Mercury General Posts 3Q Profit On Investment Gain

LOS ANGELES (AP) — Auto and home insurer Mercury General Corp. on Monday posted a third-quarter profit in contrast to a year-ago loss, reflecting better investment performance and lower claims paid this year.

Net income came in at $157.7 million, or $2.85 per share, compared with a net loss of $140.5 million, or $2.57 per share, for the same period in 2008.

The results include $2.01 per share of net realized investment gains for the 2009 period, compared with net realized investment losses of $3.29 per share last year. Investment figures reflect, in part, a change in accounting methods during the quarter.

On an operating basis, the company earned $46.3 million, or 84 cents per share.

Analysts polled by Thomson Reuters, on average, expected profit of 66 cents per share. Analysts typically exclude one-time items in their estimates.

Net premiums written were $662.8 million in the third quarter of 2009, up 5 percent from $695.1 million in the 2008 third quarter.