MERCURY GENERAL CORP (MCY) Form 10-Q — Aug 4, 2026

$MCYForm 10-QFiled Aug 4, 2026, 4:09 PM ET0000064996-26-000020Original filing

Mercury General reported Q2 2026 net income of $263.5 million, or $4.76 per diluted share, up from $166.5 million, or $3.01, a year earlier, as the combined ratio improved to 89.9% from 92.5%. Net premiums earned rose 9.6% to $1.50 billion on California homeowners rate increases and higher policy counts in auto and homeowners, while six-month EPS jumped to $8.20 from $1.05 — the prior-year period was crushed by Palisades and Eaton wildfire losses that pushed the H1 2025 combined ratio to 105.4%.

Key figures

Eps: $8.20 diluted for six months ended June 30, 2026; $4.76 for Q2 2026 (vs $1.05 and $3.01 prior year)
Revenue: $3.22 billion total revenues for six months ended June 30, 2026 ($1.68 billion in Q2)
Net Income: $453.9 million for six months ended June 30, 2026; $263.5 million for Q2 2026 (vs $58.1 million and $166.5 million prior year)
Total Debt: $950 million ($900 million unsecured senior notes + $50 million drawn under unsecured credit facility)
Revenue Yoy: +12.2% total revenues six months YoY; net premiums earned +11.3% (six months) and +9.6% (Q2)
Total Assets: $10.54 billion
Cash Position: $1.70 billion cash plus $368.4 million short-term investments ($2.07 billion combined)
Shares Outstanding: 55388627
Loss ratio q2: 65.0% (vs 68.8%)
New notes issued: $525 million unsecured notes issued June 12, 2026, maturing June 15, 2036
Combined ratio q2: 89.9% (vs 92.5% in Q2 2025)
Shareholders equity: $2.84 billion (vs $2.42 billion at Dec 31, 2025)
Dividends per share q2: 0.3175
Net premiums earned q2: $1.50 billion (+9.6% YoY)
Net premiums written q2: $1.559 billion (+5.3% YoY)
Notes redeemed july 2026: $375 million redeemed July 13, 2026
Combined ratio six months: 89.6% (vs 105.4% in H1 2025)
Operating cash flow six months: $543.3 million (+$240.4 million YoY)
Catastrophe reinsurance coverage: $2,790 million per occurrence above $200 million retention, Treaty through June 30, 2027
Favorable prior year development q2: ~$35 million
Net premiums written to surplus ratio: 2.18:1 ($6.04 billion premiums written / $2.77 billion statutory surplus)
Catastrophe losses q2 net of reinsurance: ~$71 million (primarily Texas and Oklahoma storms)
Unfavorable prior year cat development h1 2026: ~$61 million (Palisades and Eaton wildfires)

Price after filing

1 day: +0.5%7 days: -0.9%30 days: -3.6%

Close on the filing date to close N calendar days later (from $106.73). Historical, not a forecast.

AI analysis

Red flags5 · Pro

The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.

Upgrade to Pro · $49/mo billed annually

AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.