Ratings analysts at AM Best see the pending acquisition of Safety Insurance Group by Mapfre as “strategically compelling” as the carriers have complementary geographic and product profiles.
Last week Safety, a property/casualty insurer in Massachusetts and New England, announced it has agreed to be acquired by Spain’s Mapfre S.A. in an all-cash transaction valued at approximately $1.54 billion.
AM Best said its ratings for Mapfre operating subsidiaries remain unchanged following the announcement.
Mapfre’s rated operating subsidiaries have a Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of “a+” (Excellent). The outlook of these ratings is stable. The ratings reflect Mapfre’s balance sheet strength, which AM Best said it assesses as very strong, as well as its “strong” operating performance, “favorable” business profile and “appropriate” enterprise risk management.
“The transaction is strategically compelling as both companies share a similar footprint and product offering. Furthermore, it will enable Mapfre to further consolidate its strong position in Massachusetts and expand into New England,” AM Best said in a release.
AM Best said Mapfre has a “successful track record” of acquiring companies. This transaction will help expand its footprint within the Northeast as Safety’s book complements Mapfre’s existing portfolio within Massachusetts.
At the same time, AM Best placed Safety Group’s ratings “under review with developing implications” following the announcement of the merger agreement.
Safety has a leading market position in Massachusetts and a presence in several states in the Northeast. The plan calls for Safety to merge with a Mapfre subsidiary and become the surviving entity
AM Best said the “developing implications” reflect the need for further analysis as details of the strategic plan and integration of Safety into Mapfre are established. “Operational synergies are expected considering the overlap of the geographic footprint and lines of business,” AM Best added.
The ratings agency said Safety Group’s ratings will remain under review with developing implications pending customary approvals and AM Best’s evaluation of the integration and future business plans.
The acquisition is subject to regulatory approvals and is expected to be completed at the end of first-quarter 2027.
In May, AM Best revised the outlooks to negative from stable for the Safety Group that includes Safety Indemnity Insurance Co., Safety Property and Casualty Insurance Co. and Safety Northeast Insurance Co.
At that time, AM Best affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of “a” (Excellent).
AM Best said the revision of the outlooks reflected 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.
Mapfre companies in the U.S. include American Commerce Insurance Co., Citation Insurance Co., The Commerce Insurance Co., Commerce West Insurance Co., Mapfre Insurance Co., and Mapfre Insurance Company of Florida.
Mapfre first entered the U.S. in 1995 with the purchase of Western Pioneer Insurance Co. in California, which was later renamed Commerce West. It went on to acquire Automobile Club Insurance Company out of Columbus, Ohio in 1999 and in 2008, it acquired Massachusetts-based The Commerce Group Inc. The company expanded into New York in 2007 by purchasing SWICO Enterprises. It began writing in New Hampshire in 2008 and in Maine in 2016.
In 2017 Mapfre USA, which was then writing in 19 states, narrowed its focus to a core 11 states by selling its New York and New Jersey business to Plymouth Rock and exiting Kentucky, Tennessee and Indiana. It also sold its life business.
“This combination will definitely reinforce our commitment to agents and clients throughout the Northeast while providing enhanced opportunities for our employees,” commented Jaime Tamayo, CEO of Mapfre North America, on the Safety deal.
Topics AM Best
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