Mercury General Q2 premiums earned rise
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
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