Mercury General

Pressure on the Californian insurer’s stock mounted this morning after it reported a Q2 11.7-point deterioration in its combined ratio to 106.6% yesterday.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

The California-based carrier, which focuses on personal auto, blamed rising costs for parts and labor, along with medical inflation, for the swing to an underwriting loss.

Mercury Insurance denies allegations that it did not comply with the state’s consumer protection laws.

The sector was hit by a rough first half of 2022, with more to come in the second half of the year.

Insurers could face pressure if interest rate and recession fears intersect with worsening loss cost trends.

Auto-focused Mercury General swings to an operating loss as costs for auto parts, repairs mount, with the company also citing social inflation.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Cat contribution on the combined ratio remained around 2% as the company was hit with $18mn cat losses during the last quarter of the year.

The Inside P&C research team looks forward to the big issues of the new year.

Mercury General reports a 47.5% drop in Q3 operating profit despite higher premiums.

Joseph, who's father founded Mercury General in 1961, has held positions within the company since 2009.