Mercury General Corp (MCY) Reports 9.4% Increase in Net Premiums Earned for Q3 2023
Mercury General Corp (NYSE:MCY) reports a 9.4% increase in net premiums earned for Q3 2023 compared to the same period in 2022.
The company's net premiums written also increased by 16.6% for the same period.
Mercury General Corp (NYSE:MCY) declared a quarterly dividend of $0.3175 per share, payable on December 28, 2023.
CEO Gabe Tirador attributes improved underwriting results to rate and non-rate actions, moderating inflation, and favorable reserve development.
Mercury General Corp (NYSE:MCY) released its earnings filing on October 31, 2023, reporting a 9.4% increase in net premiums earned for the third quarter of 2023 compared to the same period in 2022. The company's net premiums written also saw a significant increase of 16.6% for the same period.
Financial Highlights
Mercury General Corp (NYSE:MCY) reported net premiums earned of $1,090,311 for Q3 2023, up from $996,939 in Q3 2022. Net premiums written also increased from $1,034,476 in Q3 2022 to $1,206,503 in Q3 2023. However, the company reported a net loss of $8,227 for Q3 2023, an improvement from the net loss of $98,303 in Q3 2022.
Investment Results and Rate Increases
The company's net investment income before income taxes for Q3 2023 was $60,965, up from $44,563 in Q3 2022. The average annual yield on investments after income taxes also increased from 3.2% in Q3 2022 to 4.1% in Q3 2023. The company has implemented rate increases in 2022 and 2023, with further increases pending regulatory approval expected to be implemented in Q4 2023.
CEO Commentary
We are pleased that our rate and non-rate actions are manifesting in our improved underwriting results. The third quarter results also benefited from moderating inflation and favorable reserve development. Additionally, third quarter catastrophe losses were at a normal level, compared to the elevated levels experienced in the first and second quarters of 2023. Higher rates will continue to earn-in in the fourth quarter, which will help offset historically higher seasonal frequency and severity." - CEO Gabe Tirador
The Board of Directors declared a quarterly dividend of $0.3175 per share, payable on December 28, 2023, to shareholders of record on December 14, 2023.
Mercury General Corp (NYSE:MCY) and its subsidiaries offer predominantly personal automobile and homeowners insurance through a network of independent producers and direct-to-consumer sales in many states.
Explore the complete 8-K earnings release (here) from Mercury General Corp for further details.
This article first appeared on GuruFocus.
