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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.
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 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%).
- Rate increases pending regulatory approval for Homeowners Outside of California (11.6%).
Revenue & Expenses
Visualization of income flow from segment revenue to net income