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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Registrant
 December 31,
 20242023
 (Amounts in thousands)
ASSETS
Investments, at fair value:
Fixed maturity securities (amortized cost $0; $9,979)
$— $9,949 
Equity securities (cost $17,551; $17,227)
29,387 28,027 
Short-term investments (cost $78; $571)
78 571 
Investment in subsidiaries2,476,777 2,084,346 
Total investments2,506,242 2,122,893 
Cash19,316 4,698 
Accrued investment income12 141 
Amounts receivable from affiliates17,037 503 
Current income taxes— 5,148 
Deferred income taxes— 1,544 
Income tax receivable from affiliates30,859 15,161 
Other assets1,233 1,499 
Total assets$2,574,699 $2,151,587 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Notes payable$574,128 $573,729 
Amounts payable to affiliates14,274 2,753 
Income tax payable to affiliates9,874 21,209 
Current income taxes19,195 — 
Deferred income taxes4,837 — 
Other liabilities5,867 5,751 
Total liabilities628,175 603,442 
Commitments and contingencies
Shareholders’ equity:
Common stock99,699 98,947 
Retained earnings1,846,825 1,449,198 
Total shareholders’ equity1,946,524 1,548,145 
Total liabilities and shareholders’ equity$2,574,699 $2,151,587 
 
SCHEDULE II, Continued

MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF OPERATIONS
 Year Ended December 31,
 202420232022
 (Amounts in thousands)
Revenues:
Net investment income$2,187 $2,998 $2,696 
Net realized investment gains (losses) 3,046 1,431 (12,969)
Total revenues5,233 4,429 (10,273)
Expenses:
Other operating expenses2,535 2,526 2,446 
Interest30,697 24,129 17,178 
Total expenses33,232 26,655 19,624 
Loss before income taxes and equity in net income (loss) of subsidiaries(27,999)(22,226)(29,897)
Income tax benefit(3,386)(4,379)(10,234)
Loss before equity in net income (loss) of subsidiaries(24,613)(17,847)(19,663)
Equity in net income (loss) of subsidiaries492,566 114,183 (493,009)
Net income (loss)$467,953 $96,336 $(512,672)
SCHEDULE II, Continued

MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
 Year Ended December 31,
 202420232022
 (Amounts in thousands)
Cash flows from operating activities:
Net cash (used in) provided by operating activities$(28,137)$(14,703)$225 
Cash flows from investing activities:
Capital contribution to subsidiaries(165)(150,000)— 
Capital distribution from subsidiaries— — 3,431 
Distributions received from special purpose entities300 6,210 2,904 
Dividends received from subsidiaries100,000 — — 
Fixed maturity securities available for sale in nature
Purchases— — (11,905)
Sales5,000 — 1,000 
Calls or maturities5,000 955 — 
Equity securities available for sale in nature
Purchases(2,399)(1,172)(5,307)
Sales4,057 25,848 48,215 
Decrease (increase) in short-term investments493 26,481 (6,268)
Other, net43 183 667 
Net cash provided by (used in) investing activities112,329 (91,495)32,737 
Cash flows from financing activities:
Dividends paid to shareholders(70,326)(70,322)(105,482)
Proceeds from stock options exercised752 — — 
Proceeds from bank loan— 175,000 25,000 
Net cash (used in) provided by financing activities(69,574)104,678 (80,482)
Net increase (decrease) in cash14,618 (1,520)(47,520)
Cash:
Beginning of year4,698 6,218 53,738 
End of year$19,316 $4,698 $6,218 
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid $30,009 $22,959 $16,611 
Income taxes (refunded) paid, net $(7,075)$1,630 $(14,102)
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.
Distributions received from Special Purpose Investment Vehicles

From time to time, the Company forms special purpose investment vehicles to facilitate its investment activities involving derivative instruments such as total return swaps, or limited partnerships such as private equity funds. At December 31, 2024, the Company had three such special purpose investment vehicles: Fannette Funding LLC, Animas Funding LLC, and Upper Animas Holdings LLC. These special purpose investment vehicles are consolidated into the Company. Creditors have no recourse against the Company in the event of default by these special purpose investment vehicles. The Company had no implied or unfunded commitments to these entities at December 31, 2024 and 2023. The Company's financial or other support provided to these entities and its loss exposure are limited to its collateral and original investment. Mercury General received distributions of $0.3 million, $6.2 million, and $2.9 million in 2024, 2023, and 2022, respectively, from these special purpose investment vehicles.
Dividends received from Subsidiaries

Dividends of $100 million, $0 and $0 were received by Mercury General from its 100% owned insurance subsidiaries in 2024, 2023 and 2022, respectively, and were recorded as a reduction to investment in subsidiaries.
Capitalization of Insurance Subsidiaries

Mercury General made capital contributions to its insurance subsidiaries of $0.2 million, $150.0 million and $0 in 2024, 2023 and 2022, respectively. In addition, Mercury General received a capital distribution from its insurance subsidiaries of $0, $0, and $3,431,433 in 2024, 2023 and 2022, respectively. The capital distribution for 2022 was related to the dissolution of an insurance subsidiary in November 2022, pursuant to which Mercury General received the complete return of its invested capital.
Notes Payable

On March 8, 2017, Mercury General completed a public debt offering issuing $375 million of senior notes. The notes are unsecured senior obligations of Mercury General, with a 4.4% annual coupon payable on March 15 and September 15 of each year commencing September 15, 2017. These notes mature on March 15, 2027. The Company used the proceeds from the notes to pay off amounts outstanding under the existing loan and credit facilities and for general corporate purposes. Mercury General incurred debt issuance costs of approximately $3.4 million, inclusive of underwriters' fees. The notes were issued at a slight discount of 99.847% of par, resulting in the effective annualized interest rate, including debt issuance costs, of approximately 4.45%.

On March 31, 2021, the Company entered into an unsecured $75 million five-year revolving credit facility. On November 18, 2022, the Company entered into the First Amendment to this credit facility. The First Amendment extended the maturity date of the loan to November 16, 2026 from March 31, 2026 with possible further extension if certain conditions are met, increased the aggregate commitments by all the lenders to $200 million from $75 million, and replaced the LIBOR with the term SOFR. On November 30, 2023, the Company entered into the Second Amendment to this credit facility, which further increased the aggregate commitments by all the lenders to $250 million from $200 million. On November 22, 2024, the Company entered into the Third Amendment to this credit facility, which extended and fixed the maturity date of the loan to November 18, 2027. The interest rates on borrowings under the credit facility are based on the Company's debt to total capital ratio and range from Term SOFR plus 112.5 basis points when the ratio is under 20% to Term SOFR plus 150.0 basis points when the ratio is greater than or equal to 30%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 20% to 22.5 basis points when the ratio is greater than or equal to 30%. The debt to total capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. The Company's debt to total capital ratio was 22.8% at December 31, 2024, resulting in a 15.0 basis point commitment fee on any undrawn portion of the credit facility. As of February 11, 2025, a total of $200 million was drawn under this facility on a three-month revolving basis at an annual interest rate of approximately 5.79%, with $50 million available to be drawn. The
Company contributed $150 million of the total amount drawn to the surplus of its consolidated insurance subsidiaries, and used the remainder for general corporate purposes.
Federal Income Taxes

The Company files a consolidated federal income tax return for the following entities:
 
Mercury Casualty CompanyMercury Select Management Company, Inc.
Mercury Insurance CompanyMercury Insurance Services LLC
California Automobile Insurance CompanyAIS Management LLC
California General Underwriters Insurance Company, Inc.Auto Insurance Specialists LLC
Mercury Insurance Company of IllinoisPoliSeek AIS Insurance Solutions, Inc.
Mercury Insurance Company of GeorgiaAnimas Funding LLC
Mercury Indemnity Company of GeorgiaFannette Funding LLC
American Mercury Insurance CompanyMercury Plus Insurance Services LLC
American Mercury Lloyds Insurance CompanyMercury Information Technology Services LLC
Orion Indemnity CompanyUpper Animas Holdings LLC
Mercury County Mutual Insurance Company
Mercury Indemnity Company of America

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.