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Jun 30, 2023
Mercury General Q2 2023 Earnings Report
Mercury General experienced a net loss for Q2 2023, impacted by catastrophe losses, but saw increased net investment income and implemented rate increases.
Key Takeaways
Mercury General Corporation reported a net loss of $41.543 million for the second quarter of 2023, compared to a net loss of $210.681 million in the same period of 2022. The company's combined ratio was 110.1%, and it faced catastrophe losses of $92 million. However, net investment income increased, and the company is implementing rate increases to improve underwriting results.
Mercury General reported a net loss of $41.543 million for Q2 2023.
Catastrophe losses, net of reinsurance, amounted to $92 million.
The combined ratio for Q2 2023 was 110.1%.
Net investment income increased due to higher average yield and invested assets.
Revenue by Segment
Forward Guidance
Mercury General is implementing rate and non-rate actions to improve underwriting results, but rate increases take time to earn in.
Positive Outlook
- Rate increases implemented in 2023 for California Personal Auto (14.4%).
- Rate increases implemented in 2023 for California Homeowners (12.6%).
- Rate increases implemented in 2023 for California Commercial Auto (13.0%).
- Rate increases implemented in 2023 for Personal Auto Outside of California (7.6%).
- Rate increases implemented in 2023 for Homeowners Outside of California (9.7%).
Challenges Ahead
- Rate increases pending regulatory approval for California Personal Auto (20.8%).
- Rate increases pending regulatory approval for California Homeowners (7.0%).
- Rate increases pending regulatory approval for California Commercial Auto (14.9%).
- Rate increases pending regulatory approval for Personal Auto Outside of California (5.2%).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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