On this page of StockholderLetter.com we present the latest annual shareholder letter from SAFETY INSURANCE GROUP INC — ticker symbol SAFT. Reading current and past SAFT letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 72 285 6+$5(+2/'(56
Safety Insurance was founded in 1979 with a belief that we would succeed as a company if customers were given the best possible service. As we ve grown and expanded our product line to include a full portfolio of property and casualty insurance products, staying committed to that belief has meant even more. The key to our success: SERVICE. At Safety, we do everything possible to make it easy for our agents and policyholders to do business with us. Today, Safety is the fourth largest private passenger automobile carrier, the largest commercial automobile carrier, and the third largest homeowners carrier in The key to our customers success: SAFETY. Massachusetts. We support our network of independent agents with state-of-the-art tools that make the ease and convenience of doing business with Safety second to none. Together with our agents, Safety Insurance remains a premier provider of property and casualty insurance in Massachusetts, New Hampshire, and Maine. We ll continue this tradition into the future. We help you manage life s storms
D EAR FELLOW STOCK H O LD E R S: In 2025, Safety Insurance Group achieved a combined ratio of 99.0% compared to 101.1% from the prior year. The year-over-year improvement in combined ratio re ects the impact of our prior year growth in policy counts and rate increases earning into top-line results. Our improved underwriting results, coupled with favorable results in other revenue lines, positively impacted earnings per share, which improved to $6.72 for the year ended December 31, 2025, compared to $4.79 for the same period in the prior year. Safety s book value per share increased by 9.2% to $60.98 at December 31, 2025 from $55.83 at December 31, 2024 resulting from net income and increases in the value of our xed maturity portfolio, o set by dividends paid. Safety purchased $20 million in share repurchases during 2025. This re ects our con dence in the durability of our business Our dividend yield ranks in the top three of our Performance Peer Group. and our commitment to delivering shareholder value. During the year, we increased our dividend to $0.92 per share per quarter and as a result, paid $3.64 per share in dividends to investors in 2025 compared to $3.60 in 2024. Our dividend yield ranks in the top three of our Performance Peer Group and remains a priority of the Board of Directors and management team. Our direct written premium increased by 7.2% over the prior year, to a total of $1.28 billion. Our strong top-line growth was George M. Murphy 3UHVLGHQW DQG &KLHI ([HFXWLYH 2 FHU a result of higher average written premium per policy in our three largest lines of business; Private Passenger Automobile, 8.1%, Commercial Automobile, 4.6% and Homeowners, 9.7%. As always, we focus on pricing our products appropriately while maintaining underwriting discipline. The long-term commitment to strong underwriting results and enhanced investment returns, remains unchanged. Our investment objective focuses on maximizing total returns while investing conservatively. Our investment portfolio increased by 11.5% during 2025 and net e ective annual yield was 4.0% with net investment income of $62.7 million for the year ended December 31, 2025. We additionally generated $8.5 million on our partnership investments and $18.0 million in realized gains in 2025. The total income of $89.2 million in these three income sources represents a 21.0% increase as compared to the prior year. We believe that our current portfolio position and strong underlying operating cash ow provides su cient liquidity to meet our needs. Safety Insurance 2024 Annual Report 6DIHW\ ,QVXUDQFH $QQXDO 5HSRUW 1
Our long-standing strategy remains consistent as we look to maintain strong Total Assets independent agent relationships. In contrast to some of our competitors, Safety (Dollars in Billions) $2.47 2025 $2.27 2024 $2.09 2023 distributes its products exclusively through our extensive network of agents throughout Massachusetts, New Hampshire, and Maine. We support them with a full suite of insurance products and information technology services, which enables them to better serve their customers and more easily transact business with us. Safety is proud of our history as an independent agency company and remains $1.97 2022 $2.12 2021 committed to the agency channel. Our ownership of Safety Northeast Insurance Agency, allows us to leverage the bene ts and o erings of the operation into our own internal Service Center. The agency also provides us the opportunity to develop new product and service o erings from our agency partner s perspective. In 2025, we saw an 11.8% increase in base commission income and pre-tax net income of Total Revenues (Excluding Changes in Unrealized Gains on Equity Investments) (Dollars in Millions) $1,264.50 2025 $1,116.10 2024 $923.40 2023 2021 We continue to invest in technology enhancements for our core systems that are aimed at providing our independent agents and consumers with useful tools to enhance the user experience. Through our Innovation Lab, we have taken meaningful steps toward AI maturity through enterprise GenAI policies, early automation initiatives, AI-enabled RPA programs, experimentation with leading technology tools, document extraction, and work ow automation. During 2025, we continued to re ne and train Large Language Models and built a virtual assistant $842.00 2022 $4.2 million when removing intercompany and depreciation expenses. that enables natural language inquiries, which has been introduced internally with plans for agent rollout in 2026. Claims is also working to introduce a Virtual $868.80 AI Voice Assistant to handle inquiries and improve operational e ciency; this capability is expected to launch in the rst half of 2026, with customer experience enhancements to follow. Net Income (Dollars in Millions) $99.30 2025 Our strategy of providing agents with value and unparalleled service has enabled Safety to establish strong relationships with agency partners and to capture a larger share of the total business written by each agent. We position ourselves as 2024 $70.70 2023 $18.88 2022 2021 the preferred insurance carrier for those agents and are ranked rst or second in over 70% of their agencies based on direct written premium. We have translated our competitive advantage and extensive knowledge of the market to become $46.60 the largest commercial automobile carrier, the fourth largest private passenger $130.70 automobile carrier and the third largest homeowners carrier in Massachusetts. Our insurance subsidiaries A (xcellent )inancial Strength Rating was rea rmed by A.M. Best on -une 18, 2025. In rea rming the rating, A.M. Best recognized our 22 Safety6DIHW\ ,QVXUDQFH $QQXDO 5HSRUW Insurance 2024 Annual Report
For the fourth consecutive year, we were named to the Ward s 50 group of top performing property and casualty insurance companies. solid risk-adjusted capitalization, historically strong operating income, favorable loss reserve development, our market position as a leading property and casualty insurance writer in the New England region, and appropriate enterprise risk management. A.M. Best also noted our low investment leverage and disciplined underwriting approach as important strengths. For the fourth consecutive year, we were named to the Ward s 50 group of top performing property and casualty insurance companies. Ward Group analyzed the nancial performance of nearly 3,000 property-casualty insurance companies based in the 8nited States and identi ed the top performances based on objective data and subjective quality measures. Each company must pass primary safety and consistency tests and are measured and scored along ve-year average returns on equity, assets, total revenue, growth in revenue, growth in surplus, and combined ratio. Cash Flows from Operations Our employees give both their time and their nancial resources to charities of (Dollars in Millions) all types, and the company promotes corporate citizenship through charitable $194.50 2025 2024 $128.69 2023 $52.11 2022 2021 $44.30 $141.40 donations and company-sponsored volunteer activities. Safety is committed to making a positive impact on the communities where our employees live and work through our matching gift program, corporate giving and employee volunteerism. The Safety Insurance Charitable Foundation nancially supports a wide array of charities in areas such as community service, veterans bene ts, education, job training, homelessness, arts/culture, food banks, youth programs, healthcare, medical research and disaster relief. With the support of an experienced, knowledgeable and dedicated Board of Directors and senior management team, we continue to achieve nancial success. The Total Direct Written Premiums (Dollars in Thousands) 2025 2024 2023 $1,278,605 $1,193,057 ongoing commitment of our employees, allows us to continually provide the best service possible to our independent agent partners and policyholders. This has resulted in a history of strong returns and enduring value for our stockholders. We appreciate your long-term participation as a stockholder of Safety Insurance Group. Sincerely, $991,224 2022 $823,318 2021 $802,139 George M. Murphy Chairperson of the Board of Directors, President, and Chief Executive O cer Safety Insurance 2024 Annual Report 6DIHW\ ,QVXUDQFH $QQXDO 5HSRUW 33
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SAFT Shareholder/Stockholder Letter Transcript:


ANNUAL
REPORT
72 
285 
6+$5(+2/'(56

Safety Insurance was founded in
1979 with a belief that we would succeed
as a company if customers were given
the best possible service. As we   ve grown
and expanded our product line to include
a full portfolio of property and casualty
insurance products, staying committed
to that belief has meant even more.
The key to
our success:
SERVICE.
At Safety, we do everything possible
to make it easy for our agents and
policyholders to do business with us.
Today, Safety is the fourth largest private passenger
automobile carrier, the largest commercial automobile
carrier, and the third largest homeowners carrier in
The key to our
customers   
success: SAFETY.
Massachusetts. We support our network of independent
agents with state-of-the-art tools that make the ease
and convenience of doing business with Safety second
to none.
Together with our agents, Safety Insurance remains
a premier provider of property and casualty insurance
in Massachusetts, New Hampshire, and Maine.
We   ll continue this tradition into the future.
We help you manage
life   s storms

D EAR FELLOW STOCK H O LD E R S:
In 2025, Safety Insurance Group achieved a combined ratio
of 99.0% compared to 101.1% from the prior year. The year-over-year improvement in combined ratio
re   ects the impact of our prior year growth in policy counts and rate increases earning into top-line
results. Our improved underwriting results, coupled with favorable results in other revenue lines,
positively impacted earnings per share, which improved to $6.72 for the year ended December 31, 2025,
compared to $4.79 for the same period in the prior year.
Safety   s book value per share increased by 9.2% to $60.98 at
December 31, 2025 from $55.83 at December 31, 2024
resulting from net income and increases in the value of
our    xed maturity portfolio, o   set by dividends paid. Safety
purchased $20 million in share repurchases during 2025.
This re   ects our con   dence in the durability of our business
Our dividend
yield ranks
in the top
three of our
Performance
Peer Group.
and our commitment to delivering shareholder value.
During the year, we increased our dividend to $0.92 per share
per quarter and as a result, paid $3.64 per share in dividends
to investors in 2025 compared to $3.60 in 2024. Our dividend
yield ranks in the top three of our Performance Peer Group
and remains a priority of the Board of Directors and
management team.
Our direct written premium increased by 7.2% over the prior
year, to a total of $1.28 billion. Our strong top-line growth was
George M. Murphy
3UHVLGHQW DQG &KLHI ([HFXWLYH 2  FHU
a result of higher average written premium per policy in our
three largest lines of business; Private Passenger Automobile, 8.1%, Commercial Automobile, 4.6%
and Homeowners, 9.7%. As always, we focus on pricing our products appropriately while maintaining
underwriting discipline.
The long-term commitment to strong underwriting results and enhanced investment returns,
remains unchanged. Our investment objective focuses on maximizing total returns while investing
conservatively. Our investment portfolio increased by 11.5% during 2025 and net e   ective annual yield
was 4.0% with net investment income of $62.7 million for the year ended December 31, 2025. We
additionally generated $8.5 million on our partnership investments and $18.0 million in realized gains
in 2025. The total income of $89.2 million in these three income sources represents a 21.0% increase
as compared to the prior year. We believe that our current portfolio position and strong underlying
operating cash    ow provides su   cient liquidity to meet our needs.
Safety Insurance 2024 Annual Report
6DIHW\ ,QVXUDQFH      $QQXDO 5HSRUW
1

Our long-standing strategy remains consistent as we look to maintain strong
Total Assets
independent agent relationships. In contrast to some of our competitors, Safety
(Dollars in Billions)
$2.47
2025
$2.27
2024
$2.09
2023
distributes its products exclusively through our extensive network of agents
throughout Massachusetts, New Hampshire, and Maine. We support them with a
full suite of insurance products and information technology services, which enables
them to better serve their customers and more easily transact business with us.
Safety is proud of our history as an independent agency company and remains
$1.97
2022
$2.12
2021
committed to the agency channel. Our ownership of Safety Northeast Insurance
Agency, allows us to leverage the bene   ts and o   erings of the operation into our
own internal Service Center. The agency also provides us the opportunity to develop
new product and service o   erings from our agency partner   s perspective. In 2025,
we saw an 11.8% increase in base commission income and pre-tax net income of
Total Revenues
(Excluding Changes in Unrealized
Gains on Equity Investments)
(Dollars in Millions)
$1,264.50
2025
$1,116.10
2024
$923.40
2023
2021
We continue to invest in technology enhancements for our core systems that
are aimed at providing our independent agents and consumers with useful tools
to enhance the user experience. Through our Innovation Lab, we have taken
meaningful steps toward AI maturity through enterprise GenAI policies, early
automation initiatives, AI-enabled RPA programs, experimentation with leading
technology tools, document extraction, and work   ow automation. During 2025, we
continued to re   ne and train Large Language Models and built a virtual assistant
$842.00
2022
$4.2 million when removing intercompany and depreciation expenses.
that enables natural language inquiries, which has been introduced internally
with plans for agent rollout in 2026. Claims is also working to introduce a Virtual
$868.80
AI Voice Assistant to handle inquiries and improve operational e   ciency; this
capability is expected to launch in the    rst half of 2026, with customer experience
enhancements to follow.
Net Income
(Dollars in Millions)
$99.30
2025
Our strategy of providing agents with value and unparalleled service has enabled
Safety to establish strong relationships with agency partners and to capture a
larger share of the total business written by each agent. We position ourselves as
2024
$70.70
2023
$18.88
2022
2021
the preferred insurance carrier for those agents and are ranked    rst or second in
over 70% of their agencies based on direct written premium. We have translated
our competitive advantage and extensive knowledge of the market to become
$46.60
the largest commercial automobile carrier, the fourth largest private passenger
$130.70
automobile carrier and the third largest homeowners carrier in Massachusetts.
Our insurance subsidiaries     A       (xcellent )inancial Strength Rating was rea   rmed
by A.M. Best on -une 18, 2025. In rea   rming the rating, A.M. Best recognized our
22 Safety6DIHW\ ,QVXUDQFH      $QQXDO 5HSRUW
Insurance 2024 Annual Report

For the fourth
consecutive year,
we were named
to the Ward   s
50 group of top
performing
property
and casualty
insurance
companies.
solid risk-adjusted capitalization, historically strong operating income, favorable
loss reserve development, our market position as a leading property and casualty
insurance writer in the New England region, and appropriate enterprise risk
management. A.M. Best also noted our low investment leverage and disciplined
underwriting approach as important strengths.
For the fourth consecutive year, we were named to the Ward   s 50 group of top
performing property and casualty insurance companies. Ward Group analyzed the
   nancial performance of nearly 3,000 property-casualty insurance companies based
in the 8nited States and identi   ed the top performances based on objective data and
subjective quality measures. Each company must pass primary safety and consistency
tests and are measured and scored along    ve-year average returns on equity,
assets, total revenue, growth in revenue, growth in surplus, and combined ratio.
Cash Flows from
Operations
Our employees give both their time and their    nancial resources to charities of
(Dollars in Millions)
all types, and the company promotes corporate citizenship through charitable
$194.50
2025
2024
$128.69
2023
$52.11
2022
2021
$44.30
$141.40
donations and company-sponsored volunteer activities. Safety is committed to
making a positive impact on the communities where our employees live and work
through our matching gift program, corporate giving and employee volunteerism.
The Safety Insurance Charitable Foundation    nancially supports a wide array
of charities in areas such as community service, veterans bene   ts, education, job
training, homelessness, arts/culture, food banks, youth programs, healthcare,
medical research and disaster relief.
With the support of an experienced, knowledgeable and dedicated Board of Directors
and senior management team, we continue to achieve    nancial success. The
Total Direct
Written Premiums
(Dollars in Thousands)
2025
2024
2023
$1,278,605
$1,193,057
ongoing commitment of our employees, allows us to continually provide the best
service possible to our independent agent partners and policyholders. This has
resulted in a history of strong returns and enduring value for our stockholders. We
appreciate your long-term participation as a stockholder of Safety Insurance Group.
Sincerely,
$991,224
2022
$823,318
2021
$802,139
George M. Murphy
Chairperson of the Board of Directors, President, and Chief Executive O   cer
Safety Insurance 2024 Annual Report
6DIHW\ ,QVXUDQFH      $QQXDO 5HSRUW
33


shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 

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