AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Safety Insurance Company, Safety Indemnity Insurance Company and Safety Property and Casualty Insurance Company, collectively referred to as Safety Group (Safety). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlook of these Credit Ratings (ratings) remains stable. All companies are domiciled in Boston, MA, except where specified.

The ratings reflect Safety’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Safety’s very strong balance sheet strength is derived from favorable reserve development trends, low underwriting leverage measures and sound liquidity measures. In addition, Safety benefits from the financial flexibility afforded by its publicly traded parent, which has the ability to access capital markets.

Safety’s strong operating performance is derived by favorable underwriting and investment income. The strong profitability has supported policyholder surplus growth and is the result of management’s ability to manage the challenges in Massachusetts successfully, where it writes the majority of its business.

AM Best assesses Safety’s business profile as neutral due to its leading market position and diverse product offerings, partially offset by its geographic concentration in Massachusetts, which exposes Safety to above average economic, regulatory and legislative risks. AM Best considers Safety’s ERM as appropriate for the company’s size and scope of operations; however, Safety is exposed to considerable catastrophe tail risk and has implemented strategies to reduce this exposure.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Janet Hernandez Senior Financial Analyst +1 908 439 2200, ext. 5767 janet.hernandez@ambest.com

Michelle Baurkot Director +1 908 439 2200, ext. 5829 michelle.baurkot@ambest.com

Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 christopher.sharkey@ambest.com

Jim Peavy Director, Public Relations +1 908 439 2200, ext. 5644 james.peavy@ambest.com