Safety Insurance Underwriting Losses Mount, Dividend Outlook Worsens Despite Steady Payout
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Safety Insurance reported worsened underwriting margins in Q3 2022, with combined ratio rising to 104.8% from 97.1% last year.
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Deterioration was due to higher loss ratio, driven by claims inflation and catastrophic weather events.
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In contrast, competitor Mercury General showed improved underwriting performance recently.
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Despite steady dividend, Safety's payout now exceeds earnings due to underwriting losses.
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For dividend investors, better choices exist like Chubb and Travelers which have long histories of dividend growth.