Net Income Dips at Safety Insurance for 3d Quarter

Safety Insurance Group, Inc. in Boston reported third quarter 2007 net income for the quarter ended Sept. 30, 2007 was $22.9 million, or $1.42 per diluted share, compared to $29.1 million, or $1.81 per diluted share, for the comparable 2006 period.

Net income for the nine months ended Sept. 30, 2007 was $70.5 million, or $4.38 per diluted share, compared to $89.0 million, or $5.57 per diluted share, for the comparable 2006 period.

Safety’s book value per share increased to $34.19 at Sept. 30, 2007 compared to $30.84 at December 31, 2006. Safety paid $0.40 per share in dividends to investors during the quarter ended Sept. 30, 2007 compared to $0.25 per share during the comparable 2006 period. Safety paid $0.86 per share in dividends to investors during the year ended Dec. 31, 2006.

Direct written premiums for the quarter decreased by $4.1 million, or 2.6%, to $152.2 million from $156.3 million for the comparable 2006 period. Direct written premiums for the nine months ended September 30, 2007 decreased by $4.7 million, or 0.9%, to $492.2 million from $496.9 million for the comparable 2006 period.

The 2007 decrease occurred primarily in personal and commercial automobile lines, which experienced decreases in average written premium of 4.7% and 2.6%, respectively. Partially offsetting these decreases was an increase in average written premium in the homeowners line of 6.3%.

Net written premiums for the quarter decreased by $7.1 million, or 4.5%, to $148.7 million from $155.8 million for the comparable 2006 period. Net written premiums for the nine months decreased by $12.1 million, or 2.5%, to $479.3 million from $491.4 million for the comparable 2006 period. These decreases were due to the factors that decreased direct written premiums combined with decreases in premiums assumed from Commonwealth Automobile Reinsurers, and partially offset by decreases in premiums ceded to CAR.

Net earned premiums for the quarter decreased by $4.1 million, or 2.6%, to $152.6 million from $156.7 million for the comparable 2006 period. Net earned premiums for the nine months decreased by $10.7 million, or 2.3%, to $460.1 million from $470.8 million for the comparable 2006 period. These decreases were primarily as a result of decreases in premiums assumed from CAR.

Net investment income for the quarter was $11.0 million compared to $10.3 million for the comparable 2006 period. Net investment income for the nine months was $32.8 million compared to $29.6 million for the comparable 2006 period.

Source: Safety Insurance Group, Inc.
www.safetyinsurance.com