默邱利通用 2024年度报告

We help our customers prepare for andovercome life's unexpected challenges. Our Promise “Every claim we receive at Mercury is an opportunity to fulfill a promise. That promise is thatwe will be there for our policyholders in their time of need.When we have catastrophic eventslike the recent wildfires, it is a reminder how important it is to keep that promise. I would like tothank all of our team members involved in the wildfire response for their tireless efforts onbehalf of our insureds and Mercury.” Randy PetroVP, Chief Claims Officer Letter to Shareholders Before we review our 2024 results, we will discuss the impact of the January 2025 SouthernCalifornia wildfires that destroyed much of Pacific Palisades and Altadena (the Palisades andEaton wildfires, respectively, and collectively, the Wildfires). The combination of extreme windsand critically dry vegetation created the conditions for these massive firestorms. The Wildfireshave had a devastating impact on communities and individuals as over 17,000 structures weredestroyed, 29 lives were lost, and tens of thousands of people no longer had homes to come hometo. In times like these, our role as insurance professionals is even more critical. Our purpose isto help our customers prepare for and overcome life’s unexpected challenges. We are so proudof our customer facing team members, especially our claims team, who are delivering on ourpurpose by demonstrating an unwavering commitment to helping our fellow Californians whohave entrusted us with their protection. Our thoughts are with all those affected by the Wildfires. We believe the financial impact from the Wildfires willbe a 2025 earnings event and not a capital event. This isprimarily due to our reinsurance coverage, our option toclassify the Wildfires as one or two events for reinsurancepurposes, the potential for subrogation and our favorablecore underlying results, which exclude catastrophe losses.We estimate our pre-tax gross catastrophe losses fromthe Wildfires before our share of FAIR PLAN losses tobe in the range of $1.6 billion to $2.0 billion, and our netpre-tax catastrophe losses from the Wildfires, which isafter reinsurance and estimated subrogation but beforeFAIR PLAN losses, to be $155 million to $325 million. Andalthough there is some uncertainty regarding our share ofWildfire losses from the FAIR PLAN, we believe our shareof Wildfire losses from the FAIR PLAN is manageablebased on early loss numbers provided by the FAIR PLAN.We also estimate reinsurance reinstatement premiumto be $80 million to $101 million and will be pro-ratedbetween the first and second quarter of 2025. However,as we discuss below, we expect favorable core underlyingearnings to continue into 2025 which will help offset thefinancial impact from the Wildfires. Customer testimonialabout spotlightedteam member: “A key part of my positive experiencehas been working with you, Elisa.I hope that, after all the hours we’vespent going over my claim, youremain on it. This is especially truefor a single, working parent like mewho already had too much on hisplate before our house burned down. Thanks, as always, for consideringmy family’s needs!” Our future view of wildfire risk will factor in the Wildfiresand related updates to catastrophe models, availabilityand pricing of reinsurance, ability to obtain rates in a timelyand sufficient manner to support writing homeownersbusiness, risk acceptability for individual risks, risktolerance for concentrations of risk and our exposureto the FAIR PLAN. We will learn from these Wildfiresand make the necessary adjustments. The CaliforniaInsurance Commissioner’s Sustainable InsuranceStrategy, which among other things, allows the useof catastrophe models and the cost of reinsurance inpricing is a good step towards improving the Californiahomeowners market. We monitor and manage our catastrophe exposure fromCalifornia wildfires and other catastrophes by limiting ourconcentration in certain areas of a state, utilizing toolsto better underwrite individual properties, and utilizingreinsurance. In 2024 we increased our catastrophereinsurance coverage. The total reinsurance limitpurchased increased from $1,111 million in the prior periodto $1,290 million for the July 2024 through June 2025period. Total annual premiums on the new reinsuranceprogram are approximately $105 million.When we renewour reinsurance treaty in July 2025, we expect to increasethe limits we purchase, but also anticipate our reinsurancerates and current retention of $150 million to increase. Turning to our 2024 results, 2024 was a year for therecord books. Our 2024 after-tax operating income of$7.19 per share, compared to $.30 per share in 2023, wasthe highest in the Company’s history. The improvementin operating earnings was due to a reduction in thecombined ratio from 105.4% in 2023 to 96.0% in 2024,and an increase in after-tax investment income of $35.2million, from $200.2 million in 2023 to $235.4 million in2024.