Mercury General Corporation Announces 3rd Quarter Results and Declares Quarterly Dividend.

LOS ANGELES: Mercury General Corporation (NYSE: MCY) reported today for the third quarter of 2022:

Consolidated Highlights

Three Months Ended

September 30,

Change

Nine Months Ended

September 30,

Change

2022

2021

$

%

2022

2021

$

%

(000's except per-share amounts and ratios)

Net premiums earned

$ 996,939

$ 940,941

$ 55,998

6.0

$ 2,947,000

$ 2,783,682

$ 163,318

5.9

Net premiums written (1)

$ 1,034,476

$ 1,014,967

$ 19,509

1.9

$ 3,062,267

$ 2,922,691

$ 139,576

4.8

Net realized investment (losses) gains, net of tax (2)

$ (113,928)

$ (34,399)

$ (79,529)

NM

$ (459,177)

$ 44,993

$ (504,170)

(1,120.6)

Net (loss) income

$ (98,303)

$ 1,288

$ (99,591)

(7,732.2)

$ (505,902)

$ 217,464

$ (723,366)

(332.6)

Net (loss) income per diluted share (3)

$ (1.78)

$ 0.02

$ (1.80)

(9,000.0)

$ (9.14)

$ 3.93

$ (13.07)

(332.6)

Operating income (loss) (1)

$ 15,625

$ 35,687

$ (20,062)

(56.2)

$ (46,725)

$ 172,471

$ (219,196)

(127.1)

Operating income (loss) per diluted share (1)

$ 0.28

$ 0.64

$ (0.36)

(56.3)

$ (0.84)

$ 3.11

$ (3.95)

(127.0)

Catastrophe losses net of reinsurance (4)

$ 19,000

$ 25,000

$ (6,000)

(24.0)

$ 62,000

$ 85,000

$ (23,000)

(27.1)

Combined ratio (5)

102.8 %

99.0 %

--

3.8 pts

106.3 %

95.8 %

--

10.5 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 (losses) gains before tax were $(144) million and $(44) million for the three months ended September 30, 2022 and 2021, respectively, and $(581) million and $57 million for the nine months ended September 30, 2022 and 2021, respectively. The changes in fair value of the Company's 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)

The dilutive impact of any incremental shares is excluded from net loss position in accordance with GAAP.

(4)

Catastrophe losses due to the events that occurred during the nine months ended September 30, 2022 totaled approximately $58 million, with no reinsurance benefits used for these losses, resulting primarily from winter storms, rainstorms and hail in Texas and Oklahoma, the impact of Hurricane Ian in Florida which caused $11 million in losses, and winter storms in...