NasdaqGS:SAFT

Stock Analysis Report

Executive Summary

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States.


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Safety Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAFT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.0%

SAFT

14.9%

US Insurance

10.5%

US Market


1 Year Return

-12.1%

SAFT

-19.4%

US Insurance

-11.5%

US Market

Return vs Industry: SAFT exceeded the US Insurance industry which returned -19.4% over the past year.

Return vs Market: SAFT matched the US Market which returned -11.5% over the past year.


Shareholder returns

SAFTIndustryMarket
7 Day13.0%14.9%10.5%
30 Day-9.9%-24.0%-15.4%
90 Day-17.1%-28.5%-21.4%
1 Year-8.7%-12.1%-17.4%-19.4%-9.6%-11.5%
3 Year22.7%9.3%-6.8%-14.1%12.6%5.4%
5 Year57.2%27.6%17.8%3.5%32.8%18.1%

Price Volatility Vs. Market

How volatile is Safety Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Safety Insurance Group undervalued compared to its fair value and its price relative to the market?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAFT ($76.6) is trading below our estimate of fair value ($79.97)

Significantly Below Fair Value: SAFT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SAFT is poor value based on its PE Ratio (11.8x) compared to the Insurance industry average (9x).

PE vs Market: SAFT is good value based on its PE Ratio (11.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SAFT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SAFT is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Safety Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.2%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Safety Insurance Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Safety Insurance Group performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFT has high quality earnings.

Growing Profit Margin: SAFT's current net profit margins (11.3%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: SAFT's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: SAFT's earnings growth over the past year (19.8%) is below its 5-year average (31.7% per year).

Earnings vs Industry: SAFT earnings growth over the past year (19.8%) underperformed the Insurance industry 43.7%.


Return on Equity

High ROE: SAFT's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Safety Insurance Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SAFT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SAFT's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: SAFT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SAFT has a sufficient allowance for bad loans.

Low Risk Liabilities: SAFT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SAFT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SAFT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SAFT has an appropriate level of bad loans.


Next Steps

Dividend

What is Safety Insurance Group's current dividend yield, its reliability and sustainability?

4.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAFT's dividend (4.7%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SAFT's dividend (4.7%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: SAFT's dividends per share have been stable in the past 10 years.

Growing Dividend: SAFT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), SAFT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

George Murphy (52yo)

3.92s

Tenure

US$3,093,689

Compensation

Mr. George Michael Murphy, CPCU, has been Chief Executive Officer and President at Safety Insurance Group, Inc. since April 1, 2016. Mr. Murphy has been employed by Safety Insurance’s Insurance Subsidiarie ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD3.09M) is about average for companies of similar size in the US market ($USD3.12M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Murphy
President3.92yrsUS$3.09m0.51% $6.0m
James Berry
Vice President of Underwriting4.67yrsUS$1.39m0.18% $2.1m
Christopher Whitford
VP, CFOno datano data0.054% $631.0k
John Drago
Vice President of Marketing4.08yrsno data0.12% $1.4m

4.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SAFT's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Murphy
President3.92yrsUS$3.09m0.51% $6.0m
Peter Manning
Independent Director16.5yrsUS$160.05k0.052% $612.7k
David McKown
Independent Director17.33yrsUS$155.05k0.042% $497.9k
David Brussard
Chairman of the Board16yrsUS$210.05k2.31% $27.3m
Frederic Lindeberg
Independent Director15.58yrsUS$155.05k0.11% $1.3m
Thalia Meehan
Independent Director2.67yrsUS$150.05k0.026% $306.4k

15.8yrs

Average Tenure

72.5yo

Average Age

Experienced Board: SAFT's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SAFT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Safety Insurance Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safety Insurance Group, Inc.
  • Ticker: SAFT
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$1.178b
  • Shares outstanding: 15.38m
  • Website: https://www.safetyinsurance.com

Number of Employees


Location

  • Safety Insurance Group, Inc.
  • 20 Custom House Street
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAFTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2002
SFNDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2002

Biography

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company’s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner’s insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:38
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.