Mercury General posts Q1 profit as premiums written rise 18%

Mercury General

05/05/2026 21:22

Overview

US personal auto and homeowners insurer's Q1 net premiums written rose 18% yr/yr

Company swung to Q1 net and operating profit after prior-year loss

Catastrophe losses fell sharply, improving combined ratio to 89.3% from 119.2%

Outlook

Company did not provide specific guidance for the current or future periods

Result Drivers

PREMIUM GROWTH - Higher net premiums written and earned contributed to revenue growth

LOWER CATASTROPHE LOSSES - Catastrophe losses fell sharply, improving underwriting results

FAVORABLE AUTO LOSS DEVELOPMENT - Lower than estimated losses in the automobile line supported favorable reserve development

Company press release: ID:nPn744bdja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Premiums Written
$1.55 bln
Q1 Net Income
$190.42 mln
Q1 Combined Ratio
89.30%
Q1 Operating Income
$194.01 mln


Analyst Coverage

The one available analyst rating on the shares is "strong buy"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Mercury General Corp is $110.00, about 15.2% above its May 4 closing price of $95.49

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)