Mercury Insurance 2010 Annual Report Download - page 42

Share Repurchases
The Company has had a stock repurchase program since 1998. The Company’s Board of Directors
authorized a $200 million stock repurchase program on July 30, 2010, and the authorization will expire in June
2011. The Company may repurchase shares of its common stock under the program in open market transactions
at the discretion of management. The Company will use dividends received from the Insurance Companies to
fund the share repurchases. Since the inception of the program, the Company has purchased 1,266,100 shares of
common stock at an average price of $31.36. The purchased shares were retired, and no stock has been purchased
since 2000.
Item 6. Selected Financial Data
The following selected financial and operating data are derived from the Company’s audited consolidated
financial statements. The selected financial and operating data should be read in conjunction with “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated
financial statements and notes thereto contained elsewhere in this Annual Report on Form 10-K.
Year Ended December 31,
2010 2009 2008 2007 2006
(Amounts in thousands, except per share data)
Income Data:
Earned premiums ...................... $2,566,685 $2,625,133 $2,808,839 $2,993,877 $2,997,023
Net investment income ................. 143,814 144,949 151,280 158,911 151,099
Net realized investment gains (losses) ..... 57,089 346,444 (550,520) 20,808 15,436
Other ............................... 8,297 4,967 4,597 5,154 5,185
Total revenues .................... 2,775,885 3,121,493 2,414,196 3,178,750 3,168,743
Losses and loss adjustment expenses ...... 1,825,766 1,782,233 2,060,409 2,036,644 2,021,646
Policy acquisition costs ................. 505,565 543,307 624,854 659,671 648,945
Other operating expenses ............... 255,358 217,683 174,828 158,810 176,563
Interest .............................. 6,806 6,729 4,966 8,589 9,180
Total expenses .................... 2,593,495 2,549,952 2,865,057 2,863,714 2,856,334
Income (loss) before income taxes ........ 182,390 571,541 (450,861) 315,036 312,409
Income tax expense (benefit) ............ 30,192 168,469 (208,742) 77,204 97,592
Net income (loss) ..................... $ 152,198 $ 403,072 $ (242,119) $ 237,832 $ 214,817
Per Share Data:
Basic earnings per share ................ $ 2.78 $ 7.36 $ (4.42) $ 4.35 $ 3.93
Diluted earnings per share ............... $ 2.78 $ 7.32 $ (4.42) $ 4.34 $ 3.92
Dividends paid ........................ $ 2.37 $ 2.33 $ 2.32 $ 2.08 $ 1.92
December 31,
2010 2009 2008 2007 2006
(Amounts in thousands, except per share data)
Balance Sheet Data:
Total investments ..................... $3,155,257 $3,146,857 $2,933,820 $3,588,675 $3,499,738
Total assets .......................... 4,203,364 4,232,633 3,950,195 4,414,496 4,301,062
Losses and loss adjustment expenses ...... 1,034,205 1,053,334 1,133,508 1,103,915 1,088,822
Unearned premiums ................... 833,379 844,540 879,651 938,370 950,344
Notes payable ........................ 267,210 271,397 158,625 138,562 141,554
Shareholders’ equity ................... 1,794,815 1,770,946 1,494,051 1,861,998 1,724,130
Book value per share ................... 32.75 32.33 27.28 34.02 31.54
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