Safety Insurance(US:SAFT)2025-11-07 14:18Premiums and Revenue - Direct written premiums for the three months ended September 30, 2025, increased by 5.0% to $334,181, compared to $318,182 in the same period of 2024[127]. - For the nine months ended September 30, 2025, direct written premiums rose to $978,980, a 8.6% increase from $901,032 in 2024[127]. - Net written premiums for Q3 2025 rose by $16,603, or 5.7%, to $309,215 from $292,612 in Q3 2024[154]. - Net earned premiums for Q3 2025 increased by $32,364, or 12.5%, to $291,021 compared to $258,657 in Q3 2024[155]. - Total revenue for the nine months ended September 30, 2025 was $944,397, up from $833,298 in the same period of 2024[152]. Losses and Expenses - Losses and loss adjustment expenses for the three months ended September 30, 2025, increased by $22,493, or 12.3%, to $204,982 from $182,489 in 2024[129]. - The loss ratio for the three months ended September 30, 2025, decreased to 70.4% from 70.6% in 2024, while the expense ratio improved to 28.5% from 30.1%[136]. - Underwriting, operating, and related expenses for the three months ended September 30, 2025 increased by $5,159, or 6.6%, to $83,027 from $77,868 in the comparable 2024 period[175]. - Losses and loss adjustment expenses for Q3 2025 were $204,982, compared to $182,489 in Q3 2024[152]. Income and Profitability - Non-GAAP operating income for the three months ended September 30, 2025, was $21,883, up from $16,524 in the same period of 2024, representing a 32.5% increase[130]. - Net income for the three months ended September 30, 2025 was $28,310, compared to $25,889 for the same period in 2024, reflecting a year-over-year increase of 9.3%[178]. - Non-GAAP operating income for Q3 2025 was $21,883, compared to $16,524 in Q3 2024, reflecting a significant increase[152]. Investment Performance - Net investment income for Q3 2025 grew by $3,325, or 27.2%, to $15,535 from $12,210 in Q3 2024[157]. - The net effective annualized yield on the investment portfolio was 4.0% for both Q3 2025 and the nine months ended September 30, 2025, compared to 3.4% and 3.9% respectively in the comparable periods of 2024[157]. - The company uses a systematic methodology to evaluate declines in fair values of investments, considering factors such as issuer financial condition and historical volatility[234]. Market Position and Ratings - The company has established a strong market position, being the third largest private passenger automobile carrier with a 9.7% market share in Massachusetts[123]. - A.M. Best reaffirmed the company's "A (Excellent)" rating on June 20, 2025[124]. Reserves and Capital - The total net reserves for losses and loss adjustment expenses (LAE) were estimated at $577,917 as of September 30, 2025, with a range of estimations between $537,736 and $603,892[208]. - The company’s total net reserves for losses and LAE include retained reserves of $544,632 and assumed reserves of $33,285 as of September 30, 2025[217]. - The company reported total capital of $758,789 as of December 31, 2024, exceeding the minimum statutory capital requirement of $236,219[196]. Dividends and Share Repurchase - The maximum dividend available for 2025 without prior approval of the Commissioner was $75,879, based on a statutory surplus of $758,789 as of December 31, 2024[190]. - The company paid quarterly dividends of $0.90 per share for the first two quarters of 2025, increasing to $0.92 per share in the third quarter, totaling $13,370, $13,384, and $13,641 in dividends paid and accrued respectively[193]. - As of September 30, 2025, the company had authorized a cumulative share repurchase program of up to $200,000, with no shares repurchased during the three and nine months ended September 30, 2025[194]. Forward-Looking Statements and Risks - Forward-looking statements regarding the company’s strategy for growth and financial results are subject to risks and uncertainties that could materially affect actual outcomes[238]. - The company does not undertake any obligation to update forward-looking statements after their initial date[240].