Mercury Insurance 2010 Annual Report Download - page 109

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
20. Subsequent Events
During January 2011, the Company announced a workforce reduction of approximately 165 employees,
primarily located in California. Approximately $4 million of severance related expense will be recognized during
the first quarter of 2011.
In early 2011, massive snowstorms affected the Midwest to Northeast regions of the United States and
brought blizzard conditions to much of the Country. Such events typically increase claims frequency and
severity; however, they occasionally decrease frequency as automobile drivers stay off the road due to business
closures. The Company is unable to determine what the impact, if any, from these storms will be.
99