Mercury General Corporation announces $36m estimated Q4 cat losses
US insurer Mercury General Corporation has reported estimated catastrophe losses for the quarter ended December 31, 2019 of $36 million (approximately $28 million net of tax), primarily as a result of the wildfires in California.
A series of wildfires occurred in California during the quarter ended December 31, 2019, the largest of which were the Saddleridge Fire in Southern California and the Kincade Fire in Northern California.
The company's total pre-tax catastrophe losses reported for the year ended December 31, 2019 are estimated to be approximately $53 million (approximately $42 million net of tax). Again, this is primarily resulting from the catastrophes that occurred during the quarter ended December 31, 2019, with the remainder resulting from weather-related catastrophes across several states that occurred during the first three quarters of 2019.
The company's total pre-tax catastrophe losses reported for the quarter and year ended December 31, 2019 include favourable development of approximately $1 million and $4 million, respectively, on prior periods' catastrophe losses.
There were no reinsurance benefits available under the company's catastrophe reinsurance treaty for the catastrophe losses resulting from the catastrophes that occurred during 2019, as none of the 2019 catastrophe events resulted in losses in excess of the company's per-occurrence retention limit under the treaty of $10 million for the 12 months ended June 30, 2019 and $40 million for the 12 months ended June 30, 2020.
Mercury General Corporation and its subsidiaries are a multiple line insurance organisation offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states.
