Mercury General (MCY) FY2025 results: revenue $6.0 billion, up 9.4% on the year
Mercury General Corp. (MCY) reported revenue of $6.0 billion for fiscal 2025, the year ended 31 December 2025, up 9.4% on the year before. Net income was $541 million, up 15.6%, and diluted earnings per share $9.77. The figures are the company's own, from the 10-K it filed with the SEC on 17 February 2026.
Revenue
$6.0 billion
+9.4% on the year
FY2018FY2025
Operating margin
11.1%
10.5% a year earlier
FY2018FY2025
Net income
$541 million
+15.6% on the year
FY2018FY2025
Diluted EPS
$9.77
+15.6% on the year
FY2018FY2025
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 1 new, 1 kept.
Quarter net income more than doubled: Net income was $202.5 million, or $3.66 per diluted share, against $101.1 million, or $1.82 per diluted share, a year earlier. Operating income per diluted share was $3.66 against $2.78.
Fourth quarter combined ratio at 88.6%: Combined ratio was 88.6% for the quarter against 91.4% a year earlier, and 96.3% for the full year against 96.0%.
Wildfire net cost about $380 million: Net catastrophe losses and loss adjustment expenses from the two fires, before taxes, totaled about $380 million for 2025. Gross losses were $2.19 billion, with $1.29 billion recovered from reinsurance.
Eaton subrogation estimate raised: The company estimates $538 million of subrogation recovery from Southern California Edison on the Eaton fire, about 55% of estimated ultimate losses. The September 30 estimate was $527 million.
Catastrophe reinsurance layers exhausted: The treaty year ended June 30, 2025 limits were fully used on the two fires. Reinstatement premiums of $101 million were paid and recorded as reductions to net premiums earned and written.
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2025
FY2024
FY2023
On the year
Last 8 years
Operating cash flow
1,087
1,037
453
+4.8%
Capital expenditure
58.4
46.1
36.8
+26.6%
Free cash flow
1,029
991
416
+3.8%
Free cash flow margin
17.2%
18.1%
9.0%
Cash from investing
-420
-797
-295
Cash from financing
-71.7
-71.1
104
Depreciation and amortisation
75.0
73.4
72.2
+2.1%
Share-based compensation
14.6
4.6
0.0
+214.8%
Dividends paid
70.3
70.3
70.3
+0.0%
Dividend per share
$1.27
$1.27
$1.27
0.0%
Diluted shares, weighted
55m
55m
55m
+0.0%
Shares outstanding at period end
55m
55m
55m
0.0%
Balance sheet
$ million
FY2025
FY2024
FY2023
On the year
Last 8 years
Shareholders' equity
2,417
1,947
1,548
+24.2%
Debt
575
575
575
0.0%
Other liabilities
6,568
5,789
4,980
+13.5%
Total liabilities and equity
9,561
8,311
7,103
+15.0%
Fixed assets
147
138
151
+6.3%
Goodwill
42.8
42.8
42.8
0.0%
Intangible assets
6.8
7.7
8.3
-11.1%
Cash and equivalents
1,316
720
551
+82.7%
Other assets
8,049
7,402
6,350
+8.7%
Total assets
9,561
8,311
7,103
+15.0%
10-K for the year ended 31 December 2025, filed 17 February 2026: the filing.