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Mercury General Corporation Increases Dividend 14.3%

31 January 2000

Mercury General Corporation Increases Dividend 14.3%

    LOS ANGELES, Jan. 31 -- Mercury General Corporation
, a major California automobile insurer with operations in several
other states, announced that its Board of Directors, on January 28, 2000,
declared a first quarter dividend of $.24, an annual rate of $.96,
representing a 14.3% increase over the rate paid in 1999.  The increased
dividend will be paid on March 30, 2000 to shareholders of record on March 15,
2000.
    Since dividends were instituted in the first quarter of 1986, Mercury
General's dividend has increased at least once each year with the overall
compound rate of increase over fourteen years averaging 23%.

    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 no 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.