Mercury General

Auto-focused Mercury General swings to an operating loss as costs for auto parts, repairs mount, with the company also citing social inflation.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Cat contribution on the combined ratio remained around 2% as the company was hit with $18mn cat losses during the last quarter of the year.

The Inside P&C research team looks forward to the big issues of the new year.

Mercury General reports a 47.5% drop in Q3 operating profit despite higher premiums.

Joseph, who's father founded Mercury General in 1961, has held positions within the company since 2009.

Following strong year-to-date performance, P&C stocks were down in June after a change of tone in a Fed meeting.

Net written premiums at the carrier were down 0.4% in the quarter to $950mn.

Operating profits surged sixfold to $76mn during Q4.

Inside P&C’s research team examines some of the areas that will be closely watched during the results season.

The company reported diluted earnings per share of $1.23, comfortably beating an analyst consensus of $1.06 per share.

The “empty-street” economy has left auto exposed names in a relatively favorable position, highlighted by a second quarter of strong earnings growth and beats when compared to street estimates.