NYSE$MCY

Mercury General Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a decrease in net income and operating income compared to the same quarter last year, with an increased combined ratio.

Mercury General Corporation reported a net income of $30.473 million for Q4 2021, a significant decrease from $166.743 million in Q4 2020. The company's operating income also decreased to $(12.744) million from $76.534 million year-over-year. The combined ratio worsened to 105.4% compared to 93.3% in the prior year quarter.

  • Net income decreased by 81.7% compared to Q4 2020.
  • Operating loss was $(12.744) million, compared to an operating income of $76.534 million in Q4 2020.
  • The combined ratio increased to 105.4% from 93.3% in the same period last year.
  • Catastrophe losses net of reinsurance were $19 million, slightly down from $21 million in Q4 2020.

Headline financials

Total Revenue

$995M

Previous: $1.07B-7.2%
EPS (adj)

-$0.23

Previous: $1.38-116.7%
Combined ratio

105.4%

Previous: 93.3%+13.0%
Catastrophe losses net of reinsurance

$19M

Previous: $21M-9.5%
Net Income

$30.5M

Previous: $167M-81.7%
Operating Income

-$12.7M

Previous: $76.5M-116.7%
Gross Profit

$3.71B

Previous: $3.5B+6.0%
Cash & Equivalents

$336M

Previous: $348M-3.7%
Total Assets

$6.77B

Previous: $6.33B+7.0%
Stock-Based Comp

$35K

Previous: $36K-2.8%

Revenue & EPS history

Mercury General · Revenue · Quarterly

$995M

Q4 2021-7.2%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Mercury General · $1.16B total across 3 segments · Q3 2023

  • Net premiums earned
    $1.09B+9.4%
  • Net investment income
    $61M+57.7%
  • Other
    $3.92M+30.7%

Forward guidance

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Certain statements contained in this report are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements.

Headwinds

  • Changes in the demand for the Company's insurance products
  • Inflation and general economic conditions, including general market risks associated with the Company's investment portfolio
  • The accuracy and adequacy of the Company's pricing methodologies
  • Catastrophes in the markets served by the Company
  • Uncertainties related to estimates, assumptions and projections generally

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 Q4 2021

Historical avgQ4 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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