Q1 2026 swing to profit at Mercury (NYSE: MCY) with dividend
Rhea-AI Filing Summary
Mercury General Corporation reported a strong turnaround for the first quarter of 2026, moving to net income of $190.4 million from a net loss of $108.3 million a year earlier. Net premiums earned rose to $1.45 billion from $1.28 billion, while the GAAP combined ratio improved to 89.3% from 119.2%, reflecting far lower catastrophe losses of $93.0 million versus $447.0 million. Operating income reached $194.0 million, or $3.50 per diluted share, compared with an operating loss of $126.8 million, or $(2.29) per share, in the prior-year quarter. The Board declared a quarterly dividend of $0.3175 per share, payable June 25, 2026 to shareholders of record on June 11, 2026.
Positive
- Return to profitability and strong earnings: Net income was $190.4 million for Q1 2026 versus a net loss of $108.3 million in Q1 2025, while operating income reached $194.0 million after an operating loss of $126.8 million a year earlier.
- Underwriting performance improved sharply: The GAAP combined ratio fell to 89.3% from 119.2%, aided by catastrophe losses net of reinsurance declining to $93.0 million from $447.0 million, indicating a substantial improvement in insurance margins.
- Stronger capital position and ongoing dividends: Shareholders’ equity increased to $2.59 billion with book value per share rising to $46.76 from $43.64, and the Board declared a quarterly dividend of $0.3175 per share.
Negative
- None.
Insights
Mercury posts a sharp swing to profitability with improved underwriting and lower catastrophe losses.
Mercury General delivered a notable Q1 2026 recovery, with net premiums earned increasing to $1.45 billion and net income of $190.4 million versus a prior-year loss. The combined ratio improved to 89.3%, indicating profitable underwriting.
Catastrophe losses net of reinsurance dropped to $93.0 million from $447.0 million, driving much of the turnaround. Operating income of $194.0 million and a combined ratio-accident period basis of 89.9% suggest core insurance performance strengthened alongside favorable loss trends.
The balance sheet also showed higher shareholders’ equity of $2.59 billion and book value per share of $46.76 as of March 31, 2026. The Board maintained capital returns via a quarterly dividend of $0.3175 per share, with payment scheduled for June 25, 2026.
8-K Event Classification
Key Figures
Key Terms
combined ratio financial
operating income financial
catastrophe losses net of reinsurance financial
statutory surplus financial
policies-in-force financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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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:
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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 |
Name of Each Exchange | ||
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 2.02. | Results of Operations and Financial Condition |
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information, including Exhibit 99.1, shall not be incorporated by reference into any filing of Mercury General Corporation (the “Company”), whether made before or after the date hereof, regardless of any general incorporation language in such filing.
On May 5, 2026, the Company issued a press release announcing its financial results for the first quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits.
| 99.1 | Press Release, dated May 5, 2026, issued by Mercury General Corporation, furnished pursuant to Item 2.02 of Form 8-K. | |
| 104. | Cover page Interactive Data File (formatted as inline XBRL) | |
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.
| MERCURY GENERAL CORPORATION | ||||||
| Date: May 5, 2026 | ||||||
| By: | /s/ Theodore R. Stalick | |||||
| Name: | Theodore R. Stalick | |||||
| Its: | Senior Vice President and Chief Financial Officer | |||||
Exhibit 99.1
|
4484 Wilshire Boulevard Los Angeles, California 90010 (323) 937-1060 Fax (323) 857-7125 |
Press Release
FOR MORE INFORMATION, CONTACT:
Theodore Stalick, SVP/CFO
(323) 937-1060
www.mercuryinsurance.com
For Release: May 5, 2026
Mercury General Corporation Announces First
Quarter Results and Declares Quarterly Dividend
Los Angeles, California…Mercury General Corporation (NYSE: MCY) reported today for the first quarter of 2026:
Consolidated Highlights
| Three Months Ended March 31, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| (000’s except per-share amounts and ratios) |
||||||||||||||||
| Net premiums earned (2) |
$ | 1,452,413 | $ | 1,283,069 | $ | 169,344 | 13.2 | |||||||||
| Net premiums written (1) (2) |
$ | 1,550,118 | $ | 1,314,380 | $ | 235,738 | 17.9 | |||||||||
| Direct premiums written (1) |
$ | 1,572,741 | $ | 1,445,443 | $ | 127,298 | 8.8 | |||||||||
| Net realized investment (losses) gains, net of tax (3) |
$ | (3,589 | ) | $ | 18,424 | $ | (22,013 | ) | (119.5 | ) | ||||||
| Net income (loss) |
$ | 190,421 | $ | (108,327 | ) | $ | 298,748 | NM | ||||||||
| Net income (loss) per diluted share |
$ | 3.44 | $ | (1.96 | ) | $ | 5.4 | NM | ||||||||
| Operating income (loss) (1) |
$ | 194,010 | $ | (126,751 | ) | $ | 320,761 | NM | ||||||||
| Operating income (loss) per diluted share (1) |
$ | 3.50 | $ | (2.29 | ) | $ | 5.79 | NM | ||||||||
| Catastrophe losses net of reinsurance (4) |
$ | 93,000 | $ | 447,000 | $ | (354,000 | ) | (79.2 | ) | |||||||
| Combined ratio (5) |
89.3 | % | 119.2 | % | — | (29.9 | ) 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 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 the Company’s reinsurance treaty being fully used up and from the reinstatement of the Company’s catastrophe reinsurance benefits following the Palisades and Eaton wildfires in January 2025. |
| (3) | Net realized investment (losses) gains before tax was $(5) million and $23 million for the three months ended March 31, 2026 and 2025, 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 under GAAP. |
| (4) | The majority of 2026 catastrophe losses resulted from adverse reserve development on the Palisades and Eaton wildfires, and storms in California, Texas and Oklahoma. The majority of 2025 catastrophe losses resulted from the Palisades and Eaton wildfires. |
1
| (5) | The Company experienced favorable development of approximately $9 million and $51 million on prior accident years’ loss and loss adjustment expense reserves for the three months ended March 31, 2026 and 2025, respectively. The favorable development for the first quarter of 2026 was primarily attributable to lower than estimated losses in the automobile line of insurance business, partially offset by adverse development on the homeowners line of insurance business, including adverse development on the prior years’ catastrophe losses. The favorable development for the first quarter of 2025 was primarily attributable to lower than estimated losses in the automobile line of insurance business, and the homeowners line of insurance business, including favorable development on prior years’ catastrophe losses. |
Investment Results
| Three Months Ended March 31, |
||||||||
| 2026 | 2025 | |||||||
| (000’s except average annual yield) |
||||||||
| Average invested assets at cost (1) |
$ | 6,643,376 | $ | 5,594,499 | ||||
| Net investment income (2) (3) |
||||||||
| Before income taxes |
$ | 85,636 | $ | 81,479 | ||||
| After income taxes |
$ | 72,859 | $ | 67,850 | ||||
| Average annual yield on investments (2) (3) |
||||||||
| Before income taxes |
4.5 | % | 4.9 | % | ||||
| After income taxes |
3.9 | % | 4.1 | % | ||||
| (1) | Fixed maturities and short-term bonds at amortized cost; equities and other short-term investments at cost. Average invested assets at cost are based on the monthly amortized cost of the invested assets excluding cash for each period. |
| (2) | Net investment income includes interest income earned on cash of approximately $11.2 million and $13.1 million ($8.9 million and $10.3 million after tax) for the three months ended March 31, 2026 and 2025, respectively. Average annual yield on investments does not include interest income earned on cash. |
| (3) | Higher net investment income before and after income taxes for the three months ended March 31, 2026 compared to the corresponding period in 2025 resulted largely from higher average invested assets. Average annual yield on investments before income taxes for the three months ended March 31, 2026 decreased from the corresponding period in 2025, primarily due to an increase in tax-exempt investments with lower pre-tax yields, combined with lower yields on floating rate investments resulting from lower short-term market interest rates. Average annual yield on investments after income taxes for the three months ended March 31, 2026 decreased from the corresponding period in 2025, primarily due to lower yields on floating rate investments resulting from lower short-term market interest rates. |
The Board of Directors declared a quarterly dividend of $0.3175 per share. The dividend will be paid on June 25, 2026 to shareholders of record on June 11, 2026.
2
Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers and direct-to-consumer sales in many states. For more information, visit the Company’s website at www.mercuryinsurance.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Certain statements contained in this report are forward-looking statements based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the demand for the Company’s insurance products, inflation and general economic conditions, including general market risks associated with the Company’s investment portfolio; the accuracy and adequacy of the Company’s pricing methodologies; catastrophes in the markets served by the Company; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company’s loss reserves in general, including subrogation recovery estimates; the Company’s ability to obtain and the timing of the approval of premium rate changes for insurance policies issued in the states where it operates; legislation adverse to the automobile or homeowners insurance industry or business generally that may be enacted in the states where the Company operates; the Company’s success in managing its business in non-California states; the presence of competitors with greater financial resources and the impact of competitive pricing and marketing efforts; the Company’s ability to successfully allocate the resources used in the states with reduced or exited operations to its operations in other states; changes in driving patterns and loss trends; acts of war and terrorist activities; effects of changing climate conditions; pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; court decisions and trends in litigation and health care and auto repair costs; changes in global trade policies, including trade barriers or restrictions; and legal, cybersecurity, regulatory and litigation risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 17, 2026.
3
MERCURY GENERAL CORPORATION AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
(000’s except per-share amounts and ratios)
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: |
||||||||
| Net premiums earned |
$ | 1,452,413 | $ | 1,283,069 | ||||
| Net investment income |
85,636 | 81,479 | ||||||
| Net realized investment (losses) gains |
(4,543 | ) | 23,321 | |||||
| Other |
6,303 | 6,010 | ||||||
|
|
|
|
|
|||||
| Total revenues |
1,539,809 | 1,393,879 | ||||||
|
|
|
|
|
|||||
| Expenses: |
||||||||
| Losses and loss adjustment expenses |
932,950 | 1,220,813 | ||||||
| Policy acquisition costs |
240,502 | 228,720 | ||||||
| Other operating expenses |
123,887 | 79,453 | ||||||
| Interest |
6,817 | 7,189 | ||||||
|
|
|
|
|
|||||
| Total expenses |
1,304,156 | 1,536,175 | ||||||
|
|
|
|
|
|||||
| Income (loss) before income taxes |
235,653 | (142,296 | ) | |||||
| Income tax expense (benefit) |
45,232 | (33,969 | ) | |||||
|
|
|
|
|
|||||
| Net income (loss) |
$ | 190,421 | $ | (108,327 | ) | |||
|
|
|
|
|
|||||
| Basic average shares outstanding |
55,389 | 55,389 | ||||||
| Diluted average shares outstanding |
55,389 | 55,389 | ||||||
| Basic Per Share Data |
||||||||
| Net income (loss) |
$ | 3.44 | $ | (1.96 | ) | |||
| Net realized investment (losses) gains, net of tax |
$ | (0.06 | ) | $ | 0.33 | |||
| Diluted Per Share Data |
||||||||
| Net income (loss) |
$ | 3.44 | $ | (1.96 | ) | |||
| Net realized investment (losses) gains, net of tax |
$ | (0.06 | ) | $ | 0.33 | |||
| Operating Ratios-GAAP Basis |
||||||||
| Loss ratio |
64.2 | % | 95.1 | % | ||||
| Expense ratio |
25.1 | % | 24.0 | % | ||||
|
|
|
|
|
|||||
| Combined ratio (a) |
89.3 | % | 119.2 | % | ||||
|
|
|
|
|
|||||
| (a) | Combined ratio for the three months ended March 31, 2025 does not sum due to rounding. |
4
MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEETS AND OTHER INFORMATION
(000’s except per-share amounts and ratios)
| March 31, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Investments, at fair value: |
||||||||
| Fixed maturity securities (amortized cost $5,534,785; $5,449,726) |
$ | 5,499,834 | $ | 5,430,251 | ||||
| Equity securities (cost $801,687; $728,460) |
883,623 | 812,787 | ||||||
| Short-term investments (cost $441,810; $336,978) |
441,841 | 336,992 | ||||||
|
|
|
|
|
|||||
| Total investments |
6,825,298 | 6,580,030 | ||||||
| Cash |
1,350,883 | 1,315,574 | ||||||
| Receivables: |
||||||||
| Premiums |
825,000 | 751,554 | ||||||
| Allowance for credit losses on premiums receivable |
(6,100 | ) | (6,000 | ) | ||||
|
|
|
|
|
|||||
| Premiums receivable, net of allowance for credit losses |
818,900 | 745,554 | ||||||
| Accrued investment income |
73,380 | 73,004 | ||||||
| Other |
86,557 | 86,508 | ||||||
|
|
|
|
|
|||||
| Total receivables |
978,837 | 905,066 | ||||||
| Reinsurance recoverables (net of allowance for credit losses $2; $39) |
47,771 | 109,672 | ||||||
| Deferred policy acquisition costs |
366,573 | 359,724 | ||||||
| Fixed assets, net |
150,854 | 146,880 | ||||||
| Operating lease right-of-use assets |
12,153 | 12,125 | ||||||
| Deferred income taxes |
31,821 | 30,637 | ||||||
| Goodwill |
42,796 | 42,796 | ||||||
| Other intangible assets, net |
6,613 | 6,827 | ||||||
| Other assets |
59,266 | 51,338 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 9,872,865 | $ | 9,560,669 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Loss and loss adjustment expense reserves |
$ | 3,646,201 | $ | 3,633,338 | ||||
| Unearned premiums |
2,353,558 | 2,255,935 | ||||||
| Notes payable |
574,626 | 574,527 | ||||||
| Accounts payable and accrued expenses |
394,423 | 448,703 | ||||||
| Operating lease liabilities |
12,652 | 12,328 | ||||||
| Current income taxes |
77,180 | 30,770 | ||||||
| Other liabilities |
224,115 | 187,793 | ||||||
| Shareholders’ equity |
2,590,110 | 2,417,275 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 9,872,865 | $ | 9,560,669 | ||||
|
|
|
|
|
|||||
| OTHER INFORMATION | ||||||||
| Common stock shares outstanding |
55,389 | 55,389 | ||||||
| Book value per share |
$ | 46.76 | $ | 43.64 | ||||
| Statutory surplus (a) |
$ | 2.58 billion | $ | 2.39 billion | ||||
| Net premiums written to surplus ratio (a) |
2.31 | 2.39 | ||||||
| Debt to total capital ratio (b) |
18.2 | % | 19.2 | % | ||||
| Portfolio duration (including all short-term instruments) (a) (c) |
4.4 years | 4.4 years | ||||||
| Policies-in-force (company-wide “PIF”) (a) |
||||||||
| Personal Auto PIF |
1,057 | 1,044 | ||||||
| Homeowners PIF |
906 | 883 | ||||||
| Commercial Auto PIF |
34 | 34 | ||||||
| All Other PIF (d) |
311 | 304 | ||||||
|
|
|
|
|
|||||
| Total PIF |
2,308 | 2,265 | ||||||
|
|
|
|
|
|||||
| (a) | Unaudited. |
| (b) | Debt to Debt plus Shareholders’ Equity (Debt at face value). |
| (c) | Modified duration reflecting anticipated early calls. |
| (d) | All Other PIF represents the combined PIF of all the other smaller lines of insurance business, which in aggregate accounted for only 6.1% of the total company-wide direct premiums written for the three months ended March 31, 2026. |
5
| SUPPLEMENTAL SCHEDULES | ||||||||
| (000’s except per-share amounts and ratios) (unaudited) |
||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Reconciliations of Comparable GAAP Measures to Operating Measures (a) |
| |||||||
| Net premiums earned |
$ | 1,452,413 | $ | 1,283,069 | ||||
| Change in net unearned premiums |
97,705 | 31,311 | ||||||
|
|
|
|
|
|||||
| Net premiums written |
$ | 1,550,118 | $ | 1,314,380 | ||||
|
|
|
|
|
|||||
| Assumed premiums written |
$ | (39,965 | ) | $ | (25,733 | ) | ||
| Ceded premiums written |
$ | 62,588 | $ | 156,796 | ||||
|
|
|
|
|
|||||
| Direct premiums written |
$ | 1,572,741 | $ | 1,445,443 | ||||
|
|
|
|
|
|||||
| Incurred losses and loss adjustment expenses |
$ | 932,950 | $ | 1,220,813 | ||||
| Change in net loss and loss adjustment expense reserves |
(13,422 | ) | (285,112 | ) | ||||
|
|
|
|
|
|||||
| Paid losses and loss adjustment expenses |
$ | 919,528 | $ | 935,701 | ||||
|
|
|
|
|
|||||
| Net income (loss) |
$ | 190,421 | $ | (108,327 | ) | |||
|
|
|
|
|
|||||
| Less: Net realized investment (losses) gains |
(4,543 | ) | 23,321 | |||||
| Tax on net realized investment (losses) gains (b) |
(954 | ) | 4,897 | |||||
|
|
|
|
|
|||||
| Net realized investment (losses) gains, net of tax |
(3,589 | ) | 18,424 | |||||
|
|
|
|
|
|||||
| Operating income (loss) |
$ | 194,010 | $ | (126,751 | ) | |||
|
|
|
|
|
|||||
| Per diluted share: |
||||||||
| Net income (loss) |
$ | 3.44 | $ | (1.96 | ) | |||
| Less: Net realized investment (losses) gains, net of tax |
(0.06 | ) | 0.33 | |||||
|
|
|
|
|
|||||
| Operating income (loss) |
$ | 3.50 | $ | (2.29 | ) | |||
|
|
|
|
|
|||||
| Combined ratio |
89.3 | % | 119.2 | % | ||||
| Effect of estimated prior periods’ loss development |
0.6 | % | 4.0 | % | ||||
|
|
|
|
|
|||||
| Combined ratio-accident period basis (c) |
89.9 | % | 123.1 | % | ||||
|
|
|
|
|
|||||
| (a) | See “Information Regarding GAAP and Non-GAAP Measures.” |
| (b) | Based on federal statutory rate of 21%. |
| (c) | Combined ratio-accident period basis for the three months ended March 31, 2025 does not sum due to rounding. |
6
Information Regarding GAAP and Non-GAAP Measures
The Company has presented information within this document containing operating measures which in management’s opinion provide investors with useful, industry specific information to help them evaluate, and perform meaningful comparisons of, the Company’s performance, but that may not be presented in accordance with GAAP. These measures are not intended to replace, and should be read in conjunction with, the GAAP financial results.
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. See “Supplemental Schedules” above for a reconciliation of net income (loss) to operating income (loss).
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. See “Supplemental Schedules” above for a reconciliation of net premiums earned to net premiums written and direct premiums written.
Incurred losses and loss adjustment expenses is the most directly comparable GAAP measure to paid losses and loss adjustment expenses. Paid losses and loss adjustment expenses excludes the effects of changes in the loss reserve accounts. Paid losses and loss adjustment expenses is provided as supplemental information and is not intended to replace incurred losses and loss adjustment expenses. It should be read in conjunction with the GAAP financial results. See “Supplemental Schedules” above for a reconciliation of incurred losses and loss adjustment expenses to paid losses and loss adjustment expenses.
Combined ratio is the most directly comparable measure to combined ratio-accident period basis. Combined ratio-accident period basis is computed as the difference between two GAAP operating ratios: the combined ratio and prior accident periods’ loss development ratio. Management believes that combined ratio-accident period basis is useful to investors and it is used to reveal the trends in the Company’s results of operations that may be obscured by development on prior accident periods’ loss reserves. Combined ratio-accident period basis is meant as supplemental information and is not intended to replace the GAAP combined ratio. It should be read in conjunction with the GAAP financial results. See “Supplemental Schedules” above for a reconciliation of GAAP combined ratio to combined ratio-accident period basis.
7