Los Angeles-based Mercury General Corp. reported net income of $96.8 million in the third quarter, compared with $157.7 million for the same period in 2009. For the nine months of 2010, net income was $175.8 million compared with $368.8 million for the same period in 2009.
Net premiums written were $654.7 million in the third quarter of 2010, a 1.2 percent decrease compared to third quarter 2009 net premiums written of $662.8 million. The company’s combined ratio was 98 percent in the third quarter, and 97.8 percent for the nine months of 2010, compared with 96.4 percent and 96.5 percent for the same periods in 2009. Mercury said the loss ratio was affected by favorable development of approximately $18 million and $40 million on prior accident years’ losses and loss adjustment expenses reserves. “The favorable development in 2010 is largely the result of re-estimates of accident year 2009 California bodily injury losses, which have experienced both lower average severities and fewer late reported claims than were originally estimated at Dec. 31, 2009.
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