LOS ANGELES, July 30, 2024 /PRNewswire/ -- Mercury General Corporation (NYSE:MCY) reported today for the second quarter of 2024: Consolidated Highlights Three Months Ended June 30, Change Six Months Ended June 30, Change 2024 2023 $ % 2024 2023 $ % (000's except per-share amounts and ratios) Net premiums earned  $  1,236,024 $  1,034,469 $  201,555 19.5 $  2,402,703 $  2,039,173 $  363,530 17.8 Net premiums written (1)  $  1,355,460 $  1,115,345 $  240,115 21.5 $  2,640,444 $  2,125,546 $  514,898 24.2 Net realized investment gains (losses), net of tax (2) $       2,290 $     (15,625) $ 17,915 NM $    32,461 $   23,091 $   9,370 40.6 Net income (loss) $      62,568 $     (41,543) $  104,111 NM $  136,030 $  (86,831) $  222,861 NM Net income (loss) per diluted share $         1.13 $        (0.75) $    1.88 NM $       2.46 $     (1.57) $     4.03 NM Operating income (loss) (1) $      60,278 $     (25,918) $ 86,196 NM $  103,569 $ (109,922) $  213,491 NM Operating income (loss) per diluted share (1) $         1.09 $        (0.47) $    1.56 NM $       1.87 $     (1.99) $     3.86 NM Catastrophe losses net of reinsurance (3) $    125,000 $      92,000 $ 33,000 35.9 $  197,000 $  190,000 $   7,000 3.7 Combined ratio (4) 98.9 % 110.1 % —         (11.2) pts 99.9 % 112.9 % —         (13.0) 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 (losses) before tax were $3 million and $(20) million for the three months ended June 30, 2024 and 2023, respectively, and $41 million and $29 million for the six months ended June 30, 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 tornadoes, hailstorms and convective storms in Texas and Oklahoma and winter storms and rainstorms in California. The majority of 2023 catastrophe losses resulted from winter storms and rainstorms in California, Texas and Oklahoma. The Company experienced unfavorable development of approximately $9 million and favorable development of approximately $1 million on prior years' catastrophe losses for the six months ended June 30, 2024 and 2023, respectively.   (4) The Company experienced unfavorable development of approximately $14 million and favorable development of approximately $4 million on prior accident years' loss and loss adjustment expense reserves for the three months ended June 30, 2024 and 2023, respectively, and unfavorable development of approximately $8 million and favorable development of approximately $20 million on prior accident years' loss and loss adjustment expense reserves for the six months ended June 30, 2024 and 2023, respectively. The year-to-date unfavorable development in 2024 was primarily attributable to higher than estimated losses and loss adjustment expenses in the commercial automobile and commercial property lines of insurance business and catastrophe losses, partially offset by favorable development in the private passenger automobile line of insurance business. The year-to-date favorable development in 2023 was primarily attributable to lower than estimated losses and loss adjustment expenses in the private passenger automobile and homeowners lines of insurance business, partially offset by unfavorable development in the commercial property line of insurance business.   Investment Results Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (000's except average annual yield) Average invested assets at cost (1) $   5,536,170 $   5,045,828 $   5,450,760 $   5,033,723 Net investment income (2) (3)      Before income taxes $        68,970 $        58,350 $      133,989 $      110,323      After income taxes $        57,966 $        49,819 $      112,814 $        94,613 Average annual yield on investments (2) (3)      Before income taxes 4.5 % 4.4 % 4.5 % 4.2 %      After income taxes 3.8 % 3.8 % 3.8 % 3.6 % (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 interest income earned on cash of approximately $6.2 million and $2.8 million ($4.9 million and $2.2 million after tax) for the three months ended June 30, 2024 and 2023, respectively, and approximately $11.9 million and $4.5 million ($9.4 million and $3.6 million after tax) for the six months ended June 30, 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 June 30, 2024 compared to the corresponding period in 2023 resulted largely from higher average invested assets and cash. Higher net investment income before ...