Mercury Insurance Group

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Mercury Insurance Group
Public
Traded as NYSEMCY
S&P 400 Component
Industry Insurance
Founded 1961
Headquarters 4484 Wilshire Boulevard
Los Angeles, California
Key people
Gabe Tirador, CEO & President, George Joseph, Founder & Chairman
Revenue DecreaseUS$3.09 billion (2015)[1]
DecreaseUS$70.56 million (2015)[1]
DecreaseUS$74.47 million (2015)[1]
Total assets IncreaseUS$4.62 billion (2015)[1]
Total equity DecreaseUS$1.82 billion (2015)[1]
Number of employees
5,100
Website www.mercuryinsurance.com

Mercury Insurance Group (NYSE: MCY) is a multiple-line insurance organization offering personal automobile, homeowners, renters and business insurance. Founded in 1961 and headquartered in Los Angeles, Mercury has assets in excess of $4 billion,[2] employs 4,500 people and has more than 8,000 independent agents in 11 states (Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia).[2]

Mercury’s primary focus is auto and homeowners insurance, however, the company also writes personal liability policies (umbrella), business insurance, mechanical breakdown protection (similar to an extended warranty for your vehicle), renters, service line protection, home systems protection, identity management protection and ride-hailing insurance.[3]

History[edit]

Mercury founder George Joseph, who flew 50 World War II missions over Africa and Italy as a navigator before graduating from Harvard on the GI Bill in 1949, decided his Ivy League math degree fit nicely into the actuarial world of insurance. Joseph then spent more than a decade in the industry before founding Mercury Insurance in 1961 as a low-cost alternative to larger insurance companies.[4]

Mercury General Corp., which consisted of six employees sold its first policy April 1, 1962. Now, it’s one of California’s largest insurance providers in the state.[5]

Mercury’s California expansion began in 1964 with the opening of its first Orange County office.[6] Two years later, the company spread into the San Fernando Valley and also began operations in San Diego. Mercury offices opened in Northern California by 1968.[7]

Mercury wrote $1 million in premiums per month by 1970, sold its first homeowners policy in 1972 and in 1973 the company celebrated its 10th consecutive year of revenue growth.[8] Newly created Mercury Insurance Company wrote its first auto policy in 1977.[9]

Mercury expanded outside of California, opening offices in Georgia and Illinois beginning in 1989.

The company insured more than 1 million vehicles in California by 1998.[10] This led to further growth into Florida (1998), New York (2001) and Virginia (2001).[11]

Forbes lists Mercury Insurance on its “100 Most Trustworthy Companies” in 2012[12] “America’s 50 Most Trusted Financial Companies” in 2014[13], 2015[14] and 2016. It has been rated A “Excellent” by insurance industry rating agencies A.M. Best and Fitch.[15]

In 2017, the company was named a “Top Five Best Auto Insurance Company” by Insure.com, who surveyed more than 3,700 U.S. insurance customers on the criteria of “customer service,” “claims handling,” “pricing,” “plans to renew current policy,” and “would recommend the insurer.”[16] Additionally, Mercury Insurance was named one of “America’s Best Midsize Employers” by Forbes magazine in 2017.[17]

Mercury is currently operating in 11 states: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia.[18]

Mercury is led by President and CEO Gabriel Tirador, and Joseph is Chairman of the Board.[19]

Mercury Insurance Blog[edit]

Mercury Insurance helps educate consumers about insurance by publishing insurance articles on its blog.[15] These articles discuss a variety of topics, including: how insurance protects homeowners,[20] renters and their property,[21] how to save money and reduce debt through proper budgeting;[22] insurance considerations surrounding weather events;[23] how to prepare for and handle natural disasters;[24][25] insurance claim tips;[26] advice on finding the best insurance deals and coverage options;[27] tips on how to protect personal property while away on extended trips;[28] and articles promoting financial literacy.[29] The blog also features lifestyle pieces, covering subjects such as travel,[30] technology,[31] parenting[32] and teen driving.[33]

Products[edit]

Personal Auto Insurance – Mercury provides liability, comprehensive, collision, and other coverages for personal automobiles.[34]

Homeowners Insurance – A policy specifically tailored to individual needs for single-family homes that includes the structure, belongings and liability coverage. It may also provide additional living expenses if policyholders are forced to vacate their homes due to a covered loss or peril.[35]

Renters Insurance – Renters insurance provides coverage for personal property and liability protection. It also covers temporary living expenses should your property become uninhabitable due to a covered loss or peril.[36]

Condo Insurance – Specifically designed for condo owners, these policies provide coverage for personal property, liability protection, guest medical protection, and condo unit additions and alterations. It also covers temporary living expenses should your property become uninhabitable due to a covered loss or peril.[37]

Umbrella Insurance – Additional liability protection for personal auto and/or homeowners in the event losses exceed the underlying policy’s liability limits.[38]

Dwelling Fire Insurance – A policy specifically designed for landlords to protect rental properties – providing coverage for the structure, contents and general liability. Should the property become uninhabitable due to a covered loss or peril, fair rental value will be provided for lost rents until the property is livable again.

Business Auto Insurance – Provides protection for individuals, sole proprietorships, partnerships and corporations with vehicles that are used for business purposes.[39]

Business Insurance – Three different policies – Business Owners Policies (BOPs), Commercial Property, and Commercial Liability – that protect various aspects of a business. The most common policy coverages include liability, medical, building coverage, business personal property and business income.

Mechanical Protection – Commonly referred to as extended warranty coverage, Mercury’s mechanical protection pays for covered vehicle repairs after the vehicle manufacturer’s warranty expires. Certain benefits are also available during the vehicle manufacturer’s warranty period.[40]

Ride-Hailing Insurance – An endorsement to Mercury’s personal auto policy that covers the gaps between auto insurance and the Transportation Network Company’s commercial insurance coverage when the driver working for a TNC turns on the ride-hailing app.

Service Line Protection – An endorsement to a homeowners policy that covers damage to exterior underground service lines, which includes water piping, sewer lines, power lines and more.[41]

Home Systems Protection – An endorsement to a homeowners policy that covers HVAC systems, appliances, electronics and more.[42]

Identity Management Protection – An endorsement to a homeowners, condo or renters policy that help protect a person’s identity from fraudsters.[43]

Mercury SIU[edit]

Some of the company’s most unique, yet important work is performed by its Special Investigations Unit[44] (SIU), which battles auto insurance crime – whether it’s a staged car crash,[45] arson,[46] exaggerated injuries or suspect medical claims as well as homeowners fraud surrounding acts of theft, vandalism and fires. These are often called victimless crimes, but nothing could be farther from the truth, because these crimes add approximately 30% to the cost of auto insurance premiums.

Formed in 1978 as one of the nation’s first SIUs, Mercury’s investigators uncover thousands of claims annually that save policy holders millions of dollars.[47] Mercury’s SIU is dedicated to educating the public about insurance fraud and working with law enforcement to bring these criminals to justice, which will ultimately bring down the cost of insurance for everyone.[48]

References[edit]

  1. ^ a b c d e "MCY Income Statement - Balance Sheet - Cash Flow - Mercury General Corporation Com Stock - Yahoo Finance". Retrieved 23 March 2017. 
  2. ^ a b "Mercury Insurance Group Company Fact Sheet" (PDF). Mercury Insurance Corporate Website. 
  3. ^ "Fitch Affirms Mercury General's Senior Debt & IFS Ratings". 
  4. ^ Mercury Insurance Group. “Mercury General Corporation History.” Funding Universe Site, n.d. Web. 16 Jun. 2015.
  5. ^ Mercury Insurance Group. “Corporate Information: Company Profile.” Mercury Insurance Site, n.d. Web. 24, May 2016.
  6. ^ Mercury Insurance Group. “History of an Insurance Company Infographic.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  7. ^ Mercury Insurance Group. “History of an Insurance: Corporate Timeline.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  8. ^ Mercury Insurance Group. “History of an Insurance: Corporate Timeline.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  9. ^ Mercury Insurance Group. “History of an Insurance: Corporate Timeline.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  10. ^ Mercury Insurance Group. “History of an Insurance: Corporate Timeline.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  11. ^ Mercury Insurance Group. “History of an Insurance: Corporate Timeline.” Mercury Insurance Site, 2016. Web. 25 May 2016.
  12. ^ Smith, Jacquelyn. “America’s Most Trustworthy Companies.” Forbes Site, 2012. Web. 18 Jun. 2015.
  13. ^ Dill, Kathryn. “America’s 50 Most Trustworthy Companies.” Forbes Site, 01, Apr. 2014. Web. 16 Jun. 2015.
  14. ^ Dill, Kathryn. “America’s 50 Most Trustworthy Companies.” Forbes Site, 01, Aug. 2015. Web. 16 Jun. 2015.
  15. ^ Mercury Insurance Group. “Company Fact Sheet.” Mercury Insurance Site, 2014. Web. 17 Nov. 2017
  16. ^ Mercury Insurance Group. "Mercury Insurance Ranks High with Auto Insurance Customers." Mercury Insurance Site, 2017. Web. 22 Aug. 2017.
  17. ^ Mercury Insurance Group. "Mercury Insurance is one of the best companies to work for in America...just ask Forbes!" Mercury Insurance Site, 2017. Web. 22 Aug. 2017.
  18. ^ Mercury Insurance Group. “Mercury General Corporation History.” Funding Universe Site, n.d. Web. 16 Jun. 2015.
  19. ^ Mercury Insurance Group. “George Joseph: Portrait of the American Dream” Mercury Insurance Site, n.d. Web. 24 May 2016.
  20. ^ “How to Protect Against the Most Common Homeowners Insurance Claims.”[1] Mercury Insurance Blog. 10 Apr. 2018. Web. 12 Apr. 2018.
  21. ^ “Renters Insurance 101: 3 Reasons Why You Should Have It.”[2] Mercury Insurance Blog, 20 Mar. 2018. Web. 12 Apr. 2018.
  22. ^ “Five Tips for Saving Money in 2017.”[3] Mercury Insurance Blog, 10 Jan. 2017. Web. 12 Apr. 2018.
  23. ^ “Drop, Cover and Hold On: Earthquake Insurance Basics Every Californian Should Know.”[4] Mercury Insurance Blog, 27 June 2016. Web. 12 Apr. 2018.
  24. ^ “Protecting Your Home From Mother Nature.”[5] Mercury Insurance Blog, 2 Dec. 2014. Web. 12, Apr. 2018.
  25. ^ “Wildfire Safety: Plan Ahead to Help Minimize Risk.”[6] Mercury Insurance Blog, 21 July 2015. Web. 12 Apr. 2018.
  26. ^ “What to Expect When You File an Insurance Claim.”[7] Mercury Insurance Blog, 24 Nov. 2015. Web. 12 Apr. 2018.
  27. ^ “Shopping Around for Car Insurance Can Bring Big Savings.”[8] Mercury Insurance Blog, 6 Apr. 2016. Web. 12 Apr. 2018.
  28. ^ “Protect Your Home While on Vacation.”[9] Mercury Insurance Blog, 27 June 2016. Web. 12 Apr. 2018.
  29. ^ “Getting the Most Out of Your Paycheck.”[10] Mercury Insurance Blog, 5 July 2016. Web. 12 Apr. 2018.
  30. ^ “10 Must-Stop Road Trip Eateries in the U.S.”[11] Mercury Insurance Blog, 13 June 2017. Web 12 Apr. 2018.
  31. ^ “Smart Homes: How Automation is Making Life Better.”[12] Mercury Insurance Blog, 7 Mar. 2017. Web. Apr. 2018.
  32. ^ “Are Your Kids Safely Using Social Media? 8 Essential Tips To Prepare Parents and Kids.”[13] Mercury Insurance Blog, 21 Nov. 2017. Web 12 Apr. 2018.
  33. ^ “Graduated Driver’s Licenses Help Save Teen Lives.”[14] Mercury Insurance Blog, 2 Sept. 2016. Web. 12 Apr. 2018.
  34. ^ “Our Products: Personal Auto.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  35. ^ “Our Products: Home Insurance.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  36. ^ “Our Products: Renters Insurance.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  37. ^ “Our Products: Condo Insurance.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  38. ^ “Our Products: Umbrella Insurance.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  39. ^ “Our Products: Business Auto Insurance.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  40. ^ “Our Products: Mechanical Breakdown Coverage.” Mercury Insurance Site, n.d. Web. 16 Jun. 2015.
  41. ^ “Mercury Insurance Service Line Protection.” Mercury Insurance Site, n.d. Web 12 July 2017.
  42. ^ “Mercury Insurance Home Systems Protection.” Mercury Insurance Site, n.d. Web 12 July 2017.
  43. ^ “Mercury Insurance Identity Management Protection.” Mercury Insurance Site, n.d. Web 12 July 2017.
  44. ^ “CSI-Type Investigations Unit Works to Squash Fraud.” Claims Journal Site, 18 Feb. 2013. Web. 16 Jun. 2015
  45. ^ “Mercury Insurance Intentionally Crashes Cars in Glendale to Fight Fraud.” Wards Auto Site, 19 Jan. 2015. Web. 17 Jun. 2015.
  46. ^ Fernandez, Yolanda. “St. Pete firefighters learn about auto arson.” The Tampa Tribune Site, 03 Dec. 2012. Web. 17 Jun. 2015.
  47. ^ “Mercury’s SIU Exposed Nearly $24M in Attempted Insurance Fraud in 2013.” Claims Journal Site, 16 Jun. 2014. Web. 17 Jun. 2015.
  48. ^ Sprinkle, Tim. “This Is What Insurance Fraud Looks Like. With Video!” Property Casualty360° Site, 12 Jun. 2014. Web. 17 Jun. 2015.

External links[edit]