The strong quarter, combined with a 60% EPS beat and the approved California rate hike, supports a positive outlook. Watch for continued reserve development on the Palisades/Eaton wildfires and subrogation recoveries, which could add further upside. The stock should rally on this earnings release.
Price Chart
Executive Summary
Mercury General reported Q1 2026 net income of $190.4M ($3.44 EPS) versus a net loss of $108.3M (-$1.96 EPS) in the prior year, driven by a sharp decline in catastrophe losses. The combined ratio improved to 89.3% from 119.2%, and EPS beat the $2.15 consensus by 60%. Net premiums earned grew 13.2% YoY to $1.45B.
Key Financial Metrics
Key Facts
- Q1 2026 net income $190.4M vs Q1 2025 net loss $108.3M
- GAAP EPS $3.44 vs consensus $2.15 (60% beat)
- Net premiums earned $1.45B, up 13.2% YoY
- Combined ratio 89.3% vs 119.2% in prior year (improvement of 29.9 pts)
- Catastrophe losses net of reinsurance $93M, down 79.2% from $447M
- Book value per share $46.76, up from $43.64 at Dec 2025
- Quarterly dividend maintained at $0.3175 per share
- California DOI approved 6.9% homeowners rate increase effective July 2026
Financial Impact
Operating income swung from -$126.8M loss to $194.0M profit YoY, a ~$321M improvement driven by lower catastrophe losses and premium growth.
Risk Factors
- California wildfire exposure remains a material tail risk
- Subrogation recoveries from Eaton fire (SCE) are uncertain
- Catastrophe loss volatility could reverse in future quarters
- Expense ratio increased slightly to 25.1% from 24.0%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-206384 |
| Document: d480814d8k.htm | 0001193125-26-206384 |
| Document: 0001193125-26-206384-index-headers.html | 0001193125-26-206384 |
| Document: 0001193125-26-206384-index.html | 0001193125-26-206384 |
| Document: 0001193125-26-206384.txt | 0001193125-26-206384 |
| 8-K Data (Synthetic) | 0001193125-26-206384 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 7, 2026 12w ago | Press Release | $110.84 $107.26 | ▼ −3.23% | ▼ −4.56% | $102.31 (−7.70%) |
Jun 24, 2026 14w ago | 8-K | $104.12 $105.46 | ▲ +1.29% | ▲ +0.76% | $102.31 (−1.74%) |
Jun 18, 2026 15w ago | Court Ruling | $102.67 $107.49 | ▲ +4.69% | ▲ +4.16% | $102.31 (−0.35%) |
Jun 10, 2026 16w ago | 424B5 | $99.14 $109.79 | ▼ −10.74% | ▼ −8.85% | $102.31 (−3.20%) |
Jun 9, 2026 16w ago | 424B5 | $101.11 $110.84 | ▲ +9.62% | ▲ +8.18% | $102.31 (+1.19%) |
Jun 9, 2026 16w ago | 8-K | $101.11 $110.84 | ▲ +9.62% | ▲ +8.18% | $102.31 (+1.19%) |
May 5, 2026 21w ago | 8-K | $96.02 $96.74 | ▲ +0.75% | ▼ −2.03% | $102.31 (+6.55%) |
Mar 31, 2026 26w ago | DEFA14A | $88.15 $96.14 | ▲ +9.06% | ▼ −0.36% | $102.31 (+16.06%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access