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Jun 30
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.
Mercury General
Mercury General
Mercury General Revenue by Segment
Revenue by Segment
Net Premiums Earned Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.comRealized Investment Gains Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Subrogation recoveries are subject to settlement uncertainties.