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Safety Insurance Group
(NASDAQ:SAFT)
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Rating:79Outperform
Price Target:
$118.00
▲(14.34% Upside)
Action:Reiterated
Date:07/25/26
SAFT scores well primarily due to strong financial resilience (low leverage and solid cash generation) and a significant positive corporate catalyst from the agreed all-cash acquisition. Valuation is supportive thanks to a moderate P/E and a high dividend yield, while technical signals are only moderately constructive given softer/neutral momentum readings.
Positive Factors
Conservative Balance Sheet
Safety’s very low debt-to-equity (~0.06–0.07) provides durable financial flexibility in the capital‑intensive P&C sector. That conservative capital structure supports claim-paying capacity, reduces refinancing risk, and enables strategic choices (reinsurance, capital return or M&A) through underwriting cycles.
Negative Factors
Margin Pressure / Profitability Step‑down
Trailing‑twelve‑month margins have declined materially from 2025 highs, indicating renewed underwriting or expense pressure. Sustained margin erosion would impair underwriting profitability, reduce retained earnings growth and constrain the firm’s ability to build surplus during adverse loss periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Safety’s very low debt-to-equity (~0.06–0.07) provides durable financial flexibility in the capital‑intensive P&C sector. That conservative capital structure supports claim-paying capacity, reduces refinancing risk, and enables strategic choices (reinsurance, capital return or M&A) through underwriting cycles.
Read all positive factors
Safety Insurance Group (SAFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.52B
Dividend Yield3.56%
Average Volume (3M)176.44K
Price to Earnings (P/E)24.3
Beta (1Y)0.32
Revenue Growth10.67%
EPS Growth-13.23%
CountryUS
Employees568
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.25
Shares Outstanding14,683,434
10 Day Avg. Volume261,706
30 Day Avg. Volume176,445
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.28
Price to Sales (P/S)0.91
P/FCF Ratio5.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.75
Revenue Forecast (FY)N/A
Safety Insurance Group Business Overview & Revenue Model
Company Description
Safety Insurance Group, Inc. (SAFT) is a U.S.-based insurance provider offering a diverse range of personal and commercial coverage. The company's private passenger automobile policies furnish protection against third-party bodily injury and prope...
How the Company Makes Money
Safety Insurance Group primarily makes money through (1) underwriting income and (2) investment income on its insurance float. Underwriting income is generated when the premiums it collects on property and casualty policies exceed the costs to ser...
Safety Insurance Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27B | 1.25B | 1.11B | 925.95M | 785.06M | 864.72M |
| Gross Profit | 415.07M | 456.89M | 393.10M | 283.64M | 293.08M | 402.99M |
| EBITDA | 93.41M | 134.99M | 99.84M | 32.19M | 66.72M | 171.69M |
| Net Income | 63.04M | 99.25M | 70.73M | 18.88M | 46.56M | 130.71M |
Balance Sheet | ||||||
| Total Assets | 2.43B | 2.47B | 2.27B | 2.09B | 1.97B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 753.35M | 773.93M | 612.36M | 1.09B | 1.08B | 1.28B |
| Total Debt | 61.10M | 61.86M | 45.73M | 49.76M | 58.34M | 57.12M |
| Total Liabilities | 1.58B | 1.58B | 1.44B | 1.29B | 1.16B | 1.19B |
| Stockholders Equity | 855.75M | 892.31M | 828.46M | 804.27M | 812.00M | 927.17M |
Cash Flow | ||||||
| Free Cash Flow | 170.27M | 191.99M | 124.32M | 50.33M | 42.23M | 133.17M |
| Operating Cash Flow | 174.29M | 194.50M | 128.69M | 52.11M | 44.33M | 141.39M |
| Investing Cash Flow | -130.28M | -125.71M | -54.54M | 24.27M | -19.99M | -65.99M |
| Financing Cash Flow | -53.89M | -53.87M | -53.33M | -63.53M | -62.64M | -65.57M |
Safety Insurance Group Technical Analysis
Positive
103.20
Price Trends
78.88
Positive
75.82
Positive
74.84
Positive
Market Momentum
8.13
Negative
85.64
Negative
88.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFT, the sentiment is Positive. The current price of 103.2 is above the 20-day moving average (MA) of 88.65, above the 50-day MA of 78.88, and above the 200-day MA of 74.84, indicating a bullish trend. The MACD of 8.13 indicates Negative momentum. The RSI at 85.64 is Negative, neither overbought nor oversold. The STOCH value of 88.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAFT.
Safety Insurance Group Risk Analysis
Safety Insurance Group disclosed 24 risk factors in its most recent earnings report. Safety Insurance Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Safety Insurance Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $891.38M | 4.50 | 42.41% | ― | 1.25% | 157.31% | |
82 Outperform | $1.32B | 10.13 | 14.96% | 1.40% | 10.58% | 96.22% | |
81 Outperform | $1.22B | 5.53 | 38.78% | 1.85% | 3.96% | 234.26% | |
79 Outperform | $1.52B | 24.33 | 7.16% | 3.57% | 10.67% | -13.23% | |
71 Outperform | $746.20M | 10.02 | 10.41% | 3.94% | -3.10% | -18.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SAFT
Safety Insurance Group
103.50
35.76
52.79%
DGICA
Donegal Group
19.53
3.34
20.66%
UFCS
United Fire Group
54.93
26.45
92.89%
UVE
Universal Insurance Holdings
45.08
22.27
97.62%
HRTG
Heritage Insurance Holdings
35.21
14.55
70.43%
Safety Insurance Group Corporate Events
Business Operations and StrategyM&A Transactions
Safety Insurance to be Acquired by MAPFRE U.S.A.
Positive
Jul 24, 2026
On July 23, 2026, Safety Insurance Group, Inc. agreed to be acquired by MAPFRE U.S.A. Corp. in an all-cash merger under which a MAPFRE subsidiary will merge into Safety Insurance, which will become a wholly owned unit of MAPFRE. Each outstanding s...
Business Operations and StrategyM&A Transactions
Mapfre to Acquire Safety Insurance Group in Cash Deal
Positive
Jul 23, 2026
On July 23, 2026, Safety Insurance Group announced a definitive agreement for an affiliate of Spain’s Mapfre S.A. to acquire the company in an all‑cash deal valued at about $1.54 billion, with shareholders set to receive $105 per share...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Safety Insurance Expands and Extends Revolving Credit Facility
Positive
Jun 15, 2026
On June 9, 2026, Safety Insurance Group, Inc. amended its revolving credit agreement with Citizens Bank, doubling the committed facility size from $50 million to $100 million and extending the maturity to June 9, 2031. The company had not drawn on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.