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<SEC-DOCUMENT>0001275287-05-000447.txt : 20050207
<SEC-HEADER>0001275287-05-000447.hdr.sgml : 20050207
<ACCEPTANCE-DATETIME>20050207120034
ACCESSION NUMBER:		0001275287-05-000447
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050207
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050207
DATE AS OF CHANGE:		20050207

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:		05579551

	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>mg1988.htm
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<p  align="center"><font size="5" face="Times New Roman"><b>UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> </b></font>
<font size="3"><b>WASHINGTON, D.C.&#160; 20549</b></font></p>

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<font size="5" face="Times New Roman"><b>FORM 8-K</b></font></p>
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<font size="3" face="Times New Roman"><b>CURRENT REPORT<br> Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font></p>
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<font size="2" face="Times New Roman"><b>Date of Report (Date of earliest event reported): February 7, 2005</b></font></p>

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<font size="6" face="Times New Roman"><b>MERCURY   GENERAL CORPORATION</b></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(Exact Name of Registrant as Specified in Charter)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><b>California</b></font></p>  </td>
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<font size="2" face="Times New Roman"><b>001-12257</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>95-221-1612</b></font></p>  </td>
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    <p align=center><font size="2" face="Times New Roman"><i>(State or Other Jurisdiction of<br>   Incorporation)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(Commission<br>   File Number)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(I.R.S. Employer<br>   Identification No.)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><b>4484 Wilshire Boulevard</b></font></p>  </td>
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<font size="2" face="Times New Roman"><b>Los Angeles, California 90010</b></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(Address of Principal Executive Offices)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><b>(323) 937-1060</b></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(Registrant&#146;s telephone number, including area code)</i></font></p>  </td>
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<font size="2" face="Times New Roman"><b>Not applicable</b></font></p>  </td>
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<font size="2" face="Times New Roman"><i>(Former name or former address, if changed since last   report)</i></font></p>  </td>
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<p>
<font size="2" face="Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Written   communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Soliciting   material pursuant to Rule 425 under the Exchange Act (17 CFR 240.14.a-12)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Pre-commencement   communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR   240.14d-2(b))</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Pre-commencement   communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR   240.13e-4(c))</font></p>  </td>
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<br>
<p>
<font size="2" face="Times New Roman"><b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is furnished pursuant to Item 2.02, &#147;Results of Operations and Financial Condition,&#148; and shall not be deemed &#147;filed&#148; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 7, 2005, Mercury General Corporation issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2004.&#160; A copy of the press release is attached hereto as Exhibit 99.1.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in this Current Report, including the exhibit, shall not be incorporated by reference into any filing of Mercury General Corporation, whether made before or after the date hereof, regardless of any general incorporation language in such filing.</font></p>
<p>
<font size="2" face="Times New Roman"><b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibits</u>.</font></p>

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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">99.1</font></p>  </td>
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<font size="2" face="Times New Roman">Press Release, dated February 7, 2005, issued by   Mercury General Corporation, furnished pursuant to Item 2.02 of Form 8-K.</font></p>  </td>
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<font size="2" face="Times New Roman">-2-</font></p>
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<font size="2" face="Times New Roman"><b>SIGNATURES</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></p>
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<font size="2" face="Times New Roman">Date:&#160;   February 7, 2005</font></p>  </td>
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<font size="2" face="Times New Roman"><b>M<small>ERCURY</small> G<small>ENERAL</small> C<small>ORPORATION</small></b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman">By:</font></p>  </td>
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  <p><font size="2" face="Times New Roman">/s/ T<small>HEODORE</small> S<small>TALICK</small></font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Name:</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Theodore Stalick</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Its:</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Chief Financial Officer</font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">-3-</font></p>
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<p  align="center"><font size="2" face="Times New Roman"><b>Exhibit Index</b></font></p>
<p><font size="2" face="Times New Roman">Exhibit 99.1. Press Release, dated February 7, 2005, issued by Mercury General Corporation. </font></p>
<p  align="center"><font size="2" face="Times New Roman">-4-</font></p>

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<p  align=right><font size="2" face="Times New Roman"><b>Exhibit 99.1</b></font></p>
<p  align="center">
<font size="2" face="Times New Roman"><b>Mercury General Corporation Announces Fourth Quarter Results</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOS ANGELES, Feb. 7 /PRNewswire-FirstCall/ -- Mercury General Corporation (NYSE: MCY) reported today net income of $74.1 million ($1.36 per share-diluted), in the fourth quarter 2004 compared with $49.2 million ($0.90 per share-diluted), in the same period for 2003.&#160; For the year, net income was $286.2 million ($5.24 per share-diluted) in 2004 compared to net income of $184.3 million ($3.38 per share-diluted) in 2003.&#160; Included in net income are net realized investment gains, net of tax, of $4.2 million ($0.08 per share-diluted) in the fourth quarter 2004 compared to net realized investment gains, net of tax, of $3.8 million ($0.07 per share-diluted) for the fourth quarter 2003, and net realized investment gains, net of tax, of $16.3 million ($0.30 per share-diluted) for the entire 2004 year compared to net realized investment gains, net of tax, of $7.3 million ($0.13 per share-diluted) for
2003.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company-wide net premiums written were $674.2 million in the fourth quarter 2004, a 14% increase over fourth quarter 2003, and $2.6 billion for the year, a 16.7% increase over 2003.&#160; California net premiums written were $495.0 million in the quarter, an increase of 2.7% over 2003, and $2.0 billion for the year, a 6.4% increase over 2003.&#160; Non-California net premiums written were $179.2 million in the quarter, a 63.5% increase over 2003, and $640.4 million for 2004, a 67.4% increase over 2003.&#160; Non-California net premiums written represented 26.6% of the Company&#146;s total fourth quarter net premiums written, up from 18.5% in the fourth quarter of 2003. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s combined ratio (GAAP basis) was 88.6% in the fourth quarter of 2004 and 89.2% for the entire year compared with 94.1% and 94.0% for the same periods in 2003.&#160; Positive development of approximately $55 million for the year ended December 31, 2004 on the 2003 and prior accident year loss reserves contributed to the improvement in the combined ratio.&#160; During the fourth quarter, the Company reduced its estimate for losses from the Florida hurricanes from approximately $24 million reported at September 30, 2004, to approximately $22 million at December 31, 2004. </font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income of $29.3 million (after tax $25.2 million) in the fourth quarter of 2004 increased by 11.3% compared to the same period in 2003. The after-tax yield on investment income was 3.6% on average assets of $2.8 billion (fixed maturities and equities at cost) for the quarter.&#160; This compares with an after tax yield on investment income of 3.9% on average investments of $2.4 billion (fixed maturities and equities at cost) for the same period in 2003. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fourth quarter of 2004, the Company began writing private passenger automobile insurance in the states of Michigan and Nevada, marking the twelfth and thirteenth states in which the Company writes automobile insurance.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During January 2005, the state of California experienced precipitation levels that were significantly higher than average.&#160; Consequently, the number of losses reported in the California homeowners line of business was more than double the number reported in January 2004.&#160; The number of California automobile losses reported in January 2005 was approximately 10% more than the number reported in January 2004.&#160; As a result, given the January 2005 losses, the Company anticipates that loss frequency will be higher in the first quarter 2005 as compared to the first quarter 2004.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent agents and brokers in many states.&#160; For more information, visit our website at www.mercuryinsurance.com.&#160; The Company will be hosting a conference call and webcast at 10:00 A.M. Pacific Time (1:00 P.M. Eastern Time) today in which management will discuss results and address questions.&#160; The teleconference and webcast can be accessed by calling 1 (877) 807-1888 or by visiting www.mercuryinsurance.com.&#160; A replay of the call will be available beginning at 1:30 P.M. Pacific Time and running through February 15, 2005.&#160; The replay telephone numbers are (800) 642-1687 (USA) or (706) 645-9291 (International). The conference ID# is 3419001.&#160; The replay will also be available on the Company&#146;s
website shortly following the call.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Private Securities Litigation Reform Act of 1995 provides a &#147;safe harbor&#148; for certain forward-looking statements.&#160; The statements contained in this press release are forward-looking statements based on the Company&#146;s current expectations and beliefs concerning future developments and their potential effects on the Company.&#160; 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.&#160; 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:&#160; changes in the demand for the Company&#146;s insurance products, and in general economic
conditions; the accuracy and adequacy of the Company&#146;s pricing methodologies; market risks associated with the Company&#146;s investment portfolio; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company&#146;s loss reserves in general; inflation and changes in economic conditions; the Company&#146;s ability to obtain and the timing of regulatory approval for requested rate changes; legislation adverse to the automobile insurance industry or business generally that may be enacted in California or other states; the presence of competitors with greater financial resources and the impact of competitive pricing; changes in driving patterns and loss trends; acts of war and terrorist activities; court decisions and trends in litigation and health care and auto repair costs and marketing efforts; and various legal, regulatory and litigation risks.&#160; 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.&#160; For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company&#146;s filings with the Securities and Exchange Commission.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mercury General Corporation</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information Regarding Non-GAAP Measures</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has presented information within this document containing operating measures which in management&#146;s opinion provide investors useful industry specific information to evaluate and perform meaningful comparisons of the Company&#146;s performance but that may not be presented in accordance with Generally Accepted Accounting Principles (&#147;GAAP&#148;).&#160; These measures are not intended to replace, and should be read in conjunction with, the Company&#146;s GAAP financial results.&#160; The Company has reconciled these measures with the most directly comparable GAAP measure in the supplemental schedule entitled, &#147;Summary of Operating Results.&#148;</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Premiums Written represents the premiums charged on policies issued during a fiscal period.&#160; Net Premiums Earned, the most directly comparable GAAP measure, represents the portion of premiums written that is recognized as income in the financial statements for the periods presented and earned on a pro-rata basis over the term of the policies.&#160; Net Premiums Written is meant as supplemental information and is not intended to replace Net Premiums Earned.&#160; It should be read in conjunction with the GAAP financial results.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid Losses and Loss Adjustment Expenses is the portion of Incurred Losses and Loss Adjustment Expenses, the most directly comparable GAAP measure, excluding the effects of changes in the loss reserve accounts.&#160; Paid Losses and Loss Adjustment Expenses is meant as supplemental information and is not intended to replace Incurred Losses and Loss Adjustment Expenses.&#160; It should be read in conjunction with the GAAP financial results. </font></p>
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<div style="page-break-before:always"></div>
<PAGE>
<br>
<p  align="center">
<font size="2" face="Times New Roman">Mercury General Corporation and Subsidiaries<br> Summary of Operating Results<br> (000&#146;s) except per-share amounts and ratios<br> (unaudited)</font></p>

<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <p  align="center"><font size="1" face="Times New Roman"><b>Quarter   Ended<br>   December 31,</b></font></p>  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>Twelve   Months Ended<br>   December 31,</b></font></p>  </td>
    <td  valign="bottom" width="2%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="2%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2004</b></font></p>  </td>
    <td  valign="bottom" width="4%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2003</b></font></p>  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2004</b></font></p>  </td>
    <td  valign="bottom" width="4%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2003</b></font></p>  </td>
    <td  valign="bottom" width="2%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="4%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="4%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="2%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td width="42%" valign="bottom" >
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net premiums   written</font></p>  </td>
    <td width="2%" valign="bottom" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td width="4%" valign="bottom" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td width="6%" valign="bottom" >
      <p  align=right>
<font size="2" face="Times New Roman">674,239</font></p>  </td>
    <td width="4%" valign="bottom" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td width="4%" valign="bottom" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td width="6%" valign="bottom" >
      <p  align=right>
<font size="2" face="Times New Roman">591,401</font></p>  </td>
    <td width="5%" valign="bottom" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td width="5%" valign="bottom" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td width="7%" valign="bottom" >
      <p  align=right>
<font size="2" face="Times New Roman">2,646,704</font></p>  </td>
    <td width="4%" valign="bottom" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td width="3%" valign="bottom" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td width="6%" valign="bottom" >
      <p  align=right>
<font size="2" face="Times New Roman">2,268,778</font></p>  </td>
    <td width="2%" valign="bottom" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net premiums   earned</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">668,102</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">572,671</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">2,528,636</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">2,145,047</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Paid losses   and loss adjustment expenses</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">394,919</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">347,453</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">1,481,803</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">1,330,784</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Incurred   losses and loss adjustment expenses</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">413,573</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">385,330</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">1,582,254</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">1,452,051</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net   investment income</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">29,331</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">26,348</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">109,681</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">104,520</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net realized   investment gains, net of tax</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">4,168</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">3,817</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">16,292</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">7,285</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net income</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">74,129</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">49,226</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">286,208</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">184,321</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Basic   average shares outstanding</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">54,506</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">54,418</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">54,471</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">54,402</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Diluted   average shares outstanding</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">54,683</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">54,586</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">54,633</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">54,547</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Basic Per   Share Data</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net income</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">1.36</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">0.90</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">5.25</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">3.39</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net realized   investment gains, net of tax</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">0.08</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">0.07</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">0.30</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">0.13</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Diluted Per   Share Data</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net income</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">1.36</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">0.90</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">5.24</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">3.38</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net realized   investment gains, net of tax</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">0.08</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">0.07</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">0.30</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">0.13</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Operating   Ratios -- GAAP (a) Basis</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss ratio</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">61.9</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">67.3</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">62.6</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">67.7</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Expense   ratio</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">26.7</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">26.8</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">26.6</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">26.3</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Combined   ratio</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">88.6</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">94.1</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">89.2</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">94.0</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="2" face="Times New Roman">%</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Reconciliations   of Operating Measures to Comparable GAAP (a) Measures</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net premiums   written</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">674,239</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">591,401</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,646,704</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,268,778</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Increase in   unearned premiums</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">(6,137</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">)</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">(18,730</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">)</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">(118,068</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">)</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">(123,731</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="2" face="Times New Roman">)</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net premiums   earned</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">668,102</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">572,671</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,528,636</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,145,047</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Paid losses   and loss adjustment expenses</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">394,919</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">347,453</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">1,481,803</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">1,330,784</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="42%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Increase in   net losses and loss adjustment expense reserves</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">18,654</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">37,877</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="7%" >
      <p  align=right>
<font size="2" face="Times New Roman">100,451</font></p>  </td>
    <td  valign="bottom" width="4%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="6%" >
      <p  align=right>
<font size="2" face="Times New Roman">121,267</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="42%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Incurred   losses and loss adjustment expenses</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">413,573</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">385,330</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="7%">
      <p  align=right>
<font size="2" face="Times New Roman">1,582,254</font></p>  </td>
    <td  valign="bottom" width="4%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="3%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="6%">
      <p  align=right>
<font size="2" face="Times New Roman">1,452,051</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
</table>

<BR>

<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td width="100%" valign="top">
<hr size="1"  align="Left" width="25%" noshade color=black>
  </td>
 </tr>

 <tr>
  <td width="100%" valign="top">
  <p>
<font size="2" face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally   Accepted Accounting Principles</font></p>  </td>
 </tr>

</table>


<BR>
<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>
<p  align="center">
<font size="2" face="Times New Roman">Mercury General Corporation and Subsidiaries<br> Other Supplemental Information<br> (000&#146;s) except ratios<br> (unaudited)</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <p  align="center"><font size="1" face="Times New Roman"><b>Quarter   ending <br>   December 31,</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>Twelve   Months Ending<br>   December 31,</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2004</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2003</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2004</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2003</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td width="54%" valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total   California Operations (1)</font></p>  </td>
  <td width="2%" valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="2%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="2%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="2%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net Premiums   Written</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">494,975</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">481,744</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">2,006,351</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,886,217</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net Premiums   Earned</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">501,745</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">477,291</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,981,463</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,804,960</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">61.7%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">68.8%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">61.0%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">68.9%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Expense   Ratio</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">24.9%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.5%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.6%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.4%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Combined   Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">86.6%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">94.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">86.6%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">94.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">California   Automobile lines</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net Premiums   Written</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">450,002</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">442,636</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,827,527</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,738,462</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net Premiums   Earned</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">458,126</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">440,791</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,818,122</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,674,801</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">64.2%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">67.9%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">62.9%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">69.0%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Expense   Ratio</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.1%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.7%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.7%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.3%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Combined   Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">89.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">93.6%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">88.6%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">94.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">California   Homeowners line</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net Premiums   Written</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">36,558</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">32,407</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">147,763</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">122,897</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net Premiums   Earned</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">35,922</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">30,328</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">135,370</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">108,141</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">33.8%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">84.0%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">36.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">67.9%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Expense   Ratio</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">24.5%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">24.4%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">24.8%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">25.1%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Combined   Ratio (a)</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">58.3%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">108.4%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">61.2%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">93.0%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Non-California   Operations (2)</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Net Premiums   Written</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">179,264</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">109,657</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">640,353</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">382,561</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net Premiums   Earned</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">166,357</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">95,380</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">547,173</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">340,087</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">62.5%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">59.7%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">68.4%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">61.5%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Expense   Ratio</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">32.3%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">33.5%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">30.4%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" >
      <p  align=right> <font size="2" face="Times New Roman">30.9%</font></p>
    </td>
  <td  valign="bottom" >
      <p>&nbsp; </p>
    </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Combined   Ratio</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">94.8%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">93.2%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">98.8%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom">
      <p  align=right> <font size="2" face="Times New Roman">92.4%</font></p>
    </td>
  <td  valign="bottom">
      <p>&nbsp; </p>
    </td>
 </tr>
</table>

<BR>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>At   December 31,</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="5"  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman"><b>Policies-in-force (000&#146;s)</b></font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2004</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>2003</b></font></p>  </td>
  <td  valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td width="76%" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td width="2%" valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td width="8%" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td width="2%" valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td width="8%" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td width="1%" valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">California   Personal Auto</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,060</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">1,026</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">California   Commercial Auto</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">21</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">20</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Non-California   Personal Auto</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">322</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">184</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">California   Homeowners</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">215</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">187</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Florida   Homeowners</font></p>  </td>
  <td  valign="bottom" >
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">16</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom" >
  <p  align=right>
<font size="2" face="Times New Roman">10</font></p>  </td>
  <td  valign="bottom" >
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
</table>

<BR><table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td  colspan="2" valign="top">
  <hr size="1"  align="Left" width="25%" noshade color=black>


  </td>
 </tr>
 <tr>
  <td  colspan="2" valign="top">
  <p>
<font size="2" face="Times New Roman">All ratios   are calculated on GAAP basis.</font></p>  </td>
 </tr>
 <tr>
  <td width="5%" valign="top">
  <p><font size="2" face="Times New Roman">(a)</font></p>  </td>
  <td width="95%" valign="top">
  <p>
<font size="2" face="Times New Roman">Some numbers   may not sum due to rounding</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(1)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Total   California operations includes homeowners, auto, commercial property and   other immaterial California business lines</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">(2)</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman">Includes all   states except California</font></p>  </td>
 </tr>
</table>
<BR>
<hr size="1" width="100%" noshade color=black>
<div style="page-break-before:always"></div>
<PAGE>
<br>
<p  align="center">
<font size="2" face="Times New Roman">Mercury General Corporation and Subsidiaries<br> Condensed Balance Sheet and Other Information<br> (000&#146;s) except per-share amounts</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>December   31,<br>   2004</b></font></p>  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>December   31,<br>   2003</b></font></p>  </td>
    <td  valign="bottom" width="1%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="5%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
    <td  valign="bottom" width="1%">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr>
  <td width="68%" valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="2%" valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td width="11%" valign="bottom">
      <p  align="center"><font size="1" face="Times New Roman"><b>(unaudited)</b></font></p>  </td>
    <td width="5%" valign="bottom">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td width="1%" valign="bottom">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td width="11%" valign="bottom">
      <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Investments   - available for sale</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Fixed maturities at market (amortized cost $2,164,955 in 2004 and   $1,856,083 in 2003)</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">2,245,311</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">1,945,309</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Equity securities at market (cost $210,553 in 2004 and $223,113 in   2003)</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">254,362</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">264,393</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Short-term cash investments, at cost, which approximates market</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">421,369</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">329,812</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p  style="margin-left:5em; text-indent:-1em">
<font size="2" face="Times New Roman">Total investments</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,921,042</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">2,539,514</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net   receivables</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">367,662</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">299,094</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Deferred   policy acquisition costs</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">174,840</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">146,951</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Other assets</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">146,199</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">134,207</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Total assets</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3,609,743</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3,119,766</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Loss and   loss adjustment expenses</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">900,744</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">797,927</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Unearned   premiums</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">799,679</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">681,745</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Other   liabilities</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">325,029</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">259,877</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Notes   payable</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">124,743</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">124,714</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Shareholders&#146;   equity</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">1,459,548</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">1,255,503</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Total liabilities and shareholders&#146; equity</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3,609,743</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3,119,766</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Common stock   - shares outstanding</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">54,515</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">54,424</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Book value   per share</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">26.77</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">23.07</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
    <td  valign="bottom" width="68%">
      <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Statutory   surplus</font></p>  </td>
    <td  valign="bottom" width="2%">
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">1.36 billion</font></p>  </td>
    <td  valign="bottom" width="5%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
    <td  valign="bottom" width="11%">
      <p  align=right>
<font size="2" face="Times New Roman">1.17 billion</font></p>  </td>
    <td  valign="bottom" width="1%">
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#e6e6e6">
    <td  valign="bottom" width="68%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Portfolio   duration</font></p>  </td>
    <td  valign="bottom" width="2%" >
      <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3.2 years</font></p>  </td>
    <td  valign="bottom" width="5%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
    <td  valign="bottom" width="11%" >
      <p  align=right>
<font size="2" face="Times New Roman">3.8 years</font></p>  </td>
    <td  valign="bottom" width="1%" >
      <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
</table>

<p>
<font size="2" face="Times New Roman">SOURCE&#160; Mercury General Corporation<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;02/07/2005<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/CONTACT:&#160; Theodore Stalick, VP/CFO of Mercury General Corporation,<br> +1-323-937-1060/<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/Web site:&#160; http://www.mercuryinsurance.com /<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(MCY)</font></p>


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