Company did not provide specific guidance or outlook for future periods
Overview
U.S. auto and homeowners insurer's Q2 net premiums earned rose 9.6% yr/yr
Q2 net income increased 58% yr/yr; operating income up 32%
Combined ratio improved to 89.9% from 92.5% a year earlier
Result drivers
Catastrophe losses - Co said Q2 catastrophe losses were mainly due to adverse reserve development from prior wildfires and storm losses in Texas and Oklahoma
Favorable reserve development - Co said favorable development on prior accident years' loss reserves was mainly attributable to lower than estimated losses in the automobile line
Investment income - Co said higher net investment income was due to higher average invested assets, though yields declined due to more tax-exempt investments and lower short-term market rates
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Mercury General Corp is $120.00, about 11.9% above its August 3 closing price of $107.26
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
MCY•
