B
American Mercury Ins Co
Rating Date
April 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
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Total
Assets
Capital
Net
Premiums
Net
Income
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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. Strong long-term capitalization index (9.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Other Rating Factors: Fair profitability index (4.7) with operating losses during 2021. Return on equity has been low, averaging 0.5% over the past five years. Fair overall results on stability tests (4.7) including excessive premium growth, weak results on operational trends and negative cash flow from operations for 2023.
Stability Factors: F - Negative cash flow. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Personal/comm auto (54.4%), homeowners (41.4%), other (4.2%)
Licensed in: All states except DC, DE, HI, MA, ME, MI, NC, NH, NY, OH, RI, SC, VT, WV
Principal Investments: Common stock (71.0%), investment grade bonds (20.9%), cash (7.5%), other (0.6%)
Ratios
Premium to Surplus
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Reserve to Surplus
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1-Year Reserve Development
2-Year Reserve Development
Expense Ratio
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Combined Ratio
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Cash From Underwriting
Net Premium Growth
Investments in Affiliates
Corporate Info
Group Affiliation
Mercury General Corporation
Investment Rating
MCY
Company Address
7301 Northwest Expressway
Oklahoma City, OK 73132
Phone Number
(405) 621-6590
NAIC Number
16810
Largest Affiliates
B
Brea, CA - P&C
B
Brea, CA - P&C
B
Clearwater, FL - P&C
B
Lake Forest, IL - P&C