Major Rating Factors:
History of adequate reserve strength (5.9 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (5.9) despite operating losses during 2022. Return on equity has been good over the last five years, averaging 12.9%. Good liquidity (6.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Strong long-term capitalization index (7.4) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent overall results on stability tests (8.2). Stability strengths include excellent operational trends and excellent risk diversification.
Stability Factors:
L - Past results on our liquidity tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
CA
Principal Investments:
Investment grade bonds (78.1%), common stock (9.7%), cash (6.1%), preferred stock (0.8%), non investment grade bonds (0.2%), other (5.1%)
Corporate Info
Group Affiliation
Mercury General Corporation
Investment Rating
Company Address
555 West Imperial Highway
Brea, CA 92821
Brea, CA 92821
Phone Number
323 937 1060
NAIC Number
27553
Website
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