Safety Insurance Group, Inc. has recently released its 10-K report, providing detailed insights into its business operations and financial performance. The company is a leading provider of private passenger automobile, commercial automobile, and homeowners insurance in the United States, operating exclusively in Massachusetts, New Hampshire, and Maine through its insurance company subsidiaries. Safety Insurance has established strong relationships with independent insurance agents, with a significant market share in the Massachusetts private passenger and commercial automobile markets.
Safety Insurance reported a 30.4% increase in losses and loss adjustment expenses incurred for the three months ended December 31, 2023, primarily due to continued inflationary impacts on its Private Passenger Automobile line of business and a severe weather event. The company also experienced a 20.4% growth in direct written premiums for the year ended December 31, 2023, driven by new business production, improved retention, and rate increases.
The 10-K report also highlighted recent severe weather events, including a February Winter Freeze and a December Wind Storm, which resulted in approximately 800 and 1,000 claims, respectively, totaling significant losses and loss adjustment expenses for the year ended December 31, 2023. The losses and loss adjustment expenses incurred for the year increased by 30.6% compared to the previous year, primarily due to multiple flood events and high wind events impacting the Homeowners line of business.
Furthermore, Safety Insurance provided a breakdown of its insurance ratios, revealing a 77.0% loss ratio and a 30.7% expense ratio for the year ended December 31, 2023, resulting in a combined ratio of 107.7%. The company also discussed its share-based compensation plans, including the Amended and Restated Safety Insurance Group, Inc. 2018 Long-Term Incentive Plan, which enables the grant of various stock awards, performance shares, and other stock-based awards to eligible participants.
The market has reacted to these announcements by moving the company's shares -4.0% to a price of $82.17. For the full picture, make sure to review Safety Insurance's 10-K report.
