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Mercury General MCY

Mercury General reports net loss of $13.69 million

Form
10-Q
Filed
Importance
Notable
  1. Revenue: $1.38 billion for the three months ended Sep 30, 2026
  2. Net loss: $13.69 million for the three months ended Sep 30, 2026
  3. Diluted EPS: -$0.25 for the three months ended Sep 30, 2026
  4. Cash and equivalents: $1.31 billion at Sep 30, 2026

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The reading, claim by claim

  1. For the quarter ended September 30, 2026, MERCURY GENERAL CORP reported: Revenue $1.4 billion.

1 of 1 claim matched the filing text.

From the filing's financial data, not stated in its text

From this 10-Q's financial data (XBRL) for the quarter ended September 30, 2026

  • Net income -$13.7 million.
  • Gross margin 99.7%.
  • Net margin -1.0%.
  • Revenue change from a year earlier -12.8%.

From the filing

Item 1. Financial Statements

Item 1. Financial Statements

MERCURY GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30, 2026 December 31, 2025

(unaudited)

ASSETS

Investments, at fair value:

Fixed maturity securities (amortized cost $ 6,268,600 ; $ 5,449,726 )

$ 6,013,700 $ 5,430,251 Equity securities (cost $ 897,915 ; $ 728,460 ) 989,325 812,787 Short-term investments (cost $ 226,648 ; $ 336,978 ) 226,672 336,992 Total investments 7,229,697 6,580,030 Cash 1,305,215 1,315,574 Receivables: Premiums 856,234 751,554

Allowance for credit losses on premiums receivable ( 5,400 ) ( 6,000 )

Premiums receivable, net of allowance for credit losses 850,834 745,554

Accrued investment income 81,382 73,004 Other 80,496 86,508 Total receivables 1,012,712 905,066

Reinsurance recoverables (net of allowance for credit losses $ 3 ; $ 39 )

45,392 109,672 Deferred policy acquisition costs 391,878 359,724

Fixed assets (net of accumulated depreciation $ 392,790 ; $ 345,930 )

148,538 146,880

Operating lease right-of-use assets 18,472 12,125

Deferred income taxes 87,604 30,637 Goodwill 42,796 42,796 Other intangible assets, net 6,185 6,827 Other assets 60,562 51,338 Total assets $ 10,349,051 $ 9,560,669

LIABILITIES AND SHAREHOLDERS' EQUITY

Loss and loss adjustment expense reserves $ 3,754,561 $ 3,633,338

Unearned premiums 2,505,959 2,255,935 Notes payable 569,005 574,527

Accounts payable and accrued expenses 474,649 448,703

Operating lease liabilities 17,953 12,328 Current income taxes 344 30,770 Other liabilities 221,826 187,793 Total liabilities 7,544,297 7,143,394

Commitments and contingencies

Shareholders' equity:

Common stock without par value or stated value:

Authorized 70,000 shares; issued and outstanding 55,389 ; 55,389 99,699 99,699 Retained earnings 2,705,055 2,317,576 Total shareholders' equity 2,804,754 2,417,275

Total liabilities and shareholders' equity $ 10,349,051 $ 9,560,669

See accompanying Notes to Consolidated Financial Statements.

3

Table of Contents

MERCURY GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data) (unaudited)

Three Months Ended September 30, Nine Months Ended September 30,

2026 2025 2026 2025 Revenues: Net premiums earned $ 1,545,368 $ 1,410,400 $ 4,495,548 $ 4,060,208 Net investment income 93,339 83,970 268,738 244,208 Net realized investment (losses) gains ( 261,947 ) 84,451 ( 179,977 ) 131,251 Other 4,591 6,105 18,617 21,022 Total revenues 1,381,3511 1,584,926 4,602,926 4,456,689 Expenses: Losses and loss adjustment expenses 1,016,582 882,745 2,922,813 3,043,596 Policy acquisition costs 259,312 236,164 750,142 692,765 Other operating expenses 118,165 108,518 364,970 283,996 Interest 10,168 7,181 24,893 21,562 Total expenses 1,404,227 1,234,608 4,062,818 4,041,919 (Loss) income before income taxes ( 22,876 ) 350,318 540,108 414,770 Income tax (benefit) expense ( 9,191 ) 69,915 99,871 76,223 Net (loss) income $ ( 13,685 ) $ 280,403 $ 440,237 $ 338,547 Net (loss) income per share: Basic $ ( 0.25 ) $ 5.06 $ 7.95 $ 6.11 Diluted $ ( 0.25 ) $ 5.06 $ 7.95 $ 6.11 Weighted average shares outstanding: Basic 55,389 55,389 55,389 55,389 Diluted 55,389 55,389 55,389 55,389

See accompanying Notes to Consolidated Financial Statements.

4

Table of Contents

MERCURY GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(in thousands) (unaudited)

Three Months Ended September 30, Nine Months Ended September 30,

2026 2025 2026 2025 Common stock, beginning of period $ 99,699 $ 99,699 $ 99,699 $ 99,699 Common stock, end of period 99,699 99,699 99,699 99,699 Retained earnings, beginning of period 2,736,326 1,869,798 2,317,576 1,846,825 Net (loss) income ( 13,685 ) 280,403 440,237 338,547 Dividends paid to shareholders ( 17,586 ) ( 17,586 ) ( 52,758 ) ( 52,757 ) Retained earnings, end of period 2,705,055 2,132,615 2,705,055 2,132,615 Total shareholders' equity, end of period $ 2,804,754 $ 2,232,314 $ 2,804,754 $ 2,232,314

See accompanying Notes to Consolidated Financial Statements.

5

Table of Contents

MERCURY GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

Nine Months Ended September 30,

2026 2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 440,237 $ 338,547

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 61,354 53,720

Net realized investment losses (gains) 179,977 ( 131,251 )

Net gains on sales of fixed assets — ( 2,690 )

Loss on early extinguishment of debt 473 —

Increase in premiums receivable ( 105,280 ) ( 81,435 )

Decrease (increase) in reinsurance recoverables 64,280 ( 147,156 )

Changes in current and deferred income taxes ( 87,393 ) 79,095

Increase in deferred policy acquisition costs ( 32,154 ) ( 27,554 )

Increase in loss and loss adjustment expense reserves 121,223 443,941

Increase in unearned premiums 250,024 233,701

Increase in accounts payable and accrued expenses 25,149 6,465

Other, net 12,795 33,932

Net cash provided by operating activities 930,685 799,315

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed maturity securities available for sale in nature:

Purchases ( 2,073,318 ) ( 1,318,484 ) Sales 526,037 421,353 Calls or maturities 703,754 669,936 Equity securities available for sale in nature: Purchases ( 1,725,565 ) ( 1,452,843 ) Sales 1,601,307 1,681,568

Changes in securities payable and receivable 8,897 ( 19,837 )

Decrease (increase) in short-term investments 110,330 ( 189,066 )

Purchases of fixed assets ( 47,721 ) ( 44,416 )

Sales of fixed assets — 34,153

Other, net 15,085 4,710

Net cash used in investing activities ( 881,194 ) ( 212,926 )

CASH FLOWS FROM FINANCING ACTIVITIES

Net proceeds from issuance of senior notes 518,877 —

Repayment of senior notes ( 375,199 ) —

Paydown of principal on credit facility ( 150,000 ) —

Dividends paid to shareholders ( 52,758 ) ( 52,757 )

Payments on finance lease obligations ( 770 ) ( 1,314 )

Net cash used in financing activities ( 59

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Data on this page was fetched . The filing on SEC.gov is the record.