NYSE$MCY
Mercury General Corporation · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Mercury General reported a net loss for Q2 2022 due to increased losses and loss adjustment expenses.
Mercury General Corporation reported a net loss of $210.7 million for the second quarter of 2022, a significant decrease compared to the net income of $109.2 million in the same period last year. The company's combined ratio worsened to 106.6% from 94.9% due to inflationary pressures and supply chain issues. The Board of Directors declared a quarterly dividend of $0.3175 per share, reduced from prior periods.
- Mercury General reported a net loss of $210.7 million in Q2 2022, compared to a net income of $109.2 million in Q2 2021.
- Operating loss was $19.6 million, compared to an operating income of $62.7 million in the same quarter of the previous year.
- The combined ratio increased to 106.6% from 94.9%, driven by higher losses and loss adjustment expenses.
- The Board of Directors declared a reduced quarterly dividend of $0.3175 per share due to challenging business conditions.
Headline financials
Revenue & EPS history
Mercury General · Revenue · Quarterly
$786M
Revenue by segment
Mercury General · $1.02B total across 3 segments · Q2 2022
- Net premiums earned$988M+6.5%96.6%
- Net investment income$33.5M+8.3%3.3%
- Other$1.5M-31.9%0.1%
Forward guidance
Mercury General is implementing premium rate increases and non-rate actions to improve profitability amidst challenging business conditions. The Board will periodically review the dividend policy based on business conditions.
Tailwinds
- Taking premium rate increases in many states.
- Implementing non-rate actions to improve profitability.
- Board will periodically review the dividend policy.
- Focus on improving underlying profitability of core insurance business.
- Efforts to manage business in non-California states.
Headwinds
- Challenging business conditions due to high inflation rates.
- Impact of inflation on the cost of auto parts, labor, and medical expenses.
- Supply chain and labor shortage issues lengthening vehicle repair times.
- Pressure on bodily injury costs from social inflation.
- Uncertainties related to estimates, assumptions, and projections.
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 Q2 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
| Quarter | Report date | Reaction (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% | — | — |
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