Los Angeles-based Mercury General Corp. has reported net income in the first quarter of 2010 of $61.2 Million, $35.5 million less than the $96.7 million net income reported for the same quarter in 2009. Operating income for the first quarter of 2010 was $46.9 million, compared with operating income of $46 million for the same period in 2009.
Net premiums written were $652.5 million in the first quarter of 2010, a 2.7 decrease over the first quarter 2009 net premiums written of $670.9 million.
The company’s combined ration was 96.3 percent in the first quarter of 2010, compared with 96.9 percent in the same period in 2009. The company said the loss ratio was affected by favorable development of approximately $20 million and $21 million on prior accident years’ losses and loss adjustment expenses reserves for the three months ended March 31, 2010 and 2009, respectively. “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 (claim count development) than was originally estimated at Dec. 31, 2009,” the company stated.
Mercury General Corp. and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states.
For more information, visit www.mercuryinsurance.com, where a replay of its conference call and Web cast of its quarterly report is available.
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