Business Description
Mercury General Corporation (MCY) is a property and casualty insurance company primarily focused on providing personal automobile insurance. Operating through 12 subsidiaries across 11 states, with a significant presence in California, the company sells insurance products to individuals and small businesses. Its offerings are distributed through independent agents, 100% owned insurance agents, and direct channels, supported by robust underwriting and claims handling processes.
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Property and Casualty Insurance - Offers a range of insurance products, including private passenger automobile, homeowners, commercial automobile, and commercial property insurance, primarily targeting individual and small business customers.
- Private Passenger Automobile Insurance - Focuses on insuring personal vehicles, which is the company's primary business.
- Homeowners Insurance - Provides coverage for residential properties.
- Commercial Automobile Insurance - Covers vehicles used for business purposes.
- Commercial Property Insurance - Insures commercial real estate and related assets.
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Other Business Segment - Includes automobile mechanical protection warranties sold through automobile dealerships and credit unions.
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Key Metrics
Revenue by Segment - in Millions of USD | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | FY 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | FY 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | FY 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | FY 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | FY 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
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Property & Casualty | 997.6 | 1,027.3 | 1,083.0 | 1,137.5 | 4,245.4 | 1,159.4 | 1,228.7 | 1,313.3 | ||||||||||||||||||||||||||||||||||||||||||||||
- Private Passenger Auto | 660.6 | 674.7 | 713.2 | 747.6 | 2,796.1 | 754.3 | 799.6 | 854.4 | ||||||||||||||||||||||||||||||||||||||||||||||
- Homeowners | 222.5 | 233.9 | 244.0 | 257.3 | 957.7 | 266.9 | 283.6 | 301.8 | ||||||||||||||||||||||||||||||||||||||||||||||
- Commercial Auto | 69.1 | 72.1 | 78.4 | 84.3 | 303.9 | 89.2 | 94.2 | 97.3 | ||||||||||||||||||||||||||||||||||||||||||||||
- Other Lines | 52.5 | 53.8 | 54.7 | 55.7 | 216.7 | 56.3 | 58.6 | 67.2 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 7.1 | 7.2 | 7.3 | 7.4 | 29.0 | 7.3 | 7.3 | 7.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Net premiums earned | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment gains | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Other income | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | 1,004.7 | 1,083.2 | 1,090.3 | 1,451.4 | 4,629.6 | 1,274.1 | 1,236.0 | 1,530.4 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Geography - in Millions of USD | FY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | FY 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | FY 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | FY 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | FY 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | FY 2020 | Q1 2021 [N/A] | Q2 2021 [N/A] | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
California | - | 1,697.1 | 2,682.331 | - | - | 1,029.1 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Texas | - | 166.6 | 252.141 | - | - | 105.1 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Other States | - | 294.2 | 460.748 | - | - | 166.9 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Florida | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | - | 2,158.0 | 3,254.998 | - | 4,629.6 | 1,301.1 | - | - |
Executive Team
Questions to Ask Management
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Given the ongoing low interest rate environment leading to low investment returns, have you considered rethinking your dividend policy or stock repurchase plans to better align with the company's financial performance?
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With competitors like Lemonade leveraging advanced technology and data analytics, how does Mercury General plan to enhance its technological capabilities, and how does your agency-based model remain competitive in today's increasingly digital market?
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Catastrophe losses and unfavorable reserve development have negatively impacted your commercial auto and homeowners lines; what specific measures are you implementing to address these issues and improve profitability in these segments?
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As claims frequency increases towards pre-COVID levels and severity continues to rise, how do you plan to adjust your pricing and underwriting strategies to maintain profitability in this changing environment?
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Considering the regulatory constraints in California that limit your ability to adjust rates and pricing factors, how do these challenges affect your profitability goals, and what strategies are you employing to navigate these limitations?