Safety Insurance Q3 net income rises as combined ratio improves
SAFT•Safety Insurance reported Q3 net income of $30.02 million and earnings of $2.05 per share. Net earned premiums rose 1% year over year, while the combined ratio improved to 96.3% from 98.9%.
1. Quarterly results
Safety Insurance reported Q3 revenue of $327.77 million, net income of $30.02 million and adjusted operating income of $28.55 million. Net income and non-GAAP operating income per share increased year over year.
2. Underwriting and investment income
The combined ratio improved to 96.3% from 98.9%, which the company attributed to prior written premium growth earning into revenue and lower losses and loss adjustment expenses, driven by improved private passenger auto loss frequency. Net investment income rose 15% year over year, citing higher assets under management, reinvestment rates above yields on maturing securities and strong alternative asset returns.
3. Premium trends and outlook
Net written premiums declined as the market became more competitive and the company canceled underperforming agency relationships. Average written premium per policy increased across major lines due to rate increases. The company provided no specific guidance for future periods.
