Form 8-K - Current report
13 Fevereiro 2024 - 6:07PM
Edgar (US Regulatory)
MERCURY GENERAL CORP false 0000064996 0000064996 2024-02-13 2024-02-13
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2024
Commission File No. 001-12257
MERCURY GENERAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
|
|
|
California |
|
95-2211612 |
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
|
|
4484 Wilshire Boulevard |
|
|
Los Angeles, California |
|
90010 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: (323) 937-1060
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12) |
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
|
|
Title of Each Class |
|
Trading Symbol(s) |
|
Name of Each Exchange on Which Registered |
Common Stock |
|
MCY |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. |
Results of Operations and Financial Condition |
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information, including Exhibit 99.1, shall not be incorporated by reference into any filing of Mercury General Corporation (the “Company”), whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On February 13, 2024, the Company issued a press release announcing its financial results for the fourth quarter ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01. |
Financial Statements and Exhibits |
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
|
|
|
|
|
MERCURY GENERAL CORPORATION |
Date: February 13, 2024 |
|
|
|
|
|
|
|
|
|
|
By: |
|
/s/ Theodore R. Stalick |
|
|
|
|
Name: |
|
Theodore R. Stalick |
|
|
|
|
Its: |
|
Senior Vice President and Chief Financial Officer |
Exhibit 99.1
|
|
|
|
|
4484 Wilshire Boulevard
Los Angeles, California 90010
(323) 937-1060
Fax (323) 857-7125 |
FOR MORE INFORMATION, CONTACT:
Theodore Stalick, SVP/CFO
(323)
937-1060
www.mercuryinsurance.com
For Release: February 13, 2024
Mercury
General Corporation Announces Fourth
Quarter and Fiscal 2023 Results and Declares Quarterly Dividend
Los Angeles, California
Mercury General Corporation (NYSE: MCY) reported today the fourth quarter and fiscal 2023 results:
Consolidated Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Change |
|
|
Twelve Months Ended December 31, |
|
|
Change |
|
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
(000s except per-share amounts and
ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
1,144,895 |
|
|
$ |
1,005,482 |
|
|
$ |
139,413 |
|
|
|
13.9 |
% |
|
$ |
4,274,378 |
|
|
$ |
3,952,482 |
|
|
$ |
321,896 |
|
|
|
8.1 |
% |
Net premiums written (1) |
|
$ |
1,132,150 |
|
|
$ |
915,750 |
|
|
$ |
216,400 |
|
|
|
23.6 |
% |
|
$ |
4,464,199 |
|
|
$ |
3,978,017 |
|
|
$ |
486,182 |
|
|
|
12.2 |
% |
Net realized investment gains (losses), net of tax
(2) |
|
$ |
127,810 |
|
|
$ |
73,595 |
|
|
$ |
54,215 |
|
|
|
73.7 |
% |
|
$ |
79,801 |
|
|
$ |
(385,583 |
) |
|
$ |
465,384 |
|
|
|
NM |
|
Net income (loss) |
|
$ |
191,394 |
|
|
$ |
(6,770 |
) |
|
$ |
198,164 |
|
|
|
NM |
|
|
$ |
96,336 |
|
|
$ |
(512,672 |
) |
|
$ |
609,008 |
|
|
|
NM |
|
Net income (loss) per diluted share
(3) |
|
$ |
3.46 |
|
|
$ |
(0.12 |
) |
|
$ |
3.58 |
|
|
|
NM |
|
|
$ |
1.74 |
|
|
$ |
(9.26 |
) |
|
$ |
11.00 |
|
|
|
NM |
|
Operating income (loss) (1) |
|
$ |
63,584 |
|
|
$ |
(80,365 |
) |
|
$ |
143,949 |
|
|
|
NM |
|
|
$ |
16,535 |
|
|
$ |
(127,089 |
) |
|
$ |
143,624 |
|
|
|
NM |
|
Operating income (loss) per diluted share (1) |
|
$ |
1.15 |
|
|
$ |
(1.45 |
) |
|
$ |
2.60 |
|
|
|
NM |
|
|
$ |
0.30 |
|
|
$ |
(2.30 |
) |
|
$ |
2.60 |
|
|
|
NM |
|
Catastrophe losses net of reinsurance
(4) |
|
$ |
16,000 |
|
|
$ |
40,000 |
|
|
$ |
(24,000 |
) |
|
|
(60.0 |
)% |
|
$ |
239,000 |
|
|
$ |
102,000 |
|
|
$ |
137,000 |
|
|
|
134.3 |
% |
Combined ratio (5) |
|
|
98.6 |
% |
|
|
115.8 |
% |
|
|
|
|
|
|
(17.2 |
)pts |
|
|
105.4 |
% |
|
|
108.7 |
% |
|
|
|
|
|
|
(3.3 |
)pts |
NM = Not Meaningful
(1) |
These measures are not based on U.S. generally accepted accounting principles (GAAP), are defined
in Information Regarding GAAP and Non-GAAP Measures and are reconciled to the most directly comparable GAAP measures in Supplemental Schedules. |
(2) |
Net realized investment gains (losses) before tax were $162 million and $93 million for the three
months ended December 31, 2023 and 2022, respectively, and $101 million and $(488) million for the twelve months ended December 31, 2023 and 2022, respectively. The changes in fair value of the Companys investments are recorded
as part of net realized investment gains or losses in its consolidated statements of operations due to the adoption of the fair value option for its investments as permitted under GAAP. |
(3) |
Any incremental shares are excluded from the net loss per diluted share calculation as their effect would be
anti-dilutive, in accordance with GAAP. |
1
(4) |
The majority of 2023 catastrophe losses resulted from rainstorms and hail in Texas and Oklahoma, winter storms
and rainstorms in California, and the impact of Tropical Storm Hilary in California. The majority of 2022 catastrophe losses resulted from the deep freeze of Winter Storm Elliott and other extreme weather events in Texas, Oklahoma and Georgia,
winter storms in California, and the impact of Hurricane Ian in Florida. |
(5) |
The Company experienced favorable development of approximately $4 million and $3 million on prior
accident years loss and loss adjustment expense reserves for the three months ended December 31, 2023 and 2022, respectively, and favorable development of approximately $36 million and unfavorable development of approximately
$47 million on prior accident years loss and loss adjustment expense reserves for the twelve months ended December 31, 2023 and 2022, respectively. The
year-to-date favorable development in 2023 was primarily attributable to lower than estimated losses and loss adjustment expenses in the private passenger automobile and
homeowners lines of insurance business, partially offset by unfavorable reserve development in the commercial property line of insurance business. The year-to-date
unfavorable development in 2022 was primarily attributable to higher than estimated losses and loss adjustment expenses in the automobile line of insurance business. |
Investment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
(000s except average annual yield) |
|
|
|
|
|
|
|
|
|
|
|
|
Average invested assets at cost (1) |
|
$ |
5,210,044 |
|
|
$ |
4,934,646 |
|
|
$ |
5,096,428 |
|
|
$ |
4,902,755 |
|
Net investment income (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before income taxes |
|
$ |
63,343 |
|
|
$ |
49,887 |
|
|
$ |
234,630 |
|
|
$ |
168,356 |
|
After income taxes |
|
$ |
53,638 |
|
|
$ |
43,113 |
|
|
$ |
200,209 |
|
|
$ |
146,204 |
|
Average annual yield on investmentsafter income taxes (2) |
|
|
4.1 |
% |
|
|
3.5 |
% |
|
|
3.9 |
% |
|
|
3.0 |
% |
(1) |
Fixed maturities and short-term bonds at amortized cost; equities and other short-term investments at cost.
Average invested assets at cost are based on the monthly amortized cost of the invested assets for each period. |
(2) |
The higher net investment income before and after income taxes for the three and twelve months ended
December 31, 2023 compared to the corresponding periods in 2022 resulted largely from higher average yield combined with higher average invested assets. Average annual yield on investments after income taxes for the three and twelve months
ended December 31, 2023 increased compared to the corresponding periods in 2022, primarily due to the maturity and replacement of lower yielding investments purchased when market interest rates were lower with higher yielding investments, as a
result of increasing overall market interest rates, as well as higher yields on investments based on floating interest rates. |
The Company continues to implement rate and non-rate actions to improve underwriting results. However,
rate increases take time to earn in. In January 2024, the California Department of Insurance approved rate increases of 22.5% and 3.8% on the private passenger automobile line of insurance business for the Companys insurance subsidiaries,
Mercury Insurance Company (MIC) and California Automobile Insurance Company (CAIC), respectively. These rate increases are expected to become effective in late February of 2024. The private passenger automobile line of
insurance business of MIC and CAIC represented approximately 48% and 5%, respectively, of the Companys total net premiums earned in 2023.
In late January and early February of 2024, California was inundated with a series of atmospheric river rainstorms. The Company is not
currently able to estimate the possible loss or a range of loss resulting from these storms, as many claims associated with them have not yet been reported to the Company. The estimated catastrophe losses resulting from these storms will be recorded
as losses for the first quarter of 2024.
The Board of Directors declared a quarterly dividend of $0.3175 per share. The dividend will be
paid on March 27, 2024 to shareholders of record on March 13, 2024.
2
Mercury General Corporation and its subsidiaries are a multiple line insurance organization
offering predominantly personal automobile and homeowners insurance through a network of independent producers and direct-to-consumer sales in many states. For more
information, visit the Companys website at www.mercuryinsurance.com.
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 Companys 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. These
forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties:
changes in the demand for the Companys insurance products, inflation and general economic conditions, including general market risks associated with the Companys investment portfolio; the accuracy and adequacy of the Companys
pricing methodologies; catastrophes in the markets served by the Company; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to
determine the Companys loss reserves in general; the Companys ability to obtain and the timing of the approval of premium rate changes for insurance policies issued in states where the Company operates; legislation adverse to the
automobile insurance industry or business generally that may be enacted in the states where the Company operates; the Companys success in managing its business in non-California states; the presence of
competitors with greater financial resources and the impact of competitive pricing and marketing efforts; the Companys ability to successfully allocate the resources used in the states with reduced or exited operations to its operations in
other states; changes in driving patterns and loss trends; acts of war and terrorist activities; pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; court decisions and trends in litigation and health care and
auto repair costs; and legal, cyber security, regulatory and litigation risks. 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.
For a more detailed discussion of some of the foregoing risks and uncertainties, see the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission.
3
MERCURY GENERAL CORPORATION AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
(000s except per-share amounts and ratios)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
1,144,895 |
|
|
$ |
1,005,482 |
|
|
$ |
4,274,378 |
|
|
$ |
3,952,482 |
|
Net investment income |
|
|
63,343 |
|
|
|
49,887 |
|
|
|
234,630 |
|
|
|
168,356 |
|
Net realized investment gains (losses) |
|
|
161,785 |
|
|
|
93,158 |
|
|
|
101,014 |
|
|
|
(488,080 |
) |
Other |
|
|
4,611 |
|
|
|
3,166 |
|
|
|
19,609 |
|
|
|
10,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
1,374,634 |
|
|
$ |
1,151,693 |
|
|
$ |
4,629,631 |
|
|
$ |
3,643,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
866,772 |
|
|
|
926,045 |
|
|
|
3,517,853 |
|
|
|
3,362,219 |
|
Policy acquisition costs |
|
|
189,712 |
|
|
|
167,168 |
|
|
|
708,525 |
|
|
|
654,612 |
|
Other operating expenses |
|
|
72,433 |
|
|
|
71,413 |
|
|
|
279,656 |
|
|
|
279,718 |
|
Interest |
|
|
7,770 |
|
|
|
4,409 |
|
|
|
24,169 |
|
|
|
17,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
$ |
1,136,687 |
|
|
$ |
1,169,035 |
|
|
$ |
4,530,203 |
|
|
$ |
4,313,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
237,947 |
|
|
|
(17,342 |
) |
|
|
99,428 |
|
|
|
(670,715 |
) |
Income tax expense (benefit) |
|
|
46,553 |
|
|
|
(10,572 |
) |
|
|
3,092 |
|
|
|
(158,043 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
191,394 |
|
|
$ |
(6,770 |
) |
|
$ |
96,336 |
|
|
$ |
(512,672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic average shares outstanding |
|
|
55,371 |
|
|
|
55,371 |
|
|
|
55,371 |
|
|
|
55,371 |
|
Diluted average shares outstanding |
|
|
55,371 |
|
|
|
55,371 |
|
|
|
55,371 |
|
|
|
55,371 |
|
Basic Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
3.46 |
|
|
$ |
(0.12 |
) |
|
$ |
1.74 |
|
|
$ |
(9.26 |
) |
Net realized investment gains (losses), net of tax |
|
$ |
2.31 |
|
|
$ |
1.33 |
|
|
$ |
1.44 |
|
|
$ |
(6.96 |
) |
Diluted Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
3.46 |
|
|
$ |
(0.12 |
) |
|
$ |
1.74 |
|
|
$ |
(9.26 |
) |
Net realized investment gains (losses), net of tax |
|
$ |
2.31 |
|
|
$ |
1.33 |
|
|
$ |
1.44 |
|
|
$ |
(6.96 |
) |
Operating Ratios-GAAP Basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
|
75.7 |
% |
|
|
92.1 |
% |
|
|
82.3 |
% |
|
|
85.1 |
% |
Expense ratio |
|
|
22.9 |
% |
|
|
23.7 |
% |
|
|
23.1 |
% |
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
98.6 |
% |
|
|
115.8 |
% |
|
|
105.4 |
% |
|
|
108.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEETS AND OTHER INFORMATION
(000s except per-share amounts and ratios)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Investments, at fair value: |
|
|
|
|
|
|
|
|
Fixed maturity securities (amortized cost $4,394,983; $4,226,790) |
|
$ |
4,319,336 |
|
|
$ |
4,088,311 |
|
Equity securities (cost $654,939; $668,843) |
|
|
730,693 |
|
|
|
699,552 |
|
Short-term investments (cost $179,375; $123,928) |
|
|
178,491 |
|
|
|
122,937 |
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
5,228,520 |
|
|
|
4,910,800 |
|
Cash |
|
|
550,903 |
|
|
|
289,776 |
|
Receivables: |
|
|
|
|
|
|
|
|
Premiums |
|
|
607,025 |
|
|
|
571,910 |
|
Allowance for credit losses on premiums receivable |
|
|
(5,300 |
) |
|
|
(5,800 |
) |
|
|
|
|
|
|
|
|
|
Premiums receivable, net of allowance for credit losses |
|
|
601,725 |
|
|
|
566,110 |
|
Accrued investment income |
|
|
59,128 |
|
|
|
52,474 |
|
Other |
|
|
25,603 |
|
|
|
11,358 |
|
|
|
|
|
|
|
|
|
|
Total receivables |
|
|
686,456 |
|
|
|
629,942 |
|
Reinsurance recoverables (net of allowance for credit losses $12; $0) |
|
|
31,947 |
|
|
|
25,895 |
|
Deferred policy acquisition costs |
|
|
293,844 |
|
|
|
266,475 |
|
Fixed assets, net |
|
|
151,183 |
|
|
|
171,442 |
|
Operating lease
right-of-use assets |
|
|
14,406 |
|
|
|
20,183 |
|
Current income taxes |
|
|
4,081 |
|
|
|
55,136 |
|
Deferred income taxes |
|
|
33,013 |
|
|
|
42,903 |
|
Goodwill |
|
|
42,796 |
|
|
|
42,796 |
|
Other intangible assets, net |
|
|
8,333 |
|
|
|
9,212 |
|
Other assets |
|
|
57,915 |
|
|
|
49,628 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,103,397 |
|
|
$ |
6,514,188 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Loss and loss adjustment expense reserves |
|
$ |
2,785,702 |
|
|
$ |
2,584,910 |
|
Unearned premiums |
|
|
1,735,660 |
|
|
|
1,545,639 |
|
Notes payable |
|
|
573,729 |
|
|
|
398,330 |
|
Accounts payable and accrued expenses |
|
|
175,219 |
|
|
|
151,686 |
|
Operating lease liabilities |
|
|
14,231 |
|
|
|
21,924 |
|
Other liabilities |
|
|
270,711 |
|
|
|
289,568 |
|
Shareholders equity |
|
|
1,548,145 |
|
|
|
1,522,131 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
7,103,397 |
|
|
$ |
6,514,188 |
|
|
|
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
|
|
|
Common stock shares outstanding |
|
|
55,371 |
|
|
|
55,371 |
|
Book value per share |
|
$ |
27.96 |
|
|
$ |
27.49 |
|
Statutory surplus (a) |
|
$ |
1.67 billion |
|
|
$ |
1.50 billion |
|
Net premiums written to surplus ratio
(a) |
|
|
2.68 |
|
|
|
2.65 |
|
Debt to total capital ratio (b) |
|
|
27.1 |
% |
|
|
20.8 |
% |
Portfolio duration (including all short-term instruments) (a)(c) |
|
|
3.0 years |
|
|
|
3.5 years |
|
Policies-in-force
(company-wide PIF) (a) |
|
|
|
|
|
|
|
|
Personal Auto PIF |
|
|
1,032 |
|
|
|
1,101 |
|
Homeowners PIF |
|
|
760 |
|
|
|
736 |
|
Commercial Auto PIF |
|
|
42 |
|
|
|
39 |
|
(b) |
Debt to Debt plus Shareholders Equity (Debt at face value). |
(c) |
Modified duration reflecting anticipated early calls. |
5
SUPPLEMENTAL SCHEDULES
(000s except per-share amounts and ratios) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reconciliations of Comparable GAAP Measures to Operating Measures (a) |
|
|
|
|
|
Net premiums earned |
|
$ |
1,144,895 |
|
|
$ |
1,005,482 |
|
|
$ |
4,274,378 |
|
|
$ |
3,952,482 |
|
Change in net unearned premiums |
|
|
(12,745 |
) |
|
|
(89,732 |
) |
|
|
189,821 |
|
|
|
25,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums written |
|
$ |
1,132,150 |
|
|
$ |
915,750 |
|
|
$ |
4,464,199 |
|
|
$ |
3,978,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incurred losses and loss adjustment expenses |
|
$ |
866,772 |
|
|
$ |
926,045 |
|
|
$ |
3,517,853 |
|
|
$ |
3,362,219 |
|
Change in net loss and loss adjustment expense reserves |
|
|
(56,348 |
) |
|
|
(151,268 |
) |
|
|
(193,967 |
) |
|
|
(374,536 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid losses and loss adjustment expenses |
|
$ |
810,424 |
|
|
$ |
774,777 |
|
|
$ |
3,323,886 |
|
|
$ |
2,987,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
191,394 |
|
|
$ |
(6,770 |
) |
|
$ |
96,336 |
|
|
$ |
(512,672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net realized investment gains (losses) |
|
|
161,785 |
|
|
|
93,158 |
|
|
|
101,014 |
|
|
|
(488,080 |
) |
Tax on net realized investment gains (losses)
(b) |
|
|
33,975 |
|
|
|
19,563 |
|
|
|
21,213 |
|
|
|
(102,497 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized investment gains (losses), net of tax |
|
|
127,810 |
|
|
|
73,595 |
|
|
|
79,801 |
|
|
|
(385,583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
63,584 |
|
|
$ |
(80,365 |
) |
|
$ |
16,535 |
|
|
$ |
(127,089 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
3.46 |
|
|
$ |
(0.12 |
) |
|
$ |
1.74 |
|
|
$ |
(9.26 |
) |
Less: Net realized investment gains (losses), net of tax |
|
|
2.31 |
|
|
|
1.33 |
|
|
|
1.44 |
|
|
|
(6.96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
1.15 |
|
|
$ |
(1.45 |
) |
|
$ |
0.30 |
|
|
$ |
(2.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio |
|
|
|
|
|
|
|
|
|
|
105.4 |
% |
|
|
108.7 |
% |
Effect of estimated prior periods loss development |
|
|
|
|
|
|
|
|
|
|
0.8 |
% |
|
|
(1.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio-accident period basis |
|
|
|
|
|
|
|
|
|
|
106.2 |
% |
|
|
107.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
See Information Regarding GAAP and Non-GAAP Measures on
page 7. |
(b) |
Based on federal statutory rate of 21%. |
6
Information Regarding GAAP and Non-GAAP Measures
The Company has presented information within this document containing operating measures which in managements opinion provide investors
with useful, industry specific information to help them evaluate, and perform meaningful comparisons of, the Companys performance, but that may not be presented in accordance with GAAP. These measures are not intended to replace, and should be
read in conjunction with, the GAAP financial results.
Net income (loss) is the GAAP measure that is most directly comparable to
operating income (loss). Operating income (loss) is net income (loss) excluding realized investment gains and losses, net of tax. Operating income (loss) is used by management along with the other components of net income (loss) to assess the
Companys performance. Management uses operating income (loss) as an important measure to evaluate the results of the Companys insurance business. Management believes that operating income (loss) provides investors with a valuable measure
of the Companys ongoing performance as it reveals trends in the Companys insurance business that may be obscured by the effect of net realized investment gains and losses. Realized investment gains and losses may vary significantly
between periods and are generally driven by external economic developments such as capital market conditions. Accordingly, operating income (loss) highlights the results from ongoing operations and the underlying profitability of the Companys
core insurance business. Operating income (loss), which is provided as supplemental information and should not be considered as a substitute for net income (loss), does not reflect the overall profitability of the Companys business. It should
be read in conjunction with the GAAP financial results. See Supplemental Schedules above for a reconciliation of net income (loss) to operating income (loss).
Net premiums earned, the most directly comparable GAAP measure to net premiums written, represents the portion of premiums written that
is recognized as revenue in the financial statements for the periods presented and earned on a pro-rata basis over the term of the policies. Net premiums written is a statutory financial measure which
represents the premiums charged on policies issued during a fiscal period less any applicable reinsurance. Net premiums written is designed to determine production levels and is meant as supplemental information and not intended to replace net
premiums earned. Such information should be read in conjunction with the GAAP financial results. See Supplemental Schedules above for a reconciliation of net premiums earned to net premiums written.
Incurred losses and loss adjustment expenses is the most directly comparable GAAP measure to paid losses and loss adjustment
expenses. Paid losses and loss adjustment expenses excludes the effects of changes in the loss reserve accounts. Paid losses and loss adjustment expenses is provided as supplemental information and is not intended to replace incurred losses
and loss adjustment expenses. It should be read in conjunction with the GAAP financial results. See Supplemental Schedules above for a reconciliation of incurred losses and loss adjustment expenses to paid losses and loss adjustment
expenses.
Combined ratio is the most directly comparable measure to combined ratio-accident period basis. Combined
ratio-accident period basis is computed as the difference between two GAAP operating ratios: the combined ratio and prior accident periods loss development ratio. Management believes that combined ratio-accident period basis is useful to
investors and it is used to reveal the trends in the Companys results of operations that may be obscured by development on prior accident periods loss reserves. Combined ratio-accident period basis is meant as supplemental information
and is not intended to replace the GAAP combined ratio. It should be read in conjunction with the GAAP financial results. See Supplemental Schedules above for a reconciliation of GAAP combined ratio to combined ratio-accident period
basis.
7
v3.24.0.1
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Mercury General (NYSE:MCY)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Mercury General (NYSE:MCY)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025