Mercury General Corporation Announces First Quarter Results

Apr 30, 2001, 01:00 ET from Mercury General Corporation

    LOS ANGELES, April 30 /PRNewswire/ -- Mercury General Corporation
 (NYSE:   MCY), a major California automobile insurer, with operations in a
 number of other states, reported today that net operating earnings for the
 first quarter of 2001 were $21.9 million, or $.40 per share (diluted),
 compared with $29.0 million, or $.53 per share (diluted) in 2000.  Including
 realized capital gains and losses, per share net income (diluted) was $.45 in
 the quarter compared to $.55 in the first quarter of 2000.
     Company wide premiums written in the quarter were $343.2 million, a
 6.5% increase over 2000.  California premiums written in the quarter were
 $303.5 million, a 6.4% increase over 2000.
     The loss ratio (GAAP basis) was 74.2% in the quarter compared to 70.1% in
 2000.  The higher loss ratio in the quarter, as compared to the first quarter
 of 2000, was largely due to an increase in recorded severity on California
 automobile claims.  In addition, the Company experienced a significant
 increase in claim frequency in its California homeowner's line due to poor
 weather conditions in the quarter.
     The expense ratio (GAAP basis) was 26.8% in the quarter compared to 26.9%
 in 2000.
     Investment income in the quarter increased 9.9% to $28.0 million.  After
 taxes, per share (diluted) investment income was $.45 compared with $.42 in
 2000.  The after tax yield on average investments of $1.8 billion (fixed
 maturities and equities at cost) was 5.52% for the quarter compared with 5.56%
 obtained for the year ended 2000.
     On April 27, 2001, the Board of Directors declared a quarterly dividend of
 $.265 per share to be paid on June 28, 2001 to holders of record on June 15,
 2001.  The Company's book value per share at March 31, 2001 was $19.31 per
 share.
 
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for certain forward-looking statements.  The statements contained in
 this press release are forward-looking statements based on the Company's
 current expectations and beliefs concerning future developments and their
 potential effects on the Company.  There can be no assurance that future
 developments affecting the Company will be those anticipated by the Company.
 Actual results may differ from those projected in the forward-looking
 statements.  These forward-looking statements involve significant risks and
 uncertainties (some of which are beyond the control of the Company) and are
 subject to change based upon various factors, including but not limited to the
 following risks and uncertainties:  changes in the demand for the Company's
 insurance products, and in general economic conditions; the possibility actual
 loss experience may vary adversely from the actuarial estimates made to
 determine the Company's loss reserves; legislation adverse to the automobile
 insurance industry or business generally may be enacted in California or other
 states; the presence of competitors with greater financial resources and the
 impact of competitive pricing and marketing efforts; and various legal,
 regulatory and litigation risks.  The Company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as the
 result of new information, future events or otherwise.  For a more detailed
 discussion of some of the foregoing risks and uncertainties, see the Company's
 filings with the Securities and Exchange Commission.
 
 
                            MERCURY GENERAL CORPORATION
 
                         SUMMARY OF OPERATING RESULTS (000)
 
 
                                                      Quarter Ended March 31,
 
                                                       2001           2000
     Net Premiums Written                            $343,212       $322,294
     Net Premiums Earned                              323,772        304,655
     Paid Losses and Loss Adjustment Expenses         244,068        214,363
     Incurred Losses                                  240,217        213,644
     Net Investment Income                             28,019         25,484
     Net Operating Income (a)                          21,858         28,975
     Capital Gains, net of tax                          2,850            963
     Net Income                                       $24,708        $29,938
 
 
     Basic Average Shares Outstanding              54,154,216     54,160,431
 
     Diluted Average Shares Outstanding            54,350,923     54,263,243
 
     Basic Per Share Data
     Earnings Per Share                                 $0.46          $0.55
 
     Diluted Per Share Data
     Net Operating Income                               $0.40          $0.53
     Capital Gains (Losses), net of tax                 $0.05          $0.02
     Earnings Per Share                                 $0.45          $0.55
 
 
     Operating Ratios--GAAP Basis (b)
     Loss Ratio                                         74.2%          70.1%
     Expense Ratio                                      26.8%          26.9%
     Combined Ratio                                    101.0%          97.0%
 
 
     (a) Net Income, excluding capital gains, net of tax.
     (b) Generally Accepted Accounting Principles.
 
 
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SOURCE Mercury General Corporation
    LOS ANGELES, April 30 /PRNewswire/ -- Mercury General Corporation
 (NYSE:   MCY), a major California automobile insurer, with operations in a
 number of other states, reported today that net operating earnings for the
 first quarter of 2001 were $21.9 million, or $.40 per share (diluted),
 compared with $29.0 million, or $.53 per share (diluted) in 2000.  Including
 realized capital gains and losses, per share net income (diluted) was $.45 in
 the quarter compared to $.55 in the first quarter of 2000.
     Company wide premiums written in the quarter were $343.2 million, a
 6.5% increase over 2000.  California premiums written in the quarter were
 $303.5 million, a 6.4% increase over 2000.
     The loss ratio (GAAP basis) was 74.2% in the quarter compared to 70.1% in
 2000.  The higher loss ratio in the quarter, as compared to the first quarter
 of 2000, was largely due to an increase in recorded severity on California
 automobile claims.  In addition, the Company experienced a significant
 increase in claim frequency in its California homeowner's line due to poor
 weather conditions in the quarter.
     The expense ratio (GAAP basis) was 26.8% in the quarter compared to 26.9%
 in 2000.
     Investment income in the quarter increased 9.9% to $28.0 million.  After
 taxes, per share (diluted) investment income was $.45 compared with $.42 in
 2000.  The after tax yield on average investments of $1.8 billion (fixed
 maturities and equities at cost) was 5.52% for the quarter compared with 5.56%
 obtained for the year ended 2000.
     On April 27, 2001, the Board of Directors declared a quarterly dividend of
 $.265 per share to be paid on June 28, 2001 to holders of record on June 15,
 2001.  The Company's book value per share at March 31, 2001 was $19.31 per
 share.
 
     The Private Securities Litigation Reform Act of 1995 provides a "safe
 harbor" for certain forward-looking statements.  The statements contained in
 this press release are forward-looking statements based on the Company's
 current expectations and beliefs concerning future developments and their
 potential effects on the Company.  There can be no assurance that future
 developments affecting the Company will be those anticipated by the Company.
 Actual results may differ from those projected in the forward-looking
 statements.  These forward-looking statements involve significant risks and
 uncertainties (some of which are beyond the control of the Company) and are
 subject to change based upon various factors, including but not limited to the
 following risks and uncertainties:  changes in the demand for the Company's
 insurance products, and in general economic conditions; the possibility actual
 loss experience may vary adversely from the actuarial estimates made to
 determine the Company's loss reserves; legislation adverse to the automobile
 insurance industry or business generally may be enacted in California or other
 states; the presence of competitors with greater financial resources and the
 impact of competitive pricing and marketing efforts; and various legal,
 regulatory and litigation risks.  The Company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as the
 result of new information, future events or otherwise.  For a more detailed
 discussion of some of the foregoing risks and uncertainties, see the Company's
 filings with the Securities and Exchange Commission.
 
 
                            MERCURY GENERAL CORPORATION
 
                         SUMMARY OF OPERATING RESULTS (000)
 
 
                                                      Quarter Ended March 31,
 
                                                       2001           2000
     Net Premiums Written                            $343,212       $322,294
     Net Premiums Earned                              323,772        304,655
     Paid Losses and Loss Adjustment Expenses         244,068        214,363
     Incurred Losses                                  240,217        213,644
     Net Investment Income                             28,019         25,484
     Net Operating Income (a)                          21,858         28,975
     Capital Gains, net of tax                          2,850            963
     Net Income                                       $24,708        $29,938
 
 
     Basic Average Shares Outstanding              54,154,216     54,160,431
 
     Diluted Average Shares Outstanding            54,350,923     54,263,243
 
     Basic Per Share Data
     Earnings Per Share                                 $0.46          $0.55
 
     Diluted Per Share Data
     Net Operating Income                               $0.40          $0.53
     Capital Gains (Losses), net of tax                 $0.05          $0.02
     Earnings Per Share                                 $0.45          $0.55
 
 
     Operating Ratios--GAAP Basis (b)
     Loss Ratio                                         74.2%          70.1%
     Expense Ratio                                      26.8%          26.9%
     Combined Ratio                                    101.0%          97.0%
 
 
     (a) Net Income, excluding capital gains, net of tax.
     (b) Generally Accepted Accounting Principles.
 
 
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 SOURCE  Mercury General Corporation