Safety Insurance Group, Inc. · NASDAQ:SAFT
Safety Insurance — Investor Presentation (December 2024)
26 slides from Safety Insurance's investor presentation, Dec 31, 2024
Slide 1: Safety Insurance Group, Inc. (NASDAQ: SAFT)
Safety Insurance Group, Inc. (NASDAQ: SAFT) December 31, 2024 Safety Insurance Investor Relations
Slide 2: About Safety Insurance
About Safety Insurance Headquartered in Boston, MA Key Highlights • Founded in Massachusetts in 1979, became Safety Insurance Group, Inc. publicly traded in 2001 • Leading provider of Property and Casualty Insurance in Massachusetts, New Hampshire, and Safety Maine Safety Insurance Management Compan
Slide 3: Business Overview
Business Overview Business Mix Exchange/Ticker NASDAQ: SAFT NH ME Stock price $82.58 4% 1% Market capitalization $1.249 Annual dividend per share $3.60 GAAP Equity $828M $1.19B 2024 Equity, excluding net unrealized $880M DWP appreciation (depreciation) on fixed maturity investments, net of tax Total
Slide 4: Executive Summary
Executive Summary To achieve our goal of increasing shareholder value, our strategy is to maintain and develop strong Strategy independent agent relationships by providing our agents and our policyholders with a full package of insurance products and information technology services. With a focus
Slide 5: Strategy
Strategy Safety Insurance Investor Relations
Slide 6: Creating Shareholder Value
Creating Shareholder Value Focus on underwriting Ethical culture with a Drive profitable growth Generate excess capital excellence to improve focus on human capital across all products to optimize returns ROE performance and ESG practices • Advancement of • Balanced risk profile and • Investments in
Slide 7: Capital Allocation Activity
Capital Allocation Activity Dividend Policy Share Repurchases $5.00 $50,000 $4.50 $45,000 $40,000 $4.00 $3.60 $3.60 $3.60 $3.60$3.60 $40,000 $3.40 $3.50 $3.20 $35,000 $3.00 $2.80 $2.80 Thousands ($) $3.00 $2.60 $30,000 $2.40 $23,467 $2.50 $25,000 $2.00 $20,000 $14,603 $1.50 $15,000 $11,563 $1.00 $10
Slide 8: Business Mix
Business Mix Business Mix - 2008 Business Mix - 2024 Other Other P&C P&C 4% 3% Homeowners • Massachusetts DOI Homeowners 12% Managed introduces new private 25% Competition passenger pricing rules Commercial Private Auto $573.5M Passenger $1.19B 13% 2008 2024 Private Auto Rounded • 61.3% of PPA with
Slide 9: Products to Meet the Growing Needs of our Customers
Products to Meet the Growing Needs of our Customers Commercial Lines Personal Lines 20.5% 18.7% 17.9% Strategic growth across the portfolio through: Exceptional talent & execution – Deep underwriting & risk management expertise – Investments in claims, data, analytics & digital 79.5% 81.3% 82.1% • D
Slide 10: We Distribute our Products Exclusively Through Independent Agents
We Distribute our Products Exclusively Through Independent Agents Strong Relationships with Independent Agents Independent Agent Market Share Provide them with the tools to fit the needs of their clients 100% Commercial - U.S. 87% 89% 80% Commercial - MA 69% Personal - U.S. 60% Personal - MA Portfol
Slide 11: We’ll Help You Manage Life’s Storms
We’ll Help You Manage Life’s Storms Protecting the assets of the customer Technology investments Innovation Lab Customer engagement initiatives Service Center Safety Insurance Investor Relations
Slide 12: Powerful Multi-Media Marketing Campaign Targeting Desirable Demographics
Powerful Multi-Media Marketing Campaign Targeting Desirable Demographics Multi-media sponsorship across all stations • 98.5 The Sports Hub • Official home of the Patriots, Bruins, Celtics and Revolution • Boston Bruins • In-game, web & mobile ads • CBS Boston • Television, Online & Mobile • Country
Slide 13: Technology Investments to Support the Business Needs of the Company
Technology Investments to Support the Business Needs of the Company Foundation Building Customer and Agent Experience Invested over $20 million in recent years Foster a culture of innovative thinking to upgrade or replace several core through our Innovation Lab to: systems and applications within ou
Slide 14: Profitable Growth
Profitable Growth Safety Insurance Investor Relations
Slide 15: Diligent and Proactive Pricing Approach Leaves us Well Positioned Against Competitors
Diligent and Proactive Pricing Approach Leaves us Well Positioned Against Competitors in the Market Focus on Pricing Line of Business Effective Date Rate Change MA Private Passenger Auto January 1, 2025 5.3% Executive and Senior members from all NH Private Passenger Auto October 1, 2024 4.4% areas
Slide 16: Achieving Profitable Growth
Achieving Profitable Growth Direct Written Premiums Achieving Profitable 20.4% 20.4% Growth $1,193.1 2.6% DWP ($ 000's) Superior 0.4% Support to Strong Agent $991.2 our Relationships Customers $802.1 $823.3 Competitive, New and yet Enhanced Disciplined Product Pricing Offerings FY2021 FY2022 FY2023
Slide 17: Generating New Revenue through Safety Northeast Insurance Agency
Generating New Revenue and Furthering Industry Insight through Safety Northeast Insurance Agency (acquired Dec. 2022) What SNIA brings to Safety “This acquisition strengthens our position within the New and profitable revenue stream of $8M independent agency channel in commission revenue (on ~$62M
Slide 18: Profitability
Profitability Safety Insurance Investor Relations
Slide 19: Disciplined Underwriting and Reserving backstopped by Reinsurance
Disciplined Underwriting and Reserving backstopped by Reinsurance to Protect Profitability Return to pre-pandemic frequency coupled with ongoing inflationary trends puts upward pressure on Loss and LAE Ratio Loss and LAE Ratio 80% 77.0% 70.9% 70% 64.9% 59.6% Tailored reinsurance 60% 52.5% coverage t
Slide 20: Expense Management
Expense Management Expense Ratio 80% Historical expense ratio lower than 70% local peer group 60% Different distribution model as 50% compared to direct writers 40% 34.6% 33.4% 32.3% 30.7% 30.2% 30% Impact of contingent commissions 20% Technology impact 10% 0% 2020 2021 2022 2023 2024 Expens
Slide 21: High Quality, Diversified Investment Portfolio
High Quality, Diversified Investment Portfolio Net Investment Income Invested Assets by Type: $1.4 billion ($ Thousands) Fixed maturities 11.6% Equity securities Other investments 14.6% $56,377 $55,720 $44,135 $46,725 73.8% 2021 2022 2023 2024 Net effective 3.0% 3.2% 4.0% 3.9% yield Safety Insurance
Slide 22: Sustainability
Sustainability Safety Insurance Investor Relations
Slide 23: Our People
Our People 551 employees Competitive Learning and pay and development benefits Our People Corporate ~19% has 25+ citizenship years Consultants for best practices Safety Insurance Investor Relations
Slide 24: Experienced Board Focused on Delivering Sustainable, Long-Term Stakeholder Value
Experienced Board Focused on Delivering Sustainable, Long-Term Stakeholder Value Through Strong Governance Collective Expertise Board Member Selected Experience 14% P&C Insurance George Murphy People of Safety Insurance Financial Services CEO, Safety Insurance Color Finance / Accounting / Tax
Slide 25: Our Commitment to ESG
Our Commitment to ESG • We believe that Safety Insurance has a responsibility to both its stakeholders and the environment in which it operates, and that the effective management of Environmental, Social and Governance (ESG) issues will help drive the continued success of the business. To that end,
Slide 26: 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
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