COMPANY PROFILE

Mercury Insurance: homeowners insurance profile

Mercury General wrote $1.63 billion of direct homeowners premiums in 2025, and $1.17 billion of that, about 72 percent, came from California, according to its Form 10-K filed February 17, 2026. Homeowners is Mercury's second line after private passenger auto. This profile sets out what the filing says about Mercury's homeowners footprint, rate changes, policy limits and wildfire costs, next to the coverage the company lists on its own site. It does not rate or recommend the company.

Company facts, as the company states them

A California-centered homeowners book

Mercury General writes through 12 insurance subsidiaries in 11 states and offers homeowners insurance in 10 of them. In 2025 its homeowners direct premiums were $1.17 billion in California, $214 million in Texas and $245 million across its other states. Homeowners grew from $1.12 billion in 2023 and $1.37 billion in 2024, and rose to 27.3 percent of all direct premiums written. Net homeowners premiums earned were $1.26 billion in 2025. Policies are sold mostly through independent agents, plus Mercury's own agencies and direct channels.

Mercury lists its homeowners coverage types as dwelling, liability, personal property and other coverages. Mercury publishes no maximum on homeowner property limits and a $1,000,000 maximum on homeowner liability, but the filing says most of its homeowners policies have liability limits of $300,000 or less, replacement value of $750,000 or less and total insured value of $2,000,000 or less.

California homeowners rate increases

The California Department of Insurance approved a 6.99 percent increase on Mercury's California homeowners line in March 2024, effective May 2024; a 12 percent increase in January 2025, effective March 2025; and a 6.9 percent increase in December 2025, expected to take effect in July 2026. California homeowners made up about 15 percent of the company's net premiums earned in 2025. Mercury implemented rate changes in 11 states during the year. An approved line-wide rate change is an average; it does not tell any one household what its own renewal will be.

Wildfire, earthquake and the FAIR Plan

After the Palisades and Eaton fires of January 2025, the California FAIR Plan assessed Mercury $50 million in the first quarter of 2025 to rebuild its capital. Mercury received California DOI approval to recoup $25 million of that through temporary supplemental fees charged to its policyholders, which the revised FAIR Plan rules allow.

Mercury does not keep California earthquake risk on its homeowners policies: it places all new and renewal earthquake coverage offered with them directly with the California Earthquake Authority. It still carries exposure to fire following an earthquake. Its catastrophe reinsurance treaty for the year to June 30, 2026 provides $2.14 billion per occurrence above a $200 million retention, up from $1.29 billion above $150 million a year earlier, and excludes Florida business and California earthquake losses on homeowners-type policies, though it covers fire following an earthquake with exceptions.

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