Safety Combined Ratio Improves as Mapfre Deal Advances

The Tip Desk · November 11, 2026 · 3 min read

Net income was $30.0 million, or $2.05 a share, as the combined ratio fell to 96.3% and shareholders approved a $1.54 billion cash sale.

Safety Insurance Group (SAFT) reported net income of $30.0 million, or $2.05 a share, for the quarter ended September 30, 2026, compared with $28.3 million, or $1.91 a share, a year earlier.

The Boston-based property and casualty writer, which operates in Massachusetts, New Hampshire and Maine, said the combined ratio improved to 96.3% from 98.9% in the same period last year. Chairman, President and Chief Executive Officer George M. Murphy said the result reflected previous written premium growth earning into revenue and a decrease in losses and loss adjustment expenses, driven by improved loss frequency in private passenger automobile.

Losses and loss adjustment expenses incurred fell $7.4 million, or 3.6%, to $197.6 million from $205.0 million. The loss ratio declined to 67.2% from 70.4%. The expense ratio was 29.1%.

Net earned premiums rose $2.9 million, or 1.0%, to $293.9 million from $291.0 million, which the company attributed to rate increases earning into top-line results. Direct written premiums declined $14.5 million, or 4.3%, to $319.7 million from $334.2 million. Net written premiums fell $13.0 million, or 4.2%, to $296.2 million from $309.2 million. Safety said the written-premium decreases were due to a softening, more competitive market and the cancellation of certain underperforming agency relationships.

Net investment income increased $2.4 million, or 15.0%, to $17.9 million from $15.5 million, which the company described as the largest quarterly net investment income results in its history. The company said the increase was primarily driven by higher assets under management, reinvestment rates that exceeded the yields on maturing securities, and strong alternative asset returns. Net effective annualized yield on the investment portfolio was 4.2% compared with 4.0% a year earlier.

Non-GAAP operating income was $1.95 a share, compared with $1.48 a share in the comparable 2025 period. Other expenses for the quarter included approximately $3.8 million of legal fees incurred in connection with the proposed Mapfre transaction, which were excluded from the expense ratio.

On July 23, 2026, Safety announced a definitive agreement under which an affiliate of Mapfre S.A. will acquire the company in an all-cash transaction valued at approximately $1.54 billion, or $105 a share, a 44% premium to Safety’s stock price as of July 23. On November 3, 2026, shareholders voted in favor of the transaction, which remains subject to regulatory approval.

Book value per share decreased to $58.29 at September 30, 2026 from $60.98 at December 31, 2025, primarily due to decreases in the value of the fixed maturity portfolio. The board approved a $0.92 a share quarterly cash dividend payable on December 15, 2026, matching the $0.92 a share paid during the quarters ended September 30, 2026 and 2025.

The quarter followed a second quarter in which the combined ratio was 95.7% and net income was $34.5 million, or $2.36 a share, and a first quarter in which two winter weather events produced a combined ratio of 113.4% and a net loss of $14.3 million, or $0.99 a share.