At a glance
Mercury General Corporation is worth $5.55B, about 10 times its fiscal 2025 earnings. Revenue grew 9.4% to $5.99B in fiscal 2025, with 9.0% kept as profit; over 5 years it has grown 9.6% a year. It pays a 1.28% dividend yield, and returned $456.7M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +32.2% over the past year with dividends reinvested and +15.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 32.0% in the 2020 crash (S&P 500: 33.7%) and 48.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 18 months after the lows.
The business in plain English
Mercury General is an insurance holding company based in Los Angeles. A holding company owns the companies that actually issue the policies. Mercury has 12 insurance subsidiaries in 11 states, and they mainly write car insurance for individual drivers. It also offers homeowners, commercial auto, commercial property, umbrella (extra liability) and mechanical protection coverage. The business traces back to Mercury Casualty Company, a California auto insurer founded in 1961 by George Joseph. He was chairman of the board as of the annual report filed in February 2026.
It makes money in two ways. First, it collects premiums and aims to pay out less in claims and expenses than it takes in. Second, it invests that money, including in municipal bonds, until claims come due. For 2025, revenue was about $5.99 billion and net income was $541 million.
In 2025, Mercury's direct premiums written totaled about $5.98 billion. These are the premiums on policies it wrote, before passing any to reinsurers, which take on part of its risk. Private passenger auto made up 60.0%, homeowners 27.3%, commercial auto 6.5% and other lines 6.2%. California supplied 82.1%, Texas 6.7% and all other states 11.2%. Not counting its own agencies, independent agents produced about 88% of those premiums, and these agents also represent rival insurers. Mercury also reaches customers through two agencies it owns, AIS and PoliSeek, and through online portals.
Price history
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MCY +32.2% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.68B, up 13.8% from a year earlier, and net income was $263.5M (+58.3%).
- For fiscal 2025, revenue was $5.99B (+9.4% year over year; +9.6% a year from FY2020 to FY2025) with a 9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.6% good |
|---|---|
| Free cash flow margin | 17.2% good |
| Return on equity (FY2025) | 22.4% good |
| Return on assets (FY2025) | 5.7% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.78B | $374.6M | $565.7M |
| FY2021 | $3.99B | $247.9M | $460.1M |
| FY2022 | $3.64B | $-512.7M | $317.1M |
| FY2023 | $4.63B | $96.3M | $416.2M |
| FY2024 | $5.48B | $468.0M | $991.0M |
| FY2025 | $5.99B | $541.1M | $1.03B |
Valuation snapshot
| Market value | $5.55B |
|---|---|
| P/E ratio | 10.3 |
| Dividend yield | 1.28% |
Rank among 1514 US companies
Market value at each year end
Mercury General’s market value went from $3.33B at the end of 2016 to $5.55B on Oct 28, 2026, up 67%; since the end of 2025 it is up 6%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.55B | +6.5% |
| 2025 | $5.21B | +41.5% |
| 2024 | $3.68B | +78.2% |
| 2023 | $2.07B | +9.1% |
| 2022 | $1.89B | -35.5% |
| 2021 | $2.94B | +1.7% |
| 2020 | $2.89B | +7.1% |
| 2019 | $2.70B | -5.7% |
| 2018 | $2.86B | -3.2% |
| 2017 | $2.96B | -11.1% |
| 2016 | $3.33B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MCY price data to Oct 28, 2026 | +7.6% | +32.2% | +53.0% | +15.4% | +11.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.6% |
| 2025 | +44.1% |
| 2024 | +82.3% |
| 2023 | +13.6% |
| 2022 | -32.6% |
| 2021 | +6.2% |
| 2020 | +13.7% |
| 2019 | -1.2% |
| 2018 | +1.7% |
| 2017 | -7.2% |
| 2016 | +35.3% |
| 2015 | -13.8% |
| 2014 | +19.9% |
| 2013 | +32.5% |
| 2012 | -7.8% |
| 2011 | +12.6% |
| 2010 | +15.9% |
| 2009 | -8.3% |
| 2008 | -3.0% |
| 2007 | -1.8% |
| 2006 | -6.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 55.4% over that stretch · deepest drop along the way 62.9%, back to its old high 54.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32% over that stretch · deepest drop along the way 32%, back to its old high 8.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 42.4% over that stretch · deepest drop along the way 48.3%, back to its old high 17.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 7.3% | Mar 31, 2025 |
ETFs with the most weight in MCY
| KBWP Invesco KBW Property & Casualty Insurance ETF | 2.73% |
| FSGS First Trust SMID Growth Strength ETF | 1.23% |
| XSVM Invesco S&P SmallCap Value with Momentum ETF | 0.74% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.72% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.52% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.47% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.43% |
| BUYO KraneShares Man Buyout Beta Index ETF | 0.37% |
What could go wrong
- Heavy dependence on California. About 85% of Mercury's direct auto premiums written in 2025 came from California. Changes in that one state's rules, courts, economy or competition could hit results harder than at an insurer spread across many states.
- Rate increases need regulators' approval. Regulators in most of its states must approve Mercury's rates, and the company says rates are also subject to political influences. If approvals lag behind rising claim costs, it may be stuck charging too little.
- Claim costs can outrun prices and reserves. Mercury must forecast how often claims happen and what they will cost. Medical inflation and rising repair, parts and used-car prices can leave premiums and loss reserves (money set aside for claims) too low.
- Large disasters and limits of reinsurance. Homeowners made up about 27% of 2025 direct premiums written. One catastrophe can trigger many property claims at once, and reinsurance (insurance the company purchases for itself) may be unavailable or hard to collect.
- Reliance on independent agents. Independent agents, not counting Mercury's own agencies, produced about 88% of 2025 direct premiums written. They also represent rival insurers and can stop offering Mercury's policies at any time.
- A small group can steer votes. Mercury says a small number of shareholders can exert significant influence over shareholder votes, including on any sale of the company. Insurance laws also make a takeover harder, which can limit outside shareholders' say.
Recent events
- Investor presentation or announcement
- Quarterly results released
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Major agreement signed; New debt or financial obligation; Other company announcement
- Other company announcement
- Shareholder vote results
- Quarterly results released
- Quarterly results released
- Quarterly results released
For income and retirement investors
Mercury says it has consistently paid cash dividends, but the dividend has shrunk rather than grown. The annual dividend was about $2.53 a share in 2021. It fell to $1.91 in 2022, a year with a $513 million net loss, then to $1.27, where it stayed from 2023 through 2025. In 2025 that dividend used about 13% of earnings and 6.8% of free cash flow (the cash the business generated after its spending). The dividend yield was 1.28% as of October 28, 2026. Mercury repurchased no shares from 2021 through 2025, so its share count barely moved.
The stock has fallen hard in market downturns. From peak to low, it fell 62.9% in the 2008 financial crisis and did not regain that peak until September 2013. It fell 32% in the 2020 COVID crash and recovered by December 2020. It fell 48.3% in 2022 and recovered by March 2024. Single stocks carry more risk than diversified funds, because other holdings don't offset one company's setbacks.
Questions investors ask
How does Mercury General make money?
Mercury General makes money mainly from car insurance. It collects premiums, pays claims and expenses, and invests the money in between, including in municipal bonds. In 2025 its direct premiums written totaled $5.98 billion. These are premiums on policies it wrote, before reinsurance. Private passenger auto made up 60.0%, homeowners 27.3%, commercial auto 6.5% and other lines 6.2%. Most policies come through independent agents. Revenue was about $5.99 billion and net income $541 million in 2025.
Does Mercury General raise its dividend every year?
No. Mercury has paid cash dividends consistently, but it has cut them rather than raised them. The annual dividend fell from about $2.53 a share in 2021 to $1.91 in 2022 and $1.27 in 2023, then held at $1.27 through 2025. From 2020 to 2025, that works out to a drop of about 12.8% a year. The 10-K warns that the company may not be able to pay or increase dividends in the future. The dividend yield was 1.28% as of October 28, 2026.
How much of Mercury General's business is in California?
Most of it. California produced 82.1% of Mercury's $5.98 billion of direct premiums written in 2025. It also produced about 85% of direct auto premiums written. Texas added 6.7% of the total, and the other states together added 11.2%, with no single state above 5%. Mercury writes auto insurance in 11 states. Even so, California's regulators, courts and economy have an outsized effect on its results.
How has Mercury General stock performed?
Strongly over the past few years, with sharp swings. As of October 28, 2026, the share price was up 32.2% over one year. It had gained an average of about 15.4% a year over five years and 11.4% a year over 10 years. The shares fell 32.6% in 2022, then rose 82.3% in 2024 and 44.1% in 2025. In the three years to October 28, 2026, the deepest drop from a high to a low was 40%.
What is Mercury General's P/E ratio?
About 10.3, based on the closing price as of October 28, 2026, and 2025 diluted earnings of $9.77 a share. The P/E ratio is the share price divided by yearly earnings per share. The company's market value was about $5.5 billion on that date. Insurance profits swing sharply: Mercury lost $9.26 a share in 2022 and earned $1.74 in 2023. Several years of results, and other property and casualty insurers, are worth comparing before leaning on one year's P/E.