Underwriting profitability has deteriorated significantly, with the combined ratio rising to 105.7% in 2026Q1, resulting in a net loss of $14.3 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'00 |
|---|
| Revenue | 1.27B | 1.25B | 1.11B | 925.95M | 785.06M | 864.72M | 840.4M | 875.82M | 834.91M | 843.66M | 827.35M | 803.58M | 795.96M | 760.95M | 725.34M | 682.11M | 612.72M | 591.95M | 641M | 670.08M | 680.71M | 671.46M | 636.44M | 591.79M | 529.29M | 417.57M |
| Revenue Growth % | 11.09% | 13.01% | 19.85% | 17.95% | -9.21% | 2.89% | -4.04% | 4.9% | -1.04% | 1.97% | 2.96% | 0.96% | 4.6% | 4.91% | 6.34% | 11.32% | 3.51% | -7.65% | -4.34% | -1.56% | 1.38% | 5.5% | 7.54% | 11.81% | 26.75% | - |
| Medical Costs & Claims | 854.38M | 797.18M | 716.64M | 642.3M | 491.98M | 461.73M | 404.56M | 509.85M | 485.51M | 503.89M | 493.43M | 612.57M | 476.37M | 447.75M | 422.22M | 466.64M | 360.85M | 346.3M | 369.82M | 545.15M | 516.13M | 532.26M | 570.14M | 551.61M | 504.04M | 275.14M |
| Medical Cost Ratio % | 67.3% | 63.57% | 64.58% | 69.37% | 62.67% | 53.4% | 48.14% | 58.21% | 58.15% | 59.73% | 59.64% | 76.23% | 59.85% | 58.84% | 58.21% | 68.41% | 58.89% | 58.5% | 57.69% | 81.36% | 75.82% | 79.27% | 89.58% | 93.21% | 95.23% | 65.89% |
| Gross Profit | 415.07M | 456.89M | 393.1M | 283.64M | 293.08M | 402.99M | 435.85M | 365.97M | 349.39M | 339.78M | 333.91M | 191.01M | 319.59M | 313.2M | 303.12M | 215.47M | 251.87M | 245.65M | 271.18M | 124.93M | 164.59M | 139.19M | 66.3M | 40.19M | 25.25M | 142.43M |
| Gross Margin % | 32.7% | 36.43% | 35.42% | 30.63% | 37.33% | 46.6% | 51.86% | 41.79% | 41.85% | 40.27% | 40.36% | 23.77% | 40.15% | 41.16% | 41.79% | 31.59% | 41.11% | 41.5% | 42.31% | 18.64% | 24.18% | 20.73% | 10.42% | 6.79% | 4.77% | 34.11% |
| Gross Profit Growth % | - | 16.23% | 38.59% | -3.22% | -27.27% | -7.54% | 19.09% | 4.74% | 2.83% | 1.76% | 74.81% | -40.23% | 2.04% | 3.33% | 40.68% | -14.45% | 2.53% | -9.41% | 117.06% | -24.09% | 18.24% | 109.93% | 64.98% | 59.2% | -82.28% | - |
| Operating Expenses | 334.47M | 330.21M | 303.23M | 259.22M | 233.5M | 238.72M | 261.07M | 242.29M | 239.82M | 246.44M | 229.92M | 211.64M | 218.24M | 209.85M | 200.23M | 179.25M | 172.91M | 171.26M | 173.07M | 83K | 86K | 948K | 672K | 646K | 13.5M | 114.9M |
| OpEx / Revenue % | 26.35% | 26.33% | 27.32% | 28% | 29.74% | 27.61% | 31.07% | 27.66% | 28.72% | 29.21% | 27.79% | 26.34% | 27.42% | 27.58% | 27.6% | 26.28% | 28.22% | 28.93% | 27% | 0.01% | 0.01% | 0.14% | 0.11% | 0.11% | 2.55% | 27.52% |
| Depreciation & Amortization | 9.4M | 0 | 9.46M | 6.95M | 6.61M | 6.9M | 7.53M | 5.49M | 5.47M | 5.04M | 4.38M | 3.91M | 13.12M | 12.33M | 14.32M | 13.55M | 12.53M | 12.05M | 11.25M | 10.04M | 8.49M | 8.31M | 8.04M | 7.48M | 4.76M | 1.89M |
| Combined Ratio % | 93.65% | 89.9% | 91.9% | 97.36% | 92.41% | 81% | 79.2% | 85.88% | 86.88% | 88.94% | 87.43% | 102.57% | 87.27% | 86.42% | 85.81% | 94.69% | 87.11% | 87.43% | 84.69% | 81.37% | 75.83% | 79.41% | 89.69% | 93.32% | 97.78% | 93.41% |
| Operating Income | 80.59M | 126.68M | 89.87M | 24.42M | 59.58M | 164.27M | 174.77M | 123.68M | 109.58M | 93.33M | 103.99M | -20.63M | 101.36M | 103.36M | 102.9M | 36.22M | 78.96M | 74.39M | 98.11M | 124.85M | 164.5M | 138.25M | 65.63M | 39.54M | 11.74M | 27.53M |
| Operating Margin % | 6.35% | 10.1% | 8.1% | 2.64% | 7.59% | 19% | 20.8% | 14.12% | 13.12% | 11.06% | 12.57% | -2.57% | 12.73% | 13.58% | 14.19% | 5.31% | 12.89% | 12.57% | 15.31% | 18.63% | 24.17% | 20.59% | 10.31% | 6.68% | 2.22% | 6.59% |
| Operating Income Growth % | - | 40.97% | 268% | -59.01% | -63.73% | -6.01% | 41.31% | 12.87% | 17.4% | -10.25% | 604.11% | -120.35% | -1.94% | 0.45% | 184.08% | -54.13% | 6.14% | -24.17% | -21.42% | -24.11% | 18.99% | 110.64% | 65.98% | 236.79% | -57.35% | - |
| EBITDA | 90.61M | 128.21M | 99.33M | 31.37M | 66.19M | 171.17M | 182.3M | 129.17M | 115.04M | 98.37M | 108.37M | -16.72M | 114.48M | 115.68M | 117.22M | 49.77M | 91.49M | 86.44M | 109.36M | 134.88M | 172.99M | 146.56M | 73.67M | 47.02M | 16.5M | 29.41M |
| EBITDA Margin % | 7.14% | 10.22% | 8.95% | 3.39% | 8.43% | 19.79% | 21.69% | 14.75% | 13.78% | 11.66% | 13.1% | -2.08% | 14.38% | 15.2% | 16.16% | 7.3% | 14.93% | 14.6% | 17.06% | 20.13% | 25.41% | 21.83% | 11.58% | 7.95% | 3.12% | 7.04% |
| Interest Expense | 2.04M | 1.53M | 509K | 818K | 524K | 522K | 440K | 90K | 90K | 90K | 90K | 90K | 90K | 89K | 88K | 88K | 88K | 135K | 81K | 83K | 86K | 948K | 672K | 646K | 7.25M | 1.07M |
| Non-Operating Income | -2.04M | -1.53M | -509K | -818K | -524K | -522K | -440K | -90K | 5.24M | 6.54M | 10.62M | 7.93M | 17.95M | 15.58M | 21.39M | 21.86M | -88K | -135K | -81K | -83K | -86K | -948K | -672K | -646K | -7.25M | -1.07M |
| Pretax Income | 80.59M | 126.68M | 89.87M | 24.42M | 59.58M | 164.27M | 174.77M | 123.68M | 104.25M | 86.7M | 93.28M | -28.64M | 83.32M | 87.69M | 81.42M | 14.27M | 78.96M | 74.39M | 98.11M | 124.85M | 164.5M | 138.25M | 65.63M | 39.54M | 11.74M | 27.53M |
| Pretax Margin % | 6.35% | 10.1% | 8.1% | 2.64% | 7.59% | 19% | 20.8% | 14.12% | 12.49% | 10.28% | 11.27% | -3.56% | 10.47% | 11.52% | 11.23% | 2.09% | 12.89% | 12.57% | 15.31% | 18.63% | 24.17% | 20.59% | 10.31% | 6.68% | 2.22% | 6.59% |
| Income Tax | 17.56M | 27.43M | 19.13M | 5.54M | 13.02M | 33.56M | 36.56M | 24.08M | 21.06M | 24.31M | 28.7M | -14.79M | 23.96M | 26.34M | 23.35M | 571K | 22.62M | 20.24M | 27.85M | 37.43M | 52.56M | 43.06M | 20.64M | 11.06M | 1.28M | 8.26M |
| Effective Tax Rate % | 21.78% | 21.65% | 21.29% | 22.71% | 21.85% | 20.43% | 20.92% | 19.47% | 20.2% | 28.04% | 30.76% | 51.64% | 28.76% | 30.03% | 28.68% | 4% | 28.64% | 27.21% | 28.39% | 29.98% | 31.95% | 31.15% | 31.45% | 27.97% | 10.9% | 29.99% |
| Net Income | 63.04M | 99.25M | 70.73M | 18.88M | 46.56M | 130.71M | 138.21M | 99.6M | 83.19M | 62.39M | 64.58M | -13.85M | 59.35M | 61.35M | 58.07M | 13.7M | 56.34M | 54.15M | 70.26M | 87.41M | 111.94M | 95.18M | 44.99M | 28.48M | 9.24M | 19.27M |
| Net Margin % | 4.97% | 7.91% | 6.37% | 2.04% | 5.93% | 15.12% | 16.45% | 11.37% | 9.96% | 7.39% | 7.81% | -1.72% | 7.46% | 8.06% | 8.01% | 2.01% | 9.2% | 9.15% | 10.96% | 13.05% | 16.44% | 14.18% | 7.07% | 4.81% | 1.75% | 4.62% |
| Net Income Growth % | -13.12% | 40.32% | 274.75% | -59.46% | -64.38% | -5.43% | 38.76% | 19.72% | 33.35% | -3.4% | 566.22% | -123.34% | -3.26% | 5.65% | 323.81% | -75.68% | 4.04% | -22.92% | -19.63% | -21.91% | 17.61% | 111.56% | 57.96% | 208.18% | -52.05% | - |
| EPS (Diluted) | 4.35 | 6.70 | 4.78 | 1.28 | 3.15 | 8.80 | 9.18 | 6.46 | 5.46 | 4.10 | 4.27 | -0.93 | 3.91 | 3.98 | 3.80 | 0.90 | 3.74 | 3.48 | 4.36 | 5.43 | 6.99 | 5.97 | 2.90 | 1.86 | 1.38 | 22.50 |
| EPS Growth % | -13.5% | 40.17% | 273.44% | -59.37% | -64.2% | -4.14% | 42.11% | 18.32% | 33.17% | -3.98% | 559.14% | -123.79% | -1.76% | 4.74% | 322.22% | -75.94% | 7.47% | -20.18% | -19.71% | -22.32% | 17.09% | 105.86% | 55.91% | 34.78% | -93.87% | - |
| EPS (Basic) | - | 6.72 | 4.79 | 1.28 | 3.17 | 8.85 | 9.25 | 6.52 | 5.52 | 4.13 | 4.29 | -0.93 | 3.93 | 4.00 | 3.80 | 0.90 | 3.74 | 3.49 | 4.38 | 5.46 | 7.07 | 6.11 | 2.94 | 1.87 | 1.44 | 22.50 |
| Diluted Shares Outstanding | 14.5M | 14.75M | 14.72M | 14.71M | 14.71M | 14.93M | 15.12M | 15.34M | 15.23M | 15.14M | 15.03M | 14.87M | 15.2M | 15.4M | 15.3M | 15.18M | 15.08M | 15.55M | 16.11M | 16.1M | 16.01M | 15.95M | 15.53M | 15.34M | 6.7M | 856.8K |
Regional underwriting volatility
As reported in recent financial statements, SAFT achieved a 5.1% revenue growth in 2026Q1, though this follows a period of significant volatility where quarterly growth rates fluctuated between 5.1% and 28.5% over the last ten quarters, suggesting inconsistent success in capturing market share within the Massachusetts territory.
The erratic nature of top-line expansion implies that the company may be struggling to balance aggressive rate increases with the need to maintain policy retention in a competitive regional market. Investors should monitor whether the recent deceleration in growth reflects a saturation of the independent agency channel or a deliberate pullback in underwriting appetite to preserve capital.
Based on the company's quarterly filings, the combined ratio deteriorated to 105.7% in 2026Q1, marking a sharp reversal from the sub-90% levels observed in mid-2025 and indicating that the firm is currently failing to generate an underwriting profit on its core insurance products.
The spike in the loss ratio to 78.6% suggests that inflationary pressures on claims severity are currently outpacing the company's ability to adjust premium pricing. This shift warrants further investigation into whether the recent underwriting losses are driven by transient weather-related events or a more structural degradation in the underlying risk profile of the Massachusetts auto book.
According to disclosed financial data, SAFT maintains an extremely conservative debt-to-equity ratio of 0.07%, which provides a robust buffer against insolvency but may also indicate an under-utilization of financial leverage that could otherwise be deployed to modernize digital infrastructure or expand regional distribution capabilities.
While this low leverage profile protects the balance sheet from interest rate volatility, it may leave the company at a competitive disadvantage compared to peers who are more aggressively investing in technological efficiency. The lack of debt suggests a management preference for capital preservation, which may limit the firm's ability to pivot quickly during periods of intense industry-wide margin compression.
As evidenced by the 2026Q1 net loss of $14.3 million, the company's reliance on underwriting performance leaves it highly vulnerable to regional loss spikes, challenging the assumption that its localized agency moat provides a consistent buffer against broader P&C industry headwinds and inflationary claim costs.
The sharp swing from profitability in 2025 to a net loss in the most recent quarter suggests that the company's earnings durability is highly sensitive to the attritional loss ratio. Analysts should remain skeptical of the firm's ability to maintain long-term margin stability if the current trend of rising loss ratios persists without a corresponding, sustained increase in earned premiums.
Quick answers to the most common questions about buying SAFT stock.
For fiscal year 2025, Safety Insurance Group, Inc. (SAFT) reported total revenue of $1.25B. This represents a 200.3% increase compared to $417.6M in 2000.
Safety Insurance Group, Inc. (SAFT) is profitable, generating $99.3M in net income for the fiscal year ending 2025 with a net profit margin of 7.9%.
Safety Insurance Group, Inc. (SAFT) reported an operating income of $126.7M, resulting in an operating profit margin of 10.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Safety Insurance Group, Inc. (SAFT) generated $456.9M in gross profit for the year, representing a gross profit margin of 36.4%. This demonstrates the company's core pricing power and production efficiency.