Safety Insurance Group NASDAQ:SAFT shares surged about 40% on early Friday after the insurer agreed to be acquired by Mapfre in an all-cash transaction valued at approximately $1.54 billion.
Under the terms of the agreement, Safety Insurance shareholders will receive $105 per share in cash, representing a 44% premium to the company's previous closing price. The acquisition is expected to close during the first quarter of 2027, subject to regulatory approvals and customary closing conditions.
Following the completion of the transaction, Safety Insurance will continue operating under its existing brand while becoming a wholly owned subsidiary of Mapfre U.S.A. The companies did not disclose any planned operational changes beyond the ownership transition.
The acquisition expands Mapfre's presence in the U.S. property and casualty insurance market through Safety Insurance's regional franchise. Until the deal closes, Safety Insurance will continue operating as an independent publicly traded company. The transaction remains subject to approval by Safety Insurance shareholders, regulatory clearance, and other customary closing requirements before it can be completed.