Exhibit 99.1

SAFETY ANNOUNCES FOURTH QUARTER AND YEAR END 2017 RESULTS

Boston, Massachusetts, February 26, 2018.  Safety Insurance Group, Inc. (NASDAQ:SAFT) today reported fourth quarter 2017 results. Net income for the quarter ended December 31, 2017 was $11.3 million, or $0.72 per diluted share, compared to net income of $12.0 million, or $0.79 per diluted share, for the comparable 2016 period. Net income for the year ended December 31, 2017 was $62.4 million, or $4.10 per diluted share, compared to net income of $64.6 million, or $4.27 per diluted share, for the comparable 2016 period. Safety’s book value per share increased to $46.06 at December 31, 2017 from $44.27 at December 31, 2016.  Safety paid $0.80 and $0.70 per share in dividends to investors during the quarters ended December 31, 2017 and 2016,  respectively. Safety paid $3.00 per share in dividends to investors during the year ended December 31, 2017 compared to $2.80 per share during the comparable 2016 period.

Direct written premiums for the quarter ended December 31,  2017 increased  by $3.6 million, or 2.0%, to $184.7 million from $181.1 million for the comparable 2016 period. Direct written premiums for the year ended December 31, 2017 increased by $15.7 million, or 1.9%, to $827.3 million from $811.6 million for the comparable 2016 period. The 2017 increase occurred in our private passenger automobile, commercial passenger automobile and homeowner lines of business, which experienced increases in average written premium per exposure of  3.3%,  2.3% and 4.0% respectively. 

Net written premiums for the quarter ended December 31, 2017 increased by $3.6 million, or 2.1%, to $171.9 million from $168.3 million for the comparable 2016 period. Net written premiums for the year ended December 31, 2017 increased by $14.6 million, or 1.9%, to $781.1 million from $766.5 million for the comparable 2016 period. Net earned premiums for the quarter ended December 31, 2017 increased by $4.4 million, or 2.3%, to $196.4 million from $192.0 million for the comparable 2016 period.  Net earned premiums for the year ended December 31, 2017 increased by $18.6 million, or 2.5%, to $774.4 million from $755.8 million for the comparable 2016 period. Net earned premiums increased primarily due to increases in our automobile and homeowners business as discussed above.

For the quarter ended December 31,  2017, loss and loss adjustment expenses incurred increased by $7.3 million, or  5.7%, to $134.6 million from $127.3 million for the comparable 2016 period.  The increase in losses during the quarter is a result of reinsurance arbitration resulting from the 2015 winter snow event.  On January 8, 2018 the Company received a final order from the panel of arbitrators in which the reinsurer would pay the Company $9.2 million for settlement of all paid and outstanding losses.  The amount of recoverable in dispute as of December 31, 2017, which was based on our total incurred loss, was $20.9 million.  As a result of the order, the remaining $11.7 million of recoverable was written off at December 31, 2017.  For the year ended December 31, 2017, loss and loss adjustment expenses incurred increased by $10.5 million, or 2.1%, to $503.9 million from $493.4 million for the comparable 2016 period.  

Total prior year favorable development, inclusive of the reinsurance recoverable loss, included in the pre-tax results for the quarter ended December 31, 2017 was $10.6 million compared to $11.8 million for the comparable 2016 period. Total prior year favorable development included in the pre-tax results for the year ended December 31, 2017 was $41.8 million compared to $45.4 million for the comparable 2016 period.

Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the quarter ended December 31,  2017 were 68.6%,  33.0%, and 101.6%, respectively, compared to 66.3%,  31.8%, and 98.1%, respectively, for the comparable 2016 period. Loss, expense, and combined ratios calculated under

U.S. generally accepted accounting principles for the year ended December 31, 2017 were 65.1%,  32.1%, and 97.2%, respectively, compared to 65.3%,  30.8%, and 96.1%, respectively, for the comparable 2016 period.  The increase in the expense ratio is primarily attributable to increases in contingent commissions and nonrecurring legal fees related to reinsurance arbitration.

Net investment income for the quarter ended December 31, 2017 increased by $0.2 million, or 2.6%, to $10.4 million from $10.2 million for the comparable 2016 period.  Net investment income for the year ended December 31, 2017 increased by $0.4 million, or 0.9%, to $38.8 million from $38.4 million for the comparable 2016 period. The increase is a result of an increase in the average invested asset balance compared to the prior year.    Net effective annualized yield on the investment portfolio was 3.2% for the quarters ended December 31, 2017 and December 31, 2016. Net effective annualized yield on the investment portfolio was 3.1% for the years ended December 31, 2017 and December 31, 2016. Our duration was 3.7 years at December 31, 2017 and  4.3 years at December 31, 2016, respectively.

On February 15, 2018, The Board of Directors approved a $0.80 per share quarterly cash dividend on its issued and outstanding common stock payable on March 15, 2018 to shareholders of record at the close of business on March 1, 2018.

About Safety:  Safety Insurance Group, Inc., based in Boston, MA, is the parent of Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company.  Operating exclusively in Massachusetts, New Hampshire, and Maine, Safety is a leading writer of property and casualty insurance products, including private passenger automobile, commercial automobile, homeowners, dwelling fire, umbrella and business owner policies. 

Additional Information:  Press releases, announcements, U. S. Securities and Exchange Commission (“SEC”) Filings and investor information are available under “About Safety,” “Investor Information” on our Company website located at www.SafetyInsurance.com.  Safety filed its December 31,  2016 Form 10-K with the SEC on February 24,  2017 and urges shareholders to refer to this document for more complete information concerning Safety’s financial results.

Contacts:

Safety Insurance Group, Inc.

Office of Investor Relations

877-951-2522

InvestorRelations@SafetyInsurance.com 

Cautionary Statement under "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Safety may from time to time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “aim,” “projects,” or words of similar meaning and expressions that indicate future events and trends, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”.  All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.

Forward-looking statements are not guarantees of future performance.  By their nature, forward-looking statements are subject to risks and uncertainties.  There are a number of factors, many of which are beyond our control, that could cause actual future conditions, events, results or trends to differ significantly and/or materially from historical results or those projected in the forward-looking statements.  These factors include but are not limited to the competitive nature of our industry and the possible adverse effects of such competition.  Although a number of national insurers that are much larger than we are do not currently

compete in a material way in the Massachusetts private passenger automobile market, if one or more of these companies decided to aggressively enter the market it could have a material adverse effect on us.  Other significant factors include conditions for business operations and restrictive regulations in Massachusetts, the possibility of losses due to claims resulting from severe weather, the possibility that the Commissioner of Insurance may approve future Rule changes that change the operation of the residual market, our possible need for and availability of additional financing, and our dependence on strategic relationships, among others, and other risks and factors identified from time to time in our reports filed with the SEC, such as those set forth under the caption “Risk Factors” in our Form 10-K for the year ended December 31,  2016 filed with the SEC on February 24,  2017.

We are not under any obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise.  You should carefully consider the possibility that actual results may differ materially from our forward-looking statements.

Safety Insurance Group, Inc. and Subsidiaries

Consolidated Balance Sheets

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Safety Insurance Group, Inc. and Subsidiaries

Consolidated Statements of Operations

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Safety Insurance Group, Inc. and Subsidiaries

Additional Premium Information

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