<SEC-DOCUMENT>0000950150-01-500468.txt : 20011018
<SEC-HEADER>0000950150-01-500468.hdr.sgml : 20011018
ACCESSION NUMBER:		0000950150-01-500468
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20010730
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20010730

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MERCURY GENERAL CORP
		CENTRAL INDEX KEY:			0000064996
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				952211612
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12257
		FILM NUMBER:		1693153

	BUSINESS ADDRESS:	
		STREET 1:		4484 WILSHIRE BOULEVARD
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90010
		BUSINESS PHONE:		2139371060

	MAIL ADDRESS:	
		STREET 1:		LOS ANGELES
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a74450e8-k.htm
<DESCRIPTION>FORM 8-K DATED 7/30/2001
<TEXT>
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<TITLE>Mercury General Corporation, Form 8-K 7/30/2001</TITLE>
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></FONT>

<p>
<P align="center"><FONT size="2"><B>Form&nbsp;8-K</B></FONT>

<p>
<P align="center"><FONT size="2"><B>Current Report Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B></FONT>

<p>
<P align="center"><FONT size="2"><B>Date of Report (Date of earliest event reported): July&nbsp;30, 2001</B></FONT>

<p>
<P align="center"><FONT size="2"><B>Mercury General Corporation</B><BR>
(Exact name of registrant as specified in its charter)</FONT>

<p>
<CENTER>
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<TR valign="bottom">
        <TD width="34%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2"><B>California</B><BR>
(State or other<BR>
jurisdiction<BR>
of incorporation)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
<B>0-3681</B><BR>
(Commission<BR>
File Number)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2"><B>95-221-1612</B><BR>
(I.R.S. Employer<BR>
Identification No.)</FONT></TD>
</TR>
</TABLE>
</CENTER>

<p>
<P align="center"><FONT size="2"><B>4484 Wilshire Boulevard<BR>
Los Angeles, California 90010</B><BR>
(Address of principal executive offices, including zip code)</FONT>

<p>
<P align="center"><FONT size="2">Registrant&#146;s telephone number, including area code: <B>(323)&nbsp;937-1060</B></FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TR><TD></TD><TD colspan="8"><A HREF="#000">Item 5. Other Events.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item 7. Financial Statements, Pro Forma Financial Information and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="a74450ex99-1.txt">PRESS RELEASE DATED 7/30/2001</A></TD></TR>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Current Report on Form&nbsp;8-K is filed by Mercury General Corporation, a
California corporation (&#147;Mercury General&#148;), in connection with the matters
described herein.
</FONT>
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<DIV align="left"><A NAME="000"></A></DIV>
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<P align="left"><FONT size="2"><B>Item&nbsp;5.&nbsp;&nbsp;Other Events.</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;30, 2001, Mercury General issued a press release announcing
financial and certain other operational results for the quarter ended June&nbsp;30,
2001, a copy of which is attached hereto as Exhibit&nbsp;99.1 and is incorporated
herein by reference.
</FONT>
<!-- link2 "Item 7. Financial Statements, Pro Forma Financial Information and Exhibits" -->
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<P align="left"><FONT size="2"><B>Item&nbsp;7.&nbsp;&nbsp;Financial Statements, Pro Forma Financial Information and Exhibits</B></FONT>

<P><FONT size="2">(a)&nbsp; Not applicable.
</FONT>
<P><FONT size="2">(b)&nbsp; Not applicable.
</FONT>
<P><FONT size="2">(c)&nbsp; <U>Exhibits</U>.
</FONT>
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        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD><FONT size="2">99.1</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD><FONT size="2">Press Release, dated July&nbsp;30, 2001, issued by Mercury General
Corporation.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">2
</FONT>

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>



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<DIV align="left"><A NAME="002"></A></DIV>
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<P align="center"><FONT size="2"><B>SIGNATURES</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
</FONT>
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        <TD nowrap align="left"><FONT size="2">Date: July 30, 2001</FONT></TD>
        <TD nowrap align="left" colspan="2"><FONT size="2">Mercury General Corporation</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">By:&nbsp;&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ GABRIEL TIRADOR</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Gabriel Tirador<BR>
Vice President and Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">3
</FONT>

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<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>
<DIV align="left"><A name="a003"></A></DIV>

<P align="center"><FONT size="2"><B>EXHIBIT INDEX</B></FONT>

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        <TD nowrap align="center"><FONT size="1">Exhibit No.</FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top" align="center"><FONT size="2">99.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Press Release, dated July&nbsp;30, 2001, issued by
Mercury General Corporation
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2"></FONT></TD>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a74450ex99-1.txt
<DESCRIPTION>PRESS RELEASE DATED 7/30/2001
<TEXT>
<PAGE>   1
                                                                    EXHIBIT 99.1





PRESS RELEASE

FOR MORE INFORMATION, CONTACT:
Gabriel Tirador, CFO
(323) 937-1060
www.mercuryinsurance.com
FOR RELEASE MONDAY, JULY 30, 2001


                      MERCURY GENERAL CORPORATION ANNOUNCES
                             SECOND QUARTER RESULTS


         Los Angeles, California ..... Mercury General Corporation (NYSE - MCY),
a major California automobile insurer with operations in a number of other
states, reported today that net operating earnings for the second quarter of
2001 were $26.5 million, or $0.49 per share (diluted), compared with net
operating earnings for the second quarter of 2000 of $25.6 million, or $0.47 per
share (diluted). Net operating earnings for the first six months of 2001 were
$48.4 million, or $0.89 per share (diluted) compared with $54.5 million, or
$1.01 per share (diluted) in 2000. Including realized capital gains and losses,
per share net income (diluted) was $0.49 and $0.94 for the second quarter and
first six months of 2001 compared to $0.48 and $1.03 for the second quarter and
first six months of 2000, respectively.

         Company-wide premiums written in the quarter were $350.7 million, a
12.0% increase over 2000 and premiums written for the first six months were
$694.0 million, a 9.2% increase over 2000. California premiums written in the
quarter and first six months were $307.6 million and $611.1 million,
respectively, a 10.5% and 8.4% increase over the respective periods in 2000. The
primary contributors to growth in the second quarter were increased policy sales
in the California automobile insurance lines as well as increased production in
California homeowners, Florida automobile insurance and Texas automobile
insurance lines.

         The loss ratio (GAAP basis) was 72.0% in the quarter and 73.1% in the
first six months of 2001 compared to 71.8% and 71.0% for the respective periods
in 2000.

         The expense ratio (GAAP basis) was 26.5% in the quarter and 26.7% in
the first six months of 2001 compared to 27.2% and 27.1% for the respective
periods in 2000.


<PAGE>   2
Page 2                                                             July 30, 2001




         Investment income in the quarter was $27.9 million and for the first
six months $56.0 million, a 6.7% and 8.3% increase, respectively. After taxes,
per share (diluted) investment income in the quarter was $0.45 and for the first
six months was $0.90 compared with $0.43 and $0.86 for the respective periods in
2000. The after tax yield on average investments of $1.79 billion (fixed
maturities and equities at cost) was 5.43% for the quarter compared with 5.56%
obtained for the year ended 2000.

         On July 27, 2001, the Board of Directors declared a quarterly dividend
of $0.265 per share to be paid on September 27, 2001 to holders of record on
September 14, 2001. The Company's book value per share at June 30, 2001 was
$19.53 per share.



================================================================================

         The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. The statements contained in this
press release are forward-looking statements based on the Company's current
expectations and beliefs concerning future developments and their potential
effects on the Company. There can be no assurance that future developments
affecting the Company will be those anticipated by the Company. Actual results
may differ from those projected in the forward-looking statements. These
forward-looking statements involve significant risks and uncertainties (some of
which are beyond the control of the Company) and are subject to change based
upon various factors, including but not limited to the following risks and
uncertainties: changes in the demand for the Company's insurance products, and
in general economic conditions; the possibility actual loss experience may vary
adversely from the actuarial estimates made to determine the Company's loss
reserves; legislation adverse to the automobile insurance industry or business
generally may be enacted in California or other states; the presence of
competitors with greater financial resources and the impact of competitive
pricing and marketing efforts; and various legal, regulatory and litigation
risks. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as the result of new information, future
events or otherwise. For a more detailed discussion of some of the foregoing
risks and uncertainties, see the Company's filings with the Securities and
Exchange Commission.


<PAGE>   3
Page 3



                           MERCURY GENERAL CORPORATION

                       SUMMARY OF OPERATING RESULTS (000)


<TABLE>
<CAPTION>
                                                        QUARTER ENDED JUNE 30,
                                                     2001                  2000
                                                 ------------           -----------
<S>                                              <C>                    <C>
Net Premiums Written                             $    350,745           $   313,301
Net Premiums Earned                                   338,171               312,187
Paid Losses and Loss Adjustment Expenses              227,156               210,596
Incurred Losses                                       243,421               224,259
Net Investment Income                                  27,941                26,187
Net Operating Income (A)                               26,524                25,562
Capital Gains (Losses), net of tax                        (59)                  440
Net Income                                       $     26,465           $    26,002
                                                 ============           ===========

Basic Average Shares Outstanding                   54,167,143            54,062,288

Diluted Average Shares Outstanding                 54,353,257            54,205,423

Basic Per Share Data
Earnings Per Share                               $       0.49           $      0.48
                                                 ============           ===========

Diluted Per Share Data
Net Operating Income                             $       0.49           $      0.47
Capital Gains (Losses), net of tax               ($      0.00)          $      0.01
                                                 ------------           -----------
Earnings Per Share                               $       0.49           $      0.48
                                                 ============           ===========

Operating Ratios--GAAP Basis (B)
Loss Ratio                                               72.0%                 71.8%
Expense Ratio                                            26.5%                 27.2%
                                                 ------------           -----------
Combined Ratio                                           98.5%                 99.0%
                                                 ============           ===========
</TABLE>




<PAGE>   4
Page 4




<TABLE>
<CAPTION>
                                                      SIX MONTHS ENDED JUNE 30,
                                                     2001                  2000
                                                 ------------           -----------
<S>                                              <C>                    <C>
Net Premiums Written                             $    693,957           $   635,595
Net Premiums Earned                                   661,943               616,842
Paid Losses and Loss Adjustment Expenses              471,224               424,959
Incurred Losses                                       483,638               437,903
Net Investment Income                                  55,960                51,671
Net Operating Income (A)                               48,383                54,537
Capital Gains, net of tax                               2,790                 1,403
Net Income                                       $     51,173           $    55,940
                                                 ============           ===========


Basic Average Shares Outstanding                   54,160,716            54,111,360

Diluted Average Shares Outstanding                 54,352,126            54,234,333

Basic Per Share Data
Earnings Per Share                               $       0.94           $      1.03
                                                 ============           ===========

Diluted Per Share Data (C)
Net Operating Income                             $       0.89           $      1.01
Capital Gains, net of tax                        $       0.05           $      0.03
                                                 ------------           -----------
Earnings Per Share                               $       0.94           $      1.03
                                                 ============           ===========


Operating Ratios--GAAP Basis (B) (C)
Loss Ratio                                               73.1%                 71.0%
Expense Ratio                                            26.7%                 27.1%
                                                 ------------           -----------
Combined Ratio                                           99.7%                 98.1%
                                                 ============           ===========
</TABLE>


(A) Net Income, excluding capital gains, net of tax.

(B) Generally Accepted Accounting Principles

(C) Some numbers may not sum due to rounding


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