Revenue: As of FY2025, the actual value is USD 5.992 B.EPS: As of FY2025, the actual value is USD 9.77, beating the estimate of USD 8.67.EBIT: As of FY2025, the actual value is USD 692.27 M.<h4>Segment Revenue (Direct Premiums Written)</h4>Mercury General Corporation’s total direct premiums written were $5,982,537 thousand in 2025, $5,500,835 thousand in 2024, and $4,558,488 thousand in 2023 .By Line of Business: 2025: Private Passenger Automobile: $3,591,215 thousand (60.0% of total) . Homeowners: $1,630,920 thousand (27.3% of total) . Commercial Automobile: $387,380 thousand (6.5% of total) . Other Lines: $373,022 thousand (6.2% of total) . 2024: Private Passenger Automobile: $3,395,824 thousand (61.7% of total) . Homeowners: $1,367,297 thousand (24.9% of total) . Commercial Automobile: $386,994 thousand (7.0% of total) . Other Lines: $350,720 thousand (6.4% of total) . 2023: Private Passenger Automobile: $2,841,782 thousand (62.4% of total) . Homeowners: $1,119,004 thousand (24.5% of total) . Commercial Automobile: $346,221 thousand (7.6% of total) . Other Lines: $251,481 thousand (5.5% of total) .By State: 2025: California: $4,909,788 thousand (82.1% of total) . Texas: $401,460 thousand (6.7% of total) . Other states: $671,289 thousand (11.2% of total) . 2024: California: $4,430,628 thousand (80.5% of total) . Texas: $388,348 thousand (7.1% of total) . Other states: $681,859 thousand (12.4% of total) . 2023: California: $3,612,722 thousand (79.3% of total) . Texas: $330,266 thousand (7.2% of total) . Other states: $615,500 thousand (13.5% of total) .Net premiums earned increased by 8.5% from 2024 to $5,505,613 thousand in 2025, while net premiums written increased by 6.4% to $5,721,778 thousand in 2025, primarily due to rate increases and policy growth in California automobile and homeowners lines, offset by higher ceded premiums .<h4>Operational Metrics</h4><ul><li>Net Income: $541,094 thousand in 2025, $467,953 thousand in 2024, and $96,336 thousand in 2023 .</li><li>Loss Ratio (GAAP Basis): 72.0% in 2025 and 72.6% in 2024 . The 2025 loss ratio was positively impacted by $92 million in favorable development on prior accident years’ loss and loss adjustment expense reserves, primarily from lower-than-estimated losses in automobile and homeowners lines, including favorable catastrophe loss development . The 2024 loss ratio was negatively impacted by $25 million in unfavorable development, mainly from higher-than-estimated losses in commercial automobile and property, partially offset by favorable private passenger automobile development .</li><li>Expense Ratio (GAAP Basis): 24.3% in 2025 and 23.4% in 2024 . The increase in 2025 was due to higher profitability-related accruals and advertising expenses, as well as increased ceded premiums earned from reinstatement premiums related to the Palisades and Eaton wildfires .</li><li>Combined Ratio (GAAP Basis): 96.3% in 2025 and 96.0% in 2024 .</li><li>Combined Ratio (Statutory Basis, Company-wide): 96.5% in 2025, 96.1% in 2024, 105.8% in 2023, 109.5% in 2022, and 98.7% in 2021 .</li><li>Catastrophe Losses (Net of Reinsurance): $508 million in 2025, $268 million in 2024, and $239 million in 2023 . The 2025 catastrophe losses were reduced by $586 million of subrogation recorded on the Palisades and Eaton wildfires .</li><li>Net Investment Income (Pre-tax): $328,701 thousand in 2025, $279,989 thousand in 2024, and $234,630 thousand in 2023 . It increased in 2025 due to higher average invested assets and cash, combined with higher average yields .</li><li>Net Realized Investment Gains (Pre-tax): $131,368 thousand in 2025, $88,671 thousand in 2024, and $101,014 thousand in 2023 .</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: $1,087,188 thousand in 2025, $1,037,117 thousand in 2024, and $453,004 thousand in 2023 . The increase in 2025 was primarily due to higher reinsurance and subrogation recoveries, premium collections, and investment income received, partially offset by increased payments for losses, loss adjustment expenses, commissions, and other acquisition costs .</li></ul><h4>Unique Metrics</h4><ul><li>Loss and Loss Adjustment Expense Reserves: Gross reserves were $3,633,338 thousand at December 31, 2025, and $3,152,031 thousand at December 31, 2024 . Net of reinsurance, these reserves were $3,599,330 thousand at December 31, 2025, and $3,123,386 thousand at December 31, 2024 .</li><li>Premiums to Surplus Ratio (Statutory Basis): 2.4 to 1 in 2025, 2.7 to 1 in 2024, and 2.7 to 1 in 2023 .</li><li>Investment Portfolio: Total investments at fair value were $6,580,030 thousand at December 31, 2025, and $6,076,370 thousand at December 31, 2024 . Fixed maturity securities constituted $5,430,251 thousand (82.5% of total investments) at December 31, 2025, and equity securities were $812,787 thousand (12.4% of total investments) at the same date . The weighted-average credit quality rating of the fixed maturity portfolio was A+ at December 31, 2025 and 2024, with a modified duration of 4.4 years at December 31, 2025 .</li><li>California Automobile Bodily Injury (BI) Loss Reserve Sensitivity Analysis (2025 Accident Year): A 12% lower actual severity could result in $103,016 thousand favorable loss development, while a 12% higher actual severity could result in - $103,016 thousand unfavorable loss development .</li><li>California Automobile BI Claim Count Reserve Sensitivity Analysis (2025 Accident Year): A 0% claim count development could result in $81,643 thousand favorable loss development, whereas a 15% claim count development could result in - $34,888 thousand unfavorable loss development .</li><li>Capital Expenditures: $58,431 thousand in 2025, $46,138 thousand in 2024, and $36,810 thousand in 2023 .</li></ul><h4>Outlook / Guidance</h4>Mercury General Corporation expects to increase capital spending in 2026 compared to 2025, focusing on customer and agent experience, automation, and cybersecurity, alongside decommissioning legacy systems . These expenditures are anticipated to be funded primarily through future operating cash flows and existing cash and short-term investments . The Board declared a $0.3175 quarterly dividend per share payable on March 26, 2026, with future quarterly dividends expected to continue, subject to profitability and financial conditions .

Mercury General | 10-K: FY2025 Revenue: USD 5.992 B