AM Best Affirms Credit Ratings of Safety Insurance Group, Inc. and Its Subsidiaries
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
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.
version on businesswire.com: https://www.businesswire.com/news/home/20200505005695/en/
Janet Hernandez Senior Financial Analyst +1 908
439 2200, ext. 5767 firstname.lastname@example.org
Michelle Baurkot Director +1 908 439 2200, ext.
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 email@example.com