Major Rating Factors:
History of adequate reserve strength (5.8 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Fair profitability index (4.5) with operating losses during 2022 and 2023. Return on equity has been fair, averaging 5.1% over the past five years. Strong long-term capitalization index (7.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting improvement over results in 2023.
Other Rating Factors:
Excellent liquidity (7.2) with ample operational cash flow and liquid investments. Excellent overall results on stability tests (8.0). Stability strengths include excellent operational trends, good risk adjusted capital for prior years and excellent risk diversification. The largest net exposure for one risk is conservative at 1.1% of capital.
Stability Factors:
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (68.3%), homeowners (22.2%), comm multi (5.9%), other (3.6%)
Licensed in:
AZ, CA, FL, MI, NV, NY, TX, VA, WA
Principal Investments:
Investment grade bonds (55.3%), common stock (37.1%), cash (2.2%), preferred stock (0.5%), real estate (0.5%), other (4.5%)
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
11908
Website
Largest Affiliates