AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. Collectively these companies are referred to as Safety Group (Safety). At the same time, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlooks 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 assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Safety’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), low underwriting leverage, sound liquidity and historically favorable loss reserve development trends. Safety also benefits from the financial flexibility afforded by its publicly traded parent, which has the ability to access capital markets. Safety’s strong level of operating performance has supported policyholder surplus growth and is the result of management’s ability to manage the market conditions in Massachusetts successfully, where the majority of its business is written.

Safety’s business profile is assessed as neutral due to its leading market position and diverse product offerings, partially offset by its geographic concentration in Massachusetts, which exposes Safety to above average economic, regulatory and legislative risks. AM Best considers Safety’s ERM as appropriate for the company’s and scope of operations. Safety is exposed to considerable catastrophe tail risk and has implemented strategies to reduce this exposure.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 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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