Mercury General Profit Declines

Profit declines at Mercury General.

Author:: TSC and IRIS Staff
Publish date:: Feb 13, 2006 3:00 PM EST

Mercury General

said fourth-quarter earnings fell 43% from a year ago, hit by hurricane losses.

The automobile and home insurer earned $46.2 million, or 84 cents a share, compared with $74.1 million, or $1.36 a share, a year ago. Adjusted for investment gains and hurricane losses, earnings were $61.7 million, or $1.12 a share, in the most recent quarter. Analysts polled by Thomson First Call were looking for $1.06 a share for the recent quarter.

Fourth-quarter revenue rose 10% from a year ago to $732.9 million. Analysts were expecting revenue of $751.1 million.

The combined ratio, which indicates the profitability of the insurer's operations, deteriorated 740 basis points to 92.4% due to losses from Hurricane Wilma.

On Monday, Mercury General fell 95 cents to $55.45.

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