Schedule II - Condensed Financial Information of the Registrant

12 Months Ended

Dec. 31, 2016

Schedule II - Condensed Financial Information of the Registrant

Schedule II - Condensed Financial Information of the Registrant

Safety Insurance Group, Inc.

Condensed Financial Information of the Registrant

Condensed Balance Sheets

Schedule II

(Dollars in thousands)

	Years Ended December 31,
	2016		2015
Assets
Investments in consolidated affiliates	$	672,102	$	645,701
Other		24		87
Total assets	$	672,126	$	645,788
Liabilities
Accounts payable and other liabilities	$	1,400	$	1,289
Total liabilities		1,400		1,289
Shareholders’ equity		670,726		644,499
Total liabilities and shareholders’ equity	$	672,126	$	645,788

Safety Insurance Group, Inc.

Condensed Financial Information of the Registrant

Condensed Statements of Operations and Comprehensive Income

Schedule II

(Dollars in thousands)

	Years Ended December 31,
	2016		2015		2014
Revenues	$	—	$	—	$	—
Expenses		1,406		1,230		1,264
Net loss		(1,406)		(1,230)		(1,264)
Earnings from consolidated subsidiaries		65,991		(12,623)		60,618
Net income (loss)		64,585		(13,853)		59,354
Other net comprehensive income, net of taxes		(621)		(12,251)		11,515
Comprehensive net income (loss)	$	63,964	$	(26,104)	$	70,869

Safety Insurance Group, Inc.

Condensed Financial Information of the Registrant

Condensed Statements of Cash Flows

Schedule II

(Dollars in thousands)

	Years Ended December 31,
	2016		2015		2014
Net income (loss)	$	64,585	$	(13,853)	$	59,354
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Earnings) loss from consolidated subsidiaries		(65,991)		12,623		(60,618)
Dividends received from consolidated subsidiaries(1)		39,156		39,440		59,186
Amortization of restricted stock expense		4,312		3,515		4,315
Changes in assets and liabilities:
Other assets		63		(33)		15
Accounts payable and accrued liabilities		(111)		5		217
Net cash provided by operating activities		42,014		41,697		62,469
Proceeds from exercise of stock options		257		278		297
Excess tax benefit from stock options exercised		(6)		1		3
Dividends paid		(42,265)		(41,976)		(39,302)
Acquisition of treasury stock		—		—		(23,467)
Net cash used for financing activities		(42,014)		(41,697)		(62,469)
Net increase in cash and cash equivalents		—		—		—
Cash and cash equivalents, beginning of year		—		—		—
Cash and cash equivalents, end of year	$	—	$	—	$	—

(1) No portion of the dividends received from operating subsidiaries during 2016,  2015 or 2014 represent returns of capital and therefore no portion is presented as an investing activity.