A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of “a” of The Safety Group (Safety) and its inter-company pool members, Safety Insurance Company (Safety Insurance), Safety Indemnity Insurance Company (Safety Indemnity) and Safety Property and Casualty Insurance Company (Safety P&C).

Concurrently, A.M. Best has affirmed the ICR of “bbb” of Safety’s publicly traded holding company, Safety Insurance Group, Inc. (Delaware) (NASDAQ/GS: SAFT). The outlook for all ratings is stable. All companies are domiciled in Boston, MA, except where specified.

The ratings of Safety reflect its solid capitalization, trend of strong operating income and its market position as a leading personal automobile writer in Massachusetts. The ratings also acknowledge the group’s favorable loss reserve development and low investment leverage.

Partially offsetting these positive rating factors is Safety’s concentration of business in the Massachusetts private passenger automobile market and its increasing property exposures.

Based on 2009 direct premium writings, Safety was the second-largest writer of private passenger automobile premiums in Massachusetts with a 10.9% market share. In addition to its personal automobile product offering, Safety provides commercial automobile, homeowners, dwelling fire, umbrella and business owner policies. Safety is licensed in Massachusetts and New Hampshire.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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