Mercy General Corporation Reports 21.1% Increase in Net Premiums Earned, Net Income Turnaround in Q3 2024

Mercury General Corporation reported significant financial improvements for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net premiums earned reached $1,320,652 (in thousands), a 21.1% increase from $1,090,311 (in thousands) in Q3 2023. Total revenues for the quarter also rose to $1,530,374 (in thousands), up from $1,065,192 (in thousands) year-over-year. For the nine months ended September 30, 2024, net premiums earned were $3,723,355 (in thousands), compared to $3,129,483 (in thousands) in the same period of 2023, marking a 19.0% increase.

The company reported a net income of $230,856 (in thousands) for Q3 2024, a significant turnaround from a net loss of $(8,227) (in thousands) in Q3 2023. For the nine-month period, net income was $366,886 (in thousands), compared to a net loss of $(95,058) (in thousands) in 2023. This improvement was attributed to increased premium collections and a decrease in payments for losses and loss adjustment expenses.

Total expenses for Q3 2024 were $1,243,310 (in thousands), up from $1,080,421 (in thousands) in Q3 2023, while for the nine months, total expenses increased to $3,658,072 (in thousands) from $3,393,515 (in thousands). The loss ratio improved to 69.5% in Q3 2024 from 75.6% in Q3 2023, and the combined ratio also improved to 93.6% from 98.6%.

The company’s investment portfolio showed growth, with total investments at fair value increasing to $6,018,381 (in thousands) as of September 30, 2024, from $5,228,520 (in thousands) at the end of 2023. Net realized investment gains for the nine months ended September 30, 2024, were $155,536 (in thousands), contrasting with net realized investment losses of $(60,772) (in thousands) for the same period in 2023.

Strategically, Mercury General has been actively selling real estate properties, including the sale of an office building in Brea, California, for $31.5 million, which resulted in a gain of $20.3 million. The company also reported a lease agreement for office space from the new owner of a previously sold property.

As of September 30, 2024, total shareholders’ equity increased to $1,862,290 (in thousands) from $1,548,145 (in thousands) at the end of 2023, reflecting the company's improved profitability and retained earnings, which rose to $1,763,343 (in thousands) from $1,449,198 (in thousands). The company continues to focus on its core business of personal automobile insurance and related property and casualty insurance, primarily in California.