Safety Insurance Group, Inc. · NASDAQ:SAFT
Safety Insurance — Investor Presentation (December 2025)
31 slides from Safety Insurance's investor presentation, Dec 31, 2025
Slide 1: Safety Insurance Group, Inc. (NASDAQ: SAFT)
Safety Insurance Group, Inc. (NASDAQ: SAFT) December 31, 2025 Safety Insurance Group, Inc. Investor Relations
Slide 2: Why Invest in Safety Insurance?
Why Invest in Safety Insurance? Leading, scaled regional P&C franchise with strong market position in MA, NH and ME homeowners and private passenger and commercial automobile. Strategy seeks to build shareholder value through growth in book value per share and dividend per share. History of profitab
Slide 3: About Safety Insurance
About Safety Insurance Headquartered in Boston, MA Key Highlights • Founded in Massachusetts in 1979, became Safety Insurance publicly traded in 2001 Group, Inc. • Leading provider of Property and Casualty Insurance in Massachusetts, New Hampshire, and Maine Safety Safety Insurance Management • Bega
Slide 4: Business Overview as of December 31, 2025
Business Overview as of December 31, 2025 Geographic Mix Exchange/Ticker NASDAQ: SAFT NH Stock price $77.91 5% Market capitalization $1.14B ME 1% Annual dividend per share $3.68 GAAP / Shareholders’ Equity $892M $1.28B Equity, excluding net unrealized $909M 2025 appreciation (depreciation) on fixed
Slide 5: Executive Summary
Executive Summary To achieve our goal of increasing shareholder value, our strategy is to maintain and develop Strategy strong independent agent relationships by providing our agents and our policyholders with a full package of insurance products and information technology services. Safety has b
Slide 6: Strategy
STRATEGY 6
Slide 7: Creating Shareholder Value
Creating Shareholder Value Maximize Value Creation for All Stakeholders Focus on underwriting Ethical culture with a focus Drive profitable growth Generate excess capital to excellence to improve on human capital and across all products optimize returns ROE performance community involvement • Advanc
Slide 8: Total Shareholder Value
Total Shareholder Value Growth in Book Value per Common Share excl. AOCI plus Accumulated Dividends $140 $117 $120 $110 $104 $105 $101 $100 9.3% BVPS x AOCI + $92 Dividend Growth Rate* $84 $77 $80 $71 $67 $63 $62 $59 $60 $55 $50 $51 $47 $43 $38 $40 $33 $26 $20 $15 $17 $20 $0 2002 2003 2004 2005 2006
Slide 9: Capital Allocation Activity
Capital Allocation Activity Average historical dividend yield is 3.8% Active with share repurchases in times of undervalue Historical Dividend Policy Share Repurchases $6.0 $50 $100.0 4.68% Millions 5.0% $5.5 $45 $43 $90.0 $42 $77.80 4.5% $5.0 $40 $80.0 $4.5 4.0% $40 $35 $70.0 $4.0 $3.64 3.5% $30 $6
Slide 10: Product Diversification
Product Diversification Direct Written Premium 1% 2% 4% 5% 5% 5% 6% 7% 7% 17% 11% 22% 25% 25% Rounded 10% Account 14% Strategy 15% 15% • 60.9% of PPA with OTA 86% • 81.2% of HO 80% 69% with PPA 60% 55% 55% 2000 2005 2010 2015 2020 2025 Private Passenger Auto (PPA) Commercial Auto Homeowners (HO) Oth
Slide 11: Product Distribution
Product Distribution We distribute our products exclusively through independent agents Strong Relationships with Independent Agents Independent Agent Market Share* 100% Commercial - U.S. 90% 87% 89% Provide them with the tools to Commercial - MA fit the needs of their clients 80% Personal - U.S. 69%
Slide 12: Smarter Coverage, Stronger Connections
“Smarter Coverage, Stronger Connections” Protecting the assets of the customer Technology investments Innovation Lab Customer engagement initiatives Service Center 12
Slide 13: Technology Enhancements
Technology Enhancements Technology investments to support the business needs of The Company Foundation Building Customer and Agent Experience Invested >$20 million in recent years Foster a culture of innovative thinking to upgrade core systems and through our Innovation Lab to: applications within t
Slide 14: Marketing Campaign
Marketing Campaign Powerful multi-media marketing campaign targeting desirable demographics Multi-media sponsorship across all stations • Multiplatform media Sponsorship • Presenting sponsor of 98.5 The Sports Hub Patriots Radio Network • Other Stations: Country 102.5, WKLB, WROR 105.7, Hot 96.9 • B
Slide 15: Profitability
ps Sey, Safety Insurance PROFITABILITY
Slide 16: Attention to Pricing
Attention to Pricing Diligent and proactive pricing approach leaves us well positioned against competitors in the market MA Cumulative Rate NH Cumulative Rate ME Cumulative Rate Focus on Pricing Changes Changes Changes 30.0% 40.0% 25.0% 27.5% 22.8% 35.3% 35.0% Involvement of cross 25.0% 20.0% 30.0
Slide 17: Achieving Profitable Growth
Achieving Profitable Growth Direct Written Premium & Year over Year Growth $1.4 7.2% Strong Billions Agent Relationships $1.3 $1.2 $1.2 4.2% $1.0 CAGR* $0.8 Superior New and Support to Enhanced our Product $0.6 Customers Achieving Offerings Profitable Growth $0.5 $0.4 $0.2 Competitive yet Discipline
Slide 18: Safety Northeast Insurance Agency (SNIA)
Safety Northeast Insurance Agency (SNIA) Generating new revenue and furthering industry insight through SNIA What SNIA brings to Safety $4.5 $9.3 $10.0 Millions Millions $4.0 $8.3 $9.0 Enhancing our own Service Center offerings by leveraging $7.5 $3.5 $8.0 SNIA best practices and technology $7.0 $3.
Slide 19: Disciplined Underwriting and Lower Expenses
Disciplined Underwriting and Lower Expenses Combined Ratio 120.0% 108% 101% 97% 97% 99% 100.0% 96% 96% 94% 93% 87% 31% 30% 29% Return to pre-pandemic 80.0% 31% 32% 31% 32% 32% 33% frequency coupled with ongoing inflationary 35% trends puts upward 60.0% pressure on Loss and LAE Ratio 40.0% Declin
Slide 20: Historical Reserve Development
Historical Reserve Development Reserve Releases (All Prior Years) $0 Favorable developments every year -$10 Average favorable development over the past -$20 10 years is 10% of reserves -$30 Recently driven by Millions Homeowners and All Other* -$40 No systemic deficiency -$41.8 -$42.0 -$44.6
Slide 21: 2026 Reinsurance Program Highlights
2026 Reinsurance Program Highlights Disciplined underwriting and reserving backstopped by reinsurance to protect profitability Property CAT XOL Property XOL $850M $25M Property CAT Excess of Loss (XOL) 10% Co-part For 2026, we have increased our initial retention by 90% of $5M to $80M. $400M xs $4
Slide 22: Safety Investment Portfolio
Safety Investment Portfolio Investment Portfolio Guiding Principles Quarterly and Year to Date Highlights Portfolio Diversification Dual strategy approach: Stable income and total return High degree of liquidity $1.7B total invested assets, of which 78% are in fixed income and cash/short-term securi
Slide 23: Safety Investment Portfolio
Safety Investment Portfolio Misc. Money Alternatives (10%) 1% Markets Money Markets (4%) 4% • High Quality: Aaa-mf • Private Equity & Credit Less liquid • U.S. Govt backed • Illiquid Alternatives • Manager diversification • Less Price Volatility 10% • Less Predictable Income • Daily liquidity Public
Slide 24: Safety Investment Portfolio: Composition of Net Investment Income
Safety Investment Portfolio Composition of Net Investment Income $80 $1.69 Billions $1.57 $1.51 $1.51 $70 $1.44 $1.40 $1.42 $62.7 $1.31 $1.33 $1.28 $55.7 $1.21 $56.4 $60 $46.7 $46.7 $50 $43.8 $44.1 $40.5 $41.0 $38.4 $38.8 Net investment income $40 driven by… Millions $30 Higher assets under $20 ma
Slide 25: Return on Average Equity
Return on Average Equity Return on Average Equity (ROAE) 30.0% $1,000 Millions 27.0% 27.9% $900 24.0% 25.4% $800 • Safety has generated 21.0% $700 an average Return on Equity of 10.9% over 18.0% $600 the past 23 years. 15.0% 15.9% 16.4% 16.9% $500 12.9% 14.3% • Safety has generated 12.0% $400 11.9%
Slide 26: Sustainability
ps Sey, Safety Insurance SUSTAINABILITY
Slide 27: Our People Are Our Greatest Asset
Our People Are Our Greatest Asset One of Safety’s many corporate values is to 568 employees help our people share in the company’s Learning and Competitive pay and development benefits success, which they make possible; and to help them gain a sense of satisfaction and Corporate ~17% has 25+ citizen
Slide 28: Safety's Experienced and Diverse Board
Safety’s Experienced and Diverse Board Experienced Board Focused on Delivering Sustainable, Long-Term Stakeholder Value Through Strong Governance Collective Expertise Board Member Selected Experience P&C Insurance 14% George Murphy Racial & Financial Services Safety Insurance Ethnic CEO, Safety
Slide 29: Community Involvement is a Core Value at Safety
Community Involvement is a Core Value at Safety Safety Insurance Charitable Foundation • Established in 2005 to support nonprofit organizations aligned with Safety’s values • Provides financial support across a wide range of causes, including: o Community service o Education & job training o Homeles
Slide 30: Forward-Looking Statements
Forward-Looking Statements Certain statements in this document and comments made by management may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements might include one or more of the following, among others: Projections of r
Slide 31: Thank You!
Click to edit Master title style THANK YOU! Questions? InvestorRelations@SafetyInsurance.com
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