Safety Insurance Group

Safety Insurance Group Tuesday, June 19, 2007

Posted by ei-forum in US Traded Stocks.
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Safety Insurance Group Inc. (SAFT) is a provider of private passenger automobile insurance in Massachusetts and offers a portfolio of property and casualty insurance products, including commercial automobile, homeowners, dwelling fire, and umbrella and business owner policies.

SAFT recently suffered from a big drop due to a small earnings miss, an out of favor sector and uncertainty surrounding Massachusetts auto insurance regulation. We feel that the correction was far too server and that this is an undervalued company with good management, a clear strategy and solid fundamentals.

Here is a quick snapshot of some of the numbers:

	SAFT	Industry Average
Price-To-Earnings	6.3	12.8
Price-To-Book	1.3	1.7
Price-To-Sales	1.0	1.4
Dividend Yield	2.4	1.4
Forward Price-To-Earrings	7.7	10.8
PEG Ratio	0.5	1.3

Ideally we should have reacted quicker when the share price dipped to 38 USD but even at current levels the company offers a very good value proposition.

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