MCY
Financial ServicesMercury General Corporation · Insurance - Property & Casualty · $6B
What is Mercury General Corporation?
Mercury General Corporation is a mid-cap personal lines insurer headquartered in Los Angeles, California. Founded in 1961, the company has built a multi-decade track record distributing insurance products across more than ten U.S. states.
Mercury General earns revenue by underwriting personal automobile and homeowners insurance policies, collecting premiums in exchange for covering losses. Policies are sold through a broad network of independent agents and agencies, as well as directly via internet portals. The company operates across Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia, with California representing its largest market concentration.
Mercury General was founded in 1961 and remains headquartered in Los Angeles, California.
- Personal automobile insurance — collision, bodily injury, comprehensive, and related coverages
- Homeowners insurance — dwelling, liability, personal property, and fire hazards
- Commercial automobile and commercial property insurance
- Mechanical protection and umbrella insurance products
- Direct-to-consumer internet sales alongside independent agent distribution
Is MCY a Good Stock to Buy?
UQS Score rates MCY as Good overall, reflecting a balanced but uneven profile across its five quality pillars.
The Risk pillar stands out as a clear strength, suggesting the company carries a relatively conservative financial structure compared with sector peers. Valuation is rated Attractive, meaning the market may not be fully pricing in the company's fundamentals — a point worth examining for patient investors. Quality registers as Good, indicating reasonably sound underlying business metrics.
Both the Moat and Growth pillars are rated Weak, pointing to limited competitive differentiation and subdued expansion prospects relative to the broader financial services sector.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does MCY pay dividends?
Yes — Mercury General Corporation pays a dividend.
Mercury General pays a regular dividend, which is consistent with its long-standing profile as an established personal lines insurer. The company's relatively mature business model and stable premium cash flows support ongoing distributions to shareholders. Income-oriented investors often look to insurers like MCY for dividend continuity, though payout sustainability should always be evaluated alongside underwriting performance.
When does MCY report earnings?
Mercury General reports earnings on a quarterly cadence, typical for U.S.-listed equities.
Results in the personal auto insurance segment are closely tied to loss ratios, catastrophe exposure, and rate adequacy — all of which can shift meaningfully quarter to quarter. Homeowners lines add additional weather-related variability. Investors should track combined ratio trends and reserve development as key indicators of underwriting health.
For the most recent quarter's results, visit Mercury General's investor relations page directly.
MCY Price History
+76.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Mercury General Corporation?
Based on Mercury General Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
MCY Long-term Outlook
Mercury General's fundamental outlook is shaped by its Weak Growth pillar alongside a Strong Risk profile. The company is unlikely to be a high-velocity grower, but its conservative risk posture suggests it may weather underwriting cycles with more stability than peers. The Attractive Valuation label indicates the current price may offer a margin of safety relative to fundamentals, which could matter more in a slower-growth environment.
Growth drivers
- Rate increases across personal auto lines as the industry works through elevated loss cost inflation
- Gradual geographic diversification beyond California reducing single-state concentration risk
- Expansion of direct digital distribution channels supplementing the independent agent network
Key risks
- California regulatory environment constraining premium rate flexibility
- Elevated catastrophe losses from wildfires and weather events pressuring homeowners results
- Weak Moat rating signals limited pricing power if competitors intensify on price
MCY vs Peers
Mercury General operates in a competitive personal lines insurance market alongside both traditional carriers and technology-driven challengers.
Lemonade pursues a fully digital, AI-driven insurance model targeting younger consumers — a sharp contrast to Mercury's independent agent distribution heritage.
RLI focuses on specialty insurance niches with a reputation for disciplined underwriting, giving it a different risk and product profile than Mercury's personal lines focus.
Selective operates primarily through independent agents in standard commercial and personal lines, making its distribution model comparable to Mercury's but with greater commercial emphasis.
Frequently Asked Questions
What does Mercury General do?
Mercury General underwrites personal automobile and homeowners insurance across more than ten U.S. states. It also offers commercial auto, commercial property, mechanical protection, and umbrella products. Policies are distributed through independent agents and direct internet channels, with California as its primary market.
Does MCY pay dividends?
Yes, Mercury General pays a regular dividend. The company's mature underwriting business and relatively stable premium cash flows have supported ongoing distributions. Investors should review the latest dividend announcements on the company's investor relations page for current payout details.
When does MCY report earnings?
Mercury General follows a standard quarterly earnings cadence for U.S.-listed companies. Specific dates are not covered by our data source — check the company's investor relations page or financial calendar services for the next scheduled report.
Is MCY a good stock to buy?
UQS Score rates MCY as Good overall. The Risk pillar is Strong and Valuation is Attractive, which may appeal to value-oriented or income-focused investors. However, Weak Moat and Growth ratings suggest limited competitive differentiation and modest expansion prospects. The full pillar breakdown is available to Pro members.
Is MCY overvalued?
UQS Score's Valuation pillar for MCY is rated Attractive, suggesting the stock may be trading at a reasonable or favorable price relative to its fundamentals. This does not guarantee upside, but it indicates the market may not be assigning a premium multiple to the business at current levels.
How does MCY compare to its competitors?
Compared to Lemonade's digital-first model, Mercury General is a traditional agent-distributed insurer with decades of operating history. Against RLI and Selective Insurance, Mercury competes in overlapping personal and commercial lines but with heavier California concentration. Each competitor carries a distinct risk and growth profile — view side-by-side UQS comparisons with a Pro account.
What is MCY's market cap bracket?
Mercury General is classified as a mid-cap company. This places it in a range that typically offers more liquidity than small-cap insurers while remaining smaller than the largest national carriers in the personal lines space.
Who founded Mercury General?
Mercury General Corporation was founded in 1961. Detailed founding history, including key individuals involved, is widely available through the company's official website and public filings.
Is MCY a long-term quality stock?
As a long-term quality indicator, MCY's Good overall UQS Score reflects a mixed picture. The Strong Risk pillar and Attractive Valuation support a case for durability, but the Weak Moat and Growth ratings raise questions about the company's ability to compound value over time. Long-term investors should weigh both dimensions carefully.
What is the main competitive advantage of Mercury General?
Mercury General's longest-standing advantage is its entrenched independent agent network and multi-decade brand recognition in California personal auto insurance. However, the UQS Moat pillar is rated Weak, suggesting these advantages may not be as durable or defensible as those of higher-moat peers in the sector.
What sector does MCY belong to?
Mercury General belongs to the Financial Services sector, specifically within the property and casualty insurance industry. It focuses on personal lines — primarily auto and homeowners — rather than life insurance or financial products, which distinguishes it from diversified financial services firms.
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Pro Analysis
MCY — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 20, 2026 | 57.3 | 74.3 | 30.0 | 36.6 | 63.6 | 95.5 | +1.6 |
| May 14, 2026 | 55.7 | 74.3 | 30.0 | 29.3 | 63.6 | 95.1 | -0.1 |
| May 12, 2026 | 55.8 | 74.3 | 30.0 | 29.3 | 63.6 | 95.3 | -2.8 |
| May 3, 2026 | 58.6 | 65.9 | 30.0 | 28.2 | 100.0 | 92.9 | +0.1 |
| Apr 26, 2026 | 58.5 | 65.9 | 30.0 | 28.2 | 100.0 | 92.8 | -0.1 |
| Apr 19, 2026 | 58.6 | 65.9 | 30.0 | 28.2 | 100.0 | 93.0 | -0.1 |
| Apr 18, 2026 | 58.7 | 65.9 | 30.0 | 28.2 | 100.0 | 94.2 | +0.3 |
| Apr 14, 2026 | 58.4 | 65.9 | 30.0 | 28.2 | 100.0 | 92.1 | -0.1 |
| Apr 12, 2026 | 58.5 | 65.9 | 30.0 | 28.2 | 100.0 | 92.8 | -0.4 |
| Apr 5, 2026 | 58.9 | 65.9 | 30.0 | 28.1 | 100.0 | 94.9 | -0.1 |
MCY — Pillar Breakdown
Quality
— 74.3/100 (25%)Mercury General Corporation shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 36.6/100 (20%)Mercury General Corporation shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 63.6/100 (15%)Mercury General Corporation maintains a reasonable risk profile with manageable debt levels.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 95.6/100 (15%)Mercury General Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 30/100 (25%)Mercury General Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for MCY.
Score Composition
Financial Data
More Stock Analysis
How is the MCY UQS Score Calculated?
The UQS (Unified Quality Score) for Mercury General Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Mercury General Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Mercury General Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.