Safety Insurance Group's stock soared 37.58% in after-hours trading to $100.35 following the announcement of a $1.54 billion buyout by Spanish insurer Mapfre S.A. The deal offers Safety shareholders $105 per share, a 44% premium over the previous closing price of $72.94.
Details of the Acquisition
Mapfre is acquiring Safety Insurance through an all-cash transaction executed by one of its affiliates. The agreement received unanimous approval from Safety’s board, with executives and directors committing their votes to support the merger. CEO George Murphy described the deal as an exceptional opportunity for shareholders, highlighting a shared vision and underwriting discipline between the companies.
Under the merger’s terms, a Mapfre subsidiary will merge into Safety Insurance, making Safety a fully owned entity within Mapfre’s group. Existing restricted stock and performance share awards will be cashed out and vested as part of the transaction.
The closing is expected in the first quarter of 2027 and hinges on shareholder consent, antitrust clearance under the Hart-Scott-Rodino Act, and approval by the Massachusetts Commissioner of Insurance. The deal includes no-shop provisions preventing Safety from seeking alternative offers and stipulates reciprocal break-up fees totaling approximately $46 million for Safety and $112 million for Mapfre under certain conditions.
Prior to this surge, Safety Insurance’s shares traded between $67.04 and $81.49 over the past year, making the $105 offer substantially above any recent market level. The company’s market capitalization stands near $1.07 billion with 14.68 million shares outstanding, after a modest 3.29% gain in the previous 12 months.
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