LOS ANGELES, April 30, 2024 /PRNewswire/ -- Mercury General Corporation (NYSE: MCY) reported today for the first quarter of 2024: Consolidated Highlights Three Months Ended March 31, Change 2024 2023 $ % (000's except per-share amounts and ratios) Net premiums earned  $     1,166,679 $     1,004,704 $     161,975 16.1 Net premiums written (1)  $     1,284,984 $     1,010,202 $     274,782 27.2 Net realized investment gains, net of tax (2) $          30,172 $          38,716 $        (8,544) (22.1) Net income (loss) $          73,462 $         (45,288) $     118,750 NM Net income (loss) per diluted share $              1.33 $             (0.82) $           2.15 NM Operating income (loss) (1) $          43,290 $         (84,004) $     127,294 NM Operating income (loss) per diluted share (1) $              0.78 $             (1.52) $             2.3 NM Catastrophe losses net of reinsurance (3) $          72,000 $          98,000 $      (26,000) (26.5) Combined ratio (4) 100.9 % 115.8 % — (14.9) pts NM = Not Meaningful (1) These measures are not based on U.S. generally accepted accounting principles ("GAAP"), are defined in "Information Regarding GAAP and Non-GAAP Measures" and are reconciled to the most directly comparable GAAP measures in "Supplemental Schedules." (2) Net realized investment gains before tax were $38 million and $49 million for the three months ended March 31, 2024 and 2023, respectively. The changes in fair value of the Company's investments are recorded as part of net realized investment gains or losses in its consolidated statements of operations due to the adoption of the fair value option for its investments as permitted under GAAP. (3) The majority of 2024 catastrophe losses resulted from winter storms and rainstorms in California and convective storms in Texas and Oklahoma. The majority of 2023 catastrophe losses resulted from winter storms and rainstorms in California, Texas and Oklahoma. (4) The Company experienced favorable development of approximately $6 million and $15 million on prior accident years' loss and loss adjustment expense reserves for the three months ended March 31, 2024 and 2023, respectively. The favorable development for the first quarter of 2024 was primarily attributable to lower than estimated loss adjustment expenses in the private passenger automobile line of insurance business, partially offset by unfavorable development on prior years' catastrophe losses. The favorable development for the first quarter of 2023 was primarily attributable to lower than estimated losses and loss adjustment expenses in the homeowners line of insurance business.   Investment Results Three Months Ended March 31, 2024 2023 (000's except average annual yield) Average invested assets at cost (1) $              5,358,848 $              5,022,572 Net investment income (2) (3)      Before income taxes $                   65,018 $                   51,973      After income taxes $                   54,880 $                   44,795 Average annual yield on investments (2) (3)      Before income taxes 4.4 % 4.0 %      After income taxes 3.8 % 3.5 % (1) Fixed maturities and short-term bonds at amortized cost; equities and other short-term investments at cost. Average invested assets at cost are based on the monthly amortized cost of the invested assets excluding cash for each period. (2) Net investment income includes approximately $5.6 million and $1.7 million of interest income earned on cash (approximately $4.5 million and $1.4 million after tax) for the three months ended March 31, 2024 and 2023, respectively. Average annual yield on investments does not include interest income earned on cash. (3) Higher net investment income before and after income taxes for the three months ended March 31, 2024 compared to the corresponding period in 2023 resulted largely from higher average yield combined with higher average invested assets and cash. Average annual yield on investments before and after income taxes for the three months ended March 31, 2024 increased compared to the corresponding period in 2023, primarily due to the maturity and replacement of lower yielding investments purchased when market interest rates were lower with higher yielding investments, as a result of increasing overall market interest rates, as well as higher yields on investments based on floating interest rates.   The Company continues to implement rate and non-rate actions to improve underwriting results. However, rate increases take time to earn in. In January 2024, the California Department of Insurance ("DOI") approved rate increases of 22.5% and 3.8% on the private passenger automobile line of insurance business for the Company's insurance subsidiaries, Mercury Insurance Company ("MIC") and California Automobile Insurance Company ("CAIC"), respectively. These rate increases became effective in February 2024. The private passenger automobile line of insurance business of MIC and CAIC represented approximately 47% and 6%, respectively, of the Company's total net premiums earned for the three months ended March 31, 2024. In addition, in March 2024, the California DOI approved a 6.99% rate increase on the California homeowners line of insurance business. This rate increase is expected to become effective in May 2024. The California homeowners line of insurance business represented approximately 16% of the Company's total net premiums earned for the three months ended March 31, 2024. The Board of Directors declared a quarterly dividend of $0.3175 per share. The dividend will be paid on June 27, 2024 to shareholders of record on June 13, 2024. Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers and direct-to-consumer sales ...