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Mapfre to buy Safety Insurance Group for $1.54 billion
The all-cash deal is expected to close in the first quarter of 2027 and targets a stronger presence in Massachusetts and New England auto and homeowners markets.
Mapfre has agreed to acquire Safety Insurance Group, Inc. in an all-cash transaction valued at $1.54 billion, through its subsidiary Mapfre U.S.A. Corporation. The deal is intended to strengthen Mapfre USA’s position in Massachusetts and across the Northeastern region, where Safety has a footprint in property and casualty insurance.
The companies said their boards have unanimously approved the acquisition, which is expected to close in the first quarter of 2027. The agreement is subject to customary closing conditions, including regulatory approvals and Safety stockholder approval, as well as prior approval by the Massachusetts Commissioner of Insurance and compliance steps tied to the Hart-Scott-Rodino Antitrust Improvements Act.
Mapfre said it plans to establish the second-largest writer of Private Passenger Auto in New England, and the largest Homeowners and Commercial auto insurer in the region. Following completion, a subsidiary of Mapfre USA will merge with Safety, with Safety surviving as a wholly owned subsidiary while continuing to operate under its established brand.
For funding, Mapfre said it has entered into a temporary bridge loan agreement with Citibank and Deutsche Bank, with no acquisition financing condition. The bridge loan is expected to be replaced with approximately €700 million in Tier 2 capital instruments, €500 million in senior debt, and the remainder via bank debt, and Mapfre projected a Solvency II impact of around 10 percentage points, plus more than $30 million per year in pre-tax synergies and net income uplift of over 5%.