Safety Insurance Group Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Safety Insurance Group, Inc. has submitted its 2023 10-K filing detailing financial performance and investment holdings.</b>

AI Summary

SAFETY INSURANCE GROUP INC (SAFT) filed a Annual Report (10-K) with the SEC on February 28, 2024. Safety Insurance Group, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the company's financial performance and operations for the year. Key financial statement elements like Common Stock, Retained Earnings, and Additional Paid-In Capital are detailed for 2023, 2022, 2021, and 2020. Investment details include holdings in US Treasury and Government securities, US States and Political Subdivisions, and various fixed maturity and equity securities as of December 31, 2023. The report also references specific insurance product lines such as Private Passenger Automobile and Commercial Automobile insurance as of December 31, 2022.

Why It Matters

For investors and stakeholders tracking SAFETY INSURANCE GROUP INC, this filing contains several important signals. The 10-K filing provides a comprehensive overview of Safety Insurance Group's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. Detailed breakdowns of equity, investments, and insurance product lines offer specific insights into the company's asset allocation and market focus, enabling a deeper understanding of its business strategy.

Risk Assessment

Risk Level: low — SAFETY INSURANCE GROUP INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and investment portfolio within the 10-K to understand Safety Insurance Group's 2023 performance and asset allocation.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-28 — Filing Date (FILED AS OF DATE)
• 108 — Document Count (PUBLIC DOCUMENT COUNT)
• 6331 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 134181699 — IRS Number (IRS NUMBER)
• DE — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• SAFETY INSURANCE GROUP INC (company) — FILER
• 20 CUSTOM HOUSE STREET (company) — BUSINESS ADDRESS
• BOSTON (company) — BUSINESS ADDRESS
• MA (company) — BUSINESS ADDRESS
• 02110 (company) — BUSINESS ADDRESS
• SAFETY HOLDINGS INC (company) — FORMER COMPANY
• 2002-04-24 (company) — DATE OF NAME CHANGE
• SAFETY NORTHEAST INSURANCE AGENCY INC (company) — Subsidiary

FAQ

Industry Context

Safety Insurance Group, Inc. operates within the Fire, Marine & Casualty Insurance industry.

Regulatory Implications

The filing is a standard 10-K report under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the consolidated financial statements for the fiscal year ended December 31, 2023.
2. Review the investment portfolio details, including holdings in government securities and various fixed maturity and equity investments.
3. Examine disclosures related to insurance product lines and subsidiaries for operational insights.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This 10-K filing represents the annual disclosure for the fiscal year 2023, following previous filings which would have covered prior periods.

Key Financial Figures

• $0.01 — ge on which registered Common Shares, $0.01 par value per share SAFT The Nasdaq
• $1,000 — licies at standard rates with limits of $1,000 to $5,000. Dwelling Fire (1.1% of 202
• $5,000 — standard rates with limits of $1,000 to $5,000. Dwelling Fire (1.1% of 2023 direct w
• $5 m — er. Scheduled items valued at more than $5 must meet our underwriting guidelines and
• $75 — lengths of 32 feet, valued at less than $75 and maximum speed of 39 knots. We write
• $205,000 — rcial Automobile Program. Approximately $205,000 of ceded premium is spread equitably am

Filing Documents

• saft-20231231x10k.htm (10-K) — 6561KB
• saft-20231231xex21.htm (EX-21) — 10KB
• saft-20231231xex23.htm (EX-23) — 3KB
• saft-20231231xex31d1.htm (EX-31.1) — 12KB
• saft-20231231xex31d2.htm (EX-31.2) — 12KB
• saft-20231231xex32d1.htm (EX-32.1) — 5KB
• saft-20231231xex32d2.htm (EX-32.2) — 5KB
• saft-20231231xex97d1.htm (EX-97.1) — 40KB
• saft-20231231x10k004.jpg (GRAPHIC) — 61KB
• 0001172052-24-000008.txt (&nbsp;) — 24474KB
• saft-20231231.xsd (EX-101.SCH) — 72KB
• saft-20231231_cal.xml (EX-101.CAL) — 119KB
• saft-20231231_def.xml (EX-101.DEF) — 278KB
• saft-20231231_lab.xml (EX-101.LAB) — 781KB
• saft-20231231_pre.xml (EX-101.PRE) — 558KB
• saft-20231231x10k_htm.xml (XML) — 6703KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 25 Item 1B. Unresolved Staff Comments 33 Item 1C. Cybersecurity 33 Item 2.

Properties

Properties 35 Item 3.

Legal Proceedings

Legal Proceedings 35 Item 4. Mine Safety Disclosures 35 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6. [Reserved] 39 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 60 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 99 Item 9A.

Controls and Procedures

Controls and Procedures 99 Item 9B. Other Information 100 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 100 PART III. Item 10. Directors, Executive Officers and Corporate Governance 101 Item 11.

Executive Compensation

Executive Compensation 101 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 101 Item 13. Certain Relationships and Related Transactions, and Director Independence 101 Item 14. Principal Accounting Fees and Services 101 PART IV. Item 15. Exhibits, Financial Statement Schedules 101 Item 16 Form 10-K Summary 113

SIGNATURES

SIGNATURES 114 Table of Contents In this Form 10-K, all dollar amounts are presented in thousands, except average premium, average claim and per claim data, share, and per share data. PART I.

BUSINESS

ITEM 1. BUSINESS General We are a leading provider of private passenger automobile, commercial automobile, and homeowners insurance in Massachusetts. In addition to these coverages, we offer a portfolio of other insurance products, including dwelling fire, umbrella and business owner policies. Operating exclusively in Massachusetts, New Hampshire and Maine through our insurance company subsidiaries, Safety Insurance Company ("Safety Insurance"), Safety Indemnity Insurance Company ("Safety Indemnity"), Safety Property and Casualty Insurance Company ("Safety P&C"), and Safety Northeast Insurance Company ("Safety Northeast") (together referred to as the "Insurance Subsidiaries"), we have established strong relationships with independent insurance agents, who numbered 834 in 1,090 locations throughout these three states during 2023. We have used these relationships and, in particular, our extensive knowledge of the Massachusetts market to become the third largest private passenger automobile carrier and the second largest commercial automobile carrier in Massachusetts, capturing an approximate 8.7% and 12.7% share, respectively, of the Massachusetts private passenger and commercial automobile markets in 2023 according to statistics compiled by Commonwealth Automobile Reinsurers ("CAR"). We also are the fourth largest homeowners insurance carrier in Massachusetts with a 6.2% share of that market in 2022. We were ranked the 50 th largest automobile writer in the country according to S&P Global Market Intelligence, based on 2022 direct written premiums. We were incorporated under the laws of Delaware in 2001, but through our predecessors, we have underwritten insurance in Massachusetts since 1979. Our Insurance Subsidiaries began writing insurance in New Hampshire during 2008 and Maine in 2016. The table below shows the amount of direct written premiums written in each state during the year ended December 31, 2023, 2022, and 2021. Years Ended December 31, Direct

View Full Filing

View this 10-K filing on SEC EDGAR