Mercury General Corp (NYSE:MCY)

CAPS Rating: 5 out of 5

The Company and its subsidiaries are engaged primarily in writing automobile insurance in a number of states, principally California.

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Member Avatar afewgoodstocks14 (< 20) Submitted: 6/11/2014 6:48:16 PM : Outperform Start Price: $41.71 MCY Score: +8.46

Div. (Yield) $2.46 (5.2%)
Current Yield . . . . . 5.7%

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Member Avatar SnowBawl (< 20) Submitted: 3/5/2013 9:32:17 AM : Outperform Start Price: $34.51 MCY Score: +13.23

Fidelity dividend growers.

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Member Avatar udyr (< 20) Submitted: 2/19/2013 12:57:47 PM : Outperform Start Price: $35.21 MCY Score: +9.52

Low P/B with a large dividend

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Member Avatar imabugger (65.84) Submitted: 8/3/2011 5:47:13 PM : Outperform Start Price: $31.11 MCY Score: -1.96

lots of stupid people don't care about coverage or financial strength, just give them the low down payment.

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Member Avatar ostram (26.67) Submitted: 9/1/2010 1:38:43 PM : Outperform Start Price: $30.80 MCY Score: -24.19

The company has $60 per share cash on hand and is trading around $40. It also has a 6% dividend. Assuming their underwriting does a decent job, this stock should go up from here.

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Member Avatar boghead (87.80) Submitted: 3/11/2010 4:33:29 AM : Outperform Start Price: $32.83 MCY Score: -23.51

Following HealthyInvestor.

A very good dividend on a company trading at a decent price.

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Member Avatar NetscribeInsuran (29.85) Submitted: 3/1/2007 8:33:38 AM : Underperform Start Price: $34.50 MCY Score: +9.11

Headquartered in Los Angeles, Mercury General Corporation (MCY) and its subsidiaries are engaged primarily in writing automobile insurance principally in California and other thirteen states. With more than 4,900 independent agents and brokers, the company offers a variety of products for homeowners but private passenger automobile lines of insurance stands as its principal business, accounting for approximately 84% of the $3 billion of the total direct premiums written in 2006.

For 2006, Mercury General Corporation's revenues increased 5% to $3 billion due to increased earned premium. But conversely, its net income decreased 15% to $214.8 million due to higher paid losses and loss adjustment expenses, increase in policy acquisition costs and increased loss reserves in Florida. The combined ratio of the company in 2006 was 95% compared to 92.4% for the 2005, which was primarily due to higher loss ratio.

Competitive marketplaces, safer cars, aggressive fraud-fighting and innovative underwriting are joining forces in 2007 to drive down the price of an essential financial product like automobile insurance as well as homeowner’s insurance in California and other parts of the county. This will reduce the premium collection per policy for the company and therefore it is expected that premium growth in California will slow down. Reflecting an already competitive environment, decreasing rates for both auto and homeowners and deteriorating underwriting results will impact the profitability of the company adversely.

Company has stopped providing a breakdown between California's auto and homeowners results, but based upon the slow growth described by many auto-only underwriters in California, it is believed that homeowners business is the primary driver of Mercury's recent premium growth in the state. As a result, Mercury's growth is expected to decelerate as its major competitors' rate decreases take effect on account of declining premium growth in California as well as other city operations in 2007. Thus in the near future the company does not seem to be a good bet.

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Member Avatar gecko10x (91.22) Submitted: 2/15/2007 2:17:25 PM : Outperform Start Price: $35.41 MCY Score: -5.99

undervalued

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Member Avatar GBOURSE (92.05) Submitted: 1/31/2007 2:39:46 PM : Outperform Start Price: $33.99 MCY Score: -2.37

Price & RSI

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Member Avatar neuroberks (< 20) Submitted: 12/13/2006 11:30:48 AM : Outperform Start Price: $34.46 MCY Score: -5.51

Strong farnchise in California market, which will grow more as uninsured drivres will be forced to get insurance. Change of control might be possible as Joseph, who holds 30% of stock, retired.

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Member Avatar orlyasa (< 20) Submitted: 8/25/2006 8:42:45 PM : Outperform Start Price: $32.48 MCY Score: -12.24

Hoping for better claims record so that their excellent marketing and maanagement can continue to provide the returns it has consistently provided. It has done well for me, I am loyal.

Results 1 - 11 of 11

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