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Added to YB: 2025-01-14

Pitch date: 2025-01-13

MCY [bearish]

Mercury General Corporation

-102.03%

current return

Author Info

No bio for this author

Company Info

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States.

Market Cap

$4.9B

Pitch Price

$46.19

Price Target

N/A

Dividend

1.45%

EV/EBITDA

6.56

P/E

11.08

EV/Sales

0.72

Sector

Insurance

Category

N/A

Show full summary:
California Wildfire Threats Put Mercury General’s Financial Health in Jeopardy

MCY: 6% CA market share in fire/homeowners. $1.2B surplus, 72% solvency ratio. $1.29B reinsurance above $150M retention. FAIR plan undercapitalized. $20-30B potential losses could wipe out 60-90% of MCY's cushion. Capital raise likely. Reinsurance reinstatement may not cover additional losses due to single event clauses.

Read full article (2 min)