ReutersReuters

Mercury General Q2 premiums earned rise

RefinitivLess than 1 min read

Overview

  • Mercury General Q2 net premiums earned rise 10.6% year-over-year

  • Net income for Q2 surges 166.1% due to lower catastrophe losses

  • Combined ratio improves to 92.5% from 98.9% last year

Result Drivers

  • PREMIUM GROWTH - Net premiums earned rose 10.6% due to increased ceded premiums following reinsurance reinstatement

  • CATASTROPHE LOSS REDUCTION - Net income surged 166.1% due to reduced catastrophe losses net of reinsurance

  • COMBINED RATIO IMPROVEMENT - Combined ratio improved to 92.5%, reflecting better underwriting results

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Premiums Written

$1.48 bln

Q2 Net Income

$166.47 mln

Q2 Combined Ratio

92.5%

Q2 Operating Income

$147.92 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "buy"

  • Wall Street's median 12-month price target for Mercury General Corp is $80.00, about 12.6% above its July 28 closing price of $69.92

  • The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

Login or create a forever free account to read this news