AM Best Revises Outlooks to Negative for Safety Insurance Group, Inc. and Its Key Subsidiaries

JULY 15, 2026 12:28 PM (EDT)

AM Best Revises Outlooks to Negative for Safety Insurance Group, Inc. and Its Key Subsidiaries

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FOR IMMEDIATE RELEASE

OLDWICK - JULY 15, 2026 12:28 PM (EDT)
AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" (Excellent) for Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. Collectively, these companies are referred to as Safety Group. At the same time, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of "bbb" (Good) of Safety Insurance Group, Inc. (Delaware) [NASDAQ-GS: SAFT], the publicly traded parent of Safety. All companies are domiciled in Boston, MA, except where specified.

The Credit Ratings (ratings) reflect Safety Group's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks reflects pressure on Safety Group's operating performance assessment of strong, as the effects of loss severity trends and weather-related events, and the influence of new business, have impacted underwriting results over the most recent five-year period and through the first half of 2026. The current year has been particularly impacted by severe winter weather losses affecting the East Coast. As a result, key operating performance metrics have aligned closer to an assessment level of adequate in recent years, particularly relative to the personal property composite. Management has implemented rate increases and additional underwriting initiatives to improve prospective results; however, they have yet to reach the same level of comparative strength as observed in older years.

Safety Group's balance sheet strength, which AM Best assesses as strong, is supported by the strong level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), historically favorable reserve development and sound liquidity metrics. Surplus levels are influenced by annual dividends to the parent company to pay a shareholder dividend. Still, the group benefits from the relationship with its parent, Safety Insurance Group, Inc., which can access public debt and equity markets if needed.

Safety Group's neutral business profile assessment is based on its consistent position as a top five carrier in the personal auto, commercial auto and homeowners' markets in Massachusetts. The group's ERM assessment, viewed as appropriate, is supported by a formalized ERM program that displays a prudent level of sophistication that is appropriate for the group's risk profile.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.