AM Best has revised the outlooks to negative from stable while affirming the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of “a” (Excellent) for Massachusetts-based Safety Insurance Co., Safety Indemnity Insurance Co., Safety Property and Casualty Insurance Co. and Safety Northeast Insurance Co.
Collectively, the Massachusetts companies are referred to as Safety Group.
At the same time, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of “bbb” (Good) of Safety Insurance Group, Inc. of Delaware, the publicly traded parent of Safety.
AM Best said the revision of the outlooks reflects pressure on Safety Group’s operating performance as loss severity trends and weather-related events, and new business, have affected underwriting results over the most recent five-year period and through the first half of 2026.
While the company reported a profitable year in 2025, the early part of this year has been tough. In its first quarter report, the insurer noted that beginning on January 23, the Northeast experienced blizzard conditions including excess snowfall, subzero windchill temperatures, and wind gusts reaching 75 miles per hour. Then, on February 22, the region was hit by record-breaking snowfall and hurricane-force wind gusts, with some areas receiving up to 36 inches of snow and many households being left without power for multiple days. In total, these events resulted in more than 1,600 property claims, causing damage of $42.7 million, which contributed 14.6 percentage points to its combined ratio of 113.4%.
Management has implemented rate increases and is taking additional underwriting steps to improve prospective results; however, AM Best said these have yet to reach the same level of comparative strength as observed in prior years.
The company reported that its rate actions have generated increases in direct written premiums and net written premiums. For the first quarter, the average written premium per policy increased 4.0% in private passenger auto, 6.1% in commercial auto, and 9.9% in homeowners compared to the same period in 2025.
AM Best said the credit ratings reflect Safety Group’s balance sheet strength, which its analysts assess as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Safety Group’s AM Best said its neutral business profile assessment of Safety Group is based on its consistent position as a top five carrier in the personal auto, commercial auto and homeowners’ markets in Massachusetts.
AM Best noted that the group benefits from the relationship with its parent, Safety Insurance Group, Inc., which can access public debt and equity markets if needed.
Top Photo: A man shovels snow after a winter storm dumped about more than two feet of snow in the region, Wednesday, Feb. 25, 2026, in Plymouth, Mass. (AP Photo/Charles Krupa)
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