Mercury General Posts $ 168.3 million in the fourth quarter

 

Friday, Mar 06,2009, 9:33:38 PM   Click:

Mercury General Posts $ 168.3 million in the fourth quarter loss on investments Chad Hemenway
Auto writer Mercury General Corp. reported a loss of $ 168.3 million during the fourth quarter 2008 and a loss of $ 242.1 million for the year, compared to net income of $ 44.6 million and $ 237.8 million, respectively, during the same periods in 2007.

Mercury General (NYSE: MCY) said in its quarterly financial statements that results were hurt by $ 141.6 million in the fourth quarter and net realized losses compared to net investment gains of $ 6.4 million in fourth quarter of 2007.

Results of the Los Angeles of the company have also been caused by 20 million in losses related to wildfires in California in October more "great loss of inflation on the seriousness of the California automobile lines of business, the effects of development to prior periods of loss reserves and the poor performance of our New Jersey operations.

Net premiums written on business outside of California has declined by about 11% in the fourth quarter and 13% for the year compared to the same period in 2007. Net premiums within California fell from 7.6% in the fourth quarter and 6.2% for the year.

On the morning of February 9, shares of Mercury General Corp. stock sold was $ 36.26, down about 12% from the close.

Mercury Casualty Group currently has a Best's financial strength rating of A + (Superior). American Mercury Insurance Group currently has a Best's financial strength rating of A-(Excellent).

In 2007, the top five writers of private passenger automobile insurance in California, based on AM Best Co. state / line data, were: State Farm Group, with 12.3% share market; Farmers Insurance Group, with 10.9%; Mercury General Group, with 9.8% Allstate Insurance Group, with 9.1%, and Auto Club Enterprises Insurance Group, with 8.9%.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway @ ambest.com)

Copyright © 2009 hours Best Company, Inc. Auto writer Mercury General Corp. reported a loss of $ 168.3 million during the fourth quarter 2008 and a loss of $ 242.1 million for the year, compared with earnings net of $ 44.6 million and $ 237.8 million, respectively, during the same periods in 2007.