NYSE$MCY

Mercury General Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Mercury General's Q3 2021 performance was marked by a significant decrease in net income, primarily due to net realized investment losses and a higher combined ratio, while the company increased its quarterly dividend.

Mercury General Corporation reported a sharp decline in net income for the third quarter of 2021, falling to $1.288 million from $118.857 million in the same period last year. This decrease was largely attributed to net realized investment losses and an increase in the combined ratio. Despite the drop in net income, the company increased its quarterly dividend.

  • Net income decreased significantly to $1.288 million, compared to $118.857 million in Q3 2020.
  • Operating income decreased to $35.687 million from $67.953 million in the same quarter of the previous year.
  • Catastrophe losses net of reinsurance were $25 million, a decrease from $29 million in Q3 2020.
  • The combined ratio increased to 99.0% from 94.3% in the prior-year quarter.

Headline financials

Total Revenue

$932M

Previous: $999M-6.7%
EPS (adj)

$0.64

Previous: $1.23-48.0%
Combined ratio

99.0%

Previous: 94.3%+5.0%
Catastrophe losses net of reinsurance

$25M

Previous: $29M-13.8%
Free Cash Flow

$1.29M

Previous: $119M-98.9%
Net Income

$1.29M

Previous: $119M-98.9%
Operating Income

-$255M

Previous: -$92M-177.4%
Gross Profit

$929M

Previous: $996M-6.7%
Cash & Equivalents

$342M

Previous: $322M+6.0%
Total Assets

$6.75B

Previous: $6.15B+9.9%
Stock-Based Comp

$36K

Previous: $36K+0.0%

Revenue & EPS history

Mercury General · Revenue · Quarterly

$932M

Q3 2021-6.7%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Mercury General · $976M total across 3 segments · Q3 2021

  • Net premiums earned
    $941M+4.6%
  • Net investment income
    $32.3M+0.6%
  • Other
    $2.48M-14.3%

Forward guidance

The company provided forward-looking statements that are subject to significant risks and uncertainties.

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 Q3 2021

Historical avgQ3 2021

-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%

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