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Safety Insurance Group
(NASDAQ:SAFT)
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Rating:77Outperform
Price Target:
$117.00
▲(12.84% Upside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by strong underlying financial quality (low leverage, solid cash generation, and a rebound from 2023) and a favorable M&A backdrop with a cash takeout and regulatory progress. Offsetting factors include elevated technical overbought signals (RSI ~79) and a valuation that is supported by yield but not particularly cheap on P/E.
Positive Factors
Conservative Balance Sheet
Persistently low leverage and sizable, generally stable equity provide Safety with financial flexibility and capacity to absorb adverse underwriting periods. This reduces balance-sheet risk and leaves more room to support operations or strategic priorities without relying heavily on additional borrowing.
Negative Factors
Earnings Volatility
The pronounced cycle in margins, earnings, and return on equity shows that profitability is not consistently stable year to year. Sensitivity to underwriting and investment conditions can make future results less predictable and complicate sustained earnings compounding.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Persistently low leverage and sizable, generally stable equity provide Safety with financial flexibility and capacity to absorb adverse underwriting periods. This reduces balance-sheet risk and leaves more room to support operations or strategic priorities without relying heavily on additional borrowing.
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)146.81K
Price to Earnings (P/E)22.1
Beta (1Y)0.22
Revenue Growth7.04%
EPS Growth-18.57%
CountryUS
Employees568
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.68
Shares Outstanding14,680,482
10 Day Avg. Volume123,017
30 Day Avg. Volume146,815
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 investment portfolio (the “float” generated from collected premiums before claims are paid).
1) Underwriting (insurance operations)
- Pr...
Safety Insurance Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.25B | 1.11B | 925.95M | 785.06M | 864.72M |
| Gross Profit | 619.05M | 456.89M | 393.10M | 283.64M | 293.08M | 402.99M |
| EBITDA | 98.74M | 134.99M | 99.84M | 32.19M | 66.72M | 171.69M |
| Net Income | 68.62M | 99.25M | 70.73M | 18.88M | 46.56M | 130.71M |
Balance Sheet | ||||||
| Total Assets | 2.50B | 2.47B | 2.27B | 2.09B | 1.97B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 773.93M | 612.36M | 1.09B | 1.08B | 1.28B |
| Total Debt | 59.77M | 61.86M | 45.73M | 49.76M | 58.34M | 57.12M |
| Total Liabilities | 1.63B | 1.58B | 1.44B | 1.29B | 1.16B | 1.19B |
| Stockholders Equity | 876.65M | 892.31M | 828.46M | 804.27M | 812.00M | 927.17M |
Cash Flow | ||||||
| Free Cash Flow | 175.72M | 191.99M | 124.32M | 50.33M | 42.23M | 133.17M |
| Operating Cash Flow | 180.30M | 194.50M | 128.69M | 52.11M | 44.33M | 141.39M |
| Investing Cash Flow | -107.81M | -125.71M | -54.54M | 24.27M | -19.99M | -65.99M |
| Financing Cash Flow | -53.98M | -53.87M | -53.33M | -63.53M | -62.64M | -65.57M |
Safety Insurance Group Technical Analysis
Positive
103.69
Price Trends
94.75
Positive
83.09
Positive
78.52
Positive
Market Momentum
1.99
Positive
79.34
Negative
46.49
Neutral
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 103.69 is above the 20-day moving average (MA) of 102.94, above the 50-day MA of 94.75, and above the 200-day MA of 78.52, indicating a bullish trend. The MACD of 1.99 indicates Positive momentum. The RSI at 79.34 is Negative, neither overbought nor oversold. The STOCH value of 46.49 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
87 Outperform | $1.04B | 4.94 | 42.41% | 6.76% | 1.45% | 102.69% | |
81 Outperform | $1.24B | 5.57 | 38.78% | 1.75% | 3.96% | 234.26% | |
80 Outperform | $1.42B | 10.04 | 14.96% | 1.38% | 11.18% | 52.50% | |
77 Outperform | $1.52B | 22.12 | 7.79% | 3.56% | 7.04% | -18.57% | |
71 Outperform | $751.84M | 9.87 | 11.01% | 3.86% | -3.10% | -18.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SAFT
Safety Insurance Group
103.51
35.21
51.55%
DGICA
Donegal Group
19.45
1.17
6.41%
UFCS
United Fire Group
54.90
24.32
79.54%
UVE
Universal Insurance Holdings
44.08
19.94
82.59%
HRTG
Heritage Insurance Holdings
34.78
10.30
42.08%
Safety Insurance Group Corporate Events
M&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Safety Insurance clears key antitrust hurdle for MAPFRE merger
Positive
Sep 15, 2026
On July 23, 2026, Safety Insurance Group entered into a merger agreement with MAPFRE U.S.A. Corp., under which a MAPFRE subsidiary will merge into Safety, leaving Safety as a wholly owned subsidiary of MAPFRE. A key regulatory milestone was reache...
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...
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.