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what it is
It sells car and home insurance in Massachusetts.
how it gets paid
Last year Safety Insurance made $1.3B in revenue. Personal auto was the main engine at $0.73B, or 56% of sales.
why it's growing
Revenue grew 12.8% last year. EPS was $5.33, up 179% vs. prior year, and annual revenue reached $1.3B.
what just happened
Revenue hit $944M, up 189% vs. prior year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
40/100 earnings predictability — expect surprises
13.4x trailing p/e — the market's not buying it — or you found a deal
5.0% dividend yield — cash in your pocket every quarter
8.2% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
It sells car and home insurance in Massachusetts.
Safety says it is the fifth-largest private passenger auto carrier and the second-largest commercial auto carrier in Massachusetts. That local rank matters because your insurer knows the claim map with 551 employees. Beta 0.8 means the stock moves less than the market, so your ride is calmer.
How they make money
$1.3B
annual revenue · their business grew +12.8% last year
Personal auto
$0.73B
Commercial auto
$0.31B
Homeowners
$0.16B
Investment income and other
$0.10B
The products that matter
personal auto insurance
Private Passenger Auto
$780M · 60% of the book
It is the center of gravity at $780M. When pricing is right, this line carries the story. When loss costs jump, this line writes the story for you.
largest line
home insurance
Homeowners Insurance
$390M · 30% of the book
This $390M segment gives you product breadth, but it also ties returns to weather and repair-cost inflation in the same region as the auto book.
cat exposure
commercial policies
Commercial Lines
$130M · 10% of the book
At $130M, commercial lines are too small to change the whole thesis. They help diversify the mix a bit, but not enough to offset the personal-lines concentration.
small buffer
Key numbers
$1.3B
annual revenue
You are buying a $1.3B premium book with a market cap near $1B. That is not much room for mistakes.
5.0%
dividend yield
A 5.0% yield pays you about $3.94 a year on a $78.7 share while you wait.
8.2%
return on capital
For every $100 the business uses, it makes $8.20 back in operating return. That is solid, not flashy.
0.8
beta
A 0.8 beta means the stock moves less than the market. That is the calmer ride you buy insurance stocks for.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 4 — safer than 20% of stocks
- price stability 95 / 100
- long-term debt $30M (3% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SAFT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $944M, up 189% vs. prior year.
EPS was $5.33, up 179% vs. prior year, and annual revenue reached $1.3B. The quarter looks huge because the comparison base was tiny.
$944M
revenue
$5.33
eps
n/a
n/a
the number that mattered
The $944M quarter mattered most because it is the cleanest proof that the top line is still moving.
source: company earnings report, 2026
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What could go wrong
the top risk is Massachusetts concentration in personal auto and homeowners. This is not a diversified national insurer. It is a focused book where the same state and the same claims trends show up everywhere.
med
Massachusetts personal-lines concentration
Private passenger auto is $780M and homeowners is $390M. Together that is $1.17B of the $1.3B premium base tied to two lines in one region.
A bad weather year, weak pricing response, or claims-cost spike does not hit one corner of the book. It hits most of it.
med
Underwriting has little room for error
Return on capital is 8.2% and full-year return on equity was 8.85%. Those are workable numbers. They are not generous ones.
If profitability stays stuck around these levels while the dividend stays at $0.92 each quarter, the yield stops looking conservative and starts looking demanding.
med
Low predictability for an insurer
Earnings predictability is 40/100. In plain English: the quarterly path can swing more than the calm price chart suggests.
Income investors usually want boring. This stock gives you a 5.0% yield, then asks you to tolerate lumpier earnings than the headline implies.
$1.17B of the $1.3B premium book sits in private passenger auto and homeowners, so concentration is not a side note. It is the risk picture.
source: institutional data · regulatory filings · risk analysis
Pay attention to
profitability
Return on equity above 9%
Full-year ROE came in at 8.85%. You want to see that number move higher, not hover under 9% while the stock sells itself as a dependable income name.
calendar
Q1 2026 earnings release
Late April 2026 should tell you whether the Q4 beat was repeatable or just one clean quarter inside a noisier earnings pattern.
dividend
Payout pressure
The quarterly dividend is $0.92 per share. Annualized, that is $3.68 against a $4.78 EPS estimate. That spread is fine, but not roomy.
mix
Any shift away from personal lines concentration
Auto and homeowners still make up 90% of the book. If that ratio stays pinned there, you are still underwriting one region more than buying a diversified insurer.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not see this as a clean, clockwork earner.
price stability
95 / 100
The stock price has been steady. The business underneath it is less smooth than that score implies.
balance sheet grade
B++
Above-average balance sheet quality. Low debt helps, but this is not the part of the story that earns a premium multiple.
source: institutional data
Institutional activity
institutional ownership data for SAFT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$79
current price
n/a
target midpoint · n/a from current
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