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Mar 31, 2022

Mercury General Q1 2022 Earnings Report

Mercury General reported a net loss for Q1 2022, driven by net realized investment losses and increased losses and loss adjustment expenses.

Key Takeaways

Mercury General Corporation reported a net loss of $196.9 million for the first quarter of 2022, a significant decrease compared to the net income of $107.0 million in the same period last year. The results were impacted by net realized investment losses and increased losses and loss adjustment expenses, which were influenced by inflationary trends and prior accident years' loss development.

Mercury General reported a net loss of $196.9 million, or $(3.56) per diluted share, compared to net income of $107.0 million, or $1.93 per diluted share, for the same period in 2021.

Operating loss was $42.8 million, or $(0.77) per diluted share, compared to operating income of $74.1 million, or $1.34 per diluted share, for the same period in 2021.

The combined ratio increased to 109.5% from 93.5% in the first quarter of 2021, reflecting higher losses and loss adjustment expenses.

Catastrophe losses net of reinsurance were $22.0 million, compared to $35.0 million for the same period in 2021.

Total Revenue
$805M
Previous year: $993M
-18.9%
EPS
-$0.77
Previous year: $1.34
-157.5%
Combined Ratio
109.5%
Previous year: 93.5%
+17.1%
Catastrophe Losses Net
$22M
Previous year: $35M
-37.1%
Net Investment Income
$35.4M
Previous year: $32.3M
+9.5%
Gross Profit
$735M
Previous year: $928M
-20.7%
Cash and Equivalents
$296M
Previous year: $338M
-12.6%
Total Assets
$6.67B
Previous year: $6.55B
+1.7%

Mercury General

Mercury General

Mercury General Revenue by Segment

Forward Guidance

The company did not provide specific forward guidance in this earnings report.

Revenue & Expenses

Visualization of income flow from segment revenue to net income