MCY

A month has gone by since the last earnings report for Mercury General (MCY). Shares have lost about 6.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Mercury General due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Mercury General Corporation before we dive into how investors and analysts have reacted as of late. MCY Q2 Earnings Beat on Better Underwriting and Premium GrowthMercury General Corporation reported second-quarter 2026 operating income of $3.52 per share, which surged 31.8% year over year and beat the Zacks Consensus Estimate of $1.80 by 95.6%. Revenues of $1.67 billion surpassed the consensus mark by 5.8%. The better-than-expected results reflected premium growth, improved underwriting profitability and higher investment income. The combined ratio improved 260 basis points year over year to 89.9%, despite an increase in catastrophe losses. Net premiums earned increased 9.6% year over year to $1.5 billion. Net premiums written rose 5.3% to $1.56 billion, while direct premiums written advanced 9.3% to $1.62 billion. The combined ratio, a key measure of underwriting profitability, improved to 89.9% from 92.5% in the prior-year quarter. The loss ratio declined 380 basis points to 65%, more than offsetting a 120-basis-point increase in the expense ratio to 24.9%. Mercury General benefited from approximately $35 million of favorable development on prior accident years’ loss and loss adjustment expense reserves. This compared with approximately $4 million of unfavorable development in the year-ago period. Catastrophe losses, net of reinsurance, totaled $75 million, up sharply from $13 million in the prior-year quarter. The increase reflected adverse reserve development related to the Palisades and Eaton wildfires, along with losses from storms in Texas and Oklahoma. For the first six months of 2026, catastrophe losses totaled $168 million compared with $460 million a year earlier. The majority of 2026 losses included about $80 million of adverse development tied to the California wildfires and roughly $72 million from storms in Texas and Oklahoma.The year-to-date combined ratio improved to 89.6% from 105.4%. On an accident-period basis, which excludes prior-period reserve development, the ratio improved to 91.1% from 107.2%. Net investment income before taxes increased 14% year over year to $89.8 million. After-tax investment income rose 16.1% to $76.6 million.The increase was largely driven by average invested assets, which climbed 20.8% to $6.89 billion. However, the average annual pre-tax investment yield declined to 4.5% from 4.7%, primarily due to a greater allocation to tax-exempt securities carrying lower pre-tax yields.Net realized investment gains before taxes increased to $86.5 million from $23.5 million. Including these gains, net income rose 58.3% to $263.5 million, or $4.76 per share, from $166.5 million, or $3.01 per share. Total expenses rose 6.6% year over year to $1.35 billion. Loss and loss adjustment expenses increased 3.5% to $973.3 million. Policy acquisition costs climbed 9.9% to $250.3 million, while other operating expenses increased 28% to $122.9 million. Interest expense rose 9.9% to $7.9 million.Despite the higher expense base, income before taxes increased 58.3% to $327.3 million. Operating income, which excludes net realized investment gains, advanced 31.9% to $195.2 million. Total company-wide policies in force increased 4.2% from the 2025-end level to 2.36 million. Personal automobile policies rose 2.5% to 1.07 million. Homeowners policies increased 6.2% to 938,000, while commercial automobile policies remained unchanged at 34,000. Policies across the company’s other insurance lines rose 4.6% to 318,000. The continued expansion in policies supported premium growth across Mercury General’s predominantly personal automobile and homeowners insurance portfolio. Mercury General ended June with total assets of $10.54 billion, up 10.3% from the 2025-end level. Cash increased 29.3% to $1.70 billion, while total investments rose 8.4% to $7.13 billion. Shareholders’ equity climbed 17.3% to $2.84 billion. Book value per share increased to $51.20 from $43.64, while statutory surplus rose to $2.77 billion from $2.39 billion. The reported debt-to-total-capital ratio increased to 25.1% from 19.2%. Following the July redemption of $375 million in senior notes, the June 30 ratio would have been 16.9%. The board also declared a quarterly dividend of 31.75 cents per share, to be paid out on Sept. 24, 2026, to shareholders of record as of Sept. 10. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, Mercury General has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Mercury General has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Mercury General is part of the Zacks Insurance - Property and Casualty industry. Over the past month, RenaissanceRe (RNR), a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended June 2026 more than a month ago. RenaissanceRe reported revenues of $2.64 billion in the last reported quarter, representing a year-over-year change of -6.8%. EPS of $12.92 for the same period compares with $12.29 a year ago. For the current quarter, RenaissanceRe is expected to post earnings of $6.38 per share, indicating a change of -59.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.2% over the last 30 days. RenaissanceRe has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mercury General Corporation (MCY) : Free Stock Analysis Report RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Universal Insurance Holdings, Inc. UVE is benefiting from stronger underwriting, premium growth and an improving Florida insurance environment. The company’s strategy is increasingly focused on growing profitably, while expansion outside Florida is helping diversify its risk profile. UVE’s top-line momentum remained healthy. In the second quarter of 2026, direct premiums written increased 4.1% year over year to $621.3 million, supported by higher policies in force, disciplined pricing and geographic diversification. Growth outside Florida was particularly strong, with premiums increasing 14.4%, compared with 0.8% growth in Florida in the second quarter. This expansion could help reduce catastrophe concentration while supporting longer-term premium growth. Florida’s legislative reforms remain an important driver of underwriting improvement. Lower litigation frequency and severity helped UVE’s net loss ratio improve 750 basis points to 64.8% in the second quarter. As a result, the net combined ratio improved 620 basis points to 91.6%, pointing to stronger underwriting profitability.Reinsurance is another important part of the strategy. UVE’s 2026-27 renewal benefited from more favorable rates and includes $352 million of multi-year coverage, providing greater protection against catastrophe losses and reducing renewal uncertainty. Catastrophe risk remains the biggest challenge, particularly given UVE’s Florida exposure. Verisk’s latest 2026 report estimates global economic losses from natural catastrophes at more than $450 billion annually, while global modeled insured property catastrophe losses are estimated at $171 billion. However, geographic diversification, stronger reinsurance protection, premium growth and underwriting discipline could help UVE manage catastrophe exposure while supporting profitable growth. Among UVE’s peers, Mercury General MCY is also seeing strong premium growth and improving underwriting. In the second quarter, net premiums earned increased 9.6%, while the combined ratio improved 260 basis points to 89.9%. Direct premiums written rose 9.3%, supported by growth in its core auto and homeowner businesses. Meanwhile, HCI Group HCI remains more focused on Florida homeowner insurance, making its premium growth and underwriting performance. HCI Group's expansion beyond Florida also supports diversification as insurers look to manage catastrophe exposure. Shares of Universal Insurance Holdings have rallied 76.2% in the past year, outperforming the industry’s growth of 1.6%. Image Source: Zacks Investment Research UVE’s shares are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 1.88X is higher than the industry average of 1.42X. However, it currently carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Universal Insurance’s 2026 revenues are pegged at $1.60 billion, indicating a year-over-year decrease of 0.5%. The consensus estimate for UVE’s 2026 earnings per share (EPS) indicates a year-over-year decrease of 21.8%. The consensus estimates for 2027 revenues and EPS indicate an increase of 1.5% and 2.1%, respectively, from the corresponding 2026 estimates. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings have remained unchanged, respectively, over the past 30 days. Image Source: Zacks Investment Research UVE stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UNIVERSAL INSURANCE HOLDINGS INC (UVE) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Progressive Corporation PGR reported earnings per share of $1.65 for July 2026, which declined 11% year over year. The downside was due to escalating expenses and net realized losses on securities. Progressive recorded net premiums written of $7.4 billion, up 5% from $7 billion in the year-ago month. Net premiums earned were about $7.3 billion, up 5% from $6.9 billion reported in the year-ago month.Net realized losses on securities were $47 million against a net realized income of $79 million from the year-ago month.Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 150 basis points (bps) year over year to 86.8.PGR’s total revenues were $7.8 billion, up 27.1% year over year, owing to a 5.3% increase in premiums, a 10.9% jump in investment income, and 8.9% higher service revenues.Total expenses increased 7.1% to $6.6 billion, mainly due to higher losses and loss adjustment expenses, policy acquisition costs, other underwriting expenses, investment expenses, service expenses and interest expense.In July 2026, policies in force (PIF) were impressive for both Vehicle and Property businesses. In the Vehicle business, the Personal Auto segment recorded a 7% year-over-year increase to 39 million policies. Special Lines policies rose 6% from the year-earlier month to 7.3 million.In Progressive’s Personal Auto segment, Agency Auto PIF increased 7% to 11.3 million, while Direct Auto improved 9% to 16.8 million.PGR’s Commercial Auto segment policies rose 4% year over year to 1.2 million.The Property business had 3.6 million policies in force in the reported month, remaining unchanged year over year.The company’s book value per share was $59.64 as of July 31, 2026, up 4.8% from $56.92 on July 31, 2025.                        In the trailing 12 months, the return on equity was 31.3%, down 840 bps from 39.7% in July 2025. The debt-to-total-capital ratio deteriorated 240 bps year over year to 19.5 as of July 31, 2026. Progressive shares have lost 14% in the past year against the industry’s growth of 2.7%. Image Source: Zacks Investment Research Progressive currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the insurance industry are The Hanover Insurance Group, Inc. THG, First American Financial Corporation FAF and Mercury General Corporation MCY. While THG sports a Zacks Rank #1 (Strong Buy), FAF and MCY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Hanover Insurance’s earnings surpassed estimates in each of the last four quarters, the average surprise being 27.33%. Shares of THG have jumped 25.9% in the past year. The Zacks Consensus Estimate for THG’s 2026 and 2027 revenues implies year-over-year growth of 4.6% and 4.5%, respectively.First American’s earnings surpassed estimates in each of the last four quarters, with an average surprise of 23.58%. Shares of FAF have gained 12.5% in the past year. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 17.5% and 4%, respectively.Mercury General’s earnings surpassed estimates in each of the last four quarters, the average surprise being 70.21%. Shares of MCY have jumped 39.3% in the past year. The Zacks Consensus Estimate for MCY’s 2026 earnings implies year-over-year growth of 61.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Progressive Corporation (PGR) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The second-quarter earnings season has produced several standout performers. That said, the biggest winners haven't simply topped Wall Street's estimates—they've delivered blowout results while reinforcing confidence in their long-term growth outlooks. Whether fueled by improving end-market demand, expanding margins, or stronger guidance, Caterpillar (CAT), Mercury General (MCY), and Zebra Technologies (ZBRA) each posted impressive quarterly results this week that could warrant a closer look from investors seeking quality additions to their portfolios. Caterpillar delivered one of the strongest earnings reports of the quarter, crushing Wall Street's expectations as demand remained robust across its end markets. The construction and mining equipment giant reported adjusted earnings of $8.17 per share, topping analyst expectations of $6.25 by nearly 31% and soaring 73% from Q2 EPS of $4.72 a year ago. Revenue surged 24% year over year to $20.54 billion, also well ahead of consensus estimates of $19.31 billion. Perhaps even more encouraging was Caterpillar's record $72 billion backlog, highlighting sustained demand across construction, energy and AI-related infrastructure projects. Management also raised its full-year sales outlook to mid-to-high teens growth, reflecting confidence in continued business momentum. The combination of accelerating growth, improving guidance and a sizable earnings beat reinforces Caterpillar's position as one of the industrial sector's premier long-term investments. Image Source: Zacks Investment Research Mercury General continued its remarkable turnaround with another outstanding quarterly performance. The property and casualty insurer posted Q2 adjusted EPS of $3.52, which spiked from earnings of $2.67 per share in the prior year quarter and crushed expectations of $1.80 by 95%. This came as Q2 sales increased 14% YoY to $1.67 billion, easily surpassing estimates of $1.58 billion. Mercury benefited from stronger underwriting results, favorable pricing trends, and disciplined expense management. Higher premium revenue and improving profitability demonstrated that Mercury’s pricing actions continue to gain traction while claims trends remain manageable. With the company also benefiting from higher investment income generated by elevated interest rates, Mercury appears well positioned to sustain its operational improvement and has posted a very impressive average EPS surprise of 70.21% in its last four quarterly reports. Image Source: Zacks Investment Research Zebra Technologies also delivered a standout quarter as enterprise demand for automation and data-capture solutions remained strong. The leading provider of enterprise asset intelligence solutions reported Q2 adjusted earnings of $6.35 per share, crushing analyst expectations of $4.35 by nearly 46% and surging 76% from EPS of $3.61 in the prior year period. Revenue reached $1.55 billion, up 20% YoY and ahead of Q2 consensus estimates of $1.49 billion. Management also significantly increased its full-year outlook, now expecting 14%-16% revenue growth and adjusted EPS of $20.75-$21.25 (+30% growth), with both figures being well ahead of its prior guidance. Image Source: Zacks Investment Research Strong execution across Zebra’s enterprise visibility, warehouse automation and mobile computing businesses drove the much better-than-expected results and guidance, prompting investors to send ZBRA shares sharply higher following the report. With businesses continuing to invest in automation and supply chain efficiency, Zebra appears well positioned to capitalize on long-term secular growth trends. Image Source: Zacks Investment Research Strong earnings surprises often serve as catalysts for higher EPS estimates and improving investor sentiment, with Caterpillar, Mercury General and Zebra Technologies each demonstrating why they're worth watching following their second-quarter results. Beyond delivering impressive earnings beats, all three companies reinforced confidence in their underlying businesses through strong operational execution and favorable outlooks. For investors seeking portfolio-worthy stocks with solid momentum and improving fundamentals, these names stand out as compelling candidates. Notably, Caterpillar and Zebra Technologies could eventually join Mercury General in receiving a buy rating should analysts continue raising their earnings estimates following these strong quarterly reports. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mercury General Corporation MCY reported second-quarter 2026 operating income of $3.52 per share, which surged 31.8% year over year and beat the Zacks Consensus Estimate of $1.80 by 95.6%. Revenues of $1.67 billion surpassed the consensus mark by 5.8%.The better-than-expected results reflected premium growth, improved underwriting profitability and higher investment income. The combined ratio improved 260 basis points year over year to 89.9%, despite an increase in catastrophe losses. Net premiums earned increased 9.6% year over year to $1.5 billion. Net premiums written rose 5.3% to $1.56 billion, while direct premiums written advanced 9.3% to $1.62 billion.The combined ratio, a key measure of underwriting profitability, improved to 89.9% from 92.5% in the prior-year quarter. The loss ratio declined 380 basis points to 65%, more than offsetting a 120-basis-point increase in the expense ratio to 24.9%. Mercury General Corporation price-consensus-eps-surprise-chart | Mercury General Corporation Quote Mercury General benefited from approximately $35 million of favorable development on prior accident years’ loss and loss adjustment expense reserves. This compared with approximately $4 million of unfavorable development in the year-ago period. Catastrophe losses, net of reinsurance, totaled $75 million, up sharply from $13 million in the prior-year quarter. The increase reflected adverse reserve development related to the Palisades and Eaton wildfires, along with losses from storms in Texas and Oklahoma.For the first six months of 2026, catastrophe losses totaled $168 million compared with $460 million a year earlier. The majority of 2026 losses included about $80 million of adverse development tied to the California wildfires and roughly $72 million from storms in Texas and Oklahoma.The year-to-date combined ratio improved to 89.6% from 105.4%. On an accident-period basis, which excludes prior-period reserve development, the ratio improved to 91.1% from 107.2%. Net investment income before taxes increased 14% year over year to $89.8 million. After-tax investment income rose 16.1% to $76.6 million.The increase was largely driven by average invested assets, which climbed 20.8% to $6.89 billion. However, the average annual pre-tax investment yield declined to 4.5% from 4.7%, primarily due to a greater allocation to tax-exempt securities carrying lower pre-tax yields.Net realized investment gains before taxes increased to $86.5 million from $23.5 million. Including these gains, net income rose 58.3% to $263.5 million, or $4.76 per share, from $166.5 million, or $3.01 per share. Total expenses rose 6.6% year over year to $1.35 billion. Loss and loss adjustment expenses increased 3.5% to $973.3 million.Policy acquisition costs climbed 9.9% to $250.3 million, while other operating expenses increased 28% to $122.9 million. Interest expense rose 9.9% to $7.9 million.Despite the higher expense base, income before taxes increased 58.3% to $327.3 million. Operating income, which excludes net realized investment gains, advanced 31.9% to $195.2 million. Total company-wide policies in force increased 4.2% from the 2025-end level to 2.36 million. Personal automobile policies rose 2.5% to 1.07 million.Homeowners policies increased 6.2% to 938,000, while commercial automobile policies remained unchanged at 34,000. Policies across the company’s other insurance lines rose 4.6% to 318,000.The continued expansion in policies supported premium growth across Mercury General’s predominantly personal automobile and homeowners insurance portfolio. Mercury General ended June with total assets of $10.54 billion, up 10.3% from the 2025-end level. Cash increased 29.3% to $1.70 billion, while total investments rose 8.4% to $7.13 billion.Shareholders’ equity climbed 17.3% to $2.84 billion. Book value per share increased to $51.20 from $43.64, while statutory surplus rose to $2.77 billion from $2.39 billion.The reported debt-to-total-capital ratio increased to 25.1% from 19.2%. Following the July redemption of $375 million in senior notes, the June 30 ratio would have been 16.9%. The board also declared a quarterly dividend of 31.75 cents per share, to be paid out on Sept. 24, 2026, to shareholders of record as of Sept. 10. MCY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.AXIS Capital Holdings Limited AXS reported second-quarter 2026 operating income of $2.84 per share, which missed the Zacks Consensus Estimate of $3.23 and fell 12.1% year over year. Total operating revenues of $1.7 billion marginally missed the Zacks Consensus Estimate by 1%. The top line rose nearly 7.4% year over year on higher premiums earned.Net premiums written decreased 1.8% to $1.6 billion, reflecting lower premiums in the Reinsurance segment, partially offset by growth in the Insurance segment. AXIS Capital’s underwriting income of $142.9 million decreased 24.5% year over year. The combined ratio deteriorated to 93.1 in the quarter from 88.9 a year ago, reflecting higher catastrophe and weather-related losses. The Zacks Consensus Estimate was pegged at 93.2. Our estimate was 93.8.Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%.Earned premiums climbed 6.3% year over year to $2.6 billion, driven by higher renewal pricing, increased insured exposures and new business growth. The figure marginally missed the Zacks Consensus Estimate by 1.5%. The combined ratio deteriorated 550 basis points year over year, underperforming the consensus estimate of 97.1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mercury General Corporation (MCY) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mercury General (MCY) came out with quarterly earnings of $3.52 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $2.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +95.56%. A quarter ago, it was expected that this auto insurance company would post earnings of $2.15 per share when it actually produced earnings of $3.5, delivering a surprise of +62.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Mercury General, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $1.67 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.75%. This compares to year-ago revenues of $1.47 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Mercury General shares have added about 14% since the beginning of the year versus the S&P 500's gain of 11%. While Mercury General has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Mercury General was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.35 on $1.62 billion in revenues for the coming quarter and $11.50 on $6.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, HCI Group (HCI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This property and casualty insurance holding company is expected to post quarterly earnings of $4.97 per share in its upcoming report, which represents a year-over-year change of -4.1%. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level. HCI Group's revenues are expected to be $240.67 million, up 8.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mercury General Corporation (MCY) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS ANGELES, Aug. 4, 2026 /PRNewswire/ -- Mercury General Corporation (NYSE: MCY) reported today for the second quarter of 2026: The Board of Directors declared a quarterly dividend of $0.3175 per share. The dividend will be paid on September 24, 2026 to shareholders of record on September 10, 2026. Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers and direct-to-consumer sales in many states. For more information, visit the Company's website at www.mercuryinsurance.com. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Certain statements contained in this report are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the demand for the Company's insurance products, inflation and general economic conditions, including general market risks associated with the Company's investment portfolio; the accuracy and adequacy of the Company's pricing methodologies; catastrophes in the markets served by the Company; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company's loss reserves in general, including subrogation recovery estimates; the Company's ability to obtain and the timing of the approval of premium rate changes for insurance policies issued in the states where it operates; legislation adverse to the automobile or homeowners insurance industry or business generally that may be enacted in the states where the Company operates; the Company's success in managing its business in non-California states; the presence of competitors with greater financial resources and the impact of competitive pricing and marketing efforts; the Company's ability to successfully allocate the resources used in the states with reduced or exited operations to its operations in other states; changes in driving patterns and loss trends; acts of war and terrorist activities; effects of changing climate conditions; pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; court decisions and trends in litigation and health care and auto repair costs; changes in global trade policies, including trade barriers or restrictions; and legal, cybersecurity, regulatory and litigation risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 17, 2026. Information Regarding GAAP and Non-GAAP Measures The Company has presented information within this document containing operating measures which in management's opinion provide investors with useful, industry specific information to help them evaluate, and perform meaningful comparisons of, the Company's performance, but that may not be presented in accordance with GAAP. These measures are not intended to replace, and should be read in conjunction with, the GAAP financial results. Net income (loss) is the GAAP measure that is most directly comparable to operating income (loss). Operating income (loss) is net income (loss) excluding realized investment gains and losses, net of tax. Operating income (loss) is used by management along with the other components of net income (loss) to assess the Company's performance. Management uses operating income (loss) as an important measure to evaluate the results of the Company's insurance business. Management believes that operating income (loss) provides investors with a valuable measure of the Company's ongoing performance as it reveals trends in the Company's insurance business that may be obscured by the effect of net realized investment gains and losses. Realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments such as capital market conditions. Accordingly, operating income (loss) highlights the results from ongoing operations and the underlying profitability of the Company's core insurance business. Operating income (loss), which is provided as supplemental information and should not be considered as a substitute for net income (loss), does not reflect the overall profitability of the Company's business. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of net income (loss) to operating income (loss). Net premiums earned, the most directly comparable GAAP measure to net premiums written and direct premiums written, represents the portion of premiums written that is recognized as revenue in the financial statements for the periods presented and earned on a pro-rata basis over the term of the policies. Net premiums written is a statutory financial measure which represents the premiums charged on policies issued during a fiscal period net of any applicable reinsurance; direct premiums written is such a measure before any applicable reinsurance. Net premiums written and direct premiums written are designed to determine production levels and are meant as supplemental information and not intended to replace net premiums earned. Such information should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of net premiums earned to net premiums written and direct premiums written. Incurred losses and loss adjustment expenses is the most directly comparable GAAP measure to paid losses and loss adjustment expenses. Paid losses and loss adjustment expenses excludes the effects of changes in the loss reserve accounts. Paid losses and loss adjustment expenses is provided as supplemental information and is not intended to replace incurred losses and loss adjustment expenses. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of incurred losses and loss adjustment expenses to paid losses and loss adjustment expenses. Combined ratio is the most directly comparable measure to combined ratio-accident period basis. Combined ratio-accident period basis is computed as the difference between two GAAP operating ratios: the combined ratio and prior accident periods' loss development ratio. Management believes that combined ratio-accident period basis is useful to investors and it is used to reveal the trends in the Company's results of operations that may be obscured by development on prior accident periods' loss reserves. Combined ratio-accident period basis is meant as supplemental information and is not intended to replace the GAAP combined ratio. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of GAAP combined ratio to combined ratio-accident period basis. 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Continued improved pricing, exposure growth, portfolio streamlining, solid retention, renewals, reinsurance agreements and accelerated digitalization are expected to have enhanced insurance stocks’ June-quarter performance. However, catastrophe losses are likely to have weighed on the upside. Insurers yet to report their second-quarter results on Aug. 4 are Mercury General Corporation MCY, Assurant, Inc. AIZ, Prudential Financial, Inc. PRU and American Financial Group, Inc. AFG.The insurance space is housed within the broader Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification). Per the latest Earnings Preview, the total earnings of finance companies for the second quarter are anticipated to rise 22.9% from the prior-year quarter’s figure. These companies’ revenues are anticipated to improve 12%. Better pricing, solid retention and exposure growth across business lines are likely to have driven premiums. Per the latest Marsh Global Insurance Market Index, in the second quarter of 2026, Global insurance rates declined 6%, marking the eighth consecutive quarter of reductions and extending favorable conditions for buyers across most regions and major product lines. Property rates reduced by 12% while casualty rates increased 2%, driven largely by continued challenges in the United States.Aon has estimated a pre-tax catastrophe loss of $1.72 billion, indicating a heavy start for the annual aggregate year for the company’s catastrophe bonds. Goldman Sachs estimates global insured catastrophe losses at approximately $24 billion. Per Goldman Sachs, the estimate of $24 billion represents approximately 65-70% of the five-year quarterly average.Underwriting profit is likely to have benefited from better pricing, reinsurance arrangements, portfolio repositioning, reinsurance covers and favorable reserve development.Auto premiums are likely to have improved, given increased travel across the world.The U.S. Federal Reserve projected to hold the federal funds rate steady in the 3.50% to 3.75% range through the end of 2026. For year-end 2026, the Fed projected one quarter-point rate hike and five projected half-point rate hikes. A larger investment asset base, strong cash flow from operating activities, higher bond yields and an increase in interest income from fixed-maturity securities are expected to have aided net investment income.The insurance industry’s increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation expedites business operations. Insurers continue to invest heavily in technology to improve basis points, scale and efficiencies. These investments are likely to have curbed costs and aided the margins of insurers in the second quarter.   A solid capital position is likely to have aided insurers in strategic mergers and acquisitions to sharpen their competitive edge, expand geographically and diversify their portfolio. Sustained wealth distribution to shareholders via dividend hikes, special dividends and share repurchases instills confidence in the insurers.Let’s find out how the following insurers are placed before their second-quarter 2026 results on Aug. 4.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Per our proprietary model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Mercury General: Mercury General's second-quarter results are likely to benefit from continued growth in net premiums earned, driven by previously approved rate increases, disciplined underwriting and an increase in policies written, particularly in the California private passenger automobile business. Rate increases in the California homeowners line are also expected to have supported earned premiums. Net investment income is expected to have increased, supported by higher reinvestment yields and growth in invested assets amid a favorable interest rate environment. Disciplined underwriting, favorable pricing actions and prior-year reserve development are expected to have supported underwriting profitability and the combined ratio. The Zacks Consensus Estimate for the bottom line is pegged at $1.80, indicating a 32.58% decrease from the year-ago quarter’s reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. (Read more: Mercury General Set to Report Q2 Earnings: What to Expect?). You can see the complete list of today’s Zacks #1 Rank stocks here.MCY’s earnings surpassed estimates in each of the last four reported quarters, the average surprise being 61.76%. This is depicted in the chart below: Mercury General Corporation price-eps-surprise | Mercury General Corporation Quote Assurant: Solid performance in the Global Housing segment, as well as growth in Global Lifestyle, is likely to have aided Assurant's second-quarter performance. Revenues are likely to have increased due to improved net earned premiums and higher net investment income. Net earned premiums are expected to have benefited from higher premiums in the Global Housing and Global Lifestyle segments. Global Housing is expected to have been driven by Homeowners from higher lender-placed policies in force and average premiums and growth across various specialty products, as well as growth in Renters and Other, primarily from the prior year acquisition of a block of renters policies. Global Lifestyle is likely to have benefited from Connected Living growth from global mobile device protection programs, extended service contracts, including a recently launched U.S. program, and card benefits programs in financial services.The Zacks Consensus Estimate for the bottom line is pegged at $5.16, indicating a 7.1% decrease from the year-ago quarter’s reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. (Read more: Assurant Set to Report Q2 Earnings: What's in the Cards?). AIZ’s earnings surpassed estimates in each of the last four reported quarters, the average surprise being 18.06%. This is depicted in the chart below: Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote Prudential: Group Insurance segment is likely to be affected by lower net underwriting results and higher expenses. U.S. Legacy Products segment is likely to be affected by lower fee income, underwriting results and net investment spread results. The Retirement business is likely to have benefited from higher net investment spread results, partially offset by higher expenses and less favorable reserve experience. Individual Life is likely to have benefited from higher underwriting results and net investment spread results. PGIM is likely to have benefited from higher net asset management fees and higher net other related revenues.The Zacks Consensus Estimate for the bottom line is pegged at $3.42, indicating a 4.4% decrease from the year-ago quarter’s reported figure. The company has an Earnings ESP of -0.85% and a Zacks Rank #3 at present. (Read more: Will Prudential Financial Pull Off a Surprise This Earnings Season?). PRU’s earnings surpassed estimates in three of the last four quarters while missing in one, the average surprise being 9.32%. This is depicted in the chart below: Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote American Financial: The second-quarter results are likely to benefit from strong performance across Property and transportation, Specialty casualty, Specialty financial and other specialty businesses. New business opportunities, a favorable renewal environment and higher exposures in several lines are likely to favor results. Higher reinvestment yields and a larger invested asset base are likely to boost core investment income. However, exposure to cat losses and rising expenses are likely to have weighed on profitability.The Zacks Consensus Estimate for AFG’s bottom line is pegged at $2.41, indicating a 12.6% increase from the year-ago quarter's reported figure. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.AFG’s earnings surpassed estimates in three of the last four quarters while missing in one, the average surprise being 7.25%. This is depicted in the chart below: American Financial Group, Inc. price-eps-surprise | American Financial Group, Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report American Financial Group, Inc. (AFG) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mercury General Corporation (MCY) is expected to register a decrease in its top and bottom lines when it reports second-quarter 2026 results on Aug. 4, after the closing bell. The Zacks Consensus Estimate for MCY’s second-quarter revenues is pegged at $1.6 billion, indicating 7.8% decline from the year-ago reported figure. The consensus estimate for earnings is pegged at $1.80 per share. The Zacks Consensus Estimate for MCY’s second-quarter earnings suggests a 32.6% year-over-year decrease. The Zacks Consensus Estimate for MTG’s second-quarter earnings has remained the same over the past 30 days. Our proven model does not predict an earnings beat for Mercury General this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That’s not the case here, as you can see below. Earnings ESP: Mercury General has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of $1.80 per share is pegged in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Mercury General Corporation price-eps-surprise | Mercury General Corporation Quote Zacks Rank: MCY carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Mercury General's second-quarter results are likely to benefit from continued growth in net premiums earned, driven by previously approved rate increases, disciplined underwriting and an increase in policies written, particularly in the California private passenger automobile business. Rate increases in the California homeowners line are also expected to support earned premiums. The Zacks Consensus Estimate for net premiums earned is pegged at $1.5 billion. Net investment income is expected to increase, supported by higher reinvestment yields and growth in invested assets amid a favorable interest rate environment. The Zacks Consensus Estimate is pegged at $82.7 million. Disciplined underwriting, favorable pricing actions and prior-year reserve development are expected to have supported underwriting profitability and the combined ratio. However, elevated catastrophe losses from severe weather events, wildfire-related claims and higher claims severity are likely to have partially offset these benefits. The Zacks Consensus Estimate for the combined ratio is pegged at 97.2. Mercury General's catastrophe reinsurance program is likely to limit the impact of catastrophe losses in the quarter. The company's investment in BurnBot also reflects its ongoing efforts to improve wildfire risk management and underwriting quality. Expenses are likely to have increased due to higher policy acquisition costs, employee compensation, advertising expenses and technology investments associated with business growth. Here are three other P&C insurance stocks that you may want to consider, as our model shows that have the right combination of elements to post an earnings beat: Prudential Financial Inc. PRU has an Earnings ESP of +0.45% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.39, indicating a 5.3% year-over-year decrease. PRU’s earnings beat estimates in three of the last four reported quarters. Skyward Specialty Insurance Group, Inc. SKWD has an Earnings ESP of +1.39% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.15, indicating a year-over-year increase of 29.2%. SKWD’s earnings beat estimates in each of the last four reported quarters. Palomar Holdings, Inc. PLMR has an Earnings ESP of +3.77% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $2.12, indicating a year-over-year increase of 20.5%. PLMR’s earnings beat estimates in each of the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mercury General Corporation (MCY) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research