NYSE$MCY

Mercury General Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Mercury General reported a net loss for Q1 2022, driven by net realized investment losses and increased losses and loss adjustment expenses.

Mercury General Corporation reported a net loss of $196.9 million for the first quarter of 2022, a significant decrease compared to the net income of $107.0 million in the same period last year. The results were impacted by net realized investment losses and increased losses and loss adjustment expenses, which were influenced by inflationary trends and prior accident years' loss development.

  • Mercury General reported a net loss of $196.9 million, or $(3.56) per diluted share, compared to net income of $107.0 million, or $1.93 per diluted share, for the same period in 2021.
  • Operating loss was $42.8 million, or $(0.77) per diluted share, compared to operating income of $74.1 million, or $1.34 per diluted share, for the same period in 2021.
  • The combined ratio increased to 109.5% from 93.5% in the first quarter of 2021, reflecting higher losses and loss adjustment expenses.
  • Catastrophe losses net of reinsurance were $22.0 million, compared to $35.0 million for the same period in 2021.

Headline financials

Total Revenue

$805M

Previous: $993M-18.9%
EPS (adj)

-$0.77

Previous: $1.34-157.5%
Combined ratio

109.5%

Previous: 93.5%+17.1%
Catastrophe losses net of reinsurance

$22M

Previous: $35M-37.1%
Free Cash Flow

-$197M

Previous: $107M-284.0%
Net Income

-$197M

Previous: $107M-284.0%
Operating Income

-$488M

Previous: -$107M-356.2%
Gross Profit

$803M

Previous: $989M-18.9%
Cash & Equivalents

$296M

Previous: $338M-12.6%
Total Assets

$6.67B

Previous: $6.55B+1.7%
Stock-Based Comp

$15K

Previous: $35K-57.1%

Revenue & EPS history

Mercury General · Revenue · Quarterly

$805M

Q1 2022-18.9%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Mercury General · $996M total across 3 segments · Q1 2022

  • Net premiums earned
    $963M+5.1%
  • Net investment income
    $30.9M-4.2%
  • Other
    $2.65M-17.4%

Forward guidance

The company did not provide specific forward guidance in this earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.0%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+23.8%

Q3 2023

Best reaction

-14.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+1.3%+4.0%
Q4 2025-9.2%-12.9%-9.7%
Q3 2025+2.1%+7.8%+12.8%
Q1 2025-4.0%+2.6%+11.0%
Q4 2024+9.3%+9.4%+14.3%
Q3 2024+5.9%-3.3%+16.2%
Q2 2024+2.3%+0.9%+13.1%
Q1 2024+2.2%+3.0%+5.4%
Q4 2023+6.2%+25.6%+17.6%
Q3 2023+23.8%+20.1%+22.8%
Q2 2023-5.3%-5.1%-11.1%
Q1 2023-3.7%-2.8%-2.3%
Q4 2022-6.2%-0.4%-14.7%
Q3 2022+14.0%+26.8%+24.0%
Q2 2022-14.2%-21.2%-21.3%
Q1 2022+3.4%+1.3%-3.8%
Q4 2021+1.9%+4.9%+0.9%
Q3 2021+2.0%+0.1%-6.3%
Q2 2021-3.1%-1.8%-3.9%
Q1 2021+3.8%+4.8%-2.3%
Q4 2020+1.6%+2.8%+9.6%
Q3 2020-0.3%+1.2%+9.5%
Q2 2020+0.0%+6.2%+6.3%
Q1 2020-6.4%-9.7%+7.2%
Q4 2019+5.6%+5.8%-20.3%
Q3 2019-10.3%-8.9%-7.3%
Q2 2019-7.8%-9.6%-15.6%
Q1 2019+1.3%+6.0%+7.3%
Q4 2018-4.7%+0.7%-5.7%
Q3 2018+20.9%+18.6%+9.1%
Q2 2018+13.6%+15.4%+19.9%
Q1 2018-8.3%-8.3%-2.4%
Q4 2017-13.0%-12.0%-5.3%
Q3 2017-0.1%-1.0%-2.4%
Q2 2017+5.7%+6.1%+1.8%
Q1 2017-7.0%-7.9%-8.9%
Q4 2016-6.3%-9.3%-6.4%
Q3 2016+11.2%+8.7%+15.8%
Q2 2016-3.9%-4.9%-1.9%
Q1 2016-1.0%
Q4 2015+7.5%
Q3 2015-3.5%
Q2 2015-0.9%
Q1 2015-3.5%
Q4 2014-11.8%
Q3 2014+3.9%
Q2 2014+4.4%
Q1 2014+0.8%
Q4 2013-5.2%
Q3 2013-4.6%
Q2 2013-3.2%
Q1 2013+7.7%
Q4 2012-6.4%
Q3 2012+1.3%
Q2 2012-11.3%
Q1 2012+0.0%
Q4 2011-1.2%
Q3 2011+4.2%
Q2 2011-2.8%
Q1 2010-1.4%
Q1 2011+1.0%
Q4 2008-0.1%
Q4 2010-0.1%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2009-0.4%
Q2 2010-0.4%
Q4 2009-0.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro