New Year, New Coverage: Your Annual Insurance Checkup

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) urges policyholders to make an annual insurance checkup at the start of the year to confirm coverage after life changes. Key review areas include coverage limits for new purchases, deductibles, premiums and available discounts, policy exclusions (for risks like flood or earthquake), beneficiary designations, and reading the policy declarations page. The company highlights reviewing policies after moves, marriage, divorce or adding a child and recommends using the first of the year as a reminder to schedule a checkup.

Key Figures

Net income $280.4M Q3 2025, vs $230.9M a year ago

Diluted EPS $5.06 Q3 2025, vs $4.17 a year ago

Total revenues $1.585B Q3 2025, driven by net premiums and investment income

Cash balance $1.253B Sept 30, 2025 vs $720.3M at Dec 31, 2024

Shareholders’ equity $2.232B As of Q3 2025

Ceded losses & LAE $1,292.9M Nine months ended Sept 30, 2025, wildfire-related

Loss & LAE reserves $3.596B As of Sept 30, 2025

Quarterly dividend $0.3175/share Most recent declared dividend

Market Reality Check

$90.51 Last Close

Volume Volume 178,655 is about 14% below the 20-day average of 207,872. low

Technical Trading about 31% above 200-day MA of $68.98, near 52-week high ($95).

Peers on Argus

Before this release, MCY was down 1.1%. Most close peers were also down (e.g., SIGI -1.06%, KMPR -2.58%, HGTY -1.04%), while LMND rose 2.21%, suggesting mixed but mildly negative sentiment across property & casualty insurers.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 25	Winter home prep	Neutral	+0.1%	Guidance to homeowners on preparing for unpredictable winter weather risks.
Nov 21	Winter driving tips	Neutral	+3.2%	Winter driving safety tips aimed at reducing weather-related collisions.
Nov 20	Holiday travel advice	Neutral	+1.0%	Holiday travel guidance on coverage checks and on-road preparedness.
Nov 13	Thanksgiving safety	Neutral	+0.1%	Thanksgiving cooking/fire safety tips referencing NFPA fire statistics.
Nov 12	Vehicle donation	Neutral	+0.4%	Donation of refurbished vehicle to support a veteran via Recycled Rides.

Pattern Detected

Recent lifestyle/safety press releases have coincided with small positive or flat next-day moves, with no strong divergence patterns.

Recent Company History

Over the past month, Mercury Insurance has focused on consumer education and community initiatives. Safety and preparedness advisories on Nov 20–25 covered holiday travel, winter driving, and home protection and were followed by modest positive moves of up to 3.22%. A community-focused vehicle donation on Nov 12 also saw a small gain. Today’s annual insurance checkup message fits this non-financial, brand- and risk-awareness communication pattern rather than indicating a change in fundamentals.

Regulatory & Risk Context

Short Interest

2.96%

0% 15% 30%+

low

Short interest at 2.96% of float with 7.08 days to cover indicates limited crowding on the short side, suggesting less risk of short-driven volatility around news.

Market Pulse Summary

This announcement encourages policyholders to conduct an annual insurance checkup, emphasizing coverage limits, deductibles, exclusions and beneficiary updates. It fits Mercury’s recent pattern of consumer education and risk-prevention messaging rather than signaling new financial information. Against a backdrop of Q3 net income of $280.4M and cash of $1.253B, it primarily reinforces brand positioning and risk-awareness. Investors may watch upcoming earnings or regulatory filings for more direct fundamental updates.

Key Terms

deductibles financial

"Deductibles: Evaluate if your current deductible is still manageable..."

Deductibles are the amount of money you pay out of pocket for expenses before your insurance or coverage begins to pay. For example, if you have a deductible of $500, you cover the first $500 of costs yourself, and then the insurance helps with the remaining expenses. Understanding deductibles helps investors gauge the potential costs and risks associated with insurance plans or financial protections.

premiums financial

"increasing it can sometimes lower your premium.Premiums: Check if your premium is competitive..."

Premiums are the additional amounts paid above the regular price for an investment or insurance product, often to gain extra benefits or protection. For investors, paying a premium can mean securing a safer or more advantageous position, but it also means spending more upfront. Think of it like paying extra for a warranty or insurance to ensure peace of mind or added value.

AI-generated analysis. Not financial advice.

Make Reviewing Your Insurance Policies a Resolution for Next Year

LOS ANGELES, Dec. 4, 2025 /PRNewswire/ -- The new year is the time when many of us make resolutions focused around health, finances or personal growth. But it's equally important to take practical steps to protect what matters most, and that starts with reviewing your insurance coverage.

Mercury Insurance (NYSE: MCY) recommends reviewing your insurance policies at the start of every year to ensure you have the right protection in place and can identify gaps, providing peace of mind as you enter the new year. Doing so is especially important if you have moved recently or had a change in family status. 

"Insurance needs can shift as life changes, and an annual policy checkup helps make sure your coverage keeps pace," said Justin Yoshizawa, Director of Product Management at Mercury Insurance. "A quick review can reveal gaps, confirm that coverage limits still match your needs and help protect your family and assets. Even small adjustments can strengthen your financial security and deliver greater peace of mind heading into the new year."

Key areas of insurance coverage policies to review:

• Coverage limits: Confirm that your coverage is sufficient to protect your assets, especially if you've made any major purchases, such as a new car or home improvements.
  
  
• Deductibles: Evaluate if your current deductible is still manageable; increasing it can sometimes lower your premium.
  
  
• Premiums: Check if your premium is competitive and ask about new discounts you may qualify for, such as those for safety systems, bundling policies or safe driving.
  
  
• Exclusions: Pay close attention to what is not covered by your policy. You may need to purchase additional coverage for specific risks like floods or earthquakes.
  
  
• Beneficiaries and life events: Ensure your beneficiary designations are up to date. A review is also a great time to adjust coverage after a major life change like marriage, divorce or having a child.
  
  
• Policy details: Read the policy document, including the declarations page, to understand the specific terms, and ask questions if anything is unclear.

"Life can change fast, and your insurance should reflect that," continued Yoshizawa. "Using the first of the year as a benchmark will help you remember to put it on your calendar."

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home- sharing, ride-hailing and mechanical protection insurance. 

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com.

Interested media can follow Mercury and receive notifications about new press releases at the new Mercury Insurance Newsroom at https://newsroom.mercuryinsurance.com/, follow the company on X, Instagram or Facebook or email us at Newsroom@MercuryInsurance.com. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-year-new-coverage-your-annual-insurance-checkup-302633360.html

SOURCE Mercury Insurance

FAQ

What does Mercury Insurance (MCY) recommend for the December 4, 2025 annual insurance checkup?

Mercury recommends reviewing coverage limits, deductibles, premiums, exclusions, beneficiaries and the declarations page at year start.

How should MCY policyholders check coverage limits after a major purchase?

Confirm your policy limits match new asset values and consider raising coverage if you bought a new car or completed home improvements.

What deductible and premium actions does Mercury Insurance (MCY) suggest for 2026?

Evaluate if your deductible is manageable and ask Mercury about discounts or bundling to lower premiums.

When should MCY customers update beneficiary designations and coverage?

Update beneficiaries and coverage after major life events like marriage, divorce, moving, or adding a child.

Does Mercury Insurance (MCY) advise buying extra coverage for natural disasters?

Yes; review policy exclusions and consider additional coverage for risks such as flood or earthquake.

How can MCY policyholders start their annual insurance review at the beginning of the year?

Use the first of the year as a calendar reminder to read the declarations page and contact Mercury with any questions.