OLDWICK, N.J.–(BUSINESS WIRE)–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 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) is 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
The very strong balance sheet strength is derived from risk-adjusted
capitalization maintained at the strongest level, favorable loss reserve
development trends and sound liquidity measures. Safety also benefits
from the financial flexibility afforded by its publicly-traded parent,
which has a debt-free balance sheet and the ability to access the public
debt and equity markets to raise capital if needed.
Safety’s operating performance has been favorable, supported by both
favorable net underwriting income and net investment income.
Above-average profitability has supported capital growth and is derived
from management’s ability to successfully manage the challenges in
Massachusetts, where it writes the majority of its business.
The business profile is considered neutral due to its leading market
positions and diverse product offerings, partially offset by its
concentration in Massachusetts, which exposes the group to above-average
economic, regulatory and legislative risks. ERM is considered
appropriate for the group’s size and the complexity of its underwriting,
investment and other risks based on its ERM framework and controls.
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 Understanding
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 rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Jonathan Harris, CFA, FRM, CPCU, ARM
+1 908 439 2200, ext. 5771
Manager, Public Relations
908 439 2200, ext. 5159
Jacqalene Lentz, CPA
+1 908 439
2200, ext. 5762
Director, Public Relations
439 2200, ext. 5644