Major Rating Factors:
Fair profitability index (3.6 on a scale of 0 to 10) with operating losses during 2019, 2020 and 2023. Average return on equity over the last five years has been poor at -2.3%. Good long-term capitalization index (5.5) 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.
Other Rating Factors:
Good liquidity (6.4) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Good overall results on stability tests (5.8) despite fair risk adjusted capital in prior years. The largest net exposure for one risk is high at 3.8% of capital.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
Principal Lines of Business:
Homeowners (60.0%), personal/comm auto (35.3%), fire (4.3%), other (0.4%)
Licensed in:
CA
Principal Investments:
Investment grade bonds (89.9%), cash (2.5%), common stock (2.4%), preferred stock (0.4%), other (4.8%)
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
Largest Affiliates