Mercury General Corporation: Company Profile and SWOT Analysis by WMIntelligence

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									Mercury General Corporation

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Mercury General Corporation                                               Financial Snapshot

                                                                          Operating Performance
Fast Facts
                                  4484 Wilshire Boulevard, Los Angeles,   The company reported revenue of US$2,777.28
Headquarters Address
                                  90010,United States of America          million during the fiscal year 2011 (2011). The
                                                                          company's revenue declined at a compounded rate of
Telephone                         + 1 323 9371060
                                                                          3.32% during 2007 - 2011, with an annual growth of
                                                                          0.05% over 2010. In 2011, the company recorded an
Fax                               + 1 323 8577116                         operating margin of 6.88%, as against 5.48% in 2010.

Website                           www.mercuryinsurance.com
                                                                          Revenue and Margins
Ticker Symbol, Stock Exchange     MCY, New York Stock Exchange

Number of Employees               4,500

Fiscal Year End                   December

Revenue (in US$ million)          2,777.29




SWOT Analysis

Strengths                         Weaknesses
                                                                          Return on Equity
Broad portfolio of offerings      Dependence on California market
                                                                          The company recorded a return on equity (ROE) of
Improving financial performance   Increase in loss ratio                  10.29% for 2011, as compared to its peers, Erie
                                                                          Indemnity Company (ERIE), The Progressive
                                                                          Corporation (PGR) and The Allstate Corporation
Strong distribution network                                               (ALL), which recorded ROEs of 17.76%, 17.49% and
                                                                          4.22% respectively. The company reported an
Strong market position                                                    operating margin of 6.88% in 2011.

Opportunities                     Threats                                 Return on Equity

Focus to improve technological
                                  Catastrophic losses
capabilities
Growth in property and casualty
                                  Intense competition
insurance market

                                  Regulatory environment




                                                                          Liquidity Position

                                                                          The company reported a current ratio of 0.08 in 2011,
                                                                          as compared to its peers, Erie Indemnity Company,
                                                                          The Progressive Corporation and The Allstate
                                                                          Corporation, which recorded current ratios of 0.00,
                                                                          0.42 and 0.32 respectively. As of December 2011, the
                                                                          company recorded cash and short-term investments
                                                                          of worth US$0.00 million, against zero current debt.
                                                                          The company reported a debt to equity ratio of 0.00 in
                                                                          2011 as compared to its peers, Erie Indemnity
                                                                          Company, The Progressive Corporation and The
                                                                          Allstate Corporation, which recorded debt to equity
                                                                          ratios of 0.00, 0.00 and 0.00 respectively.




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Mercury General Corporation - SWOT Profile                                                                        Page 1
Mercury General Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Total Revenues and Operating Profit ..............................................................................................................10
      2.2.2       Total Premiums Earned ...................................................................................................................................11
      2.2.3       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.4       Gearing Ratio ...................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................15
      2.3.2       Efficiency ..........................................................................................................................................................16
      2.3.3       Total Premiums Earned ...................................................................................................................................17
      2.3.4       Capital Expenditure ..........................................................................................................................................18
      2.3.5       Asset Turnover .................................................................................................................................................19
3     Recent Developments ........................................................................................................................... 20
4     SWOT Analysis ...................................................................................................................................... 21
    4.1       SWOT Analysis - Overview ..................................................................................................................................21
    4.2       Strengths ..............................................................................................................................................................21
    4.3       Weaknesses .........................................................................................................................................................21
    4.4       Opportunities ........................................................................................................................................................22
    4.5       Threats .................................................................................................................................................................22
5     Company Statement .............................................................................................................................. 24
6     History .................................................................................................................................................... 26
7     Key Employees ...................................................................................................................................... 27
8     Key Employee Biographies................................................................................................................... 28
9     Locations and Subsidiaries .................................................................................................................. 30
    9.1       Head Office ..........................................................................................................................................................30
    9.2       Other Locations and Subsidiaries ........................................................................................................................30
10    Appendix ................................................................................................................................................ 31
    10.1      Methodology .........................................................................................................................................................31
    10.2      Ratio Definitions ...................................................................................................................................................31
    10.3      Disclaimer.............................................................................................................................................................35




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Mercury General Corporation - SWOT Profile                                                                                                                                  Page 2
Mercury General Corporation

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List of Tables

Table 1: Major Products and Services....................................................................................................................................7
Table 2: Key Ratios - Annual .....................................................................................
								
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