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Safety Insurance Group Inc. (SAFT) Fundamental Analysis & AI Grade 2026

SAFT Nasdaq Fire, Marine & Casualty Insurance DE CIK: 0001172052
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
75% Confidence
N/A
C
75% Conf
Pending
Analysis scheduled

📊 SAFT Key Takeaways

Revenue: $314.7M
Net Margin: -4.6%
Free Cash Flow: $-18.9M
Current Ratio: N/A
Debt/Equity: 0.06x
EPS: $-0.99
AI Grade: C with 75% confidence
Safety Insurance Group Inc. (SAFT) receives a C fundamental grade with 75% confidence from our AI analysis based on SEC 10-K filings. With revenue of $314.7M, net profit margin of -4.6%, and return on equity (ROE) of -1.7%, Safety Insurance Group Inc. demonstrates mixed fundamentals in the Finance sector. Below is our complete SAFT stock analysis for 2026.

Is Safety Insurance Group Inc. (SAFT) a Good Investment?

Claude

Safety Insurance Group is unprofitable and burning cash operationally despite extraordinary revenue growth (+1795% YoY), suggesting acquisition-driven scale without earnings quality. With negative operating cash flow (-17.0M), minimal cash reserves (54.8M), and continued losses, the company faces near-term financial pressure unless it rapidly achieves profitability.

Safety Insurance Group Inc. Key Strengths (SAFT)

Claude
  • + Low leverage with 0.06x debt-to-equity ratio provides financial flexibility
  • + Exceptional revenue growth of 1795% YoY indicates material business expansion or successful acquisition integration
  • + Slight net income improvement YoY (+0.5%) suggests early stabilization despite scale-up

SAFT Stock Risks: Safety Insurance Group Inc. Investment Risks

Claude
  • ! Persistent unprofitability: net loss of 14.3M and negative operating income of -17.9M
  • ! Negative operating cash flow (-17.0M) and negative free cash flow (-18.9M) indicating core business cash burn
  • ! Minimal cash position (54.8M) relative to 2.4B asset base creates liquidity vulnerability
  • ! Unexplained 1795% revenue growth lacks sustainability clarity; extraordinary growth without profitability suggests structural operational issues
  • ! Negative interest coverage (-145.2x) indicates inability to service debt from operations

Key Metrics to Watch

Claude
  • * Combined loss ratio and underwriting profitability trend
  • * Operating cash flow return to positive and trajectory toward breakeven
  • * Cash burn rate and time-to-profitability at current revenue base

Safety Insurance Group Inc. (SAFT) Financial Metrics & Key Ratios

Revenue
$314.7M
Net Income
$-14.3M
EPS (Diluted)
$-0.99
Free Cash Flow
$-18.9M
Total Assets
$2.4B
Cash Position
$54.8M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SAFT Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -5.7%
Net Margin -4.6%
ROE -1.7%
ROA -0.6%
FCF Margin -6.0%

SAFT vs Finance Sector: How Safety Insurance Group Inc. Compares

How Safety Insurance Group Inc. compares to Finance sector averages

Net Margin
SAFT -4.6%
vs
Sector Avg 25.0%
SAFT Sector
ROE
SAFT -1.7%
vs
Sector Avg 12.0%
SAFT Sector
Current Ratio
SAFT 0.0x
vs
Sector Avg 1.2x
SAFT Sector
Debt/Equity
SAFT 0.1x
vs
Sector Avg 2.0x
SAFT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Safety Insurance Group Inc. Stock Overvalued? SAFT Valuation Analysis 2026

Based on fundamental analysis, Safety Insurance Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
-1.7%
Sector avg: 12%
Net Profit Margin
-4.6%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.06x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Safety Insurance Group Inc. Balance Sheet: SAFT Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.06x
Debt/Assets
64.9%
Interest Coverage
-145.20x
Long-term Debt
$50.0M

SAFT Revenue & Earnings Growth: 5-Year Financial Trend

SAFT 5-year financial data: Year 2021: Revenue $884.9M, Net Income $99.6M, EPS $6.46. Year 2022: Revenue $884.9M, Net Income $138.2M, EPS $9.18. Year 2023: Revenue $931.0M, Net Income $130.7M, EPS $8.80. Year 2024: Revenue $1.1B, Net Income $46.6M, EPS $3.15. Year 2025: Revenue $1.3B, Net Income $18.9M, EPS $1.28.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Safety Insurance Group Inc.'s revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.28 reflects profitable operations.

SAFT Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-6.0%
Free cash flow / Revenue

SAFT Quarterly Earnings & Performance

Quarterly financial performance data for Safety Insurance Group Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $301.4M -$14.3M $-0.99
Q3 2025 $295.3M $16.6M $1.73
Q2 2025 $269.8M $16.6M $1.13
Q1 2025 $268.2M $20.1M $1.36
Q3 2024 $229.4M $1.9M $0.13
Q2 2024 $229.4M $4.7M $0.31
Q1 2024 $213.8M -$12.3M $-0.84
Q3 2023 $192.3M $1.9M $0.13

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Safety Insurance Group Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$17.0M
Cash generated from operations
Stock Buybacks
$20.0M
Shares repurchased (TTM)
Capital Expenditures
$1.8M
Investment in assets
Dividends Paid
$13.6M
Returned to shareholders

SAFT SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Safety Insurance Group Inc. (CIK: 0001172052)

📋 Recent SEC Filings

Date Form Document Action
May 14, 2026 8-K saft-20260513x8k.htm View →
May 8, 2026 10-Q saft-20260331x10q.htm View →
May 6, 2026 8-K saft-20260506x8k.htm View →
Mar 31, 2026 DEF 14A saft-20251231xdef14a.htm View →
Mar 23, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about SAFT

What is the AI rating for SAFT?

Safety Insurance Group Inc. (SAFT) has an AI grade of C with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SAFT's key strengths?

Claude: Low leverage with 0.06x debt-to-equity ratio provides financial flexibility. Exceptional revenue growth of 1795% YoY indicates material business expansion or successful acquisition integration.

What are the risks of investing in SAFT?

Claude: Persistent unprofitability: net loss of 14.3M and negative operating income of -17.9M. Negative operating cash flow (-17.0M) and negative free cash flow (-18.9M) indicating core business cash burn.

What is SAFT's revenue and growth?

Safety Insurance Group Inc. reported revenue of $314.7M.

Does SAFT pay dividends?

Safety Insurance Group Inc. pays dividends, with $13.6M distributed to shareholders in the trailing twelve months.

Where can I find SAFT SEC filings?

Official SEC filings for Safety Insurance Group Inc. (CIK: 0001172052) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SAFT's EPS?

Safety Insurance Group Inc. has a diluted EPS of $-0.99.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SAFT's fundamental grade?

Based on our AI fundamental analysis in May 2026, Safety Insurance Group Inc. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SAFT stock overvalued or undervalued?

Valuation metrics for SAFT: ROE of -1.7% (sector avg: 12%), net margin of -4.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is SAFT's AI grade for 2026?

Our dual AI analysis gives Safety Insurance Group Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SAFT's free cash flow?

Safety Insurance Group Inc.'s operating cash flow is $-17.0M, with capital expenditures of $1.8M. FCF margin is -6.0%.

How does SAFT compare to other Finance stocks?

Vs Finance sector averages: Net margin -4.6% (avg: 25%), ROE -1.7% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI