A.M. Best has upgraded the issuer credit ratings (ICR) to “a+” from “a” and affirmed the financial strength rating of A (Excellent) for the subsidiaries of Safety Insurance Group, Inc.: Safety Insurance Company, Safety Indemnity Insurance Company and Safety Property and Casualty Insurance Company, collectively known as Safety Group (Safety). The outlook for the ICRs has been revised to stable from positive, while the outlook for the FSR is stable. All companies are domiciled in Boston, MA. Concurrently, A.M. Best has upgraded the ICR rating to “bbb+” from “bbb” of Safety’s publicly traded holding company, Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT]. The outlook has been revised to stable from positive. The rating actions reflect Safety’s solid risk-adjusted capitalization, historically strong operating performance 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 Massachusetts, which primarily is in the private passenger automobile line. The group’s homeowners’ writings have provided some product diversification; however, this does create greater property catastrophe risk. Nevertheless, Safety does continue to maintain an effective reinsurance program to help mitigate the effects of severe weather-related events. Safety’s ratings could experience positive rating movement by producing consistently favorable earnings while maintaining strong risk-adjusted capitalization. However, the ratings and outlook may come under negative pressure if an unfavorable earnings trend develops causing its capital to erode. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.