Mercury General Corp. Files 2024 10-K

TL;DR

Mercury General Corp. dropped its 2024 10-K. Full financials out.

AI Summary

Mercury General Corp. filed its 2024 10-K on February 11, 2025, reporting on its fiscal year ending December 31, 2024. The company, based in Los Angeles, CA, operates in the fire, marine, and casualty insurance sector. Key financial data and operational details for the fiscal years 2024, 2023, and 2022 are presented within this filing.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Mercury General Corp.'s financial performance and operational status for the 2024 fiscal year, crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not inherently indicate new risks.

Key Numbers

• 2024 — Fiscal Year (Reporting period for the 10-K)
• 2023 — Previous Fiscal Year (Comparative financial data)
• 2022 — Prior Fiscal Year (Comparative financial data)

Key Players & Entities

• MERCURY GENERAL CORP (company) — Filer
• 2024-12-31 (date) — Fiscal Year End
• 2025-02-11 (date) — Filing Date
• LOS ANGELES, CA (location) — Business Address

FAQ

Key Financial Figures

• $53 — ty held by non-affiliates multiplied by $53.14, the closing sales price on the New
• $500,000 — ssenger Automobile - bodily injury (BI) $500,000 per person; $500,000 per accident (1)
• $250,000 — Passenger Automobile - property damage $250,000 per accident (1) Commercial Automobil
• $1,000,000 — ial Automobile (combined policy limits) $1,000,000 per accident Homeowner property no max
• $5,000,000 — rty no maximum (2) Umbrella liability $5,000,000 (4) ________ (1) The majority of the
• $100,000 — e limits that are equal to or less than $100,000 per person and $300,000 per accident fo
• $300,000 — to or less than $100,000 per person and $300,000 per accident for BI and $50,000 per acc
• $50,000 — on and $300,000 per accident for BI and $50,000 per accident for property damage. (2)
• $10 million — k reinsurance treaty covering losses of $10 million in excess of $5 million, and facultativ
• $5 m — ring losses of $10 million in excess of $5 million, and facultative reinsurance cove
• $15 million — e reinsurance coverage for losses above $15 million subject to some coverage limitations fo
• $21 million — 024, the Company incurred approximately $21 million in net advertising expense. Underwrit
• $24.8 million — of prior years in 2024 of approximately $24.8 million primarily resulted from higher than est
• $35.9 million — of prior years in 2023 of approximately $35.9 million primarily resulted from lower than esti
• $47.3 million — of prior years in 2022 of approximately $47.3 million primarily resulted from higher than est

Filing Documents

• mcy-20241231.htm (10-K) — 3489KB
• mcy-20241231xex1033.htm (EX-10.33) — 7KB
• mcy-20241231xex1034.htm (EX-10.34) — 8KB
• mcy-20241231xex211.htm (EX-21.1) — 18KB
• mcy-20241231xex231.htm (EX-23.1) — 3KB
• mcy-20241231xex311.htm (EX-31.1) — 10KB
• mcy-20241231xex312.htm (EX-31.2) — 10KB
• mcy-20241231xex321.htm (EX-32.1) — 6KB
• mcy-20241231xex322.htm (EX-32.2) — 6KB
• mcy-20241231_g1.jpg (GRAPHIC) — 152KB
• 0000064996-25-000013.txt ( ) — 18266KB
• mcy-20241231.xsd (EX-101.SCH) — 88KB
• mcy-20241231_cal.xml (EX-101.CAL) — 131KB
• mcy-20241231_def.xml (EX-101.DEF) — 508KB
• mcy-20241231_lab.xml (EX-101.LAB) — 1067KB
• mcy-20241231_pre.xml (EX-101.PRE) — 872KB
• mcy-20241231_htm.xml (XML) — 3700KB

Risk Factors

Item 1A Risk Factors 15

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 27

Cybersecurity

Item 1C Cybersecurity 27

Properties

Item 2 Properties 29

Legal Proceedings

Item 3 Legal Proceedings 29

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 30 PART II

Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures about Market Risks

Item 7A Quantitative and Qualitative Disclosures about Market Risks 53

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 55

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 100

Controls and Procedures

Item 9A Controls and Procedures 100

Other Information

Item 9B Other Information 100

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 100 PART III

Directors, Executive Officers, and Corporate Governance

Item 10 Directors, Executive Officers, and Corporate Governance 101

Executive Compensation

Item 11 Executive Compensation 101

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 101

Certain Relationships and Related Transactions, and Director Independence

Item 13 Certain Relationships and Related Transactions, and Director Independence 101

Principal Accounting Fees and Services

Item 14 Principal Accounting Fees and Services 101 PART IV

Exhibits and Financial Statement Schedules

Item 15 Exhibits and Financial Statement Schedules 102

Form 10-K Summary

Item 16 Form 10-K Summary 106

SIGNATURES

SIGNATURES 107 Financial Statement Schedules S- 1 PART I

Business

Item 1. Business General Mercury General Corporation ("Mercury General") and its subsidiaries (referred to herein collectively as the "Company") are primarily engaged in writing personal automobile insurance through 12 insurance subsidiaries (referred to herein collectively as the "Insurance Companies") in 11 states, principally California. The Company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance. The Company's insurance policies are mostly sold through independent agents who receive a commission for selling policies. The Company believes that it has thorough underwriting and claims handling processes that, together with its agent relationships, provide the Company with competitive advantages. The direct premiums written for the years ended December 31, 2024, 2023 and 2022 by state and line of insurance business were: Year Ended December 31, 2024 (Dollars in thousands) Private Passenger Automobile Homeowners Commercial Automobile Other Lines (2) Total California $ 2,845,294 $ 970,054 $ 280,987 $ 334,293 $ 4,430,628 80.5 % Texas 127,808 190,928 62,788 6,824 388,348 7.1 % Other states (1) 422,722 206,315 43,219 9,603 681,859 12.4 % Total $ 3,395,824 $ 1,367,297 $ 386,994 $ 350,720 $ 5,500,835 100.0 % 61.7 % 24.9 % 7.0 % 6.4 % 100.0 % Year Ended December 31, 2023 (Dollars in thousands) Private Passenger Automobile Homeowners Commercial Automobile Other Lines (2) Total California $ 2,317,678 $ 813,056 $ 246,253 $ 235,735 $ 3,612,722 79.3 % Texas 123,390 147,854 53,430 5,592 330,266 7.2 % Other states (1) 400,714 158,094 46,538 10,154 615,500 13.5 % Total $ 2,841,782 $ 1,119,004 $ 346,221 $ 251,481 $ 4,558,488 100.0 % 62.4 % 24.5 % 7.6 % 5.5 % 100.0 % Year Ended December 31, 2022 (Dollars in thousands) Private Passenger Automobile Homeowners Commercial Automobile Other Lines (2) Total California $ 2,142,265 $ 716,651 $ 193,809 $ 216,022 $ 3,268,747 80.8 % Texas 97,6

Underwriting

Underwriting The Company sets its own automobile insurance premium rates, subject to rating regulations issued by the Department of Insurance or similar governmental agency of each state in which it is licensed to operate ("DOI"). Each state has different rate approval requirements. See "Regulation—Department of Insurance Oversight." The Company offers standard, non-standard, and preferred private passenger automobile insurance in 11 states. The Company also offers homeowners insurance in 10 states, commercial automobile insurance in 4 states, and mechanical protection insurance in most states. In California, "good drivers," as defined by the California Insurance Code, accounted for approximately 87% of the Company's California voluntary private passenger automobile policies-in-force at December 31, 2024, while higher risk categories accounted for approximately 13%. The Company's private passenger automobile renewal rate in California (the rate of acceptance of offers to renew) averaged approximately 99%, 95%, and 96% in 2024, 2023, and 2022, respectively. Claims The Company conducts the majority of claims processing without the assistance of outside adjusters. The claims staff administers all claims and manages all legal and adjustment aspects of claims processing. Loss and Loss Adjustment Expense Reserves ("Loss Reserves") and Reserve Development The Company maintains loss reserves for both reported and unreported claims. Loss reserves for reported claims are estimated based upon a case-by-case evaluation of the type of claim involved and the expected development of such claims. Loss reserves for unreported claims are determined on the basis of historical information by line of insurance business. Inflation is reflected in the reserving process through analysis of cost trends and review of historical reserve settlement. The Company's ultimate liability may be greater or less than management estimates of reported loss reserves. The Company does not dis

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View this 10-K filing on SEC EDGAR