Safety Insurance's 4Q Earnings Misses Est

Zacks

Safety Insurance Group, Inc. (SAFT) reported fourth-quarter 2012 operating earnings of $9.6 million or 62 cents per share, missing the Zacks Consensus Estimate of 63 cents. Operating earnings, however, surpassed the year-ago quarter earnings of $4.8 million or 31 cents per share.

Safety Insurance’s total revenue amounted to $181.2 million, increasing from $169.4 million in the fourth quarter of 2011. Meanwhile, total expenses increased to $168.6 million from $166.3 million in the year-ago quarter.

Net written premiums of Safety Insurance were $145.9 million, up 6.7% from $136.8 million in the year-ago quarter. Net investment income came in at $10.3 million, up 10.4% over $9.3 million in the fourth quarter of 2011.

Full Year Highlights

For 2012, Safety Insurance recorded operating earnings of $58.1 million or $3.8 per share, which surpassed the Zacks Consensus Estimate of $3.75. Operating earnings also outperformed $13.7 million or 90 cents earned in 2011.

Total revenues of Safety Insurance were $703.9 million, up from $660.2 million in 2011. Net written premiums in 2012 amounted to $663.9 million, up 7% over $620.3 million in 2011. Total expenses were $622.4 million, down from $645.9 million in 2011.

Financial Update

Cash and cash equivalents at the end of 2012 amounted to $35.4 million, down from $37.9 million at 2011-end. Safety Financial’s book value increased to $45.31 per share from $43.22 as of Dec 31, 2011.

Total assets stood at $1.57 billion as of Dec 31, 2012, compared with $1.47 billion last year. Shareholders equity increased to $694.4 million from $656.3 million as of Dec 31, 2011.

Dividend Update

Safety Insurance paid a quarterly dividend of 60 cents per share in the fourth quarter of 2012, up 20% over the year-ago quarter. The company paid total dividend of $2.20 per share in 2012, increasing 10% over 2011.

Results at Other P&C Insurers

Another property and casualty (P&C) insurer – Navigators Group Inc.’s (NAVG) fourth-quarter adjusted earnings of 59 cents breezed past the Zacks Consensus Estimate of a loss of 25 cents. Results were up 43.9% year over year from 41 cents earned in the year-ago quarter.

Cincinnati Financial Corp. (CINF) reported fourth-quarter 2012 operating earnings of $1.11 per share, substantially beating the Zacks Consensus Estimate of 50 cents. On a year-over-year basis, earnings grew a substantial 32%. The upside in earnings came on the back of increased property casualty underwriting profits.

XL Group Plc’s (XL) fourth-quarter 2012 operating income of 13 cents per share outpaced the Zacks Consensus Estimate of a loss of 35 cents. Earnings rebounded from a loss of 25 cents incurred in the year-ago quarter.

Zacks Rank

Safety Insurance currently carries a Zacks Rank #3 (Hold).

Read the Full Research Report on XL

Read the Full Research Report on CINF

Read the Full Research Report on NAVG

Read the Full Research Report on SAFT

Zacks Investment Research



More From Zacks.com

Rates

View Comments