Mercury General returns to profit as catastrophe losses plunge; California rate hikes approved

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Q1 2026 net income of $190M ($3.44/share) vs Q1 2025 loss of $108M, driven by catastrophe losses falling from $459M to $36M as wildfire claims normalized.

  MD&A: Financial Results verify on EDGAR →
• high

  California approved 6.9% homeowners rate increase (effective July 2026) and catastrophe modeling/reinsurance cost recovery in rates, improving pricing power in 17% of premium base.

  MD&A: California Regulatory Reforms verify on EDGAR →
• high

  Net premiums written grew 17.9% (vs 2.3% prior year) as reinsurance reinstatement charges ($101M in Q1 2025) disappeared and rate increases took effect.

  MD&A: Premium Growth verify on EDGAR →