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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.