Mercury Insurance Sees 3.5% Decrease in Q4 Net Premium

Mercury General Corp. reported that net income for the fourth quarter of 2009 was $34.2 million compared with net loss of $168.3 million for the same period in 2008. For the year, net income for the Los Angeles-based company was $403.1 million compared with net loss of $242.1 million for the same period in 2008. Included in net income (loss) are net realized investment losses, net of tax, of $4 million in the fourth quarter of 2009 compared with net realized investment losses, net of tax, of $141.6 million for the same period in 2008, and net realized investment gains, net of tax, of $225.2 million for the year compared to net realized investment losses, net of tax, of $357.8 million for the same period in 2008. Operating income was $38.2 million for the fourth quarter of 2009 compared with operating loss of $26.7 million for the same period in 2008. For the year, operating income was $177.9 million compared with operating income of $115.7 million for the same period in 2008.

Net premiums written were $618.9 million in the fourth quarter of 2009, a 3.5 percent decrease over fourth quarter 2008 net premiums written of $641.6 million, and were approximately $2.6 billion for the year, a 5.8 percent decrease over the same period in 2008. The rate of premium decline slowed over the course of the year. The company experienced premium decreases of 8 percent, 6.8 percent, and 4.7 percent in the first, second, and third quarter 2009, respectively, over comparable quarters in 2008.

The combined ratio for the period in 2009 was 96.9 percent, compared with a 101.8 percent combined ratio for the same period in 2008.

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