NASDAQ$SAFT

Safety Insurance Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Safety Insurance Group reported a decrease in net income due to a return to pre-pandemic level frequency in the private passenger line of business and an increase in physical damage inflation costs.

Safety Insurance Group, Inc. reported first quarter 2022 results with a net income of $7.8 million, or $0.53 per diluted share, compared to $36.2 million, or $2.42 per diluted share, for the comparable 2021 period. The combined ratio was 98.7%, impacted by pre-pandemic frequency in the private passenger line and increased physical damage inflation costs. Direct written premiums decreased by 1.4% to $189.5 million.

  • Net income for the quarter was $7.8 million, or $0.53 per diluted share.
  • Non-GAAP operating income was $0.99 per diluted share.
  • Direct written premiums decreased by 1.4% to $189.5 million.
  • The combined ratio for the quarter was 98.7%.

Headline financials

Total Revenue

$195M

Previous: $222M-12.1%
EPS (adj)

$0.99

Previous: $1.93-48.7%
Loss Ratio

65.8%

Previous: 57.8%+13.8%
Expense Ratio

32.9%

Previous: 33.7%-2.4%
Combined Ratio

98.7%

Previous: 91.5%+7.9%
Capital Expenditures

-$691K

Previous: -$2.87M+75.9%
Free Cash Flow

$7.15M

Previous: $33.3M-78.5%
Net Income

$7.84M

Previous: $36.2M-78.3%
Operating Income

$10.2M

Previous: $45.4M-77.4%
Gross Profit

$71.8M

Previous: $110M-34.9%
Cash & Equivalents

$35.2M

Previous: $51.6M-31.7%
Total Assets

$1.99B

Previous: $2.05B-2.7%

Revenue & EPS history

Safety Insurance · Revenue · Quarterly

$195M

Q1 2022-12.1%vs Q1 2021
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Safety Insurance · $14M total across 1 segment · Q3 2023

  • Net Investment Income
    $14M

Forward guidance

This press release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those projected.

Headwinds

  • 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.
  • The possibility that the Commissioner of Insurance may approve future rule changes that change the operation of the residual market.
  • Our possible need for and availability of additional financing, and our dependence on strategic relationships, among others.

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 2022

Historical avgQ1 2022

-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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