Mercury General Q4 2021 Earnings Report
Key Takeaways
Mercury General Corporation reported a net income of $30.473 million for Q4 2021, a significant decrease from $166.743 million in Q4 2020. The company's operating income also decreased to $(12.744) million from $76.534 million year-over-year. The combined ratio worsened to 105.4% compared to 93.3% in the prior year quarter.
Net income decreased by 81.7% compared to Q4 2020.
Operating loss was $(12.744) million, compared to an operating income of $76.534 million in Q4 2020.
The combined ratio increased to 105.4% from 93.3% in the same period last year.
Catastrophe losses net of reinsurance were $19 million, slightly down from $21 million in Q4 2020.
Mercury General
Mercury General
Mercury General Revenue by Segment
Forward Guidance
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Certain statements contained in this report are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements.
Challenges Ahead
- Changes in the demand for the Company's insurance products
- Inflation and general economic conditions, including general market risks associated with the Company's investment portfolio
- The accuracy and adequacy of the Company's pricing methodologies
- Catastrophes in the markets served by the Company
- Uncertainties related to estimates, assumptions and projections generally