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…
Earnings analysis · 10-Q
MCY earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.76
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.