Mercury General soars after Q4 profit tops expectations

Mercury General

12/02/2025 13:11

** Shares of Los Angeles-based insurer Mercury General
 MCY.N  jump 20.7% to $60.43 premarket
    ** MCY late Tuesday reported Q4 operating income of
$2.78/shr, blowing past Wall Street expectations of $1.12/shr,
according to estimates compiled by LSEG
    ** Q4 net premiums written jumped 16.1% to $1.31 billion,
beating expectations of $1.24 billion
    ** MCY's Q4 combined ratio improved to 91.4% from 98.6% a
year earlier
    ** A ratio below 100% means the insurer earned more in
premiums than it paid out in claims
    ** Raymond James says Q4 results reflect some of the
strongest underlying results in over the last 10 years
   ** Meanwhile, MCY forecast net catastrophe losses from the
devastating Los Angeles wildfires to be between $155 million and
$325 million
    ** Brokerage expects MCY to benefit from a potential change
in the pricing environment for California homeowners' insurance
market over the next 18 months
    ** MCY stock down 24.7% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))