Mary McConnell
SAFETY INSURANCE GROUPAbout Mary McConnell
Mary F. McConnell, 41, is Vice President – Underwriting at Safety Insurance Group (SAFT), appointed effective July 1, 2024 after serving as Director of Products and Services since April 2019; she has been employed by the Insurance Subsidiaries for 18 years and was named Secretary of the Insurance Subsidiaries in 2024 . She was appointed to the Commonwealth Automobile Reinsurers (CAR) Governing Committee in January 2023 and reappointed for a term through June 30, 2030, with additional service on key CAR committees and the AIB Rules & Forms Advisory Panel . Company performance context: revenues and EBITDA have risen over the last three fiscal years to $1,061.8M* and $99.8M*, respectively, and Safety reports strong TSR (13% 1-year; 11% 3- and 5-year) with a pay-for-performance framework tied to EBIT (annual), Combined Ratio and relative 3-year TSR (long-term) .
Values with asterisk are retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Safety Insurance Group – Insurance Subsidiaries | Director of Products & Services | Apr 2019 – Jul 2024 | Led product and underwriting initiatives prior to promotion to VP; continuity of underwriting leadership |
| Safety Insurance Group – Insurance Subsidiaries | Various underwriting positions | 2006 – 2019 | Progressive underwriting roles; depth in core P&C lines (MA, NH, ME) |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Commonwealth Automobile Reinsurers (CAR) | Governing Committee Member | Jan 2023 – Jun 2030 (reappointed July 1, 2024) | Regulatory governance influence over MA auto residual market; long-term appointment through 2030 supports industry engagement |
| CAR | Commercial Automobile Committee; MAIP Steering Committee; Market Review Committee | Various | Committee participation shaping market rules and operations |
| Automobile Insurers Bureau of Massachusetts (AIB) | Rules & Forms Advisory Panel Member | Various | Input on policy forms/rules aligning underwriting practices with MA standards |
Fixed Compensation
| Component | Amount/Terms | Notes |
|---|---|---|
| Base Salary | $240,000 | Set in one-year employment contract executed June 10, 2024; effective July 1, 2024; renews annually with Board approval |
| Executive Annual Incentive (Target %) | 60% of salary (Other Executive Officers) | Threshold 30%; Maximum 90% under the Amended & Restated Annual Performance Incentive Plan (effective for 2024 awards) |
Performance Compensation
Annual Performance Incentive (Company-Level Design)
| Metric | Weighting | Target | Actual | Payout Basis | Notes |
|---|---|---|---|---|---|
| Earnings before interest, taxes, changes in unrealized gains on equity securities and credit loss expense (“EBIT”) | Not specified (annual plan) | $62.3M (target goal for 2024) | $86.4M (139% of target); 2023 actual $18.3M (0% of 2023 target) | Committee interpolates payouts 50%–150% of goal; payouts align to achievement | Target set by two-year average method; structure avoids unachievable targets after outlier over-achievement |
Long-Term Incentives (Structure)
| Metric | Weighting | Performance Scale | Vesting/Acceleration Terms | Notes |
|---|---|---|---|---|
| Combined Ratio (relative to Performance Peer Financial Group) | 60% | Below Threshold >103.0% = 0–50%; Target 96.7% = 100%; Above Maximum <94.6% = up to 200% | Double-trigger for change-in-control (CIC): acceleration only upon CIC and qualifying termination under equity plan | Performance shares measured over 3-year periods; grant/vesting outcomes depend on relative profitability vs peers |
| 3-year TSR (relative) | 40% | 50th percentile = 100%; 70th = 150%; 90th = 200%; <30th = 0% | Double-trigger CIC; no option repricing; no tax gross-up for parachutes | PSUs tied to relative TSR; 2024 performance awards projected 60% payout; 2023 awards projected 0% at 12/31/2024 snapshot |
Equity grant practices: the company has not granted stock options to NEOs since 2003; equity awards are restricted stock and performance shares; anti-hedging/pledging policy in place .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Stock Ownership Guidelines | CEO 5x salary; other executive officers 3x salary; guidelines include vested and unvested time-based shares; all NEOs currently meet guidelines |
| Hedging/Pledging | Prohibited for executives and directors under insider trading policy; insider sales mandated via pre-approved 10b5-1 plans |
| Clawback Policy | Adopted Aug 2023; compliant with Exchange Act Section 10D and Nasdaq; recovery required for Big R and little r restatements regardless of fault |
| Insider Trading Plans (selling pressure from vesting) | Mary McConnell entered a 10b5-1 plan on Sept 25, 2025 for potential sale of up to 556 shares between Feb 22, 2026 and Sept 25, 2026 (sell-to-cover expected vesting) . A prior 10b5-1 plan dated Sept 19, 2024 allowed potential sale of up to 406 shares between Feb 22, 2025 and Sept 4, 2025 (sell-to-cover) . |
Employment Terms
| Term | Detail |
|---|---|
| Appointment & Effective Date | Appointed VP – Underwriting on June 10, 2024 (effective July 1, 2024) |
| Contract Length & Renewal | One-year employment contract; renewed annually upon Board approval |
| Base Compensation & Benefits | $240,000; benefits comparable to other officers |
| Related Party Transactions | None involving Ms. McConnell requiring Item 404(a) disclosure |
| CIC/Severance Framework (Company policy) | For NEOs (CEO/CFO 3x; others 2x salary+most recent bonus) upon double-trigger CIC; benefits continuation; accelerated vesting of restricted stock post CIC+termination; annual incentive deemed at target upon CIC+termination . Mary-specific severance terms beyond base contract are not disclosed . |
Performance & Company Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | 802.9M* | 885.3M* | 1,061.8M* |
| EBITDA ($USD) | 66.7M* | 32.2M* | 99.8M* |
Values with asterisk are retrieved from S&P Global.
Additional context:
- Shareholder support for executive compensation remains strong: 97.7% Say-on-Pay approval for 2024 .
- Company TSR from IPO (Nov 22, 2002) to Dec 31, 2024 totals 1,428%; recent TSR 13% (1-year), 11% (3- and 5-year) .
- 2024 growth drivers included record top-line expansion and direct written premiums up 20.4% from policy count and average premium increases .
Compensation Committee & Benchmarking Notes
- Independent Compensation Committee engages Pay Governance; no consultant conflicts identified .
- A&R Annual Performance Incentive Plan (effective for 2024 awards) removed legacy max payout cap and obsolete 162(m) provisions; clarified performance objective selection discretion .
- Executive officers eligible under the plan; other executive officers’ payout opportunity set at 30% threshold, 60% target, 90% maximum of salary .
Investment Implications
- Alignment: Mary operates within a robust pay-for-performance system—annual incentives tied to EBIT and long-term awards tied to Combined Ratio and relative TSR with double-trigger CIC protections, anti-hedging/pledging, stock ownership guidelines (3x salary), and a mandatory clawback—reducing misalignment and risk-taking incentives .
- Retention: One-year renewable contract plus 18-year tenure and long-dated CAR Governing Committee term through 2030 suggest low voluntary attrition risk; lack of disclosed individualized severance does not signal elevated retention risk at present .
- Trading signals: Small 10b5-1 sell-to-cover plans tied to February vesting windows (406 shares in 2025; 556 shares in 2026) imply limited incremental selling pressure and are administrative rather than discretionary sales, but they do indicate vesting cadence around late Q1 annually .
- Performance sensitivity: With annual cash incentives benchmarked to EBIT and long-term PSUs sensitive to Combined Ratio and relative TSR, underwriting execution and portfolio profitability will directly influence variable pay outcomes—supportive for investor alignment in rate, mix, and loss ratio management .