Mercury General Corporation Announces First Quarter
Results
LOS ANGELES, April 30 Mercury General Corporation
, 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.
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.