Safety Insurance Group, Inc., on Monday, November 3, 2025, announced improved profitability for the third quarter of 2025, as rising premiums helped push the insurer’s underwriting results back into the black.
The Boston-based insurer reported net income of $28.3 million, or $1.91 per diluted share, for the quarter ending September 30, 2025. This represents an increase from the $25.9 million, or $1.73 per diluted share, reported in the same period last year.
A key driver of the improved results was the company’s combined ratio, a critical measure of underwriting profitability. The ratio improved to 98.9% from 100.7% in the prior-year quarter. A ratio below 100% indicates the company earned more in premiums than it paid out in claims and expenses.
George M. Murphy, Safety’s Chairman, President, and CEO, attributed the gains to pricing strategy and underwriting discipline. “The year-over-year improvement in combined ratio reflects the impact of our prior year growth in policy counts and rate increases earning into top-line results,” Murphy stated in the announcement.
Key Third Quarter Financials
Safety reported broad-based growth in its quarterly announcement. Key results for the third quarter of 2025, compared to the third quarter of 2024, include:
- Combined Ratio: 98.9%, an improvement from 100.7%.
- Net Earned Premiums: Increased 12.5% to $291.0 million.
- Direct Written Premiums: Grew 5.0% to $334.2 million.
- Net Investment Income: Rose 27.2% to $15.5 million, which the company credited to increases in interest rates on its fixed maturity portfolio.
- Book Value Per Share: Increased to $60.40 at the end of the quarter, up 8.2% from $55.83 at the end of 2024.
Premiums Up, But So Are Losses
The company confirmed that the 5.0% increase in direct written premiums was “a result of rate increases”. For the first nine months of the year, average written premium per policy increased by:
- 8.7% in Private Passenger Automobile
- 6.2% in Commercial Automobile
- 9.8% in Homeowners lines
However, the insurer also faced higher claims costs. Losses and loss adjustment expenses incurred for the quarter increased 12.3% to $205.0 million. Safety said this increase was “driven by our larger policy counts and current market conditions, specifically inflationary impacts on our Private Passenger Automobile book of business”.
Capital and Shareholder Returns
Safety also announced moves related to its capital management strategy.
The company’s Board of Directors approved a quarterly cash dividend of $0.92 per share, payable on December 15, 2025, to shareholders of record on December 1, 2025.
Furthermore, Safety signaled it would resume its stock buyback program. “In alignment with our capital management strategy, we intend to recommence share repurchases,” the company stated. Safety has $44.76 million remaining under its existing share repurchase authorization.
Safety Insurance Group, Inc. operates in Massachusetts, New Hampshire, and Maine, and is a leading provider of property and casualty products, including private passenger auto, commercial auto, and homeowners policies.
Safety’s shares are listed on the NASDAQ under the symbol: “SAFT.”
