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

SAFT Nasdaq Fire, Marine & Casualty Insurance DE CIK: 0001172052
Recently Updated • Analysis: Apr 15, 2026 • SEC Data: 2025-12-31
HOLD
55% Conf
Pending
Analysis scheduled

📊 SAFT Key Takeaways

Revenue: $1.3B
Net Margin: 7.9%
Free Cash Flow: $192.0M
Current Ratio: N/A
Debt/Equity: 0.06x
EPS: $6.70
AI Rating: HOLD with 55% confidence
Safety Insurance Group Inc. (SAFT) receives a HOLD rating with 55% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $1.3B, net profit margin of 7.9%, and return on equity (ROE) of 11.1%, 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 exhibits exceptional financial health with a fortress balance sheet (0.06x debt/equity), strong free cash flow generation ($192M), and stable operating margins. However, the dramatic 1795% revenue increase paired with only 0.5% net income growth raises significant concerns about underwriting quality, integration challenges, or sustainability of current profitability levels.

Why Buy Safety Insurance Group Inc. Stock? SAFT Key Strengths

Claude
  • + Fortress balance sheet with 0.06x debt/equity and 1029.9x interest coverage ratio
  • + Strong cash generation with $192M free cash flow and 15.2% FCF margin
  • + Stable 10% operating margin despite massive revenue scaling, indicating disciplined cost management

SAFT Stock Risks: Safety Insurance Group Inc. Investment Risks

Claude
  • ! Severe revenue-to-earnings disconnect: 1795% revenue growth vs 0.5% net income growth suggests profitability deterioration or accounting anomalies
  • ! Questionable growth quality indicates potential underwriting challenges, integration issues, or loss of pricing power on acquired/new business
  • ! Modest 7.9% net margin and only 4.0% ROA despite revenue surge suggests earnings may not be sustainable at current scale

Key Metrics to Watch

Claude
  • * Combined ratio trend and underwriting profitability (critical for P&C insurers)
  • * Organic vs acquired revenue breakdown to assess sustainable growth
  • * Quarterly earnings acceleration to validate if net income growth stabilizes post-integration

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

Revenue
$1.3B
Net Income
$99.3M
EPS (Diluted)
$6.70
Free Cash Flow
$192.0M
Total Assets
$2.5B
Cash Position
$73.9M

💡 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 10.0%
Net Margin 7.9%
ROE 11.1%
ROA 4.0%
FCF Margin 15.2%

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

How Safety Insurance Group Inc. compares to Finance sector averages

Net Margin
SAFT 7.9%
vs
Sector Avg 25.0%
SAFT Sector
ROE
SAFT 11.1%
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
11.1%
Sector avg: 12%
Net Profit Margin
7.9%
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
63.9%
Interest Coverage
1,029.94x
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
15.2%
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
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
Q2 2023 $183.6M $4.7M $0.31

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
$194.5M
Cash generated from operations
Stock Buybacks
$20.0M
Shares repurchased (TTM)
Capital Expenditures
$2.5M
Investment in assets
Dividends Paid
$53.9M
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
Mar 31, 2026 DEF 14A saft-20251231xdef14a.htm View →
Mar 23, 2026 4 xslF345X06/ownership.xml View →
Mar 19, 2026 4 xslF345X06/ownership.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_100308.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_100342.xml View →

Frequently Asked Questions about SAFT

What is the AI rating for SAFT?

Safety Insurance Group Inc. (SAFT) has an AI rating of HOLD with 55% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SAFT's key strengths?

Claude: Fortress balance sheet with 0.06x debt/equity and 1029.9x interest coverage ratio. Strong cash generation with $192M free cash flow and 15.2% FCF margin.

What are the risks of investing in SAFT?

Claude: Severe revenue-to-earnings disconnect: 1795% revenue growth vs 0.5% net income growth suggests profitability deterioration or accounting anomalies. Questionable growth quality indicates potential underwriting challenges, integration issues, or loss of pricing power on acquired/new business.

What is SAFT's revenue and growth?

Safety Insurance Group Inc. reported revenue of $1.3B.

Does SAFT pay dividends?

Safety Insurance Group Inc. pays dividends, with $53.9M 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 $6.70.

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 rating reflects both perspectives for balanced insights.

Is SAFT a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Safety Insurance Group Inc. has a HOLD rating with 55% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SAFT stock overvalued or undervalued?

Valuation metrics for SAFT: ROE of 11.1% (sector avg: 12%), net margin of 7.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

Should I buy SAFT stock in 2026?

Our dual AI analysis gives Safety Insurance Group Inc. a combined HOLD rating 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 $194.5M, with capital expenditures of $2.5M. FCF margin is 15.2%.

How does SAFT compare to other Finance stocks?

Vs Finance sector averages: Net margin 7.9% (avg: 25%), ROE 11.1% (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: Apr 15, 2026 | Data as of: 2025-12-31 | Powered by Claude AI