Mercury Insurance 2007 Annual Report Download - page 31

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2007 MERCURYNOW 29
Money Matters
A Look at How Far Mercury has Traveled
Over the past four-and-a-half decades, Mercury has built up some serious mileage.
Yes, Mercury has absorbed a few potholes along the way, but they also know how to put
the pedal to the metal. It’s not easy navigating through periods of uncertainty, but with a
strong engine and a sleek design, they have always traveled in the right direction.
Going the Distance
Looking back over the last ten years,
Mercury has seen its earned premiums
grow from just over a billion dollars
in 1997 to $3 billion in 2007. The
company’s combined ratio has averaged 94.2%
over the last ten years, compared to 99.9%
for the industry average. Total assets
measured $1.7 billion in 1997. For
2007, the company reported total
assets of $4.4 billion. Mercury
has increased its quarterly cash
dividend every year since 1986, and
has averaged a 13% rate of increase
over the past ten years. Mercury
finished 2007 with 5,200 employees and
4,500 independent insurance agents and brokers
in 13 states.
So, how does Mercury do it, day after
day, year after year? According to company
executives, there are three pillars of the
company’s success – savings, service and security.
Mercury prides itself on providing a high level
of customer service as well as agent support.
They offer some of the most competitive rates
in the industry. And, a disciplined, experienced
approach to underwriting procedures allows the
company to properly manage risk in order to
increase security and peace of mind for
policyholders and stakeholders alike.
These tenets formed the foundation
of the company more than 45 years
ago, and are as true today.
Interest rates will fluctuate.
The economic tide will ebb and
flow, and fuel prices will rise and
fall. Financial stability and security
over time is the truest test of a company’s
strength. Knowing how to read the signs and
how to adjust to the changing terrain – that’s
being in the driver’s seat.
On the open highway that is the auto
insurance business, Mercury has been, and
continues to be, a high-performance vehicle
rated one of the safest on the road.
Total assets
in 1997
(in billions)
$1.7
Total assets
in 2007
(in billions)
$4.4
Mercury has increased its
quarterly cash dividend every
year since 1986, and has
averaged a
13%
rate of increase over
the past ten years.
Mercury finished 2007 with
5,200
employees
and 4,500
independent insurance
agents and brokers
in 13 states.
MONEY/INVESTING