Mercury General Q2 2020 Earnings Report
Key Takeaways
Mercury General Corporation reported a substantial increase in net income for the second quarter of 2020, primarily driven by significant net realized investment gains and an improved combined ratio. The company's operating income also saw a considerable rise compared to the same period last year.
Net income increased by 174.1% to $228.2 million, or $4.12 per diluted share, compared to $83.25 million, or $1.50 per diluted share, in Q2 2019.
Operating income rose by 150.6% to $103.1 million, or $1.86 per diluted share, up from $41.1 million, or $0.74 per diluted share, in the prior year.
The combined ratio improved to 88.2% from 98.3% in the second quarter of 2019.
Net premiums earned decreased by 8.6% to $811.9 million, influenced by premium refunds and credits related to reduced driving during the COVID-19 pandemic.
Mercury General
Mercury General
Mercury General Revenue by Segment
Forward Guidance
The Company expects third quarter premiums earned and written to be reduced by approximately $22 million as a result of the refunds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income