Mercury General Corporation (MCY) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $26.08 million, or $ 0.47 a share in the quarter, against a net profit of $23.40 million, or $0.42 a share in the last year period. Revenue during the quarter dropped 6.18 percent to $737.60 million from $786.17 million in the previous year period. Net premium earned for the quarter increased 4.53 percent or $34.42 million to $794.52 million.
Total expenses move up marginallyBenefits, losses and expenses for the quarter were at $788.87 million, or 99.29 percent of premium earned from $762.24 million or 100.28 percent of premium earned in the last year period. Operating loss for the quarter was $51.27 million, compared with an operating income of $23.93 million in the previous year period. The company has booked a loss on investments of $89.23 million in the quarter compared with a loss of $8.21 million for the previous year period.
Liabilities outpace assets growthTotal assets increased 3.46 percent or $160.07 million to $4,788.72 million on Dec. 31, 2016. On the other hand, total liabilities were at $3,036.32 million as on Dec. 31, 2016, up 8.14 percent or $228.56 million from year-ago. Return on assets was negative at 0.52 percent in the quarter against a positive 0.52 percent in the last year period. Return on equity was negative at 1.49 percent in the quarter against a positive 1.29 percent in the last year period.
Investments move up marginallyInvestments stood at $3,547.56 million as on Dec. 31, 2016, up 4.94 percent or $166.92 million from year-ago. Net premiums and other receivables increased 5.16 percent or $22.53 million over the year to $459.15 million on Dec. 31, 2016.
Total debt was at $320 million as on Dec. 31, 2016, up 10.34 percent or $30 million from year-ago. Shareholders equity stood at $1,752.40 million as on Dec. 31, 2016, down 3.76 percent or $68.48 million from year-ago. As a result, debt to equity ratio went up 2 basis points to 0.18 percent in the quarter from 0.16 percent in the last year period.
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