Mercury General Corporation Announces Estimated Catastrophe Losses for the Quarter and Year Ended December 31, 2019
January 16, 2020 at 09:05 pm
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Mercury General Corporation reported its estimated catastrophe losses for the quarter ended December 31, 2019, primarily as a result of the wildfires in California. A series of wildfires occurred in California during the quarter ended December 31, 2019, the largest of which were the Saddleridge Fire in Southern California and the Kincade Fire in Northern California. The Company estimates that its total pre-tax catastrophe losses reported for the quarter ended December 31, 2019 will be approximately $36 million (approximately $28 million net of tax), primarily resulting from the wildfires in California and other weather-related catastrophes that occurred during the quarter ended December 31, 2019. The Company's total pre-tax catastrophe losses reported for the year ended December 31, 2019 are estimated to be approximately $53 million (approximately $42 million net of tax), primarily resulting from the catastrophes that occurred during the quarter ended December 31, 2019, with the remainder resulting from weather-related catastrophes across several states that occurred during the first three quarters of 2019. The Company's total pre-tax catastrophe losses reported for the quarter and year ended December 31, 2019 include favorable development of approximately $1 million and $4 million, respectively, on prior periods' catastrophe losses. There were no reinsurance benefits available under the Company's Catastrophe Reinsurance Treaty ("Treaty") for the catastrophe losses resulting from the catastrophes that occurred during 2019, as none of the 2019 catastrophe events resulted in losses in excess of the Company's per-occurrence retention limit under the Treaty of $10 million for the 12 months ended June 30, 2019 and $40 million for the 12 months ended June 30, 2020. These catastrophe loss amounts represent the Company's best estimates based on the information available at this time, and could change as new information, including any late reporting of claims, becomes available.
Mercury General Corporation is an insurance holding company engaged in writing personal automobile insurance business. The Company writes homeowners, commercial automobile, commercial property, mechanical protection and umbrella insurance. The Companyâs automobile coverages include collision, property damage, bodily injury, personal injury protection, underinsured, and uninsured motorist and other hazards. Its homeownersâ coverage includes dwelling, liability, personal property, fire and other hazards. The Company offers standard, non-standard and preferred private passenger automobile insurance. It also offers homeowners insurance in approximately 10 states, commercial automobile insurance in approximately four states, and mechanical protection insurance in various states. Its subsidiaries include Mercury Casualty Company, California Automobile Insurance Company, Orion Indemnity Company, American Mercury Insurance Company, Animas Funding LLC, and Mercury Insurance Company of Illinois.
MERCURY GENERAL CORPORATION 
