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Jun 30, 2022
Mercury General Q2 2022 Earnings Report
Mercury General reported a net loss for Q2 2022 due to increased losses and loss adjustment expenses.
Key Takeaways
Mercury General Corporation reported a net loss of $210.7 million for the second quarter of 2022, a significant decrease compared to the net income of $109.2 million in the same period last year. The company's combined ratio worsened to 106.6% from 94.9% due to inflationary pressures and supply chain issues. The Board of Directors declared a quarterly dividend of $0.3175 per share, reduced from prior periods.
Mercury General reported a net loss of $210.7 million in Q2 2022, compared to a net income of $109.2 million in Q2 2021.
Operating loss was $19.6 million, compared to an operating income of $62.7 million in the same quarter of the previous year.
The combined ratio increased to 106.6% from 94.9%, driven by higher losses and loss adjustment expenses.
The Board of Directors declared a reduced quarterly dividend of $0.3175 per share due to challenging business conditions.
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
Mercury General is implementing premium rate increases and non-rate actions to improve profitability amidst challenging business conditions. The Board will periodically review the dividend policy based on business conditions.
Positive Outlook
- Taking premium rate increases in many states.
- Implementing non-rate actions to improve profitability.
- Board will periodically review the dividend policy.
- Focus on improving underlying profitability of core insurance business.
- Efforts to manage business in non-California states.
Challenges Ahead
- Challenging business conditions due to high inflation rates.
- Impact of inflation on the cost of auto parts, labor, and medical expenses.
- Supply chain and labor shortage issues lengthening vehicle repair times.
- Pressure on bodily injury costs from social inflation.
- Uncertainties related to estimates, assumptions, and projections.
Revenue & Expenses
Visualization of income flow from segment revenue to net income