International insurance company Mapfre, through its subsidiary Mapfre USA Corporation (Mapfre USA), has agreed to acquire Safety Insurance Group, Inc. (Safety) in an all-cash transaction worth US$1.54 billion. Safety is a property and casualty insurance company with a strong presence in Massachusetts and several Northeastern states.
The acquisition is consistent with global reinsurer Mapfre’s long-term growth strategy and is designed to strengthen Mapfre USA’s position in Massachusetts and throughout the Northeast.
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 approval and security stockholder approval. These terms also include obtaining prior approval from the Massachusetts Insurance Commissioner and the termination or expiration of any waiting period applicable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Through the transaction, the two companies aim to create New England’s second-largest private passenger auto insurance company and the region’s largest homeowners and commercial auto insurance company.
Mapfre confirmed it has tentatively entered into bridge loan agreements with Citibank and Deutsche Bank, making the acquisition not subject to any financing conditions. The bridge loan is proposed to be replaced by Tier 2 capital instruments of approximately €700 million, senior debt of €500 million and the remaining bank debt.
Mapfre said: “The impact of Solvency II is expected to be approximately 10 percentage points, with annual pre-tax synergies expected to exceed $30 million, with full operating benefits expected to occur within three years. The acquisition is expected to be accretive and net profit will increase by more than 5%.”
With this transaction, Mapfre is expected to significantly improve its profitability while maintaining its Solvency II ratio within the target range. The financing structure is also in line with Mapfre’s prudent financial framework.
Under the terms of the agreement, Mapfre USA’s subsidiaries will merge with Safety, with Safety continuing to exist as a wholly owned subsidiary of Mapfre USA, maintaining the unique strengths of both organizations.
Following the transaction, Safety will continue to operate under its established brand, retaining identity, policyholders, independent agency relationships and local market capabilities. In addition, Safety shareholders will receive $105 in cash for each share of Safety common stock, which represents a 44% premium over Safety’s stock price as of July 23, 2026.
The combination of the two companies is also expected to strengthen Mapfre’s overall stability and growth in the United States, while enhancing its ability to attract and retain top talent, create deeper connections with agents and customers, and enhance product innovation and service quality.
Antonio Huertas, Executive Chairman of the Mapfre Group, commented: “This acquisition is consistent with Mapfre’s strategic objective to strengthen our position in markets where we already have a presence, particularly in Massachusetts and certain states in the Northeast.
“I believe the combination of our strengths will allow us to better serve our U.S. customers. It will allow us to strengthen our franchise in terms of scale and profitability, creating strategic and financial value for our shareholders while putting us on a trajectory for accelerated growth in the highly attractive and developed states of the Northeast.”
“This is an exciting milestone that brings together two leaders in Massachusetts with a shared commitment to excellence,” said Jaime Tamayo, CEO of Mapfre North America. “Safety has an outstanding team, a strong brand and deep knowledge of the local market, making it an ideal partner. As a larger organization, we have the ability to unlock greater value, broader capabilities and new growth opportunities, while maintaining a laser-like focus on those who determine our success.”
“I look forward to bringing Safety’s high-quality franchises into Mapfre USA’s operations. Safety’s solid underwriting record, service capabilities and agent network will enhance our product offerings and improve the customer experience for customers and agents throughout the Northeast. This combination will certainly strengthen our commitment to agents and customers throughout the Northeast while providing greater opportunities for our employees.”
Safety Chairman and CEO George Murphy added, “This transaction delivers exceptional results for our shareholders and opens an exciting new chapter for Safety. Throughout our history, we have built a company characterized by strong underwriting, deep relationships with agents and customers, and an unwavering commitment to the communities we serve. Mapfre We share our long-term vision, our insurance culture and our commitment to serving our customers. Together, we will be able to better invest in our people, enhance our capabilities, expand our product offerings and continue to deliver the high-quality service our customers and distribution partners have come to expect. “
Deutsche Bank SAEU acted as Mapfre’s sole financial advisor and Hogan Lovells Cadwalader acted as legal advisor. Foley Lardner acted as local advisor to Mapfre on insurance regulatory matters, and PwC acted as tax and actuarial advisor.
Meanwhile, Safety is being served by Jefferies LLC as its exclusive financial advisor and DLA Piper LLP (USA) as its outside legal advisor.
