Mercury General Corporation has reported net income of $166.5 million for the second quarter of 2025, representing a significant 166.1% increase compared to $62.6 million in the same quarter a year prior.
Operating income also improved sharply, rising from $60.3 million in Q2’24 to $147.9 million in Q2’25.
Mercury’s net premiums earned for the quarter reached $1.37 billion, up 10.6% from $1.24 billion the year prior.
Net premiums written stood at $1.48 billion, representing a 9.2% increase compared to $1.36 billion.
Total revenues were $1.48 billion, up from $1.3 billion.
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The company’s combined ratio in Q2’25 was 92.5%, a 6.4 point improvement from 98.9% in Q2’24. This consisted of a loss ratio of 68.8% and an expense ratio of 23.7%, compared to a loss ratio of 75.8% and an expense ratio of 23.1% in the prior-year quarter.
Catastrophe losses, net of reinsurance, declined to $13 million in Q2’25 from $125 million in Q2’24, but for the first half of the year rose to $460 million from $197 million, driven by losses resulted from the Palisades and Eaton wildfires in California and severe storms in Texas and Oklahoma.
Mercury explains that catastrophe losses, net of reinsurance, for Q2’25 and H1’25 was reduced by approximately $50 million and $575 million, respectively, from subrogation recorded on the Palisades and Eaton wildfires.
Due to the California wildfires in January 2025, Mercury recorded net catastrophe losses and loss adjustment expenses before taxes of approximately $359 million from the Palisades and Eaton wildfires, reflected in its consolidated statements of operations for the first half of 2025.
Meanwhile, for the first half of 2025, Mercury reported net income of $58.1 million, representing a 57.3% decrease from $136 million in H1’24.
Operating income in H1’25 was $21.2 million, down 79.6% from $103.6 million the year prior.
Net premiums earned amounted to $2.65 billion, a 10.3% increase from $2.4 billion. Net premiums written were $2.8 billion, up 5.9% from $2.64 billion.
Total revenues stood at $2.87 billion, an increase from $2.58 billion.
Mercury’s combined ratio was 105.4%, up from 99.9% the year prior, consisting of a loss ratio of 81.5% and an expense ratio of 23.9%, versus a loss ratio of 76.6% and an expense ratio of 23.3% in H1’24.
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