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SAFT — Safety Insurance News Story

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Refile: Safety Insurance Q2 net earned premiums rise; Mapfre to acquire company

REFILE-Safety Insurance Q2 net earned premiums rise; Mapfre to acquire company

Corrects to add dropped word 'announced' in third Overview bullet point


Overview

  • U.S. property and casualty insurer's Q2 net earned premiums rose 3.4% yr/yr

  • Q2 non-GAAP operating income per share rose to $2.03 from $1.45 yr/yr

  • Company to be acquired by Mapfre affiliate in $1.54 bln all-cash deal, announced after qtr ended


Outlook

  • Company did not provide specific guidance for future quarters or the full year


Result Drivers

  • UNDERWRITING DISCIPLINE - Co said improved combined ratio reflected underwriting discipline and ongoing pricing strategy

  • RATE INCREASES - Net earned premium growth attributed to rate increases earning into top-line results

  • AGENCY CANCELLATIONS - Decline in written premiums primarily due to cancellation of certain underperforming agency relationships


Company press release: ID:nBwhPSy2a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$325.68 mln

Q2 EPS

$2.36

Q2 Net Income

$34.52 mln

Q2 Adjusted Operating Income

$29.67 mln

Q2 Pretax Profit

$43.76 mln


Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the property & casualty insurance peer group is "buy"

  • Wall Street's median 12-month price target for Safety Insurance Group Inc is $49.85, about 51.7% below its August 4 closing price of $103.26


Reuters Recommended Reads

  • Aug 3 - Bowhead Specialty Q2 adjusted EPS beats estimates, to be acquired by American Family

  • Aug 4 - Mercury General Q2 net income rises, combined ratio improves

  • Aug 4 - American Financial Group Q2 revenue beats, helped by premium growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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