In the past, Safety Insurance was considered a superior insurer compared to Mercury. However, Mercury has demonstrated encouraging signs of profitability recovery. Safety Insurance reported worsened insurance margins and a decline in underwriting margin due to claims inflation and weather events. Both Mercury General and Safety Insurance are facing operational challenges, making them less attractive for investment compared to other profitable insurers like Travelers and Chubb.
Safety Insurance Group outperforms Mercury General in terms of underwriting performance and market performance. Safety Insurance has maintained a stable dividend and has a healthier financial position compared to Mercury General. Despite its better performance, Safety Insurance is fairly-valued and may not be the best investment choice compared to other insurance companies like Allstate, Chubb, or Progressive.