Mercury General Q1 2020 Earnings Report
Key Takeaways
Mercury General Corporation reported a net loss of $139.2 million for the first quarter of 2020, compared to a net income of $135.9 million in the same period of 2019. The net loss was primarily due to net realized investment losses. However, operating income increased by 23.3% to $59.3 million. The company's combined ratio was 95.9%.
Net loss of $139.2 million, or $2.51 per diluted share, compared to net income of $135.9 million, or $2.45 per diluted share, in Q1 2019.
Operating income increased to $59.3 million, or $1.07 per diluted share, up from $48.1 million, or $0.87 per diluted share, in Q1 2019.
Net premiums earned increased by 6.0% to $922.6 million.
Combined ratio was 95.9%, compared to 97.3% in the same quarter last year.
Mercury General
Mercury General
Mercury General Revenue by Segment
Forward Guidance
The company announced it was refunding 15% of monthly private passenger automobile insurance premiums, or approximately $70 million, to its policyholders for two months as less driving during the COVID-19 pandemic has resulted in fewer accidents and claims. The Company expects to process the premium refunds, via credits to policyholders' accounts, in May and June of 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income