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Mar 31, 2021
Mercury General Q1 2021 Earnings Report
Mercury General reported a profitable first quarter, driven by net income and operating income growth.
Key Takeaways
Mercury General Corporation reported a strong first quarter with a significant increase in net income, driven by investment gains. The company's operating income also rose, reflecting improvements in its insurance business. Catastrophe losses had a notable impact, offset by favorable prior-year development.
Net income increased significantly to $107 million compared to a loss in the previous year.
Operating income rose by 24.8% to $74.1 million.
Catastrophe losses, net of reinsurance, amounted to $35 million, primarily from winter storms.
The combined ratio improved to 93.5% from 95.9%.
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 undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
Challenges Ahead
- Changes in the demand for the Company's insurance products
- Inflation and general economic conditions, including general market risks associated with the Company's investment portfolio
- The accuracy and adequacy of the Company's pricing methodologies
- Catastrophes in the markets served by the Company
- Uncertainties related to estimates, assumptions and projections generally
Revenue & Expenses
Visualization of income flow from segment revenue to net income