Mercury General Jumps on Earnings Beat

Shares rise 7%.
Author:
Publish date:

The automobile and home insurer

Mercury General

(MCY) - Get Report

said Monday that third-quarter earnings fell 7%.

The Los Angeles-based company earned $68.2 million, or $1.25 a share, in the quarter, compared with $73 million, or $1.33 a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $1.13 a share.

Net premiums written increased 1.7% to $776.2 million and net premiums earned rose 4.2% to $753.12 million.

The company's combined ratio was 93% in the third quarter compared with 90.8% in the same period for 2005. Net investment income increased 19.4% to $36.9 million. The after-tax yield on investment income was 3.7% in the latest quarter, compared with 3.4% a year ago.

Shares rose $3.42 to $54.80.

This story was created through a joint venture between TheStreet.com and IRIS.