Mapfre to Acquire Safety Insurance for $1.54 Billion in Cash Deal

Safety Insurance Group Inc,, a property/casualty insurer in Massachusetts and New England, has agreed to be acquired by Spain’s Mapfre S.A. in an all-cash transaction valued at approximately $1.54 billion.

Under the terms of the agreement, a subsidiary of Mapfre U.S.A. Corp. will merge with and into Safety, following which Safety will become a wholly-owned subsidiary of Mapfre U.S.A. Corp., and thus a sister company to Mapfre U.S.A. Corp’s other U.S. subsidiaries.

Safety shareholders will receive $105 for each Safety common share in cash, which represents a substantial premium of 44% on Safety’s stock price as of July 23, 2026.

Immediately after the announcement, Safety stock (SAFT) rose 35% to nearly $100 per share in extended trading.

Following completion of the transaction, Boston-based Safety will continue operating under its established brand and with its independent agency relationships.

The announcement comes after a few years of Safety struggling with winter storm claims and just days after AM Best revised the outlooks to negative from stable for the companies of the Safety Group: Safety Indemnity Insurance Co., Safety Property and Casualty Insurance Co. and Safety Northeast Insurance Co.

AM Best affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of “a” (Excellent).

AM Best said the revision of the outlooks reflected pressure on Safety Group’s operating performance as loss severity trends and weather-related events, and new business, have affected underwriting results over the most recent five-year period and through the first half of 2026.

While the company reported a profitable year in 2025, the early part of this year has been tough. For first quarter, the insurer reported consecutive storms resulted in more than 1,600 property claims, causing damage of $42.7 million, which contributed 14.6 points to its combined ratio of 113.4%.

Management has been under pressure and facing significant insider selling, according to analysts at Kavout.

Safety, which was founded in 1979, writes auto, home and commercial auto in Massachusetts and in Maine and New Hampshire. The insurer is the fourth largest writer of private passenger automobile insurance and the largest writer of commercial automobile insurance in Massachusetts. Mapfre has been a chief competitor.

The merger announcement said Safety’s management team, which includes George Murphy, chairman and chief executive officer, will continue to “play an important role in the business, helping guide its next phase of growth.”

Through the combination, Safety says it will benefit from the support, scale, financial support, technology and other resources of a global insurance group.

According to Mapfre, the deal will create the second largest writer of private passenger auto in New England and the region’s largest homeowners and commercial auto insurer in the region. Mapfre forecasts that the acquisition will boost its net profit by more than 5% within three years.

Mapfre is represented by about 3,000 independent agents while Safety has close to 800.

The transaction has been unanimously approved by the boards of directors of both Safety and Mapfre and is expected to close during the first quarter of 2027, subject to customary closing conditions and regulatory approvals.

“This transaction represents an exceptional outcome for our shareholders and an exciting new chapter for Safety,” CEO Murphy said in a statement. “Throughout our history, we have built a company defined by strong underwriting, deep relationships with agents and clients, and an unwavering commitment to the communities we serve.”

Mapfre is the largest Spanish insurance company in the world, with large market shares in Latin America and Europe by premium volume.

In the U.S., Mapfre is focused on car and home insurance and umbrella coverage in 11 states: Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine, Vermont, Ohio, California, Oregon, Washington, and Idaho. Mapfre is the largest home and auto insurer in Massachusetts and the 23rd largest personal lines carrier in the country, according to its website.

Mapfre companies in the U.S. include American Commerce Insurance Co., Citation Insurance Co., The Commerce Insurance Co., Commerce West Insurance Co., Mapfre Insurance Co., and Mapfre Insurance Company of Florida.

“This combination will definitely reinforce our commitment to agents and clients throughout the Northeast while providing enhanced opportunities for our employees,” commented Jaime Tamayo, CEO of Mapfre North America.

Mapfre first entered the U.S. in 1995 with the purchase of Western Pioneer Insurance Co. in California, which was later renamed Commerce West. It went on to acquire Automobile Club Insurance Company out of Columbus, Ohio in 1999 and in 2008, it acquired Massachusetts-based The Commerce Group Inc. The company expanded into New York in 2007 by purchasing SWICO Enterprises. It began writing in New Hampshire in 2008 and in Maine in 2016.

In 2017 Mapfre USA, which was then writing in 19 states, narrowed its focus to a core 11 states by selling its New York and New Jersey business to Plymouth Rock and exiting Kentucky, Tennessee and Indiana. It also sold its life business.