Exhibit 99.1

SAFETY ANNOUNCES SECOND QUARTER 2018 RESULTS AND DECLARES THIRD QUARTER 2018 DIVIDEND

Boston, Massachusetts, August 1, 2018.  Safety Insurance Group, Inc. (NASDAQ:SAFT) today reported second quarter 2018 results. Net income for the quarter ended June 30, 2018 was $26.8 million, or $1.75 per diluted share, compared to net income of $21.1 million, or $1.39 per diluted share, for the comparable 2017 period. Net income for the six months ended June 30, 2018 was $35.9 million, or $2.35 per diluted share, compared to net income of $33.1 million, or $2.18 per diluted share, for the comparable 2017 period. Non-generally accepted accounting principles (“non-GAAP”) operating income, as defined below, for the quarter ended June 30, 2018 was $1.81 per diluted share, compared to $1.37 per diluted share, for the comparable 2017 period. Non-GAAP operating income for the six months ended June 30, 2018 was $2.52 per diluted share, compared to $2.09 per diluted share, for the comparable 2017 period due to a decline in net unrealized gains. Safety’s book value per share decreased to $45.56 at June 30, 2018 from $46.06 at December 31, 2017.  Safety paid $0.80 and $0.70 per share in dividends to investors during the quarters ended June 30, 2018 and 2017,  respectively. Safety paid $3.00 per share in dividends to investors during the year ended December 31, 2017.

Direct written premiums for the quarter ended June 30,  2018 increased  by $6.0 million, or 2.6%, to $233.0 million from $227.0 million for the comparable 2017 period. Direct written premiums for the six months ended June 30, 2018 increased by $10.1 million, or 2.4%, to $436.8 million from $426.7 million for the comparable 2017 period. The 2018 increase occurred primarily in our commercial automobile and homeowners lines of business. 

Net written premiums for the quarter ended June 30, 2018 increased by $1.7 million, or 0.8%, to $215.5 million from $213.8 million for the comparable 2017 period. Net written premiums for the six months ended June 30, 2018 increased by $0.8 million, or 0.2%, to $405.5 million from $404.7 million for the comparable 2017 period. Net earned premiums for the quarter ended June 30, 2018 increased by $1.3 million, or 0.7%, to $194.1 million from $192.8 million for the comparable 2017 period.  Net earned premiums for the six months ended June 30, 2018 increased by $3.6 million, or 0.9%, to $386.1 million from $382.5 million for the comparable 2017 period. Net written and net earned premiums increased primarily due to increases in our commercial automobile and homeowners business as discussed above.

For the quarter ended June 30,  2018, loss and loss adjustment expenses incurred decreased by $3.8 million, or  3.3%, to $113.2 million from $117.0 million for the comparable 2017 period. For the six months ended June 30, 2018, loss and loss adjustment expenses incurred increased by $5.4 million, or 2.2%, to $250.9 million from $245.5 million for the comparable 2017 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the quarter ended June 30,  2018 were 58.3%,  31.7%, and 90.0%, respectively, compared to 60.7%,  31.6%, and 92.3%, respectively, for the comparable 2017 period. Loss, expense, and combined ratios calculated under U.S. generally accepted accounting principles for the six months ended June 30, 2018 were 65.0%,  31.7%, and 96.7%, respectively, compared to 64.2%,  31.5%, and 95.7%, respectively, for the comparable 2017 period. Total prior year favorable development included in the pre-tax results for the quarter ended June 30, 2018 was $12.1 million compared to $10.0 million for the comparable 2017 period. Total prior year favorable development included in the pre-tax results for the six months ended June 30, 2018 was $26.3 million compared to $20.4 million for the comparable 2017 period.

Net investment income for the quarter ended June 30, 2018 increased by $0.5 million, or 4.9%, to $10.2 million from $9.7 million for the comparable 2017 period.  Net investment income for the six months ended June 30, 2018 increased by $1.9 million, or 10.1%, to $20.7 million from $18.8 million for the comparable 2017 period. The increase is a result of fixed maturity amortization and an increase in the average invested asset balance compared to the prior year.    Net effective annualized yield on the investment portfolio for the quarter ended June 30, 2018 was 3.2% compared to 3.1% for the comparable 2017 period. Net effective annualized yield on the investment portfolio for the six months ended June 30, 2018 was 3.2% compared to 3.0% for the comparable 2017 period.  Our duration was 3.9 years at June 30, 2018 compared to 3.7 years at December 31, 2017.

Today,  our Board of Directors approved a $0.80 per share quarterly cash dividend on its issued and outstanding common stock payable on September  14, 2018 to shareholders of record at the close of business on September 4, 2018.

Recently Adopted Accounting Standard

As disclosed in Safety’s Annual Report on Form 10-K for the year ended December 31, 2017, accounting guidance for financial instruments changed in 2018 under ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. We adopted this accounting standard update, effective January 1, 2018, using a cumulative-effect adjustment. This adjustment moved the historical unrealized gains and losses, net of tax, on the equity portfolio from accumulated other comprehensive earnings to retained earnings, but had no impact on overall shareholders’ equity. In addition, for 2018 and forward, the change in fair value for equity securities is required to be recognized through net income rather than through other comprehensive income. As defined below, we exclude these unrealized gains and losses in arriving at non-GAAP operating income and non-GAAP operating income per diluted share. For the quarter ended June 30, 2018, a decrease of $2.7 million for the change in unrealized gains  was recognized within income before income taxes and the income tax expense was reduced by $0.6 million. For the six months ended June 30, 2018, a decrease of $6.2 million for the change in unrealized gains was recognized within income before income taxes and the income tax expense was reduced by $1.3 million.

Non-GAAP Measures

Management has included certain non-GAAP financial measures in presenting the Company’s results. Management believes that these non-GAAP measures better explain the Company’s results of operations and allow for a more complete understanding of the underlying trends in the Company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“GAAP”). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Non-GAAP operating income and operating income per diluted share consist of our GAAP net income adjusted by the net realized gains (losses), net impairment losses on investments, change in net unrealized gains (losses) on equity securities and taxes related thereto. The adjustment for net unrealized losses on equity securities is only applicable for 2018 due to the adoption of the above mentioned accounting standard update. Net income and earnings per diluted share are the GAAP financial measures that are most directly comparable to operating income and operating income per diluted share, respectively. A reconciliation of the GAAP financial measures to these non-GAAP measures is included in the 2018 financial highlights below.

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,  2017 Form 10-K with the SEC on February 28,  2018 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,  2017 filed with the SEC on February 28,  2018.

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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