AM Best Places Credit Ratings of Safety Insurance Group, Inc. and Its Key Subsidiaries Under Review With Developing Implications
AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. Collectively, these companies are referred to as Safety Group. At the same time, AM Best has placed under review with developing implications the Long-Term ICR of “bbb” (Good) of Safety Insurance Group, Inc. (Delaware) (Safety) [NASDAQ-GS: SAFT], the publicly traded ultimate parent of Safety Group. All companies are domiciled in Boston, MA, except where specified.
Safety Group's ratings have been placed under review with developing implications following the announcement that Safety entered into a merger agreement with MAPFRE U.S.A Corporation (MAPFRE U.S.A). Safety will merge with a Mapfre subsidiary and become the surviving entity. Mapfre has a successful track record of acquiring companies in the past. This most recent transaction will help expand its footprint within the Northeast as Safety’s book compliments Mapfre’s existing portfolio within the area of Massachusetts. The developing implications reflect the need for further analysis as details of the strategic plan and integration of Safety into Mapfre are established. Operational synergies are expected considering the overlap of the geographic footprint and lines of business.
