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Mercury General (MCY) swings to Q1 2026 profit with higher premiums

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Mercury General Corporation reported stronger insurance results for the three months ended March 31, 2026. Net premiums earned were $1,452 million compared with $1,283 million a year earlier, reflecting higher business volume. Net income improved to $190 million from a net loss of $108 million.

Operating income, which excludes realized investment gains and losses, rose to $194 million from an operating loss of $127 million. For the year ended December 31, 2025, net income was $541 million and operating income was $437 million.

As of March 31, 2026, Mercury General had approximately 2.31 million policies in force across personal auto, homeowners and commercial auto. The company also highlighted strong customer experience, with an overall claims satisfaction score of about 89.4% for the fourth quarter of 2025.

Positive

  • Profits and core earnings rebounded strongly: net income improved from a $108 million loss to a $190 million profit for Q1 2026, and operating income swung from a $127 million loss to $194 million, indicating materially better underlying insurance performance.

Negative

  • None.

Insights

Mercury General shows a sharp swing back to profitability with solid premium growth.

Mercury General delivered a notable turnaround for the quarter ended March 31, 2026. Net premiums earned reached $1,452 million versus $1,283 million in 2025, while net income shifted from a loss of $108 million to a profit of $190 million.

Operating income, which excludes realized investment gains and losses, increased to $194 million from an operating loss of $127 million, suggesting core underwriting and pricing results improved. Full-year 2025 operating income of $437 million also exceeded $398 million in 2024.

The company reported about 2.31 million policies in force as of March 31, 2026 and a claims satisfaction score near 89.4% in Q4 2025. Subsequent quarterly filings may further clarify whether these profitability and satisfaction levels are sustainable.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Net premiums earned Q1 2026 $1,452 million Three months ended March 31, 2026
Net premiums earned Q1 2025 $1,283 million Three months ended March 31, 2025
Net income Q1 2026 $190 million Three months ended March 31, 2026
Net loss Q1 2025 $108 million Three months ended March 31, 2025
Operating income Q1 2026 $194 million Three months ended March 31, 2026
Net income full year 2025 $541 million Year ended December 31, 2025
Policies in force 2.31 million As of March 31, 2026
Claims satisfaction score Q4 2025 89.4% Fourth quarter 2025 internal survey
net premiums written financial
"Net premiums written is a statutory financial measure which represents the premiums charged on policies issued during a fiscal period net of any applicable reinsurance"
Net premiums written is the total amount of insurance premium a company has agreed to collect from customers for new and renewed policies during a period, after subtracting premiums it passes on to other insurers (reinsurance) and cancellations. It matters to investors because it shows the insurer’s actual sales growth and risk retained—like a retailer’s sales after returns and wholesale transfers—so rising net premiums written can signal stronger future revenue and underwriting exposure.
direct premiums written financial
"direct premiums written is such a measure before any applicable reinsurance"
Direct premiums written is the total dollar value of insurance policies an insurer sells during a specific period, measured before subtracting any amounts it passes to other insurers. Think of it as the full price tags on goods a store sells before accounting for any items it consigns to other shops; it shows sales volume, growth and market reach, and helps investors gauge revenue potential and the company’s exposure to underwriting risk.
operating income (loss) financial
"Operating income (loss) is net income (loss) excluding realized investment gains and losses, net of tax"
realized investment gains and losses financial
"Realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments"
GAAP financial measures financial
"Net income (loss) is the GAAP measure that is most directly comparable to operating income (loss)"
GAAP financial measures are standardized numbers used to report a company's financial performance and health, based on established accounting rules. They provide a consistent way for investors to compare companies and assess their financial stability, much like using a common language or set of rules to ensure clear understanding. This consistency helps investors make informed decisions by offering a transparent view of a company's financial situation.
statutory financial measure financial
"Net premiums written is a statutory financial measure which represents the premiums charged on policies issued during a fiscal period"
Net premiums earned $1,452 million
Net income $190 million
Operating income $194 million
Net premiums written $1,550 million
Direct premiums written $1,573 million
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CHX 0000064996 false 0000064996 2026-06-09 2026-06-09 0000064996 exch:XNYS 2026-06-09 2026-06-09 0000064996 exch:XCHI 2026-06-09 2026-06-09
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 9, 2026

Commission File No. 001-12257

 

 

MERCURY GENERAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

 

 

California   95-2211612

(State or other jurisdiction of

incorporation or organization)

  

(I.R.S. Employer

Identification No.)

 

4484 Wilshire Boulevard  
Los Angeles, California   90010
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (323) 937-1060

Not applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

  ☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12)

 

  ☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

  

Trading
Symbol(s)

  

Name of Each Exchange on Which Registered

Common Stock   MCY   New York Stock Exchange
Common Stock   MCY   New York Stock Exchange Texas

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 

Item 8.01

Other Events.

Mercury General Corporation (“Mercury General”) and its subsidiaries are primarily engaged in writing personal automobile insurance through 12 insurance subsidiaries in 11 states, principally California.

As of March 31, 2026, Mercury General had approximately 2.31 million policies in force, including 1.06 million personal auto policies, 906,000 homeowners policies and 34,000 commercial auto policies. In addition, based on internal company survey sources, Mercury General’s claims overall satisfaction score has remained over 78% for each quarter since the beginning of 2023, with an approximately 89.4% claims overall satisfaction score for the fourth quarter 2025.

The following table sets forth Mercury General’s consolidated highlights. The information presented below is a summary only and should be read in conjunction with Mercury General’s “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Mercury General’s consolidated financial statements and the related notes included in Mercury General’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

 

     Three Months Ended
March 31,		      Year Ended
December 31,		  
     2026      2025      2025      2024  
     (in millions)  

Net premiums earned(1)

    $ 1,452      $ 1,283      $ 5,506      $ 5,075  

Net premiums written(1)(2)

      1,550        1,314        5,722        5,378  

Direct premiums written(2)

      1,573        1,445        5,983        5,501  

Net income (loss)

      190        (108 )       541        468  

Operating income (loss)(2)

      194        (127 )       437        398  
 
(1)

Net premiums earned and net premiums written for the three months ended March 31, 2025 include $76 million and $127 million, respectively, of increased ceded reinsurance premiums due to Mercury General’s catastrophe reinsurance treaty limits being fully utilized and the related coverage reinstatement premiums following the Palisades and Eaton wildfires in January 2025. Net premiums earned and net premiums written for the twelve months ended December 31, 2025 include $101 million of increased ceded premiums due to the reinstatement premiums paid and recorded in the first half of 2025 to reinstate the fully exhausted reinsurance coverage layers of Mercury General’s catastrophe reinsurance treaty ending June 30, 2025 following the Palisades and Eaton wildfires in January 2025.

The following tables reconcile the most directly comparable GAAP financial measures to each of these operating measures.

 

     Three Months Ended
March 31,		      Year Ended
December 31,		  
     2026      2025      2025     2024  
     (in millions)  

Net premiums earned

    $ 1,452      $ 1,283      $ 5,506     $ 5,075  

Change in net unearned premiums

      98        31        216       303  
  

 

 

     

 

 

     

 

 

    

 

 

  

Net premiums written

      1,550        1,314        5,722       5,378  
  

 

 

     

 

 

     

 

 

    

 

 

  

Assumed premiums written

      (40 )       (26 )       (26 )      (15 ) 

Ceded premiums written

      63        157        287       138  
  

 

 

     

 

 

     

 

 

    

 

 

  

Direct premiums written

      1,573        1,445        5,983       5,501  
  

 

 

     

 

 

     

 

 

    

 

 

  

Net income (loss)

      190        (108 )       541       468  
  

 

 

     

 

 

     

 

 

    

 

 

  

Less: Net realized investment (losses) gains

      (5 )       23        131       89  

Tax on net realized investment (losses) gains(a)

      (1 )       4        27       19  
  

 

 

     

 

 

     

 

 

    

 

 

  

Net realized investment (losses) gains, net of tax

      (4 )       19        104       70  
  

 

 

     

 

 

     

 

 

    

 

 

  

Operating income (loss)(a)

      194        (127 )       437       398  
  

 

 

     

 

 

     

 

 

    

 

 

  
 
(a)

Based on federal statutory rate of 21%.

 

(2)

These measures are not based on U.S. generally accepted accounting principles (“GAAP”).

Net income (loss) is the GAAP measure that is most directly comparable to operating income (loss). Operating income (loss) is net income (loss) excluding realized investment gains and losses, net of tax. Operating income (loss) is used by management along with the other components of net income (loss) to assess the Company’s performance. Management uses operating income (loss) as an important measure to evaluate the results of the Company’s insurance business. Management believes that operating income (loss) provides investors with a valuable measure of the Company’s ongoing performance as it reveals trends in the Company’s insurance business that may be obscured by the effect of net realized investment gains and losses. Realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments such as capital market conditions. Accordingly, operating income (loss) highlights the results from ongoing operations and the underlying profitability of the Company’s core insurance business. Operating income (loss), which is provided as supplemental information and should not be considered as a substitute for net income (loss), does not reflect the overall profitability of the Company’s business. It should be read in conjunction with the GAAP financial results.

Net premiums earned, the most directly comparable GAAP measure to net premiums written and direct premiums written, represents the portion of premiums written that is recognized as revenue in the financial statements for the periods presented and earned on a pro-rata basis over the term of the policies. Net premiums written is a statutory financial measure which represents the premiums charged on policies issued during a fiscal period net of any applicable reinsurance; direct premiums written is such a measure before any applicable reinsurance. Net premiums written and direct premiums written are designed to determine production levels and are meant as supplemental information and not intended to replace net premiums earned. Such information should be read in conjunction with the GAAP financial results.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: June 9, 2026     MERCURY GENERAL CORPORATION

 

   By:  

/s/ Theodore Stalick

 

   Name:   Theodore Stalick

 

   Its:   Chief Financial Officer

Source: View Original Filing on SEC EDGAR

FAQ

How did Mercury General (MCY) perform in the quarter ended March 31, 2026?

Mercury General posted net income of $190 million for the quarter, compared with a net loss of $108 million a year earlier. Net premiums earned grew to $1,452 million from $1,283 million, indicating higher business volume and improved profitability.

What were Mercury General (MCY) operating income results for Q1 2026?

Operating income for the quarter ended March 31, 2026 was $194 million, versus an operating loss of $127 million in the prior-year quarter. Operating income excludes realized investment gains and losses, focusing on underlying insurance operations performance and core profitability trends for the business.

How many insurance policies does Mercury General (MCY) have in force?

As of March 31, 2026, Mercury General had about 2.31 million policies in force. This included roughly 1.06 million personal auto policies, 906,000 homeowners policies and 34,000 commercial auto policies across its operations in multiple U.S. states.

What were Mercury General (MCY) full-year 2025 net income and operating income?

For the year ended December 31, 2025, Mercury General reported net income of $541 million and operating income of $437 million. In comparison, full-year 2024 net income was $468 million and operating income totaled $398 million, indicating improved annual profitability.

How strong are Mercury General (MCY) customer claims satisfaction scores?

Mercury General reported that its overall claims satisfaction score stayed above 78% each quarter since early 2023. For the fourth quarter of 2025, the claims overall satisfaction score was approximately 89.4%, based on internal company survey sources cited in the disclosure.

What are Mercury General (MCY) net premiums written and direct premiums written for Q1 2026?

For the three months ended March 31, 2026, net premiums written were $1,550 million and direct premiums written were $1,573 million. These statutory measures reflect premium production levels before and after reinsurance adjustments, complementing net premiums earned reported under GAAP.

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