Mapfre, an international insurance company, through its subsidiary, Mapfre U.S.A. Corporation (Mapfre USA), has agreed to acquire Safety Insurance Group, Inc. (Safety), a property and casualty insurer with a strong presence in Massachusetts and several Northeastern states, in an all-cash transaction valued at $1.54 billion.
This acquisition aligns with global re/insurer Mapfre’s long-term growth strategy, and aims to strengthen Mapfre USA’s position in Massachusetts and across the Northeastern region.
The Boards of Directors of both companies have unanimously approved the acquisition, which is expected to close in the first quarter of 2027.
The acquisition is subject to customary closing conditions, including regulatory approvals and Safety stockholder approval. The terms also include obtaining prior approval of the Massachusetts Commissioner of Insurance and the termination or expiration of any waiting period applicable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Through this transaction, the two companies aim to establish the second-largest writer of Private Passenger Auto in New England, and the largest Homeowners and Commercial auto insurer in the region.
Mapfre confirmed that it has temporarily entered into a bridge loan agreement with Citibank and Deutsche Bank, making the acquisition not subject to any financing condition. This bridge loan is intended to be replaced by a combination of approximately €700 million in Tier 2 capital instruments, €500 million in senior debt, and the remainder via bank debt.
Mapfre said, “The Solvency II impact is expected to be around 10 p.p. and pre-tax synergies have been estimated at more than $30 million p.a., with full run-rate benefits anticipated within three years. The acquisition is forecast to be accretive with an over 5% uplift to net income.”
Mapfre’s profitability is expected to be propelled upwards significantly through this transaction, while maintaining its Solvency II ratio comfortably within its target range. The funding structure is also consistent with Mapfre’s prudent financial framework.
Under the terms of the agreement, a subsidiary of Mapfre USA will merge with Safety, following which Safety will survive as a wholly owned subsidiary of Mapfre USA, maintaining unique strengths of both organisations.
Following completion of the transaction, Safety will continue operating under its established brand, preserving the identity, policyholders, and independent agency relationships, and local market capabilities. Additionally, Safety shareholders will receive $105 for each Safety common share in cash, which represents a premium of 44% on Safety’s stock price as of July 23rd, 2026.
The merger of the two companies is also expected to strengthen Mapfre’s overall stability and growth in the US, while reinforcing its ability to attract and retain top talent, foster deeper connections with agents and clients, and enhance product innovation and service quality.
Antonio Huertas, Group Executive Chairman, Mapfre, commented, “This acquisition is in line with Mapfre’s strategic objectives to strengthen our position in the markets where we already operate—specifically, in this case, in Massachusetts and a number of states throughout the Northeast.
“I believe that the combination of our strengths will allow us to serve our clients in the U.S. even better. It will enable us to strengthen our franchise in both scale and profitability, creating strategic and financial value for our shareholders, while putting us on track for enhanced growth in the highly attractive and developed states of the Northeast.”
Jaime Tamayo, Chief Executive Officer (CEO), Mapfre North America, stated, “This is an exciting milestone that brings together two leaders in Massachusetts with a shared commitment to excellence. Safety has an exceptional team, a strong brand, and a deep understanding of the local market, making it an ideal partner. As a larger organisation, we have the ability to unlock greater value, broader capabilities, and new opportunities for growth—while remaining deeply focused on the people who define our success.
“I look forward to incorporating Safety’s high-quality franchise into Mapfre USA’s operations. Safety’s solid underwriting track record, servicing capabilities and agent network will enhance our product offerings and improve the customer experience of our clients and agents throughout the Northeast. This combination will definitely reinforce our commitment to agents and clients throughout the Northeast while providing enhanced opportunities for our employees.”
George Murphy, Chairman and CEO, Safety, added, “This transaction represents an exceptional outcome for our shareholders and an exciting new chapter for Safety. Throughout our history, we have built a company defined by strong underwriting, deep relationships with agents and clients, and an unwavering commitment to the communities we serve. Mapfre shares our long-term vision, our insurance culture, and our commitment to serving clients. Together, we will be even better positioned to invest in our people, strengthen our capabilities, expand our product offering, and continue delivering the high-quality service our clients and distribution partners expect from Safety.”
Deutsche Bank S.A.E.U. acted as Mapfre’s sole financial advisor, while Hogan Lovells Cadwalader served as legal advisor. Foley Lardner served as the local advisor for insurance regulatory matters for Mapfre, and PricewaterhouseCoopers was the tax and actuarial advisor.
Meanwhile, Safety was served by Jefferies LLC as sole financial advisor, and DLA Piper LLP (US) acted as its outside legal advisor.
