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Mar 31, 2020
Mercury General Q1 2020 Earnings Report
Mercury General reported a net loss for Q1 2020 due to investment losses, while operating income increased.
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
Revenue by Segment
Net Premiums Earned Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.comOther Revenue
CapyFin.com 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