AM Best confirms the credit ratings of Safety Insurance Group, Inc. and its principal subsidiaries; Assigns credit scores to Safety Northeast Insurance Company

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OLDWICK, NJ – (BUSINESS WIRE) –AM Best confirmed the Financial Strength Rating (FSR) of A (Excellent) and the Issuer’s Long Term Credit Rating (Long Term ICR) of “a +” (Excellent) from Safety Insurance Company, Security indemnity insurance company and property and casualty insurance company. The outlook for these credit ratings (ratings) is stable. At the same time, AM Best assigned an FSR of A (Excellent) and a long-term ICR of “a +” (Excellent) to Safety Northeast Insurance Company (Safety Northeast). The outlook attributed to these ratings is stable. Collectively, along with Safety Northeast, these companies are referred to as Safety Group (Security). At the same time, AM Best confirmed the long-term ICR of “bbb +” (good) from Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], parent company of Safety, listed on the stock exchange. The outlook for these ratings is stable. All businesses are headquartered in Boston, MA, unless otherwise specified.

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

The very strong security balance sheet is due to low underwriting leverage, sound liquidity measures and historically favorable trends in reserve development. In addition, Safety benefits from the financial flexibility offered by its publicly traded parent company, which has the ability to access financial markets. Safety’s strong operational performance is the result of consistently profitable technical results and solid investment income. Strong profitability has supported policyholder surplus growth and is a result of management’s ability to successfully manage the challenges of Massachusetts, where Safety does the majority of its business.

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

The ratings also reflect Safety Northeast’s addition to the group’s intercompany reinsurance pooling agreement. Safety Northeast is expected to start drafting risks for homeowners who meet more stringent guidelines in the fourth quarter of 2021.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant 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 webpage. For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the appropriate media use of Best’s credit ratings and AM Best’s press releases, please see the Media Guide – Appropriate Use of Best’s Credit Ratings and Press Releases AM Best Rating Action.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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