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Jun 30, 2025
Mercury General Q2 2025 Earnings Report
Mercury General reported significant earnings growth and improved underwriting performance in Q2 2025, with a strong drop in catastrophe losses.
Key Takeaways
Mercury General Corporation delivered a strong Q2 2025 with net income rising to $166.5 million and a combined ratio improvement to 92.5%. Revenues grew year-over-year, supported by higher premiums and investment income. Catastrophe losses were significantly lower than the previous year.
Net income rose to $166.5 million from $62.6 million in Q2 2024.
Combined ratio improved to 92.5%, down from 98.9% in the prior year.
Catastrophe losses dropped to $13 million from $125 million last year.
Net premiums written increased to $1.48 billion, a 9.2% YoY growth.
Revenue by Segment
Forward Guidance
Mercury General continues to emphasize profitability through underwriting discipline, while managing catastrophe exposure and rate adequacy.
Positive Outlook
- Significant reduction in catastrophe losses YoY.
- Improved combined and loss ratios indicate underwriting strength.
- Net investment income grew due to higher yields and asset mix.
- Reinsurance recoveries offset large wildfire losses effectively.
- Book value per share increased to $35.56.
Challenges Ahead
- Ongoing wildfire risk remains a material exposure.
- FAIR Plan assessments still impact profitability.
- Payouts on catastrophe claims remain high despite reinsurance.
- Prior accident year reserve development was unfavorable.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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