# Mercury General Corporation (MCY) Q2 2025 Financial Results Summary
Mercury General Corporation (NYSE: MCY) announced its second quarter financial results on July 29, 2025. The report highlights significant changes in key metrics compared to the same period in the previous year.
## Key Financial Highlights
### Consolidated Financial Metrics
– **Net Premiums Earned**
– **Q2 2025:** $1,366,738 (up **10.6%** from Q2 2024: $1,236,024)
– **YTD 2025:** $2,649,808 (up **10.3%** from YTD 2024: $2,402,703)
– **Net Premiums Written**
– **Q2 2025:** $1,480,807 (up **9.2%** from Q2 2024: $1,355,460)
– **YTD 2025:** $2,795,188 (up **5.9%** from YTD 2024: $2,640,444)
– **Net Realized Investment Gains, Net of Tax**
– **Q2 2025:** $18,549 (up **710.0%** from Q2 2024: $2,290)
– **YTD 2025:** $36,973 (up **13.9%** from YTD 2024: $32,461)
– **Net Income**
– **Q2 2025:** $166,472 (up **166.1%** from Q2 2024: $62,568)
– **YTD 2025:** $58,145 (down **57.3%** from YTD 2024: $136,030)
– **Net Income per Diluted Share**
– **Q2 2025:** $3.01 (up **166.4%** from Q2 2024: $1.13)
– **YTD 2025:** $1.05 (down **57.3%** from YTD 2024: $2.46)
– **Operating Income**
– **Q2 2025:** $147,923 (up **145.4%** from Q2 2024: $60,278)
– **YTD 2025:** $21,172 (down **79.6%** from YTD 2024: $103,569)
– **Operating Income per Diluted Share**
– **Q2 2025:** $2.67 (up **145.0%** from Q2 2024: $1.09)
– **YTD 2025:** $0.38 (down **79.7%** from YTD 2024: $1.87)
– **Catastrophe Losses Net of Reinsurance**
– **Q2 2025:** $13,000 (down **89.6%** from Q2 2024: $125,000)
– **YTD 2025:** $460,000 (up **133.5%** from YTD 2024: $197,000)
– **Combined Ratio**
– **Q2 2025:** 92.5% (down **6.4 percentage points** from Q2 2024: 98.9%)
– **YTD 2025:** 105.4% (up **5.5 percentage points** from YTD 2024: 99.9%)
### Investment Results
– **Average Invested Assets**
– **Q2 2025:** $5,703,599 (up from Q2 2024: $5,536,170)
– **Net Investment Income**
– **Q2 2025:** $78,759 (up **14.347%** from Q2 2024: $68,970)
– **YTD 2025:** $160,238 (up **19.677%** from YTD 2024: $133,989)
– **Average Annual Yield on Investments (Before Income Taxes)**
– **Q2 2025:** 4.7% (up from Q2 2024: 4.5%)
– **Average Annual Yield on Investments (After Income Taxes)**
– **Q2 2025:** 3.9% (up from Q2 2024: 3.8%)
### Shareholder Returns
– **Dividends**
– The Board of Directors declared a quarterly dividend of **$0.3175** per share, which is set to be paid on **September 25, 2025**, to shareholders of record as of **September 11, 2025**.
### Additional Insights
– The company recorded significant catastrophe losses due to the Palisades and Eaton wildfires in January 2025, totaling approximately $359 million for losses and loss adjustment expenses for the six months ended June 30, 2025.
– The Company is actively pursuing subrogation against Southern California Edison for estimated recoveries relating to the Eaton fire.
### Conclusion
Mercury General Corporation reported a strong performance in Q2 2025, with substantial increases in net premiums earned and investment gains. However, net income reflects a significant year-over-year decline due to prior catastrophic losses and operating income challenges. The declared dividend indicates the company’s commitment to return value to its shareholders amidst fluctuating earnings metrics.
Sure! Here are the extracted tables in HTML format:
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands)
| Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |
| Net premiums earned | $ 1,366,738 | $ 1,236,024 | $ 130,714 | 10.6 | $ 2,649,808 | $ 2,402,703 | $ 247,105 | 10.3 |
| Net premiums written | $ 1,480,807 | $ 1,355,460 | $ 125,347 | 9.2 | $ 2,795,188 | $ 2,640,444 | $ 154,744 | 5.9 |
| Net realized investment gains, net of tax | $ 18,549 | $ 2,290 | $ 16,259 | 710.0 | $ 36,973 | $ 32,461 | $ 4,512 | 13.9 |
| Net income | $ 166,472 | $ 62,568 | $ 103,904 | 166.1 | $ 58,145 | $ 136,030 | $ (77,885) | (57.3) |
| Net income per diluted share | $ 3.01 | $ 1.13 | $ 1.88 | 166.4 | $ 1.05 | $ 2.46 | $ (1.41) | (57.3) |
| Operating income | $ 147,923 | $ 60,278 | $ 87,645 | 145.4 | $ 21,172 | $ 103,569 | $ (82,397) | (79.6) |
| Operating income per diluted share | $ 2.67 | $ 1.09 | $ 1.58 | 145.0 | $ 0.38 | $ 1.87 | $ (1.49) | (79.7) |
| Catastrophe losses net of reinsurance | $ 13,000 | $ 125,000 | $ (112,000) | (89.6) | $ 460,000 | $ 197,000 | $ 263,000 | 133.5 |
| Combined ratio | 92.5% | 98.9% | – | (6.4 pts) | 105.4% | 99.9% | – | 5.5 pts |
### CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Investments, at fair value: | ||
| Fixed maturity securities | $ 4,993,829 | $ 4,913,378 |
| Equity securities | 687,652 | 879,175 |
| Short-term investments | 281,766 | 283,817 |
| Total investments | 5,963,247 | 6,076,370 |
| Cash | 1,122,252 | 720,257 |
| Receivables: | ||
| Premiums | 756,554 | 697,176 |
| Allowance for credit losses on premiums | (6,300) | (6,400) |
| Premiums receivable, net of allowance | 750,254 | 690,776 |
| for credit losses | ||
| Accrued investment income | 66,949 | 67,630 |
| Other | 97,721 | 62,118 |
| Total receivables | 914,924 | 820,524 |
| Reinsurance recoverables | 390,717 | 28,613 |
| Deferred policy acquisition costs | 349,145 | 335,332 |
| Fixed assets, net | 145,681 | 138,177 |
| Operating lease right-of-use assets | 15,602 | 13,407 |
| Deferred income taxes | 53,802 | 45,854 |
| Goodwill | 42,796 | 42,796 |
| Other intangible assets, net | 7,254 | 7,682 |
| Other assets | 77,607 | 81,620 |
| Total assets | $ 9,083,027 | $ 8,310,632 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Loss and loss adjustment expense reserves | $ 3,612,160 | $ 3,152,031 |
| Unearned premiums | 2,184,846 | 2,039,830 |
| Notes payable | 574,327 | 574,128 |
| Accounts payable and accrued expenses | 468,310 | 417,765 |
| Operating lease liabilities | 15,845 | 13,580 |
| Current income taxes | 37,946 | 20,752 |
| Other liabilities | 220,096 | 146,022 |
| Shareholders’ equity | 1,969,497 | 1,946,524 |
| Total liabilities and shareholders’ equity | $ 9,083,027 | $ 8,310,632 |
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