Major Rating Factors:
Good overall profitability index (5.0 on a scale of 0 to 10) with operating gains in each of the last five years. Excellent expense controls. Return on equity has been low, averaging 2.6% over the past five years. Good overall results on stability tests (5.8) despite excessive premium growth and negative cash flow from operations for 2023. Stability strengths include good operational trends and excellent risk diversification. Fair reserve development (4.1) as reserves have generally been sufficient to cover claims.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios). Moreover, capital levels have been consistent in recent years. Excellent liquidity (7.9) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
Principal Lines of Business:
Comm multi (95.9%), other (4.1%)
Licensed in:
CA
Principal Investments:
Investment grade bonds (80.3%), cash (15.5%), other (4.2%)
Corporate Info
Group Affiliation
Mercury General Corporation
Investment Rating
Company Address
555 West Imperial Highway
Brea, CA 92821
Brea, CA 92821
Phone Number
(714) 671-6600
NAIC Number
31046
Website
Largest Affiliates