NASDAQ$SAFT

Safety Insurance Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net income and non-GAAP operating income increased while direct and net written premiums decreased due to premium relief efforts and changes in eligibility requirements.

Safety Insurance Group reported increased net income and non-GAAP operating income for the second quarter of 2020, while direct and net written premiums decreased. The company's performance was influenced by premium relief efforts, changes in eligibility requirements, and the impact of the COVID-19 pandemic.

  • Net income for the quarter ended June 30, 2020, was $42.5 million, or $2.78 per diluted share, compared to $25.9 million, or $1.68 per diluted share, for the comparable 2019 period.
  • Non-GAAP operating income for the quarter ended June 30, 2020, was $1.95 per diluted share, compared to $1.47 per diluted share for the comparable 2019 period.
  • Direct written premiums for the quarter decreased by $28.3 million, or 12.1%, to $205.3 million.
  • Net written premiums for the quarter decreased by $19.6 million, or 9.0%, to $197.7 million.

Headline financials

Total Revenue

$208M

Previous: $216M-3.8%
EPS (adj)

$1.95

Previous: $1.47+32.7%
Loss Ratio

50.0%

Previous: 62.3%-19.7%
Expense Ratio

34.9%

Previous: 31.0%+12.6%
Combined Ratio

84.9%

Previous: 93.3%-9.0%
Book Value Per Share

$53.95

No prior period
Capital Expenditures

-$5.33M

Previous: -$2.33M-128.9%
Free Cash Flow

$37.2M

Previous: $23.6M+57.4%
Net Income

$42.5M

Previous: $25.9M+63.9%
Operating Income

$53.3M

Previous: $32.7M+62.9%
Gross Profit

$117M

Previous: $93.6M+24.8%
Cash & Equivalents

$44.8M

Previous: $38M+17.9%
Total Assets

$2.02B

Previous: $1.97B+2.3%

Revenue & EPS history

Safety Insurance · Revenue · Quarterly

$208M

Q2 2020-3.8%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Safety Insurance · $9.92M total across 1 segment · Q2 2020

  • Net Investment Income
    $9.92M-6.5%

Forward guidance

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

Tailwinds

  • Company continues to address the health and well-being of our employees.
  • Company serves the needs of agents.
  • Company serves the needs of insureds.
  • Board of Directors approved a $0.90 per share quarterly cash dividend.
  • Company is a leading writer of property and casualty insurance products.

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 Q2 2020

Historical avgQ2 2020

-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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