Overview

• Insurance provider's Q4 net income rose 100% yr/yr

• Operating income for Q4 increased 31.6% yr/yr

• Company reported 88.6% combined ratio for Q4, improved from 91.4% last year

Outlook

• California homeowners insurance rate increase of 6.9% effective July 2026

Result Drivers

• PREMIUM GROWTH - Net premiums written increased 8.6% in Q4, aided by a 6.9% rate increase in California homeowners line

• REDUCED CATASTROPHE LOSSES - Q4 catastrophe losses decreased 53.7% yr/yr, with fewer wildfire and storm impacts

• FAVORABLE RESERVE DEVELOPMENT - Favorable development on prior accident years' loss reserves contributed positively to results

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Mercury General Corp is $100.00, about 7% above its February 13 closing price of $93.47

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn5Fb7w8a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)