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Condensed Financial Information of Registrant | 12 Months Ended
--- | ---
Dec. 31, 2012
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Financial Information of Registrant |
SCHEDULE II MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS
| December 31,
| 2012 |  | 2011
| (Amounts in thousands)
ASSETS |  |  |
Investments, at fair value: |  |  |
Equity securities (cost $31,178; $24,885) | $ | 27,127 |  |  | $ | 20,282 |
Short-term investments (cost $47,174; $26,817) | 47,174 |  |  | 26,817 |
Investment in subsidiaries | 1,760,760 |  |  | 1,787,047 |
Total investments | 1,835,061 |  |  | 1,834,146 |
Cash | 10,199 |  |  | 29,219 |
Accrued investment income | 4 |  |  | 17 |
Amounts receivable from affiliates | 200 |  |  | 200 |
Current income taxes | 6,333 |  |  | 22 |
Deferred income taxes | 729 |  |  | 1,654 |
Income tax receivable from affiliates | 6,182 |  |  | 12,833 |
Total assets | $ | 1,858,708 |  |  | $ | 1,878,091 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |
Accounts payable and accrued expenses | $ | 47 |  |  | $ | 48 |
Amounts payable to affiliates | 95 |  |  | 0 |
Income tax payable to affiliates | 16,069 |  |  | 20,288 |
Other liabilities | 0 |  |  | 272 |
Total liabilities | 16,211 |  |  | 20,608 |
Shareholders’ equity: |  |  |
Common stock | 79,380 |  |  | 76,634 |
Additional paid in capital | 0 |  |  | 538 |
Retained earnings | 1,763,117 |  |  | 1,780,311 |
Total shareholders’ equity | 1,842,497 |  |  | 1,857,483 |
Total liabilities and shareholders’ equity | $ | 1,858,708 |  |  | $ | 1,878,091 |
SCHEDULE II, Continued MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
| (Amounts in thousands)
Revenues: |  |  |  |  |
Net investment income | $ | 1,114 |  |  | $ | 1,411 |  |  | $ | 951 |
Net realized investment gains (losses) | 697 |  |  | (1,866 | ) |  | 1,420 |
Total revenues | 1,811 |  |  | (455 | ) |  | 2,371 |
Expenses: |  |  |  |  |
Other operating expenses | 1,688 |  |  | 2,267 |  |  | 12,945 |
Interest | 0 |  |  | 1,341 |  |  | 2,180 |
Total expenses | 1,688 |  |  | 3,608 |  |  | 15,125 |
Income (loss) before income taxes and equity in net income of subsidiaries | 123 |  |  | (4,063 | ) |  | (12,754 | )
Income tax expense (benefit) | 1,800 |  |  | (684 | ) |  | (3,507 | )
Loss before equity in net income of subsidiaries | (1,677 | ) |  | (3,379 | ) |  | (9,247 | )
Equity in net income of subsidiaries | 118,588 |  |  | 194,543 |  |  | 161,445 |
Net income | $ | 116,911 |  |  | $ | 191,164 |  |  | $ | 152,198 |
STATEMENTS OF COMPREHENSIVE INCOME
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
| (Amounts in thousands)
Net income | $ | 116,911 |  |  | $ | 191,164 |  |  | $ | 152,198 |
Other comprehensive income (loss), before tax: |  |  |  |  |
Gains (losses) on hedging instrument | 0 |  |  | 1,139 |  |  | (220 | )
Other comprehensive income (loss), before tax | 0 |  |  | 1,139 |  |  | (220 | )
Income tax expense (benefit) related to gains (losses) on hedging instrument | 0 |  |  | 399 |  |  | (77 | )
Other comprehensive income (loss), net of tax: | 0 |  |  | 740 |  |  | (143 | )
Comprehensive income | $ | 116,911 |  |  | $ | 191,904 |  |  | $ | 152,055 |
SCHEDULE II, Continued MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
| (Amounts in thousands)
Cash flows from operating activities: |  |  |  |  |
Net cash used in operating activities | $ | (5,590 | ) |  | $ | (312 | ) |  | $ | (4,441 | )
Cash flows from investing activities: |  |  |  |  |
Dividends from subsidiaries | 145,000 |  |  | 270,000 |  |  | 128,000 |
Fixed maturity securities: |  |  |  |  |
Calls or maturities | 0 |  |  | 0 |  |  | 265 |
Equity securities: |  |  |  |  |
Purchases | (14,102 | ) |  | (50,056 | ) |  | (836 | )
Sales | 7,308 |  |  | 43,520 |  |  | 2,070 |
Calls | 0 |  |  | 0 |  |  | 895 |
Net increase in short-term investments | (20,413 | ) |  | (21,451 | ) |  | (583 | )
Other, net | 304 |  |  | 1,047 |  |  | (110 | )
Net cash provided by investing activities | 118,097 |  |  | 243,060 |  |  | 129,701 |
Cash flows from financing activities: |  |  |  |  |
Dividends paid to shareholders | (134,105 | ) |  | (132,142 | ) |  | (129,863 | )
Excess tax benefit from exercise of stock options | 86 |  |  | 56 |  |  | 132 |
Payment to retire senior notes | 0 |  |  | (125,000 | ) |  | 0 |
Proceeds from stock options exercised | 2,492 |  |  | 1,951 |  |  | 733 |
Net cash used in financing activities | (131,527 | ) |  | (255,135 | ) |  | (128,998 | )
Net decrease in cash | (19,020 | ) |  | (12,387 | ) |  | (3,738 | )
Cash: |  |  |  |  |
Beginning of year | 29,219 |  |  | 41,606 |  |  | 45,344 |
End of year | $ | 10,199 |  |  | $ | 29,219 |  |  | $ | 41,606 |
SUPPLEMENTAL CASH FLOW DISCLOSURE |  |  |  |  |
Interest paid | $ | 0 |  |  | $ | 1,932 |  |  | $ | 1,972 |
Income taxes paid (received) | $ | 4,667 |  |  | $ | (1,252 | ) |  | $ | (8,755 | )
The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in this report. Dividends Dividends of $145,000,000, $270,000,000, and $128,000,000 were received by the Company from its 100% owned subsidiaries in 2012, 2011, and 2010, respectively, and are recorded as a reduction to investment in subsidiaries. Capitalization of Subsidiaries Mercury General made capital contributions to its insurance subsidiaries of $125,000 in each of 2012, 2011, and 2010. Guarantees The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are secured by approximately $182 million of municipal bonds owned by MCC, at fair value, held as collateral. The total borrowings of $140 million are guaranteed by the Company. Federal Income Taxes The Company files a consolidated federal income tax return with the following subsidiaries:
Mercury Casualty Company |  | Mercury Insurance Company of Florida
Mercury Insurance Company |  | Mercury Indemnity Company of America
California Automobile Insurance Company |  | Mercury Select Management Company, Inc.
California General Underwriters Insurance Company, Inc. |  | American Mercury MGA, Inc.
Mercury Insurance Company of Illinois |  | Concord Insurance Services, Inc.
Mercury Insurance Company of Georgia |  | Mercury Insurance Services LLC
Mercury Indemnity Company of Georgia |  | Mercury Group, Inc.
Mercury National Insurance Company |  | AIS Management LLC
American Mercury Insurance Company |  | Auto Insurance Specialists LLC
American Mercury Lloyds Insurance Company |  | PoliSeek AIS Insurance Solutions, Inc.
Mercury County Mutual Insurance Company |  |
The method of allocation between the companies is subject to an agreement approved by the Board of Directors. Allocation is based upon separate return calculations with current credit for net losses incurred by the insurance subsidiaries to the extent it can be used in the current consolidated return.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph c -Article 7 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7656940&loc=d3e5283-111683 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24072-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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