AM Best Revises Safety Group's Outlook to Negative

AM Best Revises Safety Group's Outlook to Negative Amid Operating Challenges

AM Best has revised the outlook for Safety Group, comprising Safety Insurance Co., Safety Indemnity Insurance Co., Safety Property and Casualty Insurance Co., and Safety Northeast Insurance Co., from stable to negative. Despite this shift, the Financial Strength Rating remains at A (Excellent) and Long-Term Issuer Credit Rating (ICR) at “a” (Excellent). The parent company, Safety Insurance Group, Inc., based in Delaware, also sees a similar revision in outlook to negative, maintaining a Long-Term ICR of “bbb” (Good).

The adverse outlook reflects ongoing operational challenges, including escalating loss severity trends and impacts from adverse weather events, which have influenced underwriting results over recent years. In 2025, while profits were achieved, the onset of 2026 proved difficult. The Northeast's severe blizzards and record snowfalls led to over 1,600 property claims, incurring damages amounting to $42.7 million and increasing Safety Group's combined ratio to 113.4%.

In an effort to counter these challenges, Safety Group has introduced rate adjustments and amended underwriting strategies. However, AM Best indicates that these measures have yet to restore historical levels of financial fortitude. Nevertheless, the group experienced growth in direct and net written premiums, highlighted by increased average written premiums per policy in private passenger auto (4.0%), commercial auto (6.1%), and homeowners (9.9%) in Q1 year-over-year. The continued credit ratings by AM Best are a testament to Safety Group's robust balance sheet, strong operating performance, neutral business profile, and effective enterprise risk management (ERM). Additionally, Safety Group's strategic position among Massachusetts' top five carriers and its affiliation with a parent company capable of tapping into public debt and equity markets reinforce its business resilience.