Mercury General Posts Loss on Investment Decline

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Mercury General Corp said Monday it had swung from a profit to a loss in its third quarter, hurt mainly by fall in value of its equity holdings.

The Los Angeles auto and home insurer reported a net loss of $141 million ($2.57 a share) compared with net income of $63.3 million ($1.15) a year ago. Operating income was 72 cents a share, while analysts expected 90 cents a share. Net realized investment losses were $180 million, compared with gains of $1.3 million a year ago.

Mercury General, whose largest market for auto insurance is California, said net premiums earned fell 7 percent to $697 million.

The board declared a quarterly dividend of 58 cents per share, a 12 percent increase from a year ago. The dividend is to be paid on Dec. 30 to shareholders of record on Dec. 16.

Shares were down $1.74, or more than 3 percent, to $49.63 in Monday trading on the New York Stock Exchange.

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