Safety Insurance Group
Market Cap
US$1.2b
Last Updated
2020/06/04 02:52 UTC
Data Sources
Company Financials
Executive Summary
Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
SAFT
5.7%
US Insurance
2.9%
US Market
1 Year Return
-17.4%
SAFT
-14.3%
US Insurance
8.9%
US Market
Return vs Industry: SAFT matched the US Insurance industry which returned -17.3% over the past year.
Return vs Market: SAFT underperformed the US Market which returned 8.5% over the past year.
Shareholder returns
| SAFT | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | 5.7% | 2.9% |
| 30 Day | -3.1% | 16.5% | 10.6% |
| 90 Day | -5.6% | -8.0% | 5.1% |
| 1 Year | -14.0%-17.4% | -12.1%-14.3% | 11.4%8.9% |
| 3 Year | 27.7%13.7% | 5.4%-3.1% | 34.3%25.4% |
| 5 Year | 65.7%34.7% | 34.8%18.0% | 60.7%42.7% |
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
1 week ago | Simply Wall St
Safety Insurance Group, Inc. (NASDAQ:SAFT) Goes Ex-Dividend In 4 Days1 month ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In Safety Insurance Group, Inc.'s NASDAQ:SAFT) Stock?1 month ago | Simply Wall St
Safety Insurance Group, Inc. (NASDAQ:SAFT) Vies For A Place In Your Dividend Portfolio: Here's WhyValuation
Is Safety Insurance Group undervalued compared to its fair value and its price relative to the market?
17.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SAFT ($77) is trading above our estimate of fair value ($61.91)
Significantly Below Fair Value: SAFT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SAFT is poor value based on its PE Ratio (17.4x) compared to the Insurance industry average (13.5x).
PE vs Market: SAFT is poor value based on its PE Ratio (17.4x) compared to the US market (15.8x).
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 (1x).
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?
20.1%
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
- Examine Safety Insurance Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Explore growth companies in the Insurance industry.
Past Performance
How has Safety Insurance Group performed over the past 5 years?
32.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAFT has high quality earnings.
Growing Profit Margin: SAFT's current net profit margins (8.1%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: SAFT's earnings have grown significantly by 32.7% per year over the past 5 years.
Accelerating Growth: SAFT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SAFT had negative earnings growth (-34.9%) over the past year, making it difficult to compare to the Insurance industry average (-0.4%).
Return on Equity
High ROE: SAFT's Return on Equity (8.9%) is considered low.
Next Steps
Financial Health
How is Safety Insurance Group's financial position?
Financial Position Analysis
Short Term Liabilities: SAFT's short term assets ($406.8M) do not cover its short term liabilities ($1.1B).
Long Term Liabilities: SAFT's short term assets ($406.8M) exceed its long term liabilities ($64.7M).
Debt to Equity History and Analysis
Debt Level: SAFT's debt to equity ratio (3.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if SAFT's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SAFT's debt is well covered by operating cash flow (306.5%).
Interest Coverage: SAFT's interest payments on its debt are well covered by EBIT (738x coverage).
Balance Sheet
Next Steps
Dividend
What is Safety Insurance Group's current dividend yield, its reliability and sustainability?
4.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SAFT's dividend (4.68%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: SAFT's dividend (4.68%) is in the top 25% of dividend payers in the US market (4.48%)
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: At its current payout ratio (79.1%), SAFT's 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?
4.3yrs
Average management tenure
CEO
George Murphy (52yo)
4.17yrs
Tenure
US$3,319,660
Compensation
Mr. George Michael Murphy, CPCU, has been Chief Executive Officer and President at Safety Insurance Group, Inc. since April 1, 2016. Mr. Murphy has been employed by Safety Insurance’s Insurance Subsidiarie ...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD3.32M) is about average for companies of similar size in the US market ($USD3.18M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.17yrs | US$3.32m | 0.51% $6.0m | |
| Vice President of Underwriting | 4.92yrs | US$1.41m | 0.18% $2.1m | |
| VP, CFO | 0.25yr | no data | 0.054% $634.3k | |
| Vice President of Marketing | 4.33yrs | no data | 0.12% $1.4m |
4.3yrs
Average Tenure
52yo
Average Age
Experienced Management: SAFT's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.17yrs | US$3.32m | 0.51% $6.0m | |
| Independent Director | 16.75yrs | US$192.52k | 0.052% $616.1k | |
| Independent Director | 17.58yrs | US$187.52k | 0.042% $500.5k | |
| Independent Chairman of the Board | 16.25yrs | US$237.52k | 2.32% $27.4m | |
| Independent Director | 15.83yrs | US$187.52k | 0.12% $1.4m | |
| Independent Director | 2.92yrs | US$177.52k | 0.026% $308.0k | |
| Independent Director | 0.25yr | no data | 0.0065% $77.0k |
15.8yrs
Average Tenure
67yo
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 bought more shares than they have sold 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$1.179b
- Shares outstanding: 15.31m
- Website: https://www.safetyinsurance.com
Number of Employees
Location
- Safety Insurance Group, Inc.
- 20 Custom House Street
- Boston
- Massachusetts
- 2110
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SAFT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 2002 |
| SFN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2002 |
Biography
Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 02:52 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.