SAFETY INSURANCE GROUP INC
EXHIBIT 10.7
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<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;10.7    <BR>    </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Ref. No.&nbsp;2003-015-02  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> ADDENDUM NO. 2<BR>  </B></FONT><FONT SIZE=2>ATTACHED TO AND FORMING A PART OF<BR>
THE REINSURANCE AGREEMENT </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>between
</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>SAFETY
INSURANCE COMPANY<BR>
SAFETY INDEMNITY INSURANCE COMPANY<BR>
(hereinafter called the "Company") </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>and
</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>THE
HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY<BR>
(hereinafter called the "Reinsurer") </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>PROFIT SHARING PLAN  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following Profit Sharing plan has been developed to provide additional incentives for the production of profitable Equipment Breakdown insurance. It is
understood and agreed that the following provisions for Profit Sharing Commission will be in effect from January&nbsp;1,2007 through December&nbsp;31, 2009, or until such date as the Reinsurance
Agreement to which this Addendum is attached is terminated, whichever is earlier. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Reinsurer shall pay to the Company a Profit Sharing Commission on business covered under this Agreement for each Accounting Period defined herein in which the sum of Incurred Losses
for business covered hereunder and Loss Carry Forward, if any, is less than the Plan Losses, in accordance with the provisions of this Addendum. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Incurred
Losses" as used herein shall mean ceded losses paid during the Accounting Period, plus the ceded reserves for losses outstanding at the end of the period, minus the ceded
reserves for losses outstanding at the beginning of the period, plus Loss Adjustment Expenses computed at 4% of Premiums Earned during the Accounting Period. Said losses shall be determined according
to records from the Reinsurer's claim system. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Plan
Losses" as used herein shall mean the amount calculated by multiplying the Premiums Earned for the Accounting Period by the Plan Loss Ratio of 52%. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Premiums
Earned" as used herein shall mean the Company's Reinsurance Premiums ceded during the Accounting Period, plus the unearned Reinsurance Premiums at the beginning of the period,
less the unearned Reinsurance Premiums at the end of the period. Said premiums shall be determined according to records from the Company's premium system. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Accounting
Period" shall mean a twelve month period. The first Accounting Period shall be from January&nbsp;1,2007 through December&nbsp;31, 2007, and each subsequent twelve month
period shall be a separate Accounting Period. However, if this Agreement is terminated, the final Accounting Period shall be from the beginning of the then current Accounting Period through twelve
months from the date of termination if this Agreement is terminated on a "cutoff" basis, or twelve months from the end of the runoff period if this Agreement is terminated on a "runoff" basis. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Profit Sharing calculation for each Accounting Period shall be as follows: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>A.</FONT></DT><DD><FONT SIZE=2>Total
of Plan Losses for the Accounting Period; less
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>B.</FONT></DT><DD><FONT SIZE=2>Total
of Incurred Losses for the Accounting Period; less </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>C.</FONT></DT><DD><FONT SIZE=2>Loss
Carry Forward, if any, from the immediately preceding Accounting Period. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Profit Sharing calculation results in a positive balance, (i.e., the total of the Incurred Losses and Loss Carry Forward is less than the Plan Losses), the Profit Sharing
Commission for the Accounting Period shall be 40% of the positive balance. If the Profit Sharing calculation results in a negative balance, (i.e., the total of the Incurred Losses and Loss Carry
Forward is greater than the Plan Losses), no Profit Sharing Commission shall be payable for the Accounting Period, and the difference shall be carried forward to the next Accounting Period as the Loss
Carry Forward. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as provided in the next paragraph, the Reinsurer shall calculate and report the Reinsurer's Incurred Losses and Profit Sharing Commission, if any, for each Accounting Period
within 90&nbsp;days after the end of the Accounting Period. The Reinsurer shall pay any Profit Sharing Commission shown to be due the Company as promptly as possible after receipt and verification
of the Reinsurer's report. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of termination of the Reinsurance Agreement, the Reinsurer shall calculate and report the Reinsurer's Incurred Losses and Profit Sharing Commission, if any, within
45&nbsp;days after the end of the final Accounting Period. The Reinsurer shall pay any Profit Sharing Commission shown to be due the Company as promptly as possible after receipt and verification of
the Reinsurer's report. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
its discretion, the Reinsurer may offset any amount of Profit Sharing Commission payable under this Addendum against any balance or balances owed to the Reinsurer by the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed in duplicate in Boston, Massachusetts, this 15 of January, 2007. </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>SAFETY INSURANCE COMPANY<BR>
SAFETY INDEMNITY INSURANCE COMPANY</FONT></TD>
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<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>EDWARD N. PATRICK, JR.</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2><BR>
Attest:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JAMES BERRY</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<P><FONT SIZE=2>and
in Hartford Connecticut, this 8th day of January , 2007. </FONT></P>

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<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>W. MACKAY HECKLES</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> W MacKay Heckles, Senior Vice President and Chief Reinsurance Officer</FONT></TD>
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<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEFFREY P. WATT</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Jeffrey P Watt, Senior Vice President</FONT></TD>
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