$MCY

MERCURY GENERAL CORP

CIK:0000064996|SEC Filings

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Net premiums earned	$ 1,497,767	$ 1,366,738	$ 2,950,180	$ 2,649,808
Net investment income	89,763	78,759	175,399	160,238
Net realized investment gains	86,512	23,480	81,970	46,801
Other	7,723	8,908	14,026	14,916
Total revenues	1,681,765	1,477,885	3,221,575	2,871,763
Expenses:
Losses and loss adjustment expenses	973,280	940,037	1,906,231	2,160,850
Policy acquisition costs	250,328	227,880	490,830	456,601
Other operating expenses	122,918	96,025	246,805	175,478
Interest	7,909	7,195	14,726	14,383
Total expenses	1,354,435	1,271,137	2,658,592	2,807,312
Income before income taxes	327,330	206,748	562,983	64,451
Income tax expense	63,828	40,276	109,061	6,306
Net income	$ 263,502	$ 166,472	$ 453,922	$ 58,145
Net income per share:
Basic (in dollars per share)	$ 4.76	$ 3.01	$ 8.20	$ 1.05
Diluted (in dollars per share)	$ 4.76	$ 3.01	$ 8.20	$ 1.05
Weighted average shares outstanding:
Basic (in shares)	55,389	55,389	55,389	55,389
Diluted (in shares)	55,389	55,389	55,389	55,389

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 453,922	$ 58,145
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	40,368	34,946
Net realized investment gains	(81,970)	(46,801)
Net gains on sales of fixed assets	0	(2,691)
Increase in premiums receivable	(77,162)	(59,478)
Decrease (increase) in reinsurance recoverables	65,423	(362,103)
Changes in current and deferred income taxes	(21,047)	9,246
Increase in deferred policy acquisition costs	(18,290)	(13,814)
Increase in loss and loss adjustment expense reserves	41,362	460,129
Increase in unearned premiums	158,901	145,016
(Decrease) increase in accounts payable and accrued expenses	(27,731)	49,695
Other, net	9,527	30,586
Net cash provided by operating activities	543,303	302,876
Fixed maturity securities available for sale in nature:
Purchases	(1,196,795)	(932,141)
Sales	397,341	394,363
Calls or maturities	428,288	437,461
Equity securities available for sale in nature:
Purchases	(1,185,865)	(983,126)
Sales	1,101,376	1,227,331
Changes in securities payable and receivable	18,310	1,553
(Increase) decrease in short-term investments	(31,360)	2,061
Purchases of fixed assets	(32,932)	(27,513)
Sales of fixed assets	0	12,733
Other, net	10,114	2,892
Net cash (used in) provided by investing activities	(491,523)	135,614
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to shareholders	(35,172)	(35,172)
Net proceeds from issuance of senior notes	519,422	0
Payments on finance lease obligations	(774)	(1,323)
Paydown of principal on credit facility	(150,000)	0
Net cash provided by (used in) financing activities	333,476	(36,495)
Net increase in cash	385,256	401,995
Cash:
Beginning of the year	1,315,574	720,257
End of period	1,700,830	1,122,252
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid	13,402	14,125
Income taxes paid (refunded), net
U.S. federal	129,000	(3,256)
Foreign	13	8
Total income taxes paid (refunded), net	130,108	(2,939)
California
Income taxes paid (refunded), net
U.S. state and local	651	67
Other
Income taxes paid (refunded), net
U.S. state and local	$ 444	$ 242

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Fixed maturity securities (amortized cost $5,802,102; $5,449,726)	$ 5,788,544	$ 5,430,251
Equity securities (cost $860,929; $728,460)	974,212	812,787
Short-term investments (cost $368,338; $336,978)	368,357	336,992
Total investments	7,131,113	6,580,030
Cash	1,700,830	1,315,574
Receivables:
Premiums	828,516	751,554
Allowance for credit losses on premiums receivable	(5,800)	(6,000)
Premiums receivable, net of allowance for credit losses	822,716	745,554
Accrued investment income	74,730	73,004
Other	78,067	86,508
Total receivables	975,513	905,066
Reinsurance recoverables (net of allowance for credit losses $1; $39)	44,249	109,672
Deferred policy acquisition costs	378,014	359,724
Fixed assets (net of accumulated depreciation $376,010; $345,930)	151,109	146,880
Operating lease right-of-use assets	18,977	12,125
Deferred income taxes	23,861	30,637
Goodwill	42,796	42,796
Other intangible assets, net	6,399	6,827
Other assets	69,504	51,338
Total assets	10,542,365	9,560,669
Liabilities
Loss and loss adjustment expense reserves	3,674,700	3,633,338
Unearned premiums	2,414,836	2,255,935
Notes payable	943,752	574,527
Accounts payable and accrued expenses	422,764	448,703
Operating lease liabilities	18,376	12,328
Current income taxes	2,947	30,770
Other liabilities	228,965	187,793
Total liabilities	7,706,340	7,143,394
Commitments and contingencies
Shareholders’ equity:
Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 55,389; 55,389	99,699	99,699
Retained earnings	2,736,326	2,317,576
Total shareholders’ equity	2,836,025	2,417,275
Total liabilities and shareholders’ equity	$ 10,542,365	$ 9,560,669