MCY earnings analysis
What we found in MCY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Mercury General delivered a strong Q2, with revenue of $1.682 billion and diluted EPS of $4.76, up from $1.540 billion and $3.44, respectively, in Q1 2026 and from $1.480 billion and $3.01 in Q2 2025. The 89.9% combined ratio and $263.502 million of net income support favorable underwriting momentum. The filing provides no numeric forward guidance, while market-risk disclosures underscore meaningful sensitivity to rates and equity-market declines.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew sequentially and year over year
- Revenue was $1.682 billion, up approximately $142 million, or 9.2%, from $1.540 billion in Q1 2026 and approximately $202 million, or 13.6%, from $1.480 billion in Q2 2025.
- EPS accelerated to $4.76
- Diluted EPS was $4.76, increasing $1.32 from $3.44 in Q1 2026 and $1.75 from $3.01 in Q2 2025.
- Profitable underwriting result
- Net income was $263.502 million and the combined ratio improved to 89.9%, indicating profitable underwriting in the quarter.
- Fixed-income duration declined
- The fixed-maturity portfolio's modified duration declined to 4.1 years at June 30, 2026 from 4.4 years at December 31, 2025, reducing interest-rate sensitivity relative to year-end.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material interest-rate valuation exposure
- A hypothetical 100-basis-point rise in interest rates would reduce the fixed-maturity portfolio's fair value by an estimated $255.1 million; a 200-basis-point increase would reduce it by $510.3 million.
- Equity portfolio downside sensitivity
- A hypothetical 25% decline in the stock market would reduce the common-stock portfolio by an estimated $187.401 million; a 50% decline would imply a $374.801 million reduction.
- Portfolio credit quality softened
- The estimated weighted-average fixed-maturity credit rating was AA- at June 30, 2026, versus A+ at December 31, 2025. Although only 0.01% of taxable fixed maturities was below investment grade, credit-spread and counterparty risk remain relevant.
- No newly disclosed material risk-factor changes
- No material risk-factor update was reported: the company states that the risks identified in its 2025 Form 10-K "have not changed in any material respect." The disclosure includes $3.741 billion of municipal fixed maturities, including $488.639 million in Florida and $345.471 million in Texas.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.76
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance; management's forward-looking discussion is principally limited to investment-market sensitivity and liquidity/risk-management disclosures.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Mercury General Corporation (NYSE: MCY) reported Q1 2026 financial results with revenue of $1.54B, exceeding the consensus estimate of $1.461B and marking a 15% increase from the prior quarter. Diluted EPS stood at…
- 10-K · February 17, 2026
- Mercury General delivered a profitable 2025 with net income of $541.1M (diluted EPS $9.77) on total revenues of $5.99B, driven by higher net premiums earned ($5.506B) and stronger investment yields. The year included…
- 10-Q · November 4, 2025
- Mercury General reported a stronger Q3 with net premiums earned of $1,410,400,000 and diluted net income per share of $5.06 for the three months ended September 30, 2025. Underwriting improved (combined ratio 87.0% vs…
- 10-Q · May 6, 2025
- Mercury General reported a first-quarter net loss of $108.327 million (basic/diluted EPS $(1.96)) versus net income of $73.462 million (EPS $1.33) in Q1 2024, driven by $459 million of catastrophe losses from Southern…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing MCY makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever