Mercury General Corporation (MCY) witnessed a remarkable surge of nearly 20% in the pre-market trading session on Wednesday, driven by its impressive fourth-quarter earnings results that outpaced analysts' expectations.
The auto insurance company reported adjusted earnings of $2.78 per share for the quarter ended December 2024, marking a significant beat compared to the consensus estimate of $0.64 per share. This stellar performance was further supported by a robust 18% year-over-year increase in revenue to $1.43 billion, surpassing expectations of $1.39 billion.
Mercury General's strong results were attributed to higher premiums, improved underwriting performance, and effective management of claims costs across its core auto insurance business. The company capitalized on favorable industry trends, regained pricing power, and benefited from the broader economic recovery supporting consumer demand.
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