NASDAQ$SAFT

Safety Insurance Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net income decreased compared to the same quarter last year.

Safety Insurance Group reported a decrease in net income for the second quarter of 2021, with earnings of $37.7 million, or $2.49 per diluted share, compared to $42.5 million, or $2.78 per diluted share, in the same period of 2020. Non-GAAP operating income was $1.85 per diluted share, down from $1.95 per diluted share in the prior year.

  • Net income for Q2 2021 was $37.7 million, or $2.49 per diluted share, compared to $42.5 million, or $2.78 per diluted share, for Q2 2020.
  • Non-GAAP operating income for Q2 2021 was $1.85 per diluted share, compared to $1.95 per diluted share for Q2 2020.
  • Direct written premiums for Q2 2021 increased by $11.9 million, or 5.8%, to $217.2 million.
  • Net earned premiums for Q2 2021 increased by $12.4 million, or 6.8%, to $194.3 million.

Headline financials

Total Revenue

$223M

Previous: $208M+7.3%
EPS (adj)

$1.85

Previous: $1.95-5.1%
Loss Ratio

56.7%

Previous: 50.0%+13.4%
Expense Ratio

33.5%

Previous: 34.9%-4.0%
Combined Ratio

90.2%

Previous: 84.9%+6.2%
Capital Expenditures

-$5.43M

Previous: -$5.33M-1.9%
Free Cash Flow

$32.2M

Previous: $37.2M-13.3%
Net Income

$37.7M

Previous: $42.5M-11.4%
Operating Income

$47.6M

Previous: $53.3M-10.6%
Gross Profit

$113M

Previous: $117M-3.5%
Cash & Equivalents

$82.4M

Previous: $44.8M+84.0%
Total Assets

$2.11B

Previous: $2.02B+4.4%

Revenue & EPS history

Safety Insurance · Revenue · Quarterly

$223M

Q2 2021+7.3%vs Q2 2020
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Revenue by segment

Safety Insurance · $204M total across 2 segments · Q2 2021

  • Net Earned Premiums
    $194M
  • Net Investment Income
    $9.77M-1.4%

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, including competition, regulatory conditions, weather-related claims, and the impact of COVID-19.

Tailwinds

  • The Company may make written or oral forward-looking statements within the meaning of the U.S. federal securities laws.
  • Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.
  • All statements that address expectations or projections about the future are forward-looking statements.
  • The Company strategy includes growth, product development, and market position.
  • The Company expenditures and financial results are forward looking statements.

Headwinds

  • The competitive nature of the 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 effects of emerging claim and coverage issues on the Company’s business are uncertain.
  • 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.

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 2021

Historical avgQ2 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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