Mapfre S.A. said Mapfre U.S.A. Corporation agreed to acquire Safety Insurance Group in an all-cash transaction valued at $1.54 bn. The deal expands Mapfre USA’s property and casualty position in Massachusetts and across the Northeast.
Safety ranks among the leading P&C insurers in Massachusetts and operates in several Northeast states. For Mapfre, the acquisition deepens an existing franchise rather than opening a new market from scratch.
The boards of both companies unanimously approved the transaction. Mapfre expects the deal to close in Q1 2027, subject to regulatory approvals and Safety stockholder approval.
The combined business will become the second-largest writer of private passenger auto insurance in New England. It will also become the region’s largest homeowners and commercial auto insurer, expanding scale for agents and clients across the market.
Antonio Huertas, group executive chairman of Mapfre, said the acquisition fits the group’s strategy of strengthening markets where it already operates, with Massachusetts and the broader Northeast as the focus.
He said combining both businesses would improve client service in the US, increase scale, support profitability and create strategic and financial value for shareholders.
Mapfre has secured a bridge loan agreement with Citibank and Deutsche Bank, so the acquisition carries no financing condition. The company plans to replace the bridge facility with about €700 mn in Tier 2 capital instruments, €500 mn in senior debt and the remaining amount through bank debt.
Mapfre expects the Solvency II impact to reach around 10 p.p. The company estimates pre-tax synergies of more than $30 mn p.a., with full run-rate benefits within three years. It also expects the acquisition to lift net income by more than 5%.
The transaction keeps Mapfre inside its target Solvency II range, according to the company. The funding plan also follows its financial discipline framework, with debt and capital instruments spread across several sources.
The combination of Mapfre USA and Safety should strengthen Mapfre’s US profitability, stability and growth. It also gives the group a larger base for talent retention, agent relationships, product development and service quality. Safety will operate within Mapfre after closing, while preserving strengths from both businesses.
Jaime Tamayo, CEO of Mapfre North America, said the transaction brings together two Massachusetts insurance leaders. He described Safety as a strong local brand with an experienced team, solid underwriting record, service capabilities and a deep agent network. He said Safety’s franchise will improve Mapfre USA’s product offering and customer experience across the Northeast.
Under the agreement, a Mapfre USA subsidiary will merge with Safety. Safety will survive the merger as a wholly owned subsidiary of Mapfre USA.
Deutsche Bank S.A.E.U. serves as Mapfre’s sole financial adviser. Hogan Lovells Cadwalader serves as legal adviser. Foley Lardner advises on local insurance regulatory matters, and PricewaterhouseCoopers has acted as tax and actuarial adviser.
Mapfre operates across insurance, reinsurance, assistance and financial services. The group is the world’s largest Spanish-owned insurer, a major multinational insurance group in Latin America and the sixth-largest insurer in Europe by revenue.
Mapfre employs more than 30,000 people worldwide. In 2025, it reported net earnings of €1.1 bn, up 19.6%, on revenue of €34.5 bn, up 4%.
