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Dec 31, 2020

Mercury General Q4 2020 Earnings Report

Mercury General reported strong fourth-quarter results, marked by a significant increase in net income and operating income compared to the previous year. The combined ratio improved, and catastrophe losses decreased.

Key Takeaways

Mercury General Corporation reported a substantial increase in net income for the fourth quarter of 2020, driven by net realized investment gains and improved operating income. The combined ratio also saw a significant improvement compared to the same period last year.

Net income increased by 426.2% to $166.7 million, or $3.01 per diluted share.

Operating income rose by 544.0% to $76.5 million, or $1.38 per diluted share.

The combined ratio improved to 93.3% from 103.2% in the prior year.

Catastrophe losses, net of reinsurance, decreased by 41.7% to $21 million.

Total Revenue
$1.07B
Previous year: $988M
+8.5%
EPS
$1.38
Previous year: $0.21
+557.1%
Combined Ratio
93.3%
Previous year: 103.2%
-9.6%
Catastrophe Losses Net
$21M
Previous year: $36M
-41.7%
Net Investment Income
$34.1M
Previous year: $35.7M
-4.6%
Gross Profit
$3.5B
Previous year: $3.7B
-5.5%
Cash and Equivalents
$348M
Previous year: $294M
+18.4%
Total Assets
$6.33B
Previous year: $5.89B
+7.5%

Mercury General

Mercury General

Mercury General Revenue by Segment

Forward Guidance

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

Revenue & Expenses

Visualization of income flow from segment revenue to net income