NASDAQ$SAFT

Safety Insurance Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a net income of $36.2 million and non-GAAP operating income of $1.93 per diluted share for Q1 2021.

Safety Insurance Group, Inc. reported a net income of $36.2 million, or $2.42 per diluted share, for the quarter ended March 31, 2021, compared to a net loss of $2.0 million, or $0.13 per diluted share, for the comparable 2020 period. Non-GAAP operating income for the quarter was $1.93 per diluted share, compared to $1.57 per diluted share for the comparable 2020 period.

  • Net income for Q1 2021 was $36.2 million, or $2.42 per diluted share, compared to a net loss of $2.0 million, or $0.13 per diluted share, for Q1 2020.
  • Non-GAAP operating income for Q1 2021 was $1.93 per diluted share, compared to $1.57 per diluted share for Q1 2020.
  • Direct written premiums decreased by $5.1 million, or 2.6%, to $192.2 million.
  • Net earned premiums decreased by $5.0 million, or 2.5%, to $192.9 million.

Headline financials

Total Revenue

$222M

Previous: $181M+22.6%
EPS (adj)

$1.93

Previous: $1.57+22.9%
Loss Ratio

57.8%

Previous: 61.0%-5.2%
Expense Ratio

33.7%

Previous: 31.9%+5.6%
Combined Ratio

91.5%

Previous: 92.9%-1.5%
Capital Expenditures

-$2.87M

Previous: -$2.98M+3.5%
Free Cash Flow

$33.3M

Previous: -$4.97M+770.4%
Net Income

$36.2M

Previous: -$1.99M+1917.8%
Operating Income

$45.4M

Previous: -$2.78M+1730.4%
Gross Profit

$110M

Previous: $60.3M+83.1%
Cash & Equivalents

$51.6M

Previous: $41.6M+24.0%
Total Assets

$2.05B

Previous: $1.93B+6.0%

Revenue & EPS history

Safety Insurance · Revenue · Quarterly

$222M

Q1 2021+22.6%vs Q1 2020
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Safety Insurance · $11.5M total across 1 segment · Q1 2021

  • Net Investment Income
    $11.5M+7.7%

Forward guidance

This press release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from these statements due to various factors.

Tailwinds

  • The competitive nature of our industry and the possible adverse effects of such competition
  • Conditions for business operations and restrictive regulations in Massachusetts
  • The possibility of losses due to claims resulting from severe weather
  • Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others
  • Other risks and factors identified from time to time in our reports filed with the SEC

Headwinds

  • The possibility that the Commissioner of Insurance may approve future Rule changes that change the operation of the residual market
  • The effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative or regulatory changes that take place after the Company issues its policies, including those taken in response to COVID-19
  • The possibility that civil litigation and/or state insurance regulators may require additional premium relief payouts related to COVID-19
  • The impact of COVID-19 and related risks, including on the Company's employees, agents or other key partners, could materially affect the Company's results of operations, financial position and/or liquidity
  • Forward-looking statements are not guarantees of future performance

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+12.8%

Q3 2024

Best reaction

-8.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-4.2%-3.6%
Q4 2025-0.7%-3.5%-7.3%
Q3 2025+2.0%+9.6%+6.0%
Q1 2025+0.3%-1.5%-4.9%
Q4 2024-5.5%-4.0%-0.6%
Q3 2024+12.8%+10.3%+11.3%
Q2 2024+0.7%+1.0%+6.7%
Q1 2024+3.9%+0.7%-5.3%
Q4 2023-3.8%-6.3%-3.8%
Q3 2023+4.2%+3.9%+3.0%
Q2 2023+0.7%+2.7%-3.8%
Q1 2023-1.6%-2.9%+3.7%
Q4 2022-8.1%-7.2%-16.1%
Q3 2022-3.0%+1.4%+4.4%
Q2 2022-0.2%+4.4%+4.3%
Q1 2022+1.9%+1.7%+7.9%
Q4 2021-2.3%-2.4%+7.0%
Q3 2021-0.5%+1.4%-0.4%
Q2 2021+1.6%+4.2%+4.8%
Q1 2021+4.1%+4.8%+1.2%
Q4 2020+2.8%+1.2%+6.0%
Q3 2020-0.9%+2.6%+5.4%
Q2 2020+1.5%+6.9%-3.8%
Q1 2020-3.2%-3.2%+0.9%
Q4 2019-6.2%-8.8%-15.5%
Q3 2019-3.3%-3.5%-2.9%
Q2 2019-3.0%-6.3%-4.0%
Q1 2019+0.3%+3.0%-1.9%
Q4 2018+0.1%-3.9%-4.7%
Q3 2018-1.6%+0.6%+3.0%
Q2 2018+2.3%+0.7%+5.6%
Q1 2018-0.9%+0.4%+7.3%
Q4 2017-2.5%-3.7%+4.0%
Q3 2017-1.3%-2.0%+0.4%
Q2 2017+3.5%+0.6%-0.3%
Q1 2017-1.6%-3.8%-5.1%
Q4 2016+1.0%-2.0%-6.2%
Q3 2016-2.4%-2.2%+4.7%
Q2 2016+1.3%+1.4%+7.4%
Q1 2016+5.1%
Q4 2015-0.2%
Q3 2015-2.3%
Q2 2015-4.0%
Q1 2015-5.2%
Q4 2014-1.4%
Q3 2014-5.9%
Q2 2014+2.1%
Q1 2014+1.0%
Q4 2013-2.7%
Q3 2013+2.3%
Q2 2013+1.3%
Q1 2013-0.2%
Q4 2012-3.3%
Q3 2012-2.2%
Q2 2012+1.4%
Q1 2011-0.4%
Q1 2012+2.5%
Q4 2009+1.3%
Q4 2011+1.3%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011+2.3%
Q2 2010+2.3%
Q4 2010+2.3%
Q1 2010+0.4%

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