默邱利通用 2025年度报告

Financial Highlights For over six decades, Mercury has proven itself to be a solid investment, committed to buildingthe kind of financial strength that yields security for its policyholders and consistent returns forits shareholders. Source for Industry Data:A.M. Best Company, for Private PassengerAutomobile line of all Property and Casualty insurance companies.Combined Ratio for Mercury General:for Private PassengerAutomobile line of business only for comparison with the industry ratio. Operating Leverage(Net Premiums Written/Policyholders’ Surplus as ratio) Mercury General Corporation (NYSE: MCY) is a leading independentagency writer of automobile and home insurance in California, and isranked as the eighth largest private passenger automobile insurer inCalifornia with total assets of more than $9.5 billion.* *Source:AnnualReportonForm10-KfiledwiththeU.S.SecuritiesandExchangeCommission on February 17, 2026. Letter to Shareholders Our purpose is to help customers prepare for and overcome life’s unexpected challenges and in2025, we delivered on that promise with our response to the Southern California wildfires thatdestroyed much of Pacific Palisades and Altadena (the Wildfires). Our team has fielded over2,900 claims from the Wildfires, 794 of which were residential and commercial property totallosses. To date, over $1.4 billion in payments have been made to insureds and our expectationis that approximately $2.2 billion will be paid when all claims are closed. A letter we receivedfrom one of our customers, shown below, exemplifies our commitment to helping our insureds intheir time of need. We are proud of our team members who continue to deliver on our purposeby helping insureds who have entrusted us with their protection. LastyearwesaidthatthefinancialimpactfromtheWildfireswould be a 2025 earnings event and not a capital event asreinsurance coverage, subrogation and strong underlyingoperatingresults,whichexcludecatastrophelosses,wouldmorethanoffsetthefinanciallossfromtheWildfires.Andnow,withthebenefitofhindsight,weknowourbeliefwascorrect.In fact, as discussed in more detail below, 2025 was a recordyear for the Company in many respects including premiumswritten, operating earnings and stock price. Customer letterabout spotlightedteam member: Susanne EllerProp Mid Loss Examiner Dear Ms. Peterson, I am writing to let you know howwonderful it is to be working withSusanne Elleron myMercuryInsurance Homeowners claim. Myhouse in Pacific Palisades sustainedlead contamination which requiredextensive remediation. AlthoughwenavigatedtheWildfiresverywell,wecontinuetoevolve our view of risk by considering updates to catastrophemodels, the availability and pricing of reinsurance, the abilitytoobtainsufficientratesinatimelymanner,individualriskacceptability,concentrationriskandourexposuretotheFAIRPlan. In 2025 we invested in a team of climate scientists tobettermanageourcatastropherisk.Ourexpectationisthatour climate scientist team will improve our catastrophe models,allowing us to better price and underwrite catastrophe riskas well as help manage our concentration risk. And to furtherprotect our balance sheet from catastrophe risk, we increasedourcatastrophereinsurancecoveragesignificantlyin2025.The total reinsurance limit purchased increased from $1,290million in the prior period to $2,140 million for the July 2025through June 2026 period. Throughout this ongoing processSusannehas been accessible andresponsive to my many questions.She explained the various proceduresrequired to get my house back to ahabitable state. She is also emotionallysupportive, calming me when I getoverwhelmed. Because of my interactions withSusanne, I have spoken very positivelyabout my experience withMercuryInsurance. So much so that a friend isswitching her homeowners policy toMercury Insurance. DespitethesignificantnegativefinancialimpactfromtheWildfires, our 2025 operating results improved upon ourrecordsetting2024resultsasafter-taxoperatingearningsof $7.90 per share in 2025 surpassed 2024 operating earningsper share of $7.19. Improved underlying results in both ourpersonalandcommerciallinesofbusinessmorethanoffsetlossesfromthedevastingWildfiresandothercatastrophes.Our combined ratio was 96.3% in 2025 compared to 96.0% in2024,butexcludingnetcatastrophelossesandreinsurancereinstatement premiums our combined ratio was 85.5% in 2025compared to 90.5% in 2024. Net catastrophe losses were $508million in 2025, the highest in the Company’s history, comparedto $277 million in 2024 and contributed 9.2 points and 5.5points to the 2025 and 2024 combined ratio, respectively. Our2025operatingresultsalsobenefitedfromgrowthinearnedpremiums and investment income as discussed below. I want to make sure thatSusanne’shard work and skill do not gounnoticed. With appreciation, Carole E. Outstandi