Mercury General Corporation (Mercury General) and its subsidiaries primarily engage in writing personal automobile insurance through 12 insurance subsidiaries (referred to herein collectively as the ‘Insurance Companies’) in 11 states, principally California.
The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance. The company's insurance policies are mostly sold through independent agents who receive a commission for selling...
Mercury General Corporation (Mercury General) and its subsidiaries primarily engage in writing personal automobile insurance through 12 insurance subsidiaries (referred to herein collectively as the ‘Insurance Companies’) in 11 states, principally California.
The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance. The company's insurance policies are mostly sold through independent agents who receive a commission for selling policies. The company has thorough underwriting and claims handling processes that, together with its agent relationships, provide the company with competitive advantages.
The company offers the following types of automobile coverage: collision, property damage, bodily injury (‘BI’), comprehensive, personal injury protection (‘PIP’), underinsured and uninsured motorist, and other hazards.
The company offers the following types of homeowners coverage: dwelling, liability, personal property, and other coverages.
Production and Servicing of Business
The company sells its policies through a network of approximately 6,340 independent agents, its 100% owned insurance agencies, AIS and PoliSeek, and directly through internet sales portals. Approximately 1,700, 1,050, and 1,040 of the independent agents are located in California, Florida, and Texas, respectively. The independent agents and agencies are independent contractors selected and contracted by the company and generally also represent competing insurance companies. Certain of these independent agencies are under the common ownership of a parent company; however, they each operate autonomously with their own contractual agreements with the company and hence are accounted for as separate independent agencies. Excluding AIS and PoliSeek, independent agents and agencies collectively accounted for approximately 89% of the company’s direct premiums written in 2024 and no single independent agent or agency accounted for more than 1.9% of the company’s direct premiums written during any of the last three years. AIS and PoliSeek represented the company as independent agencies prior to their acquisition in 2009, and continue to act as independent agencies selling policies for a number of other insurance companies. Policies sold directly through the internet sales portals are assigned to and serviced by the company’s agents and agencies, including AIS and PoliSeek.
Underwriting
The company sets its own automobile insurance premium rates, subject to rating regulations issued by the Department of Insurance or similar governmental agency of each state in which it is licensed to operate (‘DOI’). Each state has different rate approval requirements.
The company offers standard, non-standard, and preferred private passenger automobile insurance in 11 states. The company also offers homeowners insurance in 10 states, commercial automobile insurance in 4 states, and mechanical protection insurance in most states.
Claims
The company conducts the majority of claims processing without the assistance of outside adjusters. The claims staff administers all claims and manages all legal and adjustment aspects of claims processing.
Regulation
The DOI in each state in which the company operates is responsible for conducting periodic financial and market conduct examinations of the Insurance Companies in their states.
History
Mercury General Corporation was founded in 1961.