Mercury General Corporation has posted a 9.4% increase in net premiums earned for the third quarter of 2023, sitting at $1,090,311, compared to $996,939 from the same period last year.
Net premiums written also saw an increase from $1,034,476 in Q322 to $1,206,503 in Q323.
At the same time, Mercury General did post a net loss of $8,227 for Q3, however, while it is a loss, it is still an improvement from the net loss of $98,303 that the firm reported last year.
Net investment income before income taxes for Q3 was $60,965, an increase from the prior year period’s $44,563.
The average annual yield on investments after income taxes also increased from 3.2% in Q322, to 4.1% in Q323.
Combined ratio for the quarter sat at 98.6%, a solid improvement from last year’s 102.8%.
Moving forward, for the nine months ended September 30 2023, net premiums earned sit at $3,129,483, compared to $2,947,000 from the same period last year, while net premiums written came in at $3,332,049, compared to last year’s $3,062,267.
In addition, net loss for the nine months ended September 30, sits at $95,058, compared to 2022’s $505,902.
CEO Gabe Tirador commented on the company’s Q3 results: “We are pleased that our rate and non-rate actions are manifesting in our improved underwriting results. The third quarter results also benefited from moderating inflation and favorable reserve development.
“Additionally, third quarter catastrophe losses were at a normal level, compared to the elevated levels experienced in the first and second quarters of 2023. Higher rates will continue to earn-in in the fourth quarter, which will help offset historically higher seasonal frequency and severity.”
