LOS
ANGELES, Jan. 10, 2025 /PRNewswire/ -- Mercury
General Corporation (the "Company," "Mercury" or "We") announced
today its preliminary assessment of the impact of the recent
wildfires in Southern
California.
An extreme wind-driven wildfire event that began on January 7, 2025 has caused widespread damage
across parts of Southern
California. The wildfires continue to burn, and it will be
some time before the Company has an estimate of the total losses
caused by this event. Based on information available to date, we
expect the losses to exceed our reinsurance retention level of
$150 million.
The Company's reinsurance program provides $1,290 million of limits on a per occurrence
basis after covered catastrophe losses exceed the Company's
retention of $150 million. The
Company's reinsurance program also provides coverage for
assessments from the California FAIR plan. To the extent that
losses are reinsured, the reinsurance program calls for
reinstatements of limits to cover future events. If the full
$1,290 million limits are used up,
then the total reinstatement premium would be $101 million.
Mercury claims adjusters are helping our customers with their
claims and providing assistance during this difficult time of need.
For policyholders seeking further guidance on the claims filing
process, detailed information can be found at the Company's online
claims portal
at: https://www.mercuryinsurance.com/claims/residence-claim.html.
About Mercury General Corporation
Mercury General Corporation and its subsidiaries are a multiple
line insurance organization offering predominantly personal
automobile and homeowners insurance through a network of
independent producers and direct-to-consumer sales in many states.
For more information, visit the Company's website at
www.mercuryinsurance.com.
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" for certain forward-looking statements. Certain
statements contained in this report are forward-looking statements
based on the Company's current expectations and
beliefs concerning future developments and their potential effects
on the Company. There can be no assurance that future developments
affecting the Company will be those anticipated by the Company.
Actual results may differ from those projected in the
forward-looking statements. These forward-looking statements
involve significant risks and uncertainties (some of which are
beyond the control of the Company) and are subject to change based
upon various factors, including but not limited to the following
risks and uncertainties: changes in the demand for the
Company's insurance products, inflation and general
economic conditions, including general market risks associated with
the Company's investment portfolio; the accuracy and
adequacy of the Company's pricing methodologies;
catastrophes in the markets served by the Company; uncertainties
related to estimates, assumptions and projections generally; the
possibility that actual loss experience may vary adversely from the
actuarial estimates made to determine the Company's
loss reserves in general; the Company's ability to
obtain and the timing of the approval of premium rate changes for
insurance policies issued in the states where it operates;
legislation adverse to the automobile insurance industry or
business generally that may be enacted in the states where the
Company operates; the Company's success in managing
its business in non-California
states; the presence of competitors with greater financial
resources and the impact of competitive pricing and marketing
efforts; the Company's ability to successfully allocate the
resources used in the states with reduced or exited operations to
its operations in other states; changes in driving patterns and
loss trends; acts of war and terrorist activities; pandemics,
epidemics, widespread health emergencies, or outbreaks of
infectious diseases; court decisions and trends in litigation and
health care and auto repair costs; and legal, cybersecurity,
regulatory and litigation risks. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as the result of new information, future events
or otherwise. For a more detailed discussion of some of the
foregoing risks and uncertainties, see the Company's
Annual Report on Form 10-K filed with the United States Securities
and Exchange Commission on February 13,
2024.
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SOURCE Mercury General Corporation
