Mercury General次季淨收入2.635億美元 按年大增58%

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 10-Q 
(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026 
OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________    to ___________

Commission File No. 001-12257 
 ______________________________
MERCURY GENERAL CORPORATION 
(Exact name of registrant as specified in its charter)
 ________________________________

California95-2211612
(State or other jurisdiction of
incorporation or organization)(I.R.S. Employer
Identification No.)

4484 Wilshire Boulevard
Los Angeles, California90010
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (323) 937-1060 
 _______________________________
Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common StockMCYNew York Stock Exchange
Common StockMCYNew York Stock Exchange Texas

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 

Large accelerated filer☒  Accelerated filer☐
Non-accelerated filer☐  Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in the Rule 12b-2 of the Exchange Act).    Yes ☐    No  ☒
At July 30, 2026, the registrant had issued and outstanding an aggregate of 55,388,627 shares of its Common Stock.

Table of Contents

MERCURY GENERAL CORPORATION
INDEX TO FORM 10-Q
 

Page
PART I - FINANCIAL INFORMATION

Item 1Financial Statements
3

Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
3

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025
4

Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025
5

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
6

Notes to Consolidated Financial Statements
7

Item 2Management’s Discussion and Analysis of Financial Condition and Results of Operations
28

Item 3Quantitative and Qualitative Disclosures about Market Risks
45

Item 4Controls and Procedures
47

PART II - OTHER INFORMATION

Item 1Legal Proceedings
48

Item 1ARisk Factors
48

Item 2Unregistered Sales of Equity Securities and Use of Proceeds
48

Item 3Defaults upon Senior Securities
48

Item 4Mine Safety Disclosures
48

Item 5Other Information
48

Item 6Exhibits
49

SIGNATURES
50

2

Table of Contents

PART I - FINANCIAL INFORMATION
 

Item 1. Financial Statements

MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)

June 30, 2026December 31, 2025
(unaudited)
ASSETS
Investments, at fair value:
Fixed maturity securities (amortized cost $5,802,102; $5,449,726)
$5,788,544 $5,430,251 
Equity securities (cost $860,929; $728,460)
974,212 812,787 
Short-term investments (cost $368,338; $336,978)
368,357 336,992 
Total investments7,131,113 6,580,030 
Cash1,700,830 1,315,574 
Receivables:
Premiums828,516 751,554 
       Allowance for credit losses on premiums receivable (5,800)(6,000)
             Premiums receivable, net of allowance for credit losses822,716 745,554 
Accrued investment income74,730 73,004 
Other78,067 86,508 
Total receivables975,513 905,066 
Reinsurance recoverables (net of allowance for credit losses $1; $39)
44,249 109,672 
Deferred policy acquisition costs378,014 359,724 
Fixed assets (net of accumulated depreciation $376,010; $345,930)
151,109 146,880 
Operating lease right-of-use assets18,977 12,125 
Deferred income taxes23,861 30,637 
Goodwill42,796 42,796 
Other intangible assets, net6,399 6,827 
Other assets69,504 51,338 
Total assets$10,542,365 $9,560,669 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Loss and loss adjustment expense reserves$3,674,700 $3,633,338 
Unearned premiums2,414,836 2,255,935 
Notes payable943,752 574,527 
Accounts payable and accrued expenses422,764 448,703 
Operating lease liabilities18,376 12,328 
Current income taxes2,947 30,770 
Other liabilities228,965 187,793 
Total liabilities7,706,340 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 earnings2,736,326 2,317,576 
Total shareholders’ equity2,836,025 2,417,275 
Total liabilities and shareholders’ equity$10,542,365 $9,560,669 

See accompanying Notes to Consolidated Financial Statements.
3

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues:
Net premiums earned$1,497,767 $1,366,738 $2,950,180 $2,649,808 
Net investment income 89,763 78,759 175,399 160,238 
Net realized investment gains86,512 23,480 81,970 46,801 
Other7,723 8,908 14,026 14,916 
Total revenues1,681,765 1,477,885 3,221,575 2,871,763 
Expenses:
Losses and loss adjustment expenses973,280 940,037 1,906,231 2,160,850 
Policy acquisition costs250,328 227,880 490,830 456,601 
Other operating expenses122,918 96,025 246,805 175,478 
Interest7,909 7,195 14,726 14,383 
Total expenses1,354,435 1,271,137 2,658,592 2,807,312 
Income before income taxes327,330 206,748 562,983 64,451 
Income tax expense63,828 40,276 109,061 6,306 
Net income$263,502 $166,472 $453,922 $58,145 
Net income per share:
Basic$4.76 $3.01 $8.20 $1.05 
Diluted $4.76 $3.01 $8.20 $1.05 
Weighted average shares outstanding:
Basic55,389 55,389 55,389 55,389 
Diluted55,389 55,389 55,389 55,389 

 

See accompanying Notes to Consolidated Financial Statements.
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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousands)
(unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Common stock, beginning of period$99,699 $99,699 $99,699 $99,699 
Common stock, end of period99,699 99,699 99,699 99,699 
Retained earnings, beginning of period2,490,411 1,720,912 2,317,576 1,846,825 
Net income 263,502 166,472 453,922 58,145 
Dividends paid to shareholders(17,587)(17,586)(35,172)(35,172)
Retained earnings, end of period2,736,326 1,869,798 2,736,326 1,869,798 
Total shareholders’ equity, end of period$2,836,025 $1,969,497 $2,836,025 $1,969,497 

See accompanying Notes to Consolidated Financial Statements.
5

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Six Months Ended June 30,
20262025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $453,922 $58,145 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization40,368 34,946 
Net realized investment gains(81,970)(46,801)
Net gains on sales of fixed assets— (2,691)
Increase in premiums receivable(77,162)(59,478)
Decrease (increase) in reinsurance recoverables65,423 (362,103)
Changes in current and deferred income taxes(21,047)9,246 
Increase in deferred policy acquisition costs(18,290)(13,814)
Increase in loss and loss adjustment expense reserves41,362 460,129 
Increase in unearned premiums158,901 145,016 
(Decrease) increase in accounts payable and accrued expenses(27,731)49,695 
Other, net9,527 30,586 
Net cash provided by operating activities543,303 302,876 
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed maturity securities available for sale in nature:
Purchases(1,196,795)(932,141)
Sales397,341 394,363 
Calls or maturities428,288 437,461 
Equity securities available for sale in nature:
Purchases(1,185,865)(983,126)
Sales1,101,376 1,227,331 
Changes in securities payable and receivable18,310 1,553 
(Increase) decrease in short-term investments (31,360)2,061 
Purchases of fixed assets(32,932)(27,513)
Sales of fixed assets— 12,733 
Other, net10,114 2,892 
Net cash (used in) provided by investing activities(491,523)135,614 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to shareholders(35,172)(35,172)
Net proceeds from issuance of senior notes519,422 — 
Payments on finance lease obligations(774)(1,323)
Paydown of principal on credit facility(150,000)— 
Net cash provided by (used in) financing activities333,476 (36,495)
Net increase in cash385,256 401,995 
Cash:
Beginning of the year1,315,574 720,257 
End of period$1,700,830 $1,122,252 
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid$13,402 $14,125 
Income taxes paid (refunded), net
U.S. federal129,000 (3,256)
U.S. state and local
California651 67 
Other444 242 
Foreign13 8 
Total income taxes paid (refunded), net$130,108 $(2,939)

See accompanying Notes to Consolidated Financial Statements.
6

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1. General

Consolidation and Basis of Presentation
The interim consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries (referred to herein collectively as the “Company”). For the list of the Company’s subsidiaries, see Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. These interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which differ in some respects from those filed in reports to insurance regulatory authorities. The financial data of the Company included herein are unaudited. In the opinion of management, all material adjustments of a normal recurring nature have been made to present fairly the Company’s financial position at June 30, 2026 and the results of operations and cash flows for the periods presented. All intercompany transactions and balances have been eliminated.

Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted from the accompanying interim consolidated financial statements and related notes. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for more complete descriptions and discussions. Operating results and cash flows for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about the effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these consolidated financial statements relate to reserves for losses and loss adjustment expenses ("LAE"). Actual results could differ from those estimates. See Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Earnings (Loss) per Share
There were no potentially dilutive securities with anti-dilutive effect for the three and six months ended June 30, 2026 and 2025. 
Dividends per Share
The Company declared and paid a dividend per share of $0.3175 during each of the three-month periods ended June 30, 2026 and 2025, and dividends per share of $0.6350 during each of the six-month periods ended June 30, 2026 and 2025.
Deferred Policy Acquisition Costs
Deferred policy acquisition costs consist of commissions paid to outside agents, premium taxes, salaries, and certain other underwriting costs that are incremental or directly related to the successful acquisition of new and renewal insurance contracts and are amortized over the life of the related policy in proportion to premiums earned. Deferred policy acquisition costs are limited to the amount that will remain after deducting from unearned premiums and anticipated investment income, the estimated losses and loss adjustment expenses, and the servicing costs that will be incurred as premiums are earned. The Company’s deferred policy acquisition costs are further limited by excluding those costs not directly related to the successful acquisition of insurance contracts. Deferred policy acquisition cost amortization was $250.3 million and $227.9 million for the three months ended June 30, 2026 and 2025, respectively, and $490.8 million and $456.6 million for the six months ended June 30, 2026 and 2025, respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expense of approximately $10.4 million and $7.4 million for the three months ended June 30, 2026 and 2025, respectively, and $26.4 million and $12.9 million for the six months ended June 30, 2026 and 2025, respectively.
7

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Reinsurance

Unearned premiums and loss and loss adjustment expense reserves are stated in the accompanying consolidated financial statements before deductions for ceded reinsurance. Unearned premiums and loss and loss adjustment expense reserves that are ceded to reinsurers are carried in other assets and reinsurance recoverables, respectively, in the Company's consolidated balance sheets. Earned premiums and losses and loss adjustment expenses are stated net of deductions for ceded reinsurance. 
The Company is the assuming reinsurer under a Catastrophe Portfolio Participation Reinsurance Contract (the "Contract") effective through December 31, 2028. The Company reimburses up to $30 million in losses for a proportional share of a portfolio of catastrophe losses under the Contract, to the extent the actual loss ratio exceeds the threshold loss ratio of 73.5%. If the actual loss ratio is less than the threshold loss ratio, the Company is eligible to receive a certain portion of the underwriting profit. 
The Company is the assuming reinsurer under a Property Quota Share Reinsurance Contract ("Quota Share Contract") effective through December 31, 2026 and reimburses up to approximately $60 million in annual losses for a proportional share of losses based on the premiums ceded to the Company under the Quota Share Contract. 
The Company is the assuming reinsurer under a Catastrophe Quota Share Reinsurance Agreement ("Quota Share Agreement") effective through December 31, 2026. The Company reimburses up to approximately $12 million in annual losses for a proportional share of losses based on the premiums ceded to the Company under the Quota Share Agreement. 

The Company is the ceding party to a Catastrophe Reinsurance Treaty