The company has achieved a cyclical recovery in underwriting profitability, with the combined ratio improving to 84.7% in 2026Q1 as premium growth of 10.5% successfully offsets persistent claims severity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 6.14B | 5.99B | 5.48B | 4.63B | 3.64B | 3.99B | 3.78B | 3.97B | 3.38B | 3.42B | 3.23B | 3.01B | 3.01B | 2.82B | 2.78B | 2.78B | 2.78B | 3.12B | 2.41B | 3.18B | 3.17B | 2.99B | 2.67B | 2.27B | 1.79B | 1.51B | 1.37B | 1.28B | 1.22B | 1.13B | 824.96M |
| Revenue Growth % | 9.7% | 9.44% | 18.27% | 27.08% | -8.77% | 5.52% | -4.73% | 17.53% | -1.05% | 5.83% | 7.26% | -0.08% | 6.76% | 1.35% | 0.22% | 0.05% | -11.07% | 29.3% | -24.05% | 0.32% | 5.91% | 12.13% | 17.77% | 26.83% | 18.53% | 10.32% | 6.66% | 4.79% | 8.35% | 36.73% | 20.67% |
| Medical Costs & Claims | 3.45B | 3.96B | 4.54B | 4.23B | 4.02B | 3.39B | 3.02B | 3.31B | 3.15B | 3B | 2.92B | 2.68B | 2.51B | 2.47B | 2.44B | 2.31B | 2.33B | 2.54B | 2.69B | 2.7B | 2.67B | 2.48B | 2.14B | 1.93B | 1.65B | 1.31B | 1.17B | 1.06B | 937.06M | 879.61M | 661.88M |
| Medical Cost Ratio % | 56.15% | 66.13% | 82.96% | 91.29% | 110.26% | 84.98% | 79.88% | 83.27% | 93.16% | 87.83% | 90.4% | 89.21% | 83.42% | 87.49% | 87.64% | 83.21% | 83.99% | 81.47% | 111.23% | 84.82% | 84.28% | 82.95% | 80.39% | 84.99% | 92.18% | 87.07% | 85.68% | 82.5% | 76.67% | 77.98% | 80.23% |
| Gross Profit | 2.69B | 2.03B | 932.86M | 403.25M | -373.76M | 599.82M | 761.38M | 664.41M | 231.05M | 415.73M | 310M | 324.57M | 499.44M | 352.83M | 344.13M | 466.36M | 444.55M | 578.27M | -271.07M | 482.44M | 498.15M | 510.06M | 523.35M | 340.15M | 139.64M | 194.87M | 195.58M | 224.17M | 285.06M | 248.33M | 163.09M |
| Gross Margin % | 43.85% | 33.87% | 17.04% | 8.71% | -10.26% | 15.02% | 20.12% | 16.73% | 6.84% | 12.17% | 9.6% | 10.79% | 16.58% | 12.51% | 12.36% | 16.79% | 16.01% | 18.53% | -11.23% | 15.18% | 15.72% | 17.05% | 19.61% | 15.01% | 7.82% | 12.93% | 14.32% | 17.5% | 23.33% | 22.02% | 19.77% |
| Gross Profit Growth % | - | 117.55% | 131.33% | 207.89% | -162.31% | -21.22% | 14.6% | 187.56% | -44.42% | 34.11% | -4.49% | -35.01% | 41.55% | 2.53% | -26.21% | 4.9% | -23.12% | 313.33% | -156.19% | -3.16% | -2.33% | -2.54% | 53.86% | 143.59% | -28.34% | -0.36% | -12.76% | -21.36% | 14.79% | 52.27% | 17.85% |
| Operating Expenses | 1.65B | 1.37B | 357.98M | 303.82M | 296.95M | 300.51M | 302.88M | 286.34M | 261.67M | 248.64M | 239.28M | 254.01M | 252.02M | 220.74M | 208.82M | 221.26M | 262.16M | 6.73M | 179.79M | 167.4M | 185.74M | 157.42M | 115.51M | 94.35M | 78.97M | 70.06M | 67.03M | 55.63M | 49.78M | 38.55M | 26.5M |
| OpEx / Revenue % | 26.89% | 22.79% | 6.54% | 6.56% | 8.15% | 7.53% | 8% | 7.21% | 7.74% | 7.28% | 7.41% | 8.44% | 8.37% | 7.82% | 7.5% | 7.97% | 9.44% | 0.22% | 7.45% | 5.27% | 5.86% | 5.26% | 4.33% | 4.16% | 4.42% | 4.65% | 4.91% | 4.34% | 4.07% | 3.42% | 3.21% |
| Depreciation & Amortization | 77.59M | 74.99M | 73.43M | 72.24M | 82.39M | 79.06M | 68.46M | 64.73M | 58.79M | 55.34M | 53.26M | 47.84M | 28.05M | 30.59M | 36.97M | 40.66M | 40.73M | 35.69M | 27.04M | 26.32M | 24.26M | 18.78M | 16.19M | 16.13M | 10.23M | 8.48M | 6.93M | 6.9M | 5.44M | 5.16M | 4.07M |
| Combined Ratio % | 83.03% | 88.93% | 89.5% | 97.85% | 118.41% | 92.5% | 87.88% | 90.48% | 100.91% | 95.11% | 97.81% | 97.66% | 91.78% | 95.32% | 95.14% | 91.17% | 93.43% | 81.69% | 118.68% | 90.09% | 90.14% | 88.21% | 84.71% | 89.15% | 96.6% | 91.72% | 90.59% | 86.84% | 80.75% | 81.4% | 83.44% |
| Operating Income | 1.04B | 663.65M | 574.88M | 99.43M | -670.72M | 299.31M | 458.5M | 378.07M | -30.61M | 167.09M | 70.72M | 70.57M | 247.43M | 132.1M | 135.31M | 245.1M | 182.39M | 571.54M | -450.86M | 315.04M | 312.41M | 352.64M | 407.84M | 245.8M | 60.67M | 124.81M | 128.56M | 168.54M | 235.28M | 209.78M | 136.59M |
| Operating Margin % | 16.97% | 11.07% | 10.5% | 2.15% | -18.41% | 7.5% | 12.12% | 9.52% | -0.91% | 4.89% | 2.19% | 2.34% | 8.22% | 4.68% | 4.86% | 8.83% | 6.57% | 18.31% | -18.68% | 9.91% | 9.86% | 11.79% | 15.29% | 10.85% | 3.4% | 8.28% | 9.41% | 13.16% | 19.25% | 18.6% | 16.56% |
| Operating Income Growth % | - | 15.44% | 478.19% | 114.82% | -324.09% | -34.72% | 21.27% | 1334.91% | -118.32% | 136.25% | 0.22% | -71.48% | 87.31% | -2.38% | -44.79% | 34.38% | -68.09% | 226.77% | -243.11% | 0.84% | -11.41% | -13.54% | 65.92% | 305.16% | -51.39% | -2.91% | -23.72% | -28.37% | 12.16% | 53.58% | 19.48% |
| EBITDA | 1.12B | 738.64M | 648.31M | 171.67M | -588.33M | 378.36M | 526.96M | 442.8M | 28.18M | 222.43M | 123.98M | 118.41M | 275.48M | 162.68M | 172.28M | 285.76M | 223.13M | 607.23M | -423.82M | 341.36M | 336.67M | 371.42M | 424.04M | 261.93M | 70.9M | 133.29M | 135.48M | 175.44M | 240.72M | 214.94M | 140.66M |
| EBITDA Margin % | 18.23% | 12.33% | 11.84% | 3.71% | -16.15% | 9.47% | 13.92% | 11.15% | 0.83% | 6.51% | 3.84% | 3.93% | 9.15% | 5.77% | 6.19% | 10.29% | 8.04% | 19.45% | -17.56% | 10.74% | 10.62% | 12.41% | 15.89% | 11.56% | 3.97% | 8.84% | 9.92% | 13.7% | 19.7% | 19.06% | 17.05% |
| Interest Expense | 28.25M | 28.62M | 30.82M | 24.17M | 17.23M | 17.11M | 17.05M | 17.04M | 17.04M | 15.17M | 3.96M | 3.17M | 2.64M | 1.26M | 1.54M | 5.55M | 6.81M | 6.73M | 4.97M | 8.59M | 9.18M | 7.22M | 4.22M | 3.06M | 4.1M | 7.73M | 7.29M | 5M | 4.8M | 5M | 2M |
| Non-Operating Income | -21.43M | -28.62M | -30.82M | -24.17M | -17.23M | -17.11M | -17.05M | -17.04M | -17.04M | -15.17M | -3.96M | -3.17M | -2.64M | -1.26M | -1.54M | -5.55M | -6.81M | -6.73M | -4.97M | -8.59M | -9.18M | -7.22M | -4.22M | -3.06M | -4.1M | -7.73M | -7.29M | -5M | -4.8M | -5M | -2M |
| Pretax Income | 1.04B | 663.65M | 574.88M | 99.43M | -670.72M | 299.31M | 458.5M | 378.07M | -30.61M | 167.09M | 70.72M | 70.57M | 247.43M | 132.1M | 135.31M | 245.1M | 182.39M | 571.54M | -450.86M | 315.04M | 312.41M | 352.64M | 407.84M | 245.8M | 60.67M | 124.81M | 128.56M | 168.54M | 235.28M | 209.78M | 136.59M |
| Pretax Margin % | 16.97% | 11.07% | 10.5% | 2.15% | -18.41% | 7.5% | 12.12% | 9.52% | -0.91% | 4.89% | 2.19% | 2.34% | 8.22% | 4.68% | 4.86% | 8.83% | 6.57% | 18.31% | -18.68% | 9.91% | 9.86% | 11.79% | 15.29% | 10.85% | 3.4% | 8.28% | 9.41% | 13.16% | 19.25% | 18.6% | 16.56% |
| Income Tax | 201.75M | 122.56M | 106.93M | 3.09M | -158.04M | 51.37M | 83.89M | 57.98M | -24.89M | 22.21M | -2.32M | -3.91M | 69.48M | 19.95M | 18.4M | 53.94M | 30.19M | 168.47M | -208.74M | 77.2M | 97.59M | 99.38M | 121.64M | 61.48M | -5.44M | 19.47M | 19.19M | 34.83M | 57.75M | 53.47M | 30.83M |
| Effective Tax Rate % | 19.37% | 18.47% | 18.6% | 3.11% | 23.56% | 17.16% | 18.3% | 15.34% | 81.29% | 13.29% | -3.28% | -5.54% | 28.08% | 15.1% | 13.6% | 22.01% | 16.55% | 29.48% | 46.3% | 24.51% | 31.24% | 28.18% | 29.82% | 25.01% | -8.96% | 15.6% | 14.93% | 20.67% | 24.55% | 25.49% | 22.57% |
| Net Income | 839.84M | 541.09M | 467.95M | 96.34M | -512.67M | 247.94M | 374.61M | 320.09M | -5.73M | 144.88M | 73.04M | 74.48M | 177.95M | 112.14M | 116.91M | 191.16M | 152.2M | 403.07M | -242.12M | 237.83M | 214.82M | 253.26M | 286.21M | 184.32M | 66.11M | 105.34M | 109.37M | 133.71M | 177.53M | 156.31M | 105.76M |
| Net Margin % | 13.68% | 9.03% | 8.55% | 2.08% | -14.07% | 6.21% | 9.9% | 8.06% | -0.17% | 4.24% | 2.26% | 2.47% | 5.91% | 3.98% | 4.2% | 6.88% | 5.48% | 12.91% | -10.03% | 7.48% | 6.78% | 8.46% | 10.73% | 8.14% | 3.7% | 6.99% | 8.01% | 10.44% | 14.53% | 13.86% | 12.82% |
| Net Income Growth % | 193.48% | 15.63% | 385.75% | 118.79% | -306.78% | -33.81% | 17.03% | 5688.11% | -103.95% | 98.34% | -1.93% | -58.15% | 58.68% | -4.08% | -38.84% | 25.6% | -62.24% | 266.48% | -201.8% | 10.71% | -15.18% | -11.51% | 55.28% | 178.83% | -37.25% | -3.68% | -18.21% | -24.68% | 13.58% | 47.79% | 17.12% |
| EPS (Diluted) | 15.16 | 9.77 | 8.45 | 1.74 | -9.26 | 4.48 | 6.77 | 5.78 | -0.10 | 2.62 | 1.32 | 1.35 | 3.23 | 2.04 | 2.13 | 3.49 | 2.78 | 7.32 | -4.41 | 4.34 | 3.92 | 4.63 | 5.24 | 3.38 | 1.21 | 1.94 | 2.02 | 2.44 | 3.21 | 2.82 | 1.93 |
| EPS Growth % | 193.99% | 15.62% | 385.63% | 118.79% | -306.7% | -33.83% | 17.13% | 5880% | -103.82% | 98.48% | -2.22% | -58.2% | 58.33% | -4.23% | -38.97% | 25.54% | -62.02% | 265.99% | -201.61% | 10.71% | -15.33% | -11.64% | 55.03% | 179.34% | -37.63% | -3.96% | -17.21% | -23.99% | 13.83% | 46.11% | 16.27% |
| EPS (Basic) | - | 9.77 | 8.45 | 1.74 | -9.26 | 4.48 | 6.77 | 5.78 | -0.10 | 2.62 | 1.32 | 1.35 | 3.23 | 2.04 | 2.13 | 3.49 | 2.78 | 7.36 | -4.42 | 4.35 | 3.93 | 4.64 | 5.25 | 3.39 | 1.22 | 1.94 | 2.02 | 2.45 | 3.23 | 2.84 | 1.93 |
| Diluted Shares Outstanding | 55.39M | 55.39M | 55.38M | 55.37M | 55.37M | 55.37M | 55.36M | 55.36M | 55.34M | 55.33M | 55.3M | 55.21M | 55.02M | 54.96M | 54.92M | 54.84M | 54.83M | 55.09M | 54.92M | 54.83M | 54.8M | 54.7M | 54.62M | 54.53M | 54.63M | 54.3M | 54.14M | 54.8M | 55.3M | 55.43M | 54.96M |
California Regulatory Rate Lag
As reported in financial statements, Mercury General's top-line growth of 10.5% in 2026Q1 appears driven by necessary rate increases rather than volume expansion, suggesting that the company is successfully navigating the challenging California pricing environment to offset persistent inflationary pressures on its core personal auto segment.
The consistent revenue growth suggests that the company maintains pricing power despite the regulatory hurdles inherent in the California market. Investors should monitor whether this growth trajectory can be sustained through policy count expansion or if it remains strictly a function of premium rate adjustments.
Based on the provided quarterly data, the combined ratio improved to 84.7% in 2026Q1 from a peak of 110.2% in 2025Q1, indicating that the company has successfully returned to underwriting profitability after a period of significant margin compression caused by elevated claims severity and delayed rate approvals.
The volatility in the combined ratio highlights the company's sensitivity to external cost factors, particularly medical and repair inflation. The recent improvement suggests that the regulatory backlog is clearing, allowing premiums to better align with the underlying loss costs.
According to the historical income statement data, the 2025Q1 period marked a critical inflection point where the loss ratio spiked to 104.0%, forcing a strategic pivot in pricing and underwriting discipline that has since facilitated a recovery in operating income across subsequent reporting quarters.
This period serves as a stark reminder of the risks associated with geographic concentration in a highly regulated state. The subsequent stabilization suggests that management has effectively recalibrated its risk appetite to restore profitability in the face of adverse loss trends.
While recent margins appear robust, the company's extreme reliance on the California market, as noted in historical filings, warrants caution, as any future legislative shifts or prolonged delays in the rate-filing cycle could rapidly erode the underwriting gains achieved over the last several quarters.
The lack of geographic diversification leaves the company uniquely vulnerable to state-specific catastrophe events and regulatory changes. Investors should consider whether the current valuation adequately prices in the potential for future regulatory friction that could disrupt the current margin expansion trend.
Quick answers to the most common questions about buying MCY stock.
For fiscal year 2025, Mercury General Corporation (MCY) reported total revenue of $5.99B. This represents a 626.4% increase compared to $825.0M in 1996.
Mercury General Corporation (MCY) is profitable, generating $541.1M in net income for the fiscal year ending 2025 with a net profit margin of 9.0%.
Mercury General Corporation (MCY) reported an operating income of $663.6M, resulting in an operating profit margin of 11.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Mercury General Corporation (MCY) generated $2.03B in gross profit for the year, representing a gross profit margin of 33.9%. This demonstrates the company's core pricing power and production efficiency.