1,820만 달러에 도달했으며, 이는 새로운 사업과 요율 인상에 의해 촉진되었습니다. 복합 비율은 전년 대비 104.8%에서 100.7%로 개선되었습니다. 이 회사는 모든 사업 부문에서 상당한 성장을 보았으며, 개인 자동차 노출은 10.7%, 상업용 자동차는 5.2%, 주택 소유자는 9.4% 증가했습니다. 주당 장부 가치는 57.38 달러로 증가하였고, 이사회는 분기당 0.90 달러의 배당금을 승인했습니다.
Safety Insurance Group (NASDAQ:SAFT) a fait état de résultats solides pour le troisième trimestre 2024, avec un bénéfice net de 25,9 millions de dollars (1,73 dollar par action diluée), en hausse par rapport à 1,9 million de dollars (0,13 dollar par action) au troisième trimestre 2023. Les primes directes souscrites ont augmenté de 19,1 % pour atteindre 318,2 millions de dollars, stimulées par de nouvelles affaires et des augmentations de tarifs. Le ratio combiné s'est amélioré à 100,7 %, contre 104,8 % l'année précédente. L'entreprise a connu une croissance importante dans toutes les lignes d'activité, avec une exposition des voitures particulières en hausse de 10,7 %, des voitures commerciales en augmentation de 5,2 % et des propriétaires de maisons en hausse de 9,4 %. La valeur comptable par action a augmenté à 57,38 dollars, et le conseil d'administration a approuvé un dividende trimestriel de 0,90 dollar.
Safety Insurance Group (NASDAQ:SAFT) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Nettogewinn von 25,9 Millionen Dollar (1,73 Dollar pro verwässerter Aktie), ein Anstieg von 1,9 Millionen Dollar (0,13 Dollar pro Aktie) im dritten Quartal 2023. Die direkt geschriebenen Prämien stiegen um 19,1 % auf 318,2 Millionen Dollar, angetrieben durch neue Geschäfte und Beitragsanhebungen. Die combined ratio verbesserte sich auf 100,7 % von 104,8 % im Vorjahr. Das Unternehmen verzeichnete ein signifikantes Wachstum in allen Geschäftsfeldern, wobei die private Pkw-Exposition um 10,7 %, die kommerzielle Pkw-Exposition um 5,2 % und die Hausbesitzern um 9,4 % zunahm. Der Buchwert pro Aktie stieg auf 57,38 Dollar, und der Vorstand genehmigte eine vierteljährliche Dividende von 0,90 Dollar.
- Net income increased significantly to $25.9M in Q3 2024 from $1.9M in Q3 2023
- Direct written premiums grew 19.1% to $318.2M
- Combined ratio improved to 100.7% from 104.8%
- Book value per share increased 5.5% to $57.38
- Strong exposure growth across all business lines (10.7% in private auto, 5.2% in commercial auto, 9.4% in homeowners)
- Net investment income decreased 12.8% to $12.2M in Q3 2024
- Net effective annualized yield declined to 3.4% from 4.0% year-over-year
- Private passenger automobile loss severity trends remain higher than historical averages
Insights
Safety Insurance Group's Q3 2024 results demonstrate significant operational improvements. Net income surged to
Key growth metrics show robust expansion with exposure count increases of
George M. Murphy, Chairman of the Board of Directors, President and Chief Executive Officer, commented: “The direct written premium growth that Safety has experienced is impacting our top-line revenue, which increased by
Net income for the quarter ended September 30, 2024 was
Safety’s book value per share increased to
Today, our Board of Directors approved a
Direct written premiums for the quarter ended September 30, 2024 increased by
The increases in direct written premiums and net written premiums are a result of new business production, and rate increases. For the nine months ended September 30, 2024, the Company achieved exposure count growth across all lines of business, including
Net earned premiums for the quarter ended September 30, 2024 increased by
For the quarter ended September 30, 2024, losses and loss adjustment expenses incurred increased by
Loss, expense, and combined ratios calculated for the quarter ended September 30, 2024, were
Total prior year favorable development included in the pre-tax results for the quarter ended September 30, 2024 was
Net investment income for the quarter ended September 30, 2024 decreased by
Non-GAAP Measures
Management has included certain non-GAAP financial measures in presenting the Company’s results. Management believes that these non-GAAP measures are useful to 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 income 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 benefit (expense) and taxes related thereto. For the three months ended September 30, 2024, an increase of
About Safety: Safety Insurance Group, Inc., based in
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, 2023 Form 10-K with the SEC on February 28, 2024 and urges shareholders to refer to this document for more complete information concerning Safety’s financial results.
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
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 ; - The possibility of losses due to claims resulting from severe weather;
- The impact of inflation and supply chain delays on loss severity;
- The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market;
- The possibility that existing insurance-related laws and regulations will become further restrictive in the future;
- The impact of investment, economic and underwriting market conditions, including interest rates and inflation;
- Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others; and
- 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, 2023 filed with the SEC on February 28, 2024.
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.
Safety Insurance Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
|
|
|||
Assets |
|
|
|
|
|
|
||
Investments: |
|
|
|
|
|
|
||
Fixed maturities, available for sale, at fair value (amortized cost: |
|
$ |
1,098,984 |
|
|
$ |
1,052,145 |
|
Short term investments, at fair value (cost: |
|
|
19,729 |
|
|
|
— |
|
Equity securities, at fair value (cost: |
|
|
226,340 |
|
|
|
238,022 |
|
Other invested assets |
|
|
157,883 |
|
|
|
133,946 |
|
Total investments |
|
|
1,502,936 |
|
|
|
1,424,113 |
|
Cash and cash equivalents |
|
|
62,598 |
|
|
|
38,152 |
|
Accounts receivable, net of allowance for expected credit losses of |
|
|
311,443 |
|
|
|
256,687 |
|
Receivable for securities sold |
|
|
2 |
|
|
|
124 |
|
Accrued investment income |
|
|
7,646 |
|
|
|
7,261 |
|
Taxes recoverable |
|
|
2,233 |
|
|
|
623 |
|
Receivable from reinsurers related to paid loss and loss adjustment expenses |
|
|
26,880 |
|
|
|
13,129 |
|
Receivable from reinsurers related to unpaid loss and loss adjustment expenses |
|
|
131,596 |
|
|
|
112,623 |
|
Ceded unearned premiums |
|
|
37,682 |
|
|
|
32,346 |
|
Deferred policy acquisition costs |
|
|
106,517 |
|
|
|
91,917 |
|
Deferred income taxes |
|
|
4,837 |
|
|
|
12,150 |
|
Equity and deposits in pools |
|
|
9,691 |
|
|
|
35,247 |
|
Operating lease right-of-use-assets |
|
|
16,845 |
|
|
|
19,756 |
|
Goodwill |
|
|
17,093 |
|
|
|
17,093 |
|
Intangible assets |
|
|
7,967 |
|
|
|
7,551 |
|
Other assets |
|
|
24,672 |
|
|
|
25,232 |
|
Total assets |
|
$ |
2,270,638 |
|
|
$ |
2,094,004 |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Loss and loss adjustment expense reserves |
|
$ |
644,175 |
|
|
$ |
603,081 |
|
Unearned premium reserves |
|
|
621,975 |
|
|
|
528,150 |
|
Accounts payable and accrued liabilities |
|
|
69,039 |
|
|
|
64,235 |
|
Payable for securities purchased |
|
|
6,867 |
|
|
|
1,863 |
|
Payable to reinsurers |
|
|
30,296 |
|
|
|
15,941 |
|
Short-term debt |
|
|
30,000 |
|
|
|
— |
|
Long-term debt |
|
|
— |
|
|
|
30,000 |
|
Operating lease liabilities |
|
|
16,845 |
|
|
|
19,756 |
|
Other liabilities |
|
|
— |
|
|
|
26,711 |
|
Total liabilities |
|
|
1,419,197 |
|
|
|
1,289,737 |
|
|
|
|
|
|
|
|
||
Shareholders’ equity |
|
|
|
|
|
|
||
Common stock: |
|
|
180 |
|
|
|
179 |
|
Additional paid-in capital |
|
|
229,891 |
|
|
|
226,380 |
|
Accumulated other comprehensive loss, net of taxes |
|
|
(32,230 |
) |
|
|
(53,191 |
) |
Retained earnings |
|
|
803,893 |
|
|
|
781,192 |
|
Treasury stock, at cost: 3,157,577 shares |
|
|
(150,293 |
) |
|
|
(150,293 |
) |
Total shareholders’ equity |
|
|
851,441 |
|
|
|
804,267 |
|
Total liabilities and shareholders’ equity |
|
$ |
2,270,638 |
|
|
$ |
2,094,004 |
|
Safety Insurance Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earned premiums |
|
$ |
258,657 |
|
|
$ |
214,425 |
|
|
$ |
741,654 |
|
|
$ |
608,385 |
|
Net investment income |
|
|
12,210 |
|
|
|
14,005 |
|
|
|
40,941 |
|
|
|
41,495 |
|
Earnings from partnership investments |
|
|
4,345 |
|
|
|
2,427 |
|
|
|
8,597 |
|
|
|
5,146 |
|
Net realized gains on investments |
|
|
1,314 |
|
|
|
270 |
|
|
|
4,521 |
|
|
|
1,111 |
|
Change in net unrealized gains on equity securities |
|
|
10,698 |
|
|
|
(9,184 |
) |
|
|
14,880 |
|
|
|
(2,148 |
) |
Credit loss expense |
|
|
(158 |
) |
|
|
403 |
|
|
|
(337 |
) |
|
|
(554 |
) |
Commission income |
|
|
1,963 |
|
|
|
1,918 |
|
|
|
5,798 |
|
|
|
5,159 |
|
Finance and other service income |
|
|
6,253 |
|
|
|
5,094 |
|
|
|
17,244 |
|
|
|
13,966 |
|
Total revenue |
|
|
295,282 |
|
|
|
229,358 |
|
|
|
833,298 |
|
|
|
672,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Losses and loss adjustment expenses |
|
|
182,489 |
|
|
|
159,521 |
|
|
|
523,630 |
|
|
|
470,197 |
|
Underwriting, operating and related expenses |
|
|
77,868 |
|
|
|
65,217 |
|
|
|
224,056 |
|
|
|
187,832 |
|
Other expense |
|
|
1,896 |
|
|
|
2,005 |
|
|
|
5,480 |
|
|
|
5,198 |
|
Interest expense |
|
|
124 |
|
|
|
139 |
|
|
|
385 |
|
|
|
697 |
|
Total expenses |
|
|
262,377 |
|
|
|
226,882 |
|
|
|
753,551 |
|
|
|
663,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
32,905 |
|
|
|
2,476 |
|
|
|
79,747 |
|
|
|
8,636 |
|
Income tax expense |
|
|
7,016 |
|
|
|
527 |
|
|
|
17,144 |
|
|
|
2,023 |
|
Net income |
|
$ |
25,889 |
|
|
$ |
1,949 |
|
|
$ |
62,603 |
|
|
$ |
6,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per weighted average common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.74 |
|
|
$ |
0.13 |
|
|
$ |
4.24 |
|
|
$ |
0.45 |
|
Diluted |
|
$ |
1.73 |
|
|
$ |
0.13 |
|
|
$ |
4.24 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends paid per common share |
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
2.70 |
|
|
$ |
2.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Number of shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
14,838,584 |
|
|
|
14,645,988 |
|
|
|
14,689,025 |
|
|
|
14,669,709 |
|
Diluted |
|
|
14,865,211 |
|
|
|
14,682,082 |
|
|
|
14,715,494 |
|
|
|
14,721,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|||||||
Reconciliation of Net Income to Non-GAAP Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
25,889 |
|
|
$ |
1,949 |
|
|
$ |
62,603 |
|
|
$ |
6,613 |
|
Exclusions from net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gains on investments |
|
|
(1,314 |
) |
|
|
(270 |
) |
|
|
(4,521 |
) |
|
|
(1,111 |
) |
Change in net unrealized gains on equity securities |
|
|
(10,698 |
) |
|
|
9,184 |
|
|
|
(14,880 |
) |
|
|
2,148 |
|
Credit loss expense |
|
|
158 |
|
|
|
(403 |
) |
|
|
337 |
|
|
|
554 |
|
Income tax expense (benefit) on exclusions from net income |
|
|
2,489 |
|
|
|
(1,787 |
) |
|
|
4,003 |
|
|
|
(334 |
) |
Non-GAAP operating income |
|
$ |
16,524 |
|
|
$ |
8,673 |
|
|
$ |
47,542 |
|
|
$ |
7,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per diluted share |
|
$ |
1.73 |
|
|
$ |
0.13 |
|
|
$ |
4.24 |
|
|
$ |
0.45 |
|
Exclusions from net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gains on investments |
|
|
(0.09 |
) |
|
|
(0.02 |
) |
|
|
(0.31 |
) |
|
|
(0.08 |
) |
Change in net unrealized gains on equity securities |
|
|
(0.72 |
) |
|
|
0.63 |
|
|
|
(1.01 |
) |
|
|
0.15 |
|
Credit loss expense |
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
0.02 |
|
|
|
0.04 |
|
Income tax expense (benefit) on exclusions from net income |
|
|
0.17 |
|
|
|
(0.12 |
) |
|
|
0.27 |
|
|
|
(0.02 |
) |
Non-GAAP operating income per diluted share |
|
$ |
1.10 |
|
|
$ |
0.59 |
|
|
$ |
3.21 |
|
|
$ |
0.54 |
|
Safety Insurance Group, Inc. and Subsidiaries
Additional Premium Information
(Unaudited)
(Dollars in thousands)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Written Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct |
|
$ |
318,182 |
|
|
$ |
267,124 |
|
|
$ |
901,032 |
|
|
$ |
745,133 |
|
Assumed |
|
|
5,122 |
|
|
|
7,472 |
|
|
|
22,885 |
|
|
|
23,230 |
|
Ceded |
|
|
(30,692 |
) |
|
|
(23,509 |
) |
|
|
(86,075 |
) |
|
|
(69,423 |
) |
Net written premiums |
|
$ |
292,612 |
|
|
$ |
251,087 |
|
|
$ |
837,842 |
|
|
$ |
698,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earned Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct |
|
$ |
282,916 |
|
|
$ |
231,249 |
|
|
$ |
800,708 |
|
|
$ |
654,085 |
|
Assumed |
|
|
4,719 |
|
|
|
6,839 |
|
|
|
21,684 |
|
|
|
22,357 |
|
Ceded |
|
|
(28,978 |
) |
|
|
(23,663 |
) |
|
|
(80,738 |
) |
|
|
(68,057 |
) |
Net earned premiums |
|
$ |
258,657 |
|
|
$ |
214,425 |
|
|
$ |
741,654 |
|
|
$ |
608,385 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105412757/en/
Safety Insurance Group, Inc.
Office of Investor Relations
877-951-2522
InvestorRelations@SafetyInsurance.com
Source: Safety Insurance Group, Inc.
FAQ
What was Safety Insurance Group's (SAFT) net income in Q3 2024?
How much did SAFT's direct written premiums grow in Q3 2024?
What dividend did Safety Insurance (SAFT) declare for Q4 2024?