Mercury General Declares $0.3175 Quarterly Dividend After Strong Q4 Performance
Mercury General Corporation declared a quarterly dividend of $0.3175 per share, payable March 26 to shareholders of record as of March 12. The insurer reported fourth quarter net income of $202.5 million.
Mercury General Corporation declared a quarterly dividend of $0.3175 per share, the company announced February 17 following its fourth quarter earnings release. The dividend will be paid March 26 to shareholders of record as of March 12. Read more dividend announcements.
The Los Angeles-based insurer reported fourth quarter net income of $202.5 million, or $3.66 per diluted share, up from $101.1 million, or $1.82 per share, in the year-ago period. Operating income reached $202.5 million compared to $153.9 million in the prior-year quarter.
| Dividend Details | |
|---|---|
| Amount | $0.3175 per share |
| Record Date | March 12, 2026 |
| Payment Date | March 26, 2026 |
| Frequency | Quarterly |
Fourth Quarter Results
Net premiums earned rose 6.9% to $1.45 billion in the fourth quarter from $1.35 billion a year earlier. The company's combined ratio improved to 88.6% from 91.4% in the prior-year quarter. Catastrophe losses totaled $19 million, down from $41 million in the fourth quarter of 2024.
Direct premiums written climbed 10.7% to $1.49 billion in the quarter. Net premiums written increased 8.6% to $1.43 billion.
Full Year Performance
For fiscal 2025, Mercury General reported net income of $541.1 million, or $9.77 per diluted share, compared to $468.0 million, or $8.45 per share, in 2024. Operating income for the year reached $437.3 million versus $397.9 million in the prior year.
Net premiums earned for the full year increased 8.5% to $5.51 billion. The combined ratio for 2025 was 96.3% compared to 96.0% in 2024. Full-year catastrophe losses surged to $508 million from $277 million in 2024.
California Wildfire Impact
The company recorded net catastrophe losses of approximately $380 million from the January 2025 Palisades and Eaton wildfires in Southern California. Gross losses and loss adjustment expenses from these fires totaled $2.19 billion.
After subrogation recoveries of $585.5 million and reinsurance recoveries of $1.29 billion, net losses before FAIR Plan participation totaled $312.7 million. The company's share of FAIR Plan losses added $67.7 million after accounting for recoupable amounts.
CEO Gabe Tirador said the wildfires were the most significant catastrophes in Mercury's history, driving the first quarter combined ratio to 119.2%. The company managed more than 2,900 wildfire claims and paid over $1.4 billion to date.
Rate Increase Approved
The California Department of Insurance approved a 6.9% rate increase on the company's California homeowners insurance business in December 2025. The increase is expected to become effective in July 2026. California homeowners insurance represented approximately 15% of Mercury General's total net premiums earned in 2025.