Company profile

MCY stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

12 Feb 20
4 Apr 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 987.99M 987.3M 979.49M 1.02B
Net income 31.69M 69.28M 83.25M 135.87M
Diluted EPS 0.57 1.25 1.5 2.45
Net profit margin 3.21% 7.02% 8.50% 13.35%
Net change in cash -20.97M 75.05M -29.79M -44.19M
Cash on hand 294.4M 315.37M 240.32M 270.11M
Cost of revenue 2.7M 2.5M 2.7M 2.7M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 3.97B 3.38B 3.42B 3.23B
Net income 320.09M -5.73M 144.88M 73.04M
Diluted EPS 5.78 -0.1 2.62 1.32
Net profit margin 8.06% -0.17% 4.24% 2.26%
Net change in cash -19.89M 22.88M 71.1M -43.9M
Cash on hand 294.4M 314.29M 291.41M 220.32M
Cost of revenue 10.5M 10.5M 10.2M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
13 Mar 20 Joshua Eric Little Common Stock Buy Aquire P 39.72 250 9.93K 1,250
13 Mar 20 George Joseph Common Stock Buy Aquire P 38.9267 75,419 2.94M 18,884,449
11 Mar 20 Braunegg George Gwyer Common Stock Buy Aquire P 38.664 386 14.92K 1,751
6 Mar 20 Braunegg George Gwyer Common Stock Buy Aquire P 44.323 340 15.07K 1,365
5 Mar 20 Joshua Eric Little Common Stock Buy Aquire P 43.743 250 10.94K 1,000
26 Dec 19 Theodore R Stalick Common Stock Gift Dispose G 48.04 86 4.13K 3,600
2 May 19 Theodore R Stalick Common Stock Common Stock Option exercise Dispose M 43.01 2,500 107.53K 7,500
2 May 19 Theodore R Stalick Common Stock Common Stock Option exercise Dispose M 45.3 2,500 113.25K 0
43.4% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 227 225 +0.9%
Opened positions 38 27 +40.7%
Closed positions 36 27 +33.3%
Increased positions 77 75 +2.7%
Reduced positions 75 81 -7.4%
13F shares
Current Prev Q Change
Total value 4.89B 4.42B +10.7%
Total shares 24.03M 23.1M +4.0%
Total puts 11.5K 6.8K +69.1%
Total calls 36.2K 28.6K +26.6%
Total put/call ratio 0.3 0.2 +33.6%
Largest owners
Shares Value Change
Vanguard 2.6M $126.47M -0.7%
BLK BlackRock 2.42M $118.17M -0.6%
Renaissance Technologies 2.15M $104.63M +5.5%
Dimensional Fund Advisors 1.54M $75.23M -1.1%
STT State Street 1.02M $49.75M -4.5%
IVZ Invesco 877.8K $42.78M +21.3%
GS The Goldman Sachs Group, Inc. 774.54K $37.74M -3.1%
WHG Westwood 765.41K $37.3M -6.1%
Vaughan Nelson Investment Management 724.89K $35.32M -9.7%
Aqr Capital Management 673.27K $32.81M +56.9%
Largest transactions
Shares Bought/sold Change
Norges Bank 601.73K +601.73K NEW
WFC Wells Fargo & Company 206.41K -390.77K -65.4%
Absher Wealth Management 358.06K +358.06K NEW
Aqr Capital Management 673.27K +244.17K +56.9%
American Century Companies 291.9K -227.58K -43.8%
Philadelphia Financial Management of San Francisco 0 -190.02K EXIT
BK Bank Of New York Mellon 573.25K +174.57K +43.8%
First Trust Advisors 236.15K +159.99K +210.1%
IVZ Invesco 877.8K +154.1K +21.3%
JPM JPMorgan Chase & Co. 54.81K -146.28K -72.7%

Financial report summary

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Risks
  • The Company remains highly dependent upon California to produce revenues and operating profits.
  • Mercury General is a holding company that relies on regulated subsidiaries for cash flows to satisfy its obligations.
  • The Insurance Companies are subject to minimum capital and surplus requirements, and any failure to meet these requirements could subject the Insurance Companies to regulatory action.
  • The Company’s success depends on its ability to accurately underwrite risks and to charge adequate premiums to policyholders.
  • The Company’s insurance rates are subject to approval by the departments of insurance in most of the states in which the Company operates, and to political influences.
  • The effects of emerging claim and coverage issues on the Company’s business are uncertain and may have an adverse effect on the Company’s business.
  • Loss of, or significant restriction on, the use of credit scoring in the pricing and underwriting of personal lines products could reduce the Company’s future profitability.
  • If the Company cannot maintain its A.M. Best ratings, it may not be able to maintain premium volume in its insurance operations sufficient to attain the Company’s financial performance goals.
  • The Company may require additional capital in the future, which may not be available or may only be available on unfavorable terms.
  • Changes in market interest rates, defaults on securities and tax considerations may have an adverse effect on the Company’s investment portfolio, which may adversely affect the Company’s financial results.
  • Changes in the financial strength ratings of financial guaranty insurers issuing policies on bonds held in the Company’s investment portfolio may have an adverse effect on the Company’s investment results.
  • Deterioration of the municipal bond market in general or of specific municipal bonds held by the Company may result in a material adverse effect on the Company’s financial condition, results of operations, and liquidity.
  • If the Company’s loss reserves are inadequate, its business and financial position could be harmed.
  • There is uncertainty involved in the availability of reinsurance and the collectability of reinsurance recoverable.
  • The failure of any loss limitation methods employed by the Company could have a material adverse effect on its financial condition or results of operations.
  • The Company’s business is vulnerable to significant catastrophic property loss, which could have an adverse effect on its financial condition and results of operations.
  • The Company depends on independent agents who may discontinue sales of its policies at any time.
  • The Company’s expansion plans may adversely affect its future profitability.
  • Any inability of the Company to realize its deferred tax assets, if and when they arise, may have a material adverse effect on the Company’s financial condition and results of operations.
  • The Company relies on its information technology systems to manage many aspects of its business, and any failure of these systems to function properly or any interruption in their operation could result in a material adverse effect on the Company’s business, financial condition, and results of operations.
  • Changes in accounting standards issued by the Financial Accounting Standards Board (the "FASB") or other standard-setting bodies may adversely affect the Company’s consolidated financial statements.
  • The Company’s disclosure controls and procedures may not prevent or detect acts of fraud.
  • Failure to maintain an effective system of internal control over financial reporting may have an adverse effect on the Company’s stock price.
  • The ability of the Company to attract, develop and retain talented employees, managers and executives, and to maintain appropriate staffing levels, is critical to the Company’s success.
  • Uncertain economic conditions may negatively affect the Company’s business and operating results.
  • The private passenger automobile insurance industry is highly competitive, and the Company may not be able to compete effectively against larger or better-capitalized companies.
  • The Company may be adversely affected by changes in the private passenger automobile insurance industry.
  • The Company cannot predict the impact that changing climate conditions, including legal, regulatory and social responses thereto, may have on its business.
  • Changes in federal or state tax laws could adversely affect the Company’s business, financial condition, results of operations, and liquidity.
  • The insurance industry is subject to extensive regulation, which may affect the Company’s ability to execute its business plan and grow its business.
  • Regulation may become more restrictive in the future, which may adversely affect the Company’s business, financial condition, and results of operations.
  • Assessments and other surcharges for guaranty funds, second-injury funds, catastrophe funds, and other mandatory pooling arrangements may reduce the Company’s profitability.
  • The insurance industry faces litigation risks, which, if resolved unfavorably, could result in substantial penalties and/or monetary damages, including punitive damages. In addition, insurance companies incur material expenses defending litigation and their results of operations or financial condition could be adversely affected if they fail to accurately project litigation expenses.
  • The Company is controlled by a small number of shareholders who will be able to exert significant influence over matters requiring shareholder approval, including change of control transactions.
  • Future equity or debt financing may affect the market price of the Company’s common stock and rights of the current shareholders, and the future exercise of options and granting of shares will result in dilution in the investment of the Company’s shareholders.
  • Applicable insurance laws may make it difficult to effect a change of control of the Company or the sale of any of its Insurance Companies.
  • Although the Company has consistently paid increasing cash dividends in the past, it may not be able to pay or continue to increase cash dividends in the future.
Management Discussion
  • Net premiums earned and net premiums written in 2019 increased 6.9% and 6.8%, respectively, from 2018. The increase in net premiums earned and net premiums written was primarily due to higher average premiums per policy arising from rate increases in the California private passenger automobile and homeowners lines of insurance business and growth in the number of homeowners policies written in California.
  • The Company, which predominantly offers six-month personal automobile insurance policies, reintroduced twelve-month personal automobile policies for new business in MIC, its largest insurance subsidiary, in March 2018. Twelve-month policies are generally sold for twice the price of six-month policies. MIC's net premiums written from twelve-month policies in 2019 and 2018 was approximately $354 million and $205 million, respectively.
  • Net premiums earned included ceded premiums earned of $56.7 million and $48.9 million in 2019 and 2018, respectively. Net premiums written included ceded premiums written of $43.8 million and $56.0 million in 2019 and 2018, respectively. The increase in ceded premiums earned resulted mostly from an increase in reinsurance coverage and rates, growth in the covered book of business, and an increase in reinstatement premiums following the Camp and Woolsey Fires in the fourth quarter of 2018 that caused higher losses than the wildfires in the fourth quarter of 2017. The decrease in ceded premiums written resulted mostly from an increase in ceded reinstatement premiums in the second half of 2018 following the major wildfires in Northern and Southern California, coupled with reductions in ceded reinstatement premiums in the first quarter of 2019 as a result of a decrease in estimated total losses and reinsurance benefits for the Camp and Woolsey Fires, as described further in Note 12. Loss and Loss Adjustment Expense Reserves of the Notes to Consolidated Financial Statements, partially offset by an increase in ceded premiums written due to higher reinsurance coverage and rates as well as growth in the covered book of business.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Bad
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