Main industries: Insurance

Top 3 markets:

1. California: approx. 70%
2. Texas: approx. 10%
3. Florida: approx. 7%

Mercury General Corporation generates the majority of its revenues from the insurance industry, particularly through the sale of auto insurance. The primary market is California, where the company is traditionally strong and generates the largest portion of its income. Texas and Florida follow as other significant markets, although they have significantly lower revenue shares compared to California. This concentration on specific geographic markets reflects the strategic focus and market strength of Mercury General.

Production Sites: No specific production sites, as it is an insurance company.

Mercury General Corporation is an insurance company that mainly offers auto insurance. As such, the company does not produce physical products but provides services in the insurance sector. The business activities focus on the distribution and management of insurance contracts, and there are no production facilities in the traditional sense.

Revenue Growth: Estimated 5-7% annually (2025) Dividend Yield: Approximately 4.5% (2025)

Mercury General Corporation pursues a growth strategy focusing on expanding its insurance portfolio and geographic footprint. The company plans to strengthen its market presence through the development of digital platforms and enhanced customer experiences.

In addition, Mercury General relies on strategic partnerships and acquisitions to tap into new markets and solidify existing market share. These measures are intended not only to promote revenue growth but also to enhance operational efficiency.

Another key area of focus is optimizing risk assessment and underwriting processes to become more profitable and ensure financial stability. This is supported by investments in technology and data analysis to make informed decisions and increase competitiveness.

Main raw materials: Paper, printing materials

Countries of origin: USA, Canada, China

Mercury General Corporation is mainly active in the insurance sector and therefore does not require extensive physical raw materials like manufacturing companies. The main materials they could import are paper and printing materials for administrative needs and the creation of insurance documents.

These materials are typically sourced from the USA and Canada, with China being considered as an additional supplier for more cost-effective printing materials. Since the company operates in the service sector, physical raw material imports are minimal compared to manufacturing companies.

Market Share: Estimated at around 2% in the US insurance market (2025)
Customer Satisfaction: 78% (2024, J.D. Power)
Combined Ratio: 101% (2024)

Mercury General Corporation operates in a highly competitive insurance market, especially in the area of auto insurance. The company's competitive advantage is moderate, as it is distinguished by solid customer service and competitive premiums, but it faces a relatively low market share.

In the past, the company has gained a certain advantage through its focus on the California market and its affordable offerings. However, the 101% Combined Ratio indicates that costs slightly exceed premium income, pointing to intense competition and cost pressure.

To strengthen its competitive advantage, Mercury General could benefit from investments in digital technologies and diversifying its product range to operate more efficiently and tap into new customer segments.

Institutional Investor Share: approximately 40% (estimated 2025)

Insider Buys/Sells: No significant transactions in the last 12 months (estimated 2025)

The institutional investor share in Mercury General Corporation is estimated to be around 40%. This suggests that a significant portion of the shares are held by large investment funds, pension funds, and other institutional investors.

Regarding insider buys and sells, there have been no significant transactions in the last 12 months. This could indicate that the management and other insiders are currently not making significant changes to their stake in the company, which is often interpreted as a sign of stability.

These assessments are based on the typical ownership structures and transaction patterns of comparable companies in the industry.

Market share of Mercury General Corporation: Estimated around 1-2% (2025, based on historical data)

Top competitors and their market shares:

1. State Farm: around 9-10%
2. Berkshire Hathaway (GEICO): around 8-9%
3. Progressive Corporation: around 7-8%
4. Allstate Corporation: around 6-7%
5. Liberty Mutual: around 5-6%
6. USAA: around 4-5%
7. Farmers Insurance: around 3-4%
8. Nationwide: around 3-4%
9. American Family Insurance: around 2-3%
10. Travelers Companies: around 2-3%

Moat of Mercury General Corporation:

Mercury General Corporation has a limited moat compared to its larger competitors. The company's main advantage lies in its strong regional presence and focus on specific markets, particularly in California. This specialization allows Mercury to offer tailored products and services that meet the needs of its customers.

Compared to larger competitors with more extensive resources and broader geographic coverage, Mercury's moat is less pronounced. Companies like State Farm and GEICO have a significant competitive advantage due to their brand recognition, economies of scale, and comprehensive product offerings.

In summary, while Mercury General Corporation has some regional strengths, it lacks a significant moat compared to market leaders. Larger insurers generally have better resources and a stronger market position, giving them a competitive edge.

Revenue Growth: 3.5% (2024) Profit Growth: 2.1% (2024) Dividend Yield: 4.5% (2024)

Mercury General Corporation recorded a moderate revenue growth of 3.5% in 2024, indicating stable demand in its core markets. Profit growth was at 2.1%, pointing to a solid, though not spectacular, financial performance.

The dividend yield of 4.5% is attractive for investors seeking regular income, especially in a low-interest environment. This yield suggests a reliable dividend policy that could be of interest to income investors.

Overall, Mercury General demonstrates stable financial development with an attractive dividend yield. For investors prioritizing income and willing to invest in a company with moderate growth, the stock could be a good choice. However, it is important to consider other factors such as market conditions and long-term corporate strategy.

Dividend Yield: 4.5% (2025, estimated)
Dividend History: Continuous payout for over 30 years

Mercury General Corporation is known for its reliable dividend policy. The company has been consistently paying dividends for decades, indicating strong financial stability and a sustainable business model.

The estimated dividend yield of 4.5% in 2025 shows that the company continues to strive to reward shareholders through regular payouts. This stability is supported by a conservative financial policy and a solid capital structure.

In the past, Mercury General has also maintained its dividend policy during economically challenging times, strengthening confidence in the reliability of the payouts.