Major Rating Factors:
Good liquidity (6.3 on a scale of 0 to 10) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair reserve development (4.7) as reserves have generally been sufficient to cover claims. In 2019 the two year reserve development was 16.6% deficient. Fair profitability index (4.6) with operating losses during 2022. Return on equity has been fair, averaging 10.1% over the past five years.
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 (7.8). Stability strengths include excellent operational trends and excellent risk diversification.
Stability Factors:
Principal Lines of Business:
Personal/comm auto (100.0%)
Licensed in:
CA
Principal Investments:
Investment grade bonds (82.0%), common stock (9.4%), cash (4.5%), preferred stock (1.4%), non investment grade bonds (0.2%), other (2.5%)
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
27553
Website
Largest Affiliates