Mercury General

The move follows a trend of increased reinsurance buying by Mercury, since the devastating wildfires of 2018.

The firm expects to pay an additional $22mn in rebates for July premium in August.

Yesterday morning, Mercury General released its Q1 results, which included an earnings beat and a 1.3pt improvement in its headline combined to 95.9%.

Mercury General reported improved YoY earnings but a notable increase in frequency.

No loss was large enough to breach the per-occurrence limits of the carrier’s reinsurance treaties.

On Monday morning, Mercury General reported disappointing earnings for the quarter, including a 30% decline in its operating EPS to $0.78 per share. The result missed analyst estimates of $1.15 per share. The shares closed down 11%.

Headline rate changes at lows not seen since 2007/8, in line with Q2:19 management commentary pointing to growth initiatives, and peak margins at leading firms.

Robert Houlihan has been recruited from Mercury to serve as chief insurance officer.

The California Supreme Court refused the insurer’s final appeal against the penalty for illegal auto insurance fees.

Mercury and NatGen highlight challenges of companies dependent on reinsurance facing higher implied cost of capital.

Chief executive confirms “sizeable rate increases in each layer”.

The Californian carrier is to revise programme after handing $216mn wildfire loss to reinsurers.