Los Angeles-based Mercury General Corp. announced its second quarter results for 2008. Net income was $70.7 million, an increase of 1.8 percent from the $69.5 million earned in the same quarter in 2007. However, net premiums written for Q2 2008 decreased 7.2 percent, from $737.4 million written in 2007 to $684.2 million written in 2008. In California, net premiums written were $535.3 million in Q2 2008, a decrease of 5.7 percent from the same period in 2007. Non-California net premiums written decreased 12.2 percent to $148.9 million in 2008.
The company’s combined ration increased 3 percentage points from 94 percent in Q2 of 2007 to 97 percent in Q2 of 2008.
Additionally, the company noted that it expects to record a tax benefit of approximately $15 million in the third quarter of 2008, based on the California Superior Court’s ruling in favor of the company in a case filed against the state’s Franchise Tax Board that entitles the company to a tax refund of approximately $22 million plus interest. However, the case may be appealed by the FTB, the company said.
Meanwhile, the company’s board of directors appointed Martha Marcon to the board. Marcon is a retired audit partner of KPMG LLP and has more than 30 years of experience in auditing public and private companies.
Source: Mercury General
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