Mercury General

Following strong year-to-date performance, P&C stocks were down in June after a change of tone in a Fed meeting.

Net written premiums at the carrier were down 0.4% in the quarter to $950mn.

Operating profits surged sixfold to $76mn during Q4.

Inside P&C’s research team examines some of the areas that will be closely watched during the results season.

The company reported diluted earnings per share of $1.23, comfortably beating an analyst consensus of $1.06 per share.

The “empty-street” economy has left auto exposed names in a relatively favorable position, highlighted by a second quarter of strong earnings growth and beats when compared to street estimates.

The move follows a trend of increased reinsurance buying by Mercury, since the devastating wildfires of 2018.

The firm expects to pay an additional $22mn in rebates for July premium in August.

Yesterday morning, Mercury General released its Q1 results, which included an earnings beat and a 1.3pt improvement in its headline combined to 95.9%.

Mercury General reported improved YoY earnings but a notable increase in frequency.

No loss was large enough to breach the per-occurrence limits of the carrier’s reinsurance treaties.

On Monday morning, Mercury General reported disappointing earnings for the quarter, including a 30% decline in its operating EPS to $0.78 per share. The result missed analyst estimates of $1.15 per share. The shares closed down 11%.