Mercury General(MCY) - 2025 Q1 - Quarterly Results

Financial Performance - Net premiums earned for Q1 2025 were $1,283,069, a 10.0% increase from $1,166,679 in Q1 2024[3] - The company reported a net loss of $108,327 for Q1 2025, a decline of 247.5% from a net income of $73,462 in Q1 2024[3] - Total revenues for Q1 2025 reached $1,393,879, up 9.4% from $1,274,085 in Q1 2024[23] - Losses and loss adjustment expenses increased significantly to $1,220,813 in Q1 2025, compared to $903,965 in Q1 2024, reflecting a loss ratio of 95.1%[23] Investment Performance - Net realized investment gains decreased by 38.9% to $18,424 compared to $30,172 in the previous year[3] - Net investment income after taxes rose to $67,850 in Q1 2025, compared to $54,880 in Q1 2024, reflecting a higher average yield[7] - Average invested assets at cost increased to $5,594,499 in Q1 2025 from $5,358,848 in Q1 2024[7] Underwriting Performance - The combined ratio for Q1 2025 was 119.2%, up 18.3 percentage points from 100.9% in Q1 2024[3] - The combined ratio for Q1 2025 was 119.2%, up from 100.9% in Q1 2024, indicating a deterioration in underwriting performance[23] Catastrophe Losses - Catastrophe losses net of reinsurance for Q1 2025 were $447,000, a significant increase of 520.8% from $72,000 in Q1 2024[3] - Estimated gross catastrophe losses from the January 2025 Southern California wildfires are approximately $2,150 million, with net losses of about $331 million after reinsurance[9] - The company has paid out approximately $1,076 million for claims related to the January 2025 Southern California wildfires as of March 31, 2025[18] Financial Position - Cash and cash equivalents increased to $1,284,790 as of March 31, 2025, compared to $720,257 at the end of 2024[26] - Total assets grew to $9,027,658 as of March 31, 2025, up from $8,310,632 at the end of 2024[26] - The company's statutory surplus decreased to $1.88 billion from $2.03 billion, indicating a decline in financial strength[26] - The debt to total capital ratio increased to 24.0% in Q1 2025, compared to 22.8% at the end of 2024, reflecting higher leverage[26] Customer Growth - Policies-in-force for personal auto increased to 1,024, while homeowners policies-in-force rose to 854, indicating growth in customer base[26] Dividends - The company declared a quarterly dividend of $0.3175 per share, payable on June 26, 2025[8]