Safety Insurance Group第二季淨收入增19.3% 上半年受累損失開支升15%

SAFETY INSURANCE GROUP, INC._June 30, 2026
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Table of Contents

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
​
FORM 10-Q
​
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

​
For the quarterly period ended June 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

​
For the transition period from ______to ______                  
​
Commission File Number: 000-50070
​
SAFETY INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
​

​

​

Delaware
​
13-4181699

(State or other jurisdiction of incorporation or organization)
​
(I.R.S. Employer Identification No.)

​
20 Custom House Street, Boston, Massachusetts 02110
(Address of principal executive offices including zip code)
(617) 951-0600
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
​
Securities registered pursuant to Section 12(b) of the Act:
​

Title of each class
 Trading Symbol
Name of each exchange on which registered

Common Stock, par value $0.01 per share
 SAFT
The Nasdaq Stock Market, LLC

​
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ⌧  No ◻
​
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ⌧  No ◻
​
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 

 

Large accelerated filer
 
☒
  ​
Accelerated filer
 
☐

Non-accelerated filer
 
☐
  ​
Smaller reporting company
 
☐

 
  ​
Emerging growth company
 
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐ 
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Yes ☐  No ☒
​
As of August 3, 2026, there were 14,680,482 shares of common stock with a par value of $0.01 per share outstanding.
​
​

Table of Contents

SAFETY INSURANCE GROUP, INC.
TABLE OF CONTENTS
​
​
Page No.

 Part I. Financial Information

Item 1.
Consolidated Financial Statements
​

​
Consolidated Balance Sheets
3

​
Consolidated Statements of Operations
4

​
Consolidated Statements of Comprehensive Income (Loss)
5

​
Consolidated Statements of Changes in Shareholders’ Equity
6

​
Consolidated Statements of Cash Flows
7

​
Notes to Unaudited Consolidated Financial Statements
8

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
24

Item 3.
Quantitative and Qualitative Information about Market Risk
43

Item 4.
Controls and Procedures
44

Part II. Other Information

Item 1
Legal Proceedings
45

Item 1A.
Risk Factors
45

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
47

Item 3.
Defaults upon Senior Securities
47

Item 4.
Mine Safety Disclosures
47

Item 5.
Other Information
47

Item 6.
Exhibits 
47

EXHIBIT INDEX
48

SIGNATURE
49

​
​

​
​
​

2

Table of Contents

 Safety Insurance Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
​
​

​

​

​

​

​

​

​
  ​ ​ ​
June 30, 
  ​ ​ ​
December 31, 

​
​
2026
​
2025

​
​
(Unaudited)
​
​
​

Assets
​
​
​
​
​
​

Investments:
​
​
​
​
​
​

Fixed maturities, available for sale, at fair value (amortized cost: $1,365,368 and $1,337,235, allowance for expected credit losses of $355 and $0)
​
$
 1,328,594
​
$
 1,315,548

Equity securities, at fair value (cost: $189,372 and $201,591)
​
 
 201,956
​
 
 220,953

Other invested assets
​
 
 154,036
​
 
 151,020

Total investments
​
 
 1,684,586
​
 
 1,687,521

Cash and cash equivalents
​
 
 67,918
​
 
 73,901

Accounts receivable, net of allowance for expected credit losses of $890 and $802
​
 
 332,530
​
 
 320,187

Receivable for securities sold
​
 
 527
​
 
 4,269

Accrued investment income
​
 
 11,702
​
 
 12,169

Taxes recoverable
​
 
 10,731
​
 
 —

Receivable from reinsurers related to paid loss and loss adjustment expenses
​
 
 25,074
​
 
 9,433

Receivable from reinsurers related to unpaid loss and loss adjustment expenses
​
 
 150,659
​
 
 149,441

Ceded unearned premiums
​
 
 43,317
​
 
 39,674

Deferred policy acquisition costs
​
 
 112,755
​
 
 111,791

Deferred income taxes
​
 
 6,253
​
 
 4,116

Equity and deposits in pools
​
 
 5,081
​
 
 4,197

Operating lease right-of-use-assets
​
​
 9,773
​
 
 11,861

Goodwill
​
​
 17,093
​
​
 17,093

Intangible assets
​
​
 6,309
​
​
 6,783

Other assets
​
 
 18,976
​
 
 18,672

Total assets
​
$
 2,503,284
​
$
 2,471,108

​
​
​
​
​
​
​

Liabilities
​
​
​
​
​
​

Losses and loss adjustment expense reserves
​
$
 808,264
​
$
 761,739

Unearned premium reserves
​
 
 664,746
​
 
 654,803

Accounts payable and accrued liabilities
​
 
 70,299
​
 
 80,461

Payable for securities purchased
​
 
 5,061
​
 
 846

Payable to reinsurers
​
 
 18,487
​
 
 15,184

Taxes payable
​
​
 —
​
​
 3,903

Long-term debt
​
​
 50,000
​
​
 50,000

Operating lease liabilities
​
​
 9,773
​
​
 11,861

Total liabilities
​
 
 1,626,630
​
 
 1,578,797

​
​
​
​
​
​
​

Commitments and contingencies (Note 8)
​
​
​
​
​
​

​
​
​
​
​
​
​

Shareholders’ equity
​
​
​
​
​
​

Common stock: $0.01 par value; 30,000,000 shares authorized; 18,103,084 and 18,051,631 shares issued
​
​
 181
​
​
 181

Additional paid-in capital
​
 
 238,435
​
 
 235,693

Accumulated other comprehensive loss, net of taxes
​
 
 (28,771)
​
 
 (17,133)

Retained earnings
​
 
 837,302
​
 
 844,063

Treasury stock, at cost: 3,419,947 shares
​
 
 (170,493)
​
 
 (170,493)

Total shareholders’ equity
​
 
 876,654
​
 
 892,311

Total liabilities and shareholders’ equity
​
$
 2,503,284
​
$
 2,471,108

​
The accompanying notes are an integral part of these financial statements.
​

3

Table of Contents

Safety Insurance Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share data)
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended June 30, 
  ​ ​ ​
Six Months Ended June 30, 

​
  ​ ​ ​
2026
  ​ ​ ​
2025
 
2026
  ​ ​ ​
2025

​
​
​
​
​
​
​
​
​
​
​
​
​

Net earned premiums
​
$
 291,653
​
$
 282,113
​
$
 582,639
​
$
 554,803

Net investment income
​
 
 16,559
​
 
 15,724
​
 
 33,597
​
 
 30,298

Earnings from partnership investments
​
 
 3,329
​
 
 346
​
 
 7,234
​
 
 2,458

Net realized gains on investments
​
 
 1,418
​
 
 2,131
​
 
 8,049
​
 
 6,394

Change in net unrealized gains on equity securities
​
​
 4,720
​
​
 7,194
​
​
 (6,777)
​
​
 6,923

Credit loss (expense) benefit
​
​
 (7)
​
​
 66
​
​
 (355)
​
​
 (255)

Commission income
​
​
 2,252
​
​
 2,285
​
​
 4,402
​
​
 4,380

Finance and other service income
​
 
 5,758
​
 
 6,485
​
 
 11,559
​
 
 12,772

Total revenue
​
 
 325,682
​
 
 316,344
​
​
 640,348
​
​
 617,773

​
​
​
​
​
​
​
​
​
​
​
​
​

Losses and loss adjustment expenses
​
 
 195,119
​
 
 194,232
​
 
 442,609
​
 
 384,522

Underwriting, operating and related expenses
​
 
 83,883
​
 
 82,796
​
 
 166,164
​
 
 163,647

Other expense
​
 
 2,110
​
 
 2,047
​
 
 4,247
​
 
 4,001

Interest expense
​
 
 814
​
 
 442
​
 
 1,432
​
 
 546

Total expenses
​
 
 281,926
​
 
 279,517
​
 
 614,452
​
 
 552,716

​
​
​
​
​
​
​
​
​
​
​
​
​

Income before income taxes
​
 
 43,756
​
 
 36,827
​
​
 25,896
​
​
 65,057

Income tax expense 
​
 
 9,239
​
 
 7,890
​
 
 5,702
​
 
 14,224

Net income 
​
$
 34,517
​
$
 28,937
​
$
 20,194
​
$
 50,833

​
​
​
​
​
​
​
​
​
​
​
​
​

Earnings per weighted average common share:
​
​
​
​
​
​
​
​
​
​
​
​

Basic
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.44

Diluted
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.43

​
​
​
​
​
​
​
​
​
​
​
​
​

Cash dividends paid per common share
​
$
 0.92
​
$
 0.90
​
$
 1.84
​
$
 1.80

​
​
​
​
​
​
​
​
​
​
​
​
​

Number of shares used in computing earnings per share:
​
​
​
​
​
​
​
​
​
​
​
​

Basic
​
 
 14,521,693
​
 
 14,744,968
​
 
 14,509,999
​
 
 14,731,843

Diluted
​
 
 14,558,294
​
 
 14,782,244
​
 
 14,552,290
​
 
 14,763,732

​
​
​
​
​
​
​
​
​
​
​
​
​

​
The accompanying notes are an integral part of these financial statements.
​

4

Table of Contents

Safety Insurance Group, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(Dollars in thousands)
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended June 30, 
 
Six Months Ended June 30, 

​
 ​
2026
  ​ ​ ​
2025
 
2026
  ​ ​ ​
2025

Net income 
​
$
 34,517
​
$
 28,937
​
$
 20,194
​
$
 50,833

​
​
​
​
​
​
​
​
​
​
​
​
​

Other comprehensive income (loss), net of tax:
​
​
​
​
​
​
​
​
​
​
​
​

Unrealized holding gains (losses) during the period, net of income tax expense (benefit) of ($83), $2,020, ($1,404) and $6,178.
​
 
 (314)
​
 
 7,600
​
 
 (5,279)
​
 
 23,244

Reclassification adjustment for net realized gains on investments included in net income, net of income tax benefit of ($298), ($447), ($1,690) and ($1,343).
 ​
 
 (1,120)
​
 
 (1,683)
​
 
 (6,359)
​
 
 (5,051)

Other comprehensive income (loss), net of tax
​
 
 (1,434)
​
 
 5,917
​
 
 (11,638)
​
 
 18,193

​
​
​
​
​
​
​
​
​
​
​
​
​

Comprehensive income 
​
$
 33,083
​
$
 34,854
​
$
 8,556
​
$
 69,026

​
​
​
​
​
​
​
​
​
​
​
​
​

​
The accompanying notes are an integral part of these financial statements.
​

5

Table of Contents

Safety Insurance Group, Inc. and Subsidiaries
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
(Dollars in thousands)
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
Accumulated
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​

​
​
​
​
​
​
​
​
Other
​
​
​
​
​
​
​
​
​

​
​
​
​
​
Additional
​
Comprehensive
​
​
​
​
​
​
​
Total

​
​
Common
​
Paid-in
​
Loss,
​
Retained
​
Treasury
​
Shareholders’

​
​
Stock
​
Capital
​
Net of Taxes
​
Earnings
​
Stock
​
Equity

Balance at December 31, 2024
​
$
 180
​
$
 230,864
​
$
 (51,047)
​
$
 798,760
​
$
 (150,293)
​
$
 828,464

Net income, January 1 to March 31, 2025
​
​
 —
​
​
 —
​
​
 —
​
 
 21,896
​
​
 —
​
 
 21,896

Unrealized gains and losses on securities available for sale, net of deferred federal income taxes
​
​
 —
​
​
 —
​
 
 12,276
​
​
 —
​
​
 —
​
 
 12,276

Restricted share awards issued
​
 
 —
​
 
 477
​
​
 —
​
​
 —
​
​
 —
​
 
 477

Recognition of employee share-based compensation, net of deferred federal income taxes
​
​
 1
​
 
 923
​
​
 —
​
​
 —
​
​
 —
​
 
 924

Dividends paid and accrued
​
​
 —
​
​
 —
​
​
 —
​
 
 (13,370)
​
​
 —
​
 
 (13,370)

Balance at March 31, 2025
​
​
 181
​
​
 232,264
​
​
 (38,771)
​
​
 807,286
​
​
 (150,293)
​
​
 850,667

Net income, April 1 to June 30, 2025
​
​
 —
​
​
 —
​
​
 —
​
 
 28,937
​
​
 —
​
 
 28,937

Unrealized gains and losses on securities available for sale, net of deferred federal income taxes
​
​
 —
​
​
 —
​
 
 5,917
​
​
 —
​
​
 —
​
 
 5,917

Recognition of employee share-based compensation, net of deferred federal income taxes
​
​
 —
​
 
 1,127
​
​
 —
​
​
 —
​
​
 —
​
 
 1,127

Dividends paid and accrued
​
​
 —
​
​
 —
​
​
 —
​
 
 (13,384)
​
​
 —
​
 
 (13,384)

Balance at June 30, 2025
​
$
 181
​
$
 233,391
​
$
 (32,854)
​
$
 822,839
​
$
 (150,293)
​
$
 873,264

​
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
Accumulated
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​
  ​ ​ ​
  ​ ​ ​
​

​
​
​
​
​
​
​
​
Other
​
​
​
​
​
​
​
​
​

​
​
​
​
​
Additional
​
Comprehensive
​
​
​
​
​
​
​
Total

​
​
Common
​
Paid-in
​
Loss,
​
Retained
​
Treasury
​
Shareholders’

​
​
Stock
​
Capital
​
Net of Taxes
​
Earnings
​
Stock
​
Equity

Balance at December 31, 2025
​
$
 181
​
$
 235,693
​
$
 (17,133)
​
$
 844,063
​
$
 (170,493)
​
$
 892,311

Net loss, January 1 to March 31, 2026
​
​
 —
​
​
 —
​
​
 —
​
 
 (14,323)
​
​
 —
​
 
 (14,323)

Unrealized gains and losses on securities available for sale, net of deferred federal income taxes
​
​
 —
​
​
 —
​
 
 (10,204)
​
​
 —
​
​
 —
​
 
 (10,204)

Restricted share awards issued
​
 
 —
​
 
 509
​
​
 —
​
​
 —
​
​
 —
​
 
 509

Recognition of employee share-based compensation, net of deferred federal income taxes
​
​
 —
​
 
 927
​
​
 —
​
​
 —
​
​
 —
​
 
 927

Dividends paid and accrued
​
​
 —
​
​
 —
​
​
 —
​
 
 (13,470)
​
​
 —
​
 
 (13,470)

Balance at March 31, 2026
​
​
 181
​
​
 237,129
​
​
 (27,337)
​
​
 816,270
​
​
 (170,493)
​
​
 855,750

Net income, April 1 to June 30, 2026
​
​
 —
​
​
 —
​
​
 —
​
 
 34,517
​
​
 —
​
 
 34,517

Unrealized gains and losses on securities available for sale, net of deferred federal income taxes
​
​
 —
​
​
 —
​
 
 (1,434)
​
​
 —
​
​
 —
​
 
 (1,434)

Recognition of employee share-based compensation, net of deferred federal income taxes
​
​
 —
​
 
 1,306
​
​
 —
​
​
 —
​
​
 —
​
 
 1,306

Dividends paid and accrued
​
​
 —
​
​
 —
​
​
 —
​
 
 (13,485)
​
​
 —
​
 
 (13,485)

Balance at June 30, 2026
​
$
 181
​
$
 238,435
​
$
 (28,771)
​
$
 837,302
​
$
 (170,493)
​
$
 876,654

​
​
The accompanying notes are an integral part of these financial statements.
​

6

Table of Contents

Safety Insurance Group, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in thousands)
 ​
​

​

​

​

​

​

​

​
​
Six Months Ended June 30, 

​
  ​ ​ ​
2026
  ​ ​ ​
2025

Cash flows from operating activities:
​
​
​
​
​
​

Net income 
​
$
 20,194
​
$
 50,833

Adjustments to reconcile net income to net cash provided by operating activities:
​
​
​
​
​
​

Investment amortization, net
​
 
 (709)
​
 
 (321)

Fixed asset depreciation, net
​
 
 2,739
​
 
 3,911

Stock based compensation
​
​
 2,743
​
​
 2,528

Credit for deferred income taxes
​
 
 957
​
 
 (88)

Net realized gains on investments
​
 
 (8,049)
​
 
 (6,394)

Credit loss expense
​
​
 355
​
​
 255

Earnings from partnership investments
​
 
 (4,361)
​
 
 (2,413)

Change in net unrealized gains on equity securities
​
​
 6,777
​
​
 (6,923)

Changes in assets and liabilities:
​
​
​
​
​
​

Accounts receivable, net
​
 
 (12,343)
​
 
 (26,549)

Accrued investment income
​
 
 467
​
 
 (1,256)

Receivable from reinsurers
​
 
 (16,859)
​
 
 (10,682)

Ceded unearned premiums
​
 
 (3,643)
​
 
 (95)

Deferred policy acquisition costs
​
 
 (964)
​
 
 (6,007)

Taxes recoverable/payable
​
​
 (14,634)
 ​
​
 (2,710)

Other assets
​
 
 (984)
​
 
 (932)

Losses and loss adjustment expense reserves
​
 
 46,525
​
 
 14,272

Unearned premium reserves
​
 
 9,943
​
 
 39,548

Accounts payable and accrued liabilities
​
 
 (10,163)
​
 
 (7,618)

Payable to reinsurers
​
 
 3,303
​
 
 (3,863)

Net cash provided by operating activities
​
 
 21,294
​
 
 35,496

​
​
​
​
​
​
​

Cash flows from investing activities:
​
​
​
​
​
​

Fixed maturities purchased
​
 
 (165,072)
​
 
 (117,399)

Equity securities purchased
​
 
 (48,633)
​
 
 (37,209)

Other invested assets purchased
​
 
 (2,508)
​
 
 (4,406)

Proceeds from sales and paydowns of fixed maturities
​
 
 127,760
​
 
 44,818

Proceeds from maturities, redemptions, and calls of fixed maturities
​
 
 18,268
​
 
 32,519

Proceeds from maturities of short-term investments
​
​
 —
​
​
 20,000

Proceed from sales of equity securities
​
 
 68,743
​
 
 37,407

Proceeds from other invested assets redeemed
​
​
 3,588
​
​
 6,453

Fixed assets purchased
​
 
 (2,469)
​
 
 (400)

Net cash used for investing activities
​
 
 (323)
​
 
 (18,217)

​
​
​
​
​
​
​

Cash flows from financing activities:
​
​
​
​
​
​

Proceeds from Citizens loan
​
 
 —
​
 
 30,000

Payments on FHLB loan
​
 
 —
​
 
 (30,000)

Dividends paid to shareholders
​
 
 (26,954)
​
 
 (26,844)

Net cash used for financing activities
​
 
 (26,954)
​
 
 (26,844)

​
​
​
​
​
​
​

Net (decrease) increase in cash and cash equivalents
​
 
 (5,983)
​
 
 (9,565)

Cash and cash equivalents at beginning of year
​
 
 73,901
​
 
 58,974

Cash and cash equivalents at end of period
​
$
 67,918
​
$
 49,409

​
​
​
​
​
​
​

​
The accompanying notes are an integral part of these financial statements.
​
​

7

Table of Contents

In this Form 10-Q, Notes to the Unaudited Consolidated Financial Statements, dollar amounts are presented in thousands, except per share data. 
​
​
1. Basis of Presentation
​
The consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.
​
The consolidated financial statements include Safety Insurance Group, Inc. and its subsidiaries (the “Company”). The subsidiaries consist of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, Safety Northeast Insurance Company, Safety Northeast Insurance Agency, Inc. (“SNIA”), and Safety Management Corporation, which is SNIA’s holding company. All intercompany commission transactions, including commission income and other expense, have been eliminated. Eliminated commission income totaled $299 and $317 for the three months ended June 30, 2026 and 2025, respectively. Eliminated commission income totaled $555 and $562 for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, fiduciary assets held by SNIA were immaterial and less than $275.
​
The financial information for the three and six months ended June 30, 2026 and 2025 is unaudited; however, in the opinion of the Company, the information includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods. The financial information as of December 31, 2025 is derived from the audited consolidated financial statements included in the Company’s 2025 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2026.
​
These unaudited interim consolidated financial statements may not be indicative of financial results for the full year and should be read in conjunction with the audited consolidated financial statements included in the Company’s 2025 Annual Report on Form 10-K filed with the SEC on February 27, 2026. 
​
The Company is a leading provider of property and casualty insurance focused primarily on the Massachusetts market. The Company’s principal product line is automobile insurance. The Company primarily operates through its insurance company subsidiaries, Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company, and Safety Northeast Insurance Company. 
​
​
2. Recent Accounting Pronouncements
​
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updated reportable segment disclosures primarily through enhanced disclosures about significant segment expenses. This ASU does not change how a Company identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. This ASU was effective for fiscal years starting January 1, 2024, and for interim periods starting January 1, 2025, and was applied on a retrospective basis. The effect of implementing this guidance was not material to the Company’s consolidated financial position, results of operations or cash flows.
​
The Company has one reportable operating segment, property and casualty insurance operations. Property and casualty insurance operations accounted for substantially all of the Company’s operations. The Company’s business is organized around private passenger automobile insurance in Massachusetts sold exclusively through independent agents and offers other personal and commercial insurance as complementary products. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.
​

8

Table of Contents

The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses performance for the property and casualty insurance operations segment and decides how to allocate resources based on consolidated net income, which is reported in the consolidated statements of operations. The significant segment expenses regularly provided and reviewed by the CODM are the consolidated expenses as reported in the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM uses consolidated net income in deciding whether to reinvest profits into the property and casualty insurance operations or into other parts of the entity, such as for acquisitions or to pay dividends.
​
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU updated the required income tax disclosures to include disclosure of income taxes paid disaggregated by jurisdiction and greater disaggregation of information in the required rate reconciliation. This ASU was effective for fiscal years starting January 1, 2025, and was applied on a prospective basis. Refer to Note 13, Income Taxes, within the Company’s 2025 Annual Report on Form 10-K filed with the SEC on February 27, 2026 for the enhanced disclosures required by this ASU. 
​
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting of Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires disaggregated disclosure of income statement expenses. This ASU does not change how a Company presents expense captions on the face of the income statement; however, it requires disaggregation of certain expense captions into specified categories in disclosures in the footnotes to the financial statements. This ASU is effective for fiscal years starting January 1, 2027, and for interim periods starting January 1, 2028 and will be applied on a prospective basis. The Company is evaluating the disclosure impact of this new guidance; however, it will not have an impact on the consolidated financial position, results of operations, or cash flows.
​
In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. Under the new guidance, costs associated with software developed for internal use will now be capitalized when management authorizes a project and when it is probable the project will be completed and used to perform the function intended, rather than when a project reaches the application development stage under existing guidance. The guidance is effective beginning January 1, 2028, with early adoption permitted, and can be applied prospectively, retrospectively, or on a modified retrospective basis. The Company has not yet determined the transition method or timing for adoption; however, the adoption of this guidance is not expected to have a significant impact on the consolidated financial position, results of operations, or cash flows.
​
​
3. Earnings per Share
​
Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of basic common shares outstanding during the period. Diluted EPS amounts are based on the weighted average number of common shares including non-vested performance stock grants.
​

9

Table of Contents

The following table sets forth the computation of basic and diluted EPS for the periods indicated.
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Three Months Ended June 30, 
 
Six Months Ended June 30, 

​
​
2026
​
2025
​
2026
​
2025

Earnings attributable to common shareholders - basic and diluted:
​
​
​
​
​
​
​
​
​
​
​
​

Net income from continuing operations
​
$
 34,517
​
$
 28,937
​
$
 20,194
​
$
 50,833

Allocation of income for participating shares
​
​
 (176)
​
​
 (136)
​
​
 (101)
​
​
 (229)

Net income from continuing operations attributed to common shareholders
​
$
 34,341
​
$
 28,801
​
$
 20,093
​
$
 50,604

Earnings per share denominator - basic and diluted
​
​
​
​
​
​
​
​
​
​
​
​

Total weighted average common shares outstanding, including participating shares
​
​
 14,596,262
​
​
 14,814,223
​
​
 14,582,798
​
​
 14,799,173

Less: weighted average participating shares
​
​
 (74,569)
​
​
 (69,255)
​
​
 (72,799)
​
​
 (67,330)

Basic earnings per share denominator
​
​
 14,521,693
​
​
 14,744,968
​
​
 14,509,999
​
​
 14,731,843

Common equivalent shares- non-vested performance stock grants
​
 
 36,601
​
 
 37,276
​
 
 42,291
​
 
 31,889

Diluted earnings per share denominator
​
 
 14,558,294
​
 
 14,782,244
​
 
 14,552,290
​
 
 14,763,732

​
​
​
​
​
​
​
​
​
​
​
​
​

Basic earnings per share
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.44

Diluted earnings per share
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.43

​
​
​
​
​
​
​
​
​
​
​
​
​

Undistributed earnings attributable to common shareholders - basic and diluted:
​
​
​
​
​
​
​
​
​
​
​
​

Net income from continuing operations attributable to common shareholders -Basic
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.44

Dividends declared
​
​
 (0.92)
​
​
 (0.90)
​
​
 (1.84)
​
​
 (1.80)

Undistributed earnings 
​
$
 1.44
​
$
 1.05
​
$
 (0.46)
​
$
 1.64

​
​
​
​
​
​
​
​
​
​
​
​
​

Net income from continuing operations attributable to common shareholders -Diluted
​
$
 2.36
​
$
 1.95
​
$
 1.38
​
$
 3.43

Dividends declared
​
​
 (0.92)
​
​
 (0.90)
​
​
 (1.84)
​
​
 (1.80)

Undistributed earnings
​
$
 1.44
​
$
 1.05
​
$
 (0.46)
​
$
 1.63

​
Diluted EPS excludes non-vested performance stock grants with exercise prices and exercise tax benefits greater than the average market price of the Company’s common stock during the period because their inclusion would be anti-dilutive. There were no anti-dilutive shares related to non-vested performance stock grants for the three and six months ended June 30, 2026 and 2025, respectively. 
 ​
​
4.  Share-Based Compensation
​
2018 Long Term Incentive Plan
​
On March 24, 2022, the Company’s Board of Directors adopted the Amended and Restated Safety Insurance Group, Inc. 2018 Long-Term Incentive Plan (“the Amended 2018 Plan”), which was subsequently approved by our shareholders at the 2022 Annual Meeting of Shareholders. The Amended 2018 Plan increased the share pool limit by adding 350,000 common shares to the previously adopted Safety Insurance Group, Inc. 2018 Long-Term Incentive Plan. The Amended 2018 Plan enables the grant of stock awards, performance shares, cash-based performance units, other stock-based awards, stock options, stock appreciation rights, and stock unit awards, each of which may be granted separately or in tandem with other awards. Eligibility to participate includes officers, directors, employees and other individuals who provide bona fide services to the Company. The Amended 2018 Plan supersedes the Company’s 2002 Management Omnibus Incentive Plan (“the 2002 Incentive Plan”). 
​
The Amended 2018 Plan establishes a pool of 700,000 shares of common stock available for issuance to our employees and other eligible participants. The Board of Directors and the Compensation Committee intend to issue awards under the Amended 2018 Plan in the future.
​

10

Table of Contents

The maximum number of shares of common stock between both the Amended 2018 Plan and 2002 Incentive Plan with respect to which awards may be granted is 3,200,000. No further grants will be allowed under the 2002 Incentive Plan. At June 30, 2026, there were 160,334 shares available for future grant. 
​
Accounting and Reporting for Stock-Based Awards
​
The Company measures and recognizes the cost of employee services received in exchange for an award of equity instruments. Under the provisions of Accounting Standards Codification (“ASC”) 718, Compensation – Stock Compensation, share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant).
​
Restricted Stock
​
Service-based restricted stock awarded in the form of unvested shares is recorded at the market value of the Company’s common stock on the grant date and amortized ratably as compensation expense over the requisite service period. Service-based restricted stock awards generally vest over a three-year period and vest 30% on the first and second anniversaries of the grant date and 40% on the third anniversary of the grant date, except for non-executive employees’ restricted stock awards granted prior to 2018 which vest ratably over a five-year service period and independent directors’ stock awards which vest immediately. Our independent directors are subject to stock ownership guidelines, which require them to have a value four times their annual cash retainer.
​
In addition to service-based awards, the Company grants performance-based restricted shares to certain employees. These performance shares cliff vest after a three-year performance period provided certain performance measures are attained. A portion of these awards, which contain a market condition, vest according to the level of total shareholder return achieved by the Company compared to its property-casualty insurance peers over a three-year period. The remainder, which contain a performance condition, vest according to the level of Company’s combined ratio results compared to a target based on its property-casualty insurance peers.
​
Actual payouts can range from 0% to 200% of target shares awarded depending upon the level of achievement of the respective market and performance conditions during a three calendar-year performance period. Compensation expense for share awards with a performance condition is based on the probable number of awards expected to vest using the performance level most likely to be achieved at the end of the performance period.
​
Performance-based awards with market conditions are accounted for and measured differently from awards that have a performance or service condition. The effect of a market condition is reflected in the award’s fair value on the grant date. That fair value is recognized as compensation cost over the requisite service period regardless of whether the market-based performance objective has been satisfied.
​
All of the Company’s restricted stock awards are issued as incentive compensation and are equity classified. 
​
The following table summarizes restricted stock activity under the Amended 2018 Plan during the six months ended June 30, 2026 assuming a target payout for the 2026 performance-based shares.
​
​

​

​

​

​

​

​

​

​

​

​

​
  ​ ​ ​
Shares 
  ​ ​ ​
Weighted
​
Performance-based
  ​ ​ ​
Weighted

​
​
Under
​
Average
​
Shares Under
​
Average

​
​
Restriction
​
Fair Value
​
Restriction
​
Fair Value

Outstanding at beginning of year
 
 69,243
​
$
 82.79
​
 79,659
​
$
 83.80

Granted
 
 44,282
​
​
 78.46
​
 31,047
(1)
​
 78.46

Vested and unrestricted
 
 (39,197)
​
​
 83.14
​
 —
​
​
 -

Forfeited
​
 (115)
​
​
 78.46
​
 (23,761)
​
​
 86.90

Outstanding at end of period
 
 74,213
​
$
 80.04
​
 86,945
​
$
 81.05

(1)Includes an update of previously awarded performance-based restricted share awards. The updated shares were calculated based on the attainment of pre-established performance objectives and granted under the Amended 2018 Plan.
​

11

Table of Contents

 As of June 30, 2026, there was $8,595 of unrecognized compensation expense related to non-vested restricted stock awards that is expected to be recognized over a weighted average period of 1.7 years. The total fair value of the shares that were vested and unrestricted during the six months ended June 30, 2026 and 2025 was $3,259 and $3,709, respectively. For the six months ended June 30, 2026 and 2025, the Company recorded compensation expense related to restricted stock of $2,167 and $1,997, net of income tax benefits of $576 and $531, respectively, within Underwriting, operating and related expenses on the Consolidated Statements of Operations.
​
​
5.  Investments
​
The gross unrealized gains and losses on investments in fixed maturity securities, including redeemable preferred stocks that have characteristics of fixed maturities, short-term investments, equity securities, including interests in mutual funds, and other invested assets were as follows for the periods indicated.
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
As of June 30, 2026

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

​
  ​ ​ ​
Cost or
  ​ ​ ​
Allowance for 
  ​ ​ ​
Gross Unrealized
  ​ ​ ​
Estimated

​
​
Amortized
​
Expected Credit
​
​
​
​
​
Fair

​
​
Cost
​
Losses
​
Gains
​
Losses (3)
​
Value

U.S. Treasury securities
​
$
 4,209
​
$
 —
​
$
 4
​
$
 (46)
​
$
 4,167

Obligations of states and political subdivisions
​
 
 38,814
​
 
 —
​
 
 287
​
 
 (1,820)
​
 
 37,281

Residential mortgage-backed securities (1)
​
 
 372,628
​
 
 —
​
 
 2,641
​
 
 (17,622)
​
 
 357,647

Commercial mortgage-backed securities
​
 
 157,196
​
 
 —
​
 
 255
​
 
 (7,072)
​
 
 150,379

Other asset-backed securities 
​
 
 190,732
​
 
 —
​
 
 315
​
 
 (1,318)
​
 
 189,729

Corporate and other securities
​
 
 601,789
​
 
 (355)
​
 
 2,822
​
 
 (14,865)
​
 
 589,391

Subtotal, fixed maturity securities 
​
 
 1,365,368
​
 
 (355)
​
 
 6,324
​
 
 (42,743)
​
 
 1,328,594

Equity securities (2)
​
 
 189,372
​
 
 —
​
 
 25,530
​
 
 (12,946)
​
 
 201,956

Other invested assets (4)
​
 
 154,036
​
 
 —
​
 
 —
​
 
 —
​
 
 154,036

Totals
​
$
 1,708,776
​
$
 (355)
​
$
 31,854
​
$
 (55,689)
​
$
 1,684,586

​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
As of December 31, 2025

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

​
  ​ ​ ​
Cost or
  ​ ​ ​
Allowance for 
  ​ ​ ​
Gross Unrealized
  ​ ​ ​
Estimated

​
​
Amortized
​
Expected Credit
​
​
​
​
​
Fair

​
​
Cost
​
Losses
​
Gains
​
Losses (3)
​
Value

U.S. Treasury securities
​
$
 4,211
​
$
 —
​
$
 22
​
$
 (28)
​
$
 4,205

Obligations of states and political subdivisions
​
 
 38,837
​
 
 —
​
 
 532
​
 
 (1,651)
​
 
 37,718

Residential mortgage-backed securities (1)
​
 
 376,354
​
 
 —
​
 
 5,075
​
 
 (15,382)
​
 
 366,047

Commercial mortgage-backed securities
​
 
 162,755
​
 
 —
​
 
 702
​
 
 (6,439)
​
 
 157,018

Other asset-backed securities 
​
 
 170,332
​
 
 —
​
 
 373
​
 
 (1,196)
​
 
 169,509

Corporate and other securities
​
 
 584,746
​
 
 —
​
 
 7,431
​
 
 (11,126)
​
 
 581,051

Subtotal, fixed maturity securities 
​
 
 1,337,235
​
 
 —
​
 
 14,135
​
 
 (35,822)
​
 
 1,315,548

Equity securities (2)
​
 
 201,591
​
 
 —
​
 
 27,327
​
 
 (7,965)
​
 
 220,953

Other invested assets (4)
​
 
 151,020
​
 
 —
​
 
 —
​
 
 —
​
 
 151,020

Totals
​
$
 1,689,846
​
$
 —
​
$
 41,462
​
$
 (43,787)
​
$
 1,687,521

(1)Residential mortgage-backed securities consists primarily of obligations of U.S. Government agencies including collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).
(2)Equity securities include common stock, preferred stock, mutual funds and interests in mutual funds held to fund the Company’s executive deferred compensation plan.
(3)The Company’s investment portfolio includes 833 and 700 securities in an unrealized loss position at June 30, 2026 and December 31, 2025, respectively.
(4)Other invested assets are generally accounted for under the equity method which approximated fair value.
​
​

12

Table of Contents

The amortized cost and the estimated fair value of fixed maturity securities, by maturity, are shown below for the period indicated. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
​
​
​
​
​
​
​
​

​
​
As of June 30, 2026

​
  ​ ​ ​
Amortized
  ​ ​ ​
Estimated

​
​
Cost
​
Fair Value

Due in one year or less
​
$
 5,694
​
$
 5,671

Due after one year through five years
​
 
 340,433
​
 
 332,248

Due after five years through ten years
​
 
 278,972
​
 
 273,275

Due after ten years through twenty years
​
 
 18,882
​
 
 18,795

D