MERCURY GENERAL’S NINE-MONTH INCOME JUMPS 94% ON REALISED GAINS

US property/casualty group Mercury General saw its nine-month earnings surge 94% to $99.1m owing to a swing to $55m in realised investment gains from year-earlier losses of $75.6m. That swing negated a more than doubling of catastrophe losses (to $23m from $11m). The group’s year-to-date combined ratio added 2.3 points to 101.2%, as earned premiums rose 6.3% to $2.34bn but were outpaced by claims costs, which rose 11.6% to $1.77bn, driven by severity and frequency of motor claims. For the third quarter, the California-based group’s net income rose 76% to $26.9m, reflecting improved underwriting results and a $10.8m decline in realised losses. The quarterly combined ratio improved by 1.1 points to 98.1%, as earned premiums grew 6.1% to $790.9m and claims costs rose 5.6% to $576.3m.