Major Rating Factors:
Good long-term capitalization index (5.9 on a scale of 0 to 10) based on excellent current risk adjusted capital (severe loss scenarios) reflecting significant improvement over results in 2020. History of adequate reserve strength (6.3) as reserves have been consistently at an acceptable level. Good liquidity (5.8) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Other Rating Factors:
Good overall results on stability tests (6.3) despite fair risk adjusted capital in prior years. The largest net exposure for one risk is high at 3.1% of capital. Fair profitability index (4.8) with operating losses during 2020, 2023 and the first six months of 2025. Return on equity has been low, averaging 2.6% over the past five years.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (59.7%), personal/comm auto (33.8%), fire (6.0%), other (0.5%)
Licensed in:
CA
Principal Investments:
Investment grade bonds (81.4%), cash (9.5%), common stock (2.1%), preferred stock (0.4%), other (6.6%)
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
38342
Website
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