Mercury General Corp. Files Q2 2024 10-Q

TL;DR

Mercury General Corp. 10-Q filed. Q2 2024 results are in. Check financials.

AI Summary

Mercury General Corp. reported its financial results for the quarter ended June 30, 2024. The company's filing details its financial position and performance, including key balance sheet and income statement figures. Specific details on revenue, net income, and assets for the period are available within the report.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Mercury General Corp., crucial for understanding the company's current health and future prospects in the insurance market.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the second quarter of 2024 financial data.)
• 12/31 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• MERCURY GENERAL CORP (company) — Filer
• 20240630 (date) — Period of Report
• 20240730 (date) — Filing Date
• CA (location) — State of Incorporation
• LOS ANGELES (location) — Business Address City

FAQ

Filing Documents

• mcy-20240630.htm (10-Q) — 1581KB
• mcy-2024630x10qxex151.htm (EX-15.1) — 6KB
• mcy-2024630x10qxex152.htm (EX-15.2) — 4KB
• mcy-2024630x10qxex311.htm (EX-31.1) — 10KB
• mcy-2024630x10qxex312.htm (EX-31.2) — 10KB
• mcy-2024630x10qxex321.htm (EX-32.1) — 5KB
• mcy-2024630x10qxex322.htm (EX-32.2) — 5KB
• 0000064996-24-000025.txt ( ) — 8075KB
• mcy-20240630.xsd (EX-101.SCH) — 38KB
• mcy-20240630_cal.xml (EX-101.CAL) — 56KB
• mcy-20240630_def.xml (EX-101.DEF) — 231KB
• mcy-20240630_lab.xml (EX-101.LAB) — 583KB
• mcy-20240630_pre.xml (EX-101.PRE) — 431KB
• mcy-20240630_htm.xml (XML) — 1434KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1 Financial Statements 3 Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 3 Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2024 and 2023 4 Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended June 30 , 2024 and 2023 5 Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

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

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures about Market Risks

Item 3 Quantitative and Qualitative Disclosures about Market Risks 43

Controls and Procedures

Item 4 Controls and Procedures 45

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 46

Risk Factors

Item 1A Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults upon Senior Securities

Item 3 Defaults upon Senior Securities 46

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 46

Other Information

Item 5 Other Information 47

SIGNATURES

SIGNATURES 48 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements MERCURY GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2024 December 31, 2023 (unaudited) ASSETS Investments, at fair value: Fixed maturity securities (amortized cost $ 4,748,424 ; $ 4,394,983 ) $ 4,661,761 $ 4,319,336 Equity securities (cost $ 724,364 ; $ 654,939 ) 815,924 730,693 Short-term investments (cost $ 148,787 ; $ 179,375 ) 147,865 178,491 Total investments 5,625,550 5,228,520 Cash 609,333 550,903 Receivables: Premiums 711,491 607,025 Allowance for credit losses on premiums receivable ( 6,000 ) ( 5,300 ) Premiums receivable, net of allowance for credit losses 705,491 601,725 Accrued investment income 64,414 59,128 Other 33,662 25,603 Total receivables 803,567 686,456 Reinsurance recoverables (net of allowance for credit losses $ 4 ; $ 12 ) 29,759 31,947 Deferred policy acquisition costs 326,859 293,844 Fixed assets (net of accumulated depreciation $ 303,325 ; $ 302,557 ) 133,972 151,183 Operating lease right-of-use assets 14,220 14,406 Current income taxes — 4,081 Deferred income taxes 34,753 33,013 Goodwill 42,796 42,796 Other intangible assets, net 8,129 8,333 Other assets 98,142 57,915 Total assets $ 7,727,080 $ 7,103,397 LIABILITIES AND SHAREHOLDERS' EQUITY Loss and loss adjustment expense reserves $ 2,976,403 $ 2,785,702 Unearned premiums 1,974,134 1,735,660 Notes payable 573,928 573,729 Accounts payable and accrued expenses 203,612 175,219 Operating lease liabilities 14,211 14,231 Current income taxes 1,469 — Other liabilities 334,308 270,711 Total liabilities 6,078,065 5,555,252 Commitments and contingencies Shareholders' equity: Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 55,371 ; 55,371 98,947 98,947 Retained earnings 1,550,068 1,449,198 Total shareholders' equity 1,649,015 1,548,145 Total liabilities and shareholders' equity $ 7,727,080 $ 7,103,397 See accompanying Notes

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. General Consolidation and Basis of Presentation The interim consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries (referred to herein collectively as the "Company"). For the list of the Company's subsidiaries, see Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. These interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP"), which differ in some respects from those filed in reports to insurance regulatory authorities. The financial data of the Company included herein are unaudited. In the opinion of management, all material adjustments of a normal recurring nature have been made to present fairly the Company's financial position at June 30, 2024 and the results of operations and cash flows for the periods presented. All intercompany transactions and balances have been eliminated. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted from the accompanying interim consolidated financial statements and related notes. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for more complete descriptions and discussions. Operating results and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets

View Full Filing

View this 10-Q filing on SEC EDGAR