Safety Insurance Group announced on 23 July that an affiliate of Mapfre will acquire it for $105 per share in cash, valuing the Boston-based property and casualty insurer at about $1.54bn.
Why Mapfre S.A. is buying Safety Insurance Group, Inc.
Mapfre, already the largest home and auto insurer in Massachusetts, said the combination will create New England's second-largest private passenger auto writer and its largest homeowners and commercial auto insurer. Safety is the fourth-largest private passenger auto writer and largest commercial auto writer in Massachusetts. Mapfre expects the deal to lift its net profit by more than 5% within three years.
“This transaction represents an exceptional outcome for our shareholders and an exciting new chapter for Safety.”
Deal terms and financing
Shareholders receive $105 in cash per share, a 44% premium. A Mapfre U.S.A. Corp. subsidiary will merge into Safety, which will keep its brand, management and network of close to 800 independent agents.
Regulatory approvals and timing
Closing requires approval by the Massachusetts Commissioner of Insurance, expiry of the HSR waiting period and a shareholder vote at a special meeting on 3 November 2026; completion is expected in the first quarter of 2027.
Market context
Safety shares rose 35% to nearly $100 in extended trading after the announcement, according to Carrier Management.
