Mercury Insurance 2008 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2008 Mercury Insurance annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

S-7
SCHEDULE II, Continued
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO CONDENSED FINANCIAL INFORMATION
December 31, 2008 and 2007
The accompanying condensed financial information should be read in conjunction with the Consolidated Financial
Statements and Notes to Consolidated Financial Statements included in this report.
Reclassifications
Certain reclassifications have been made to prior year balances to conform to the current year presentation.
Dividends Received From Subsidiaries
Dividends of $140,000,000, $127,000,000 and $168,000,000 were received by the Company from its wholly-owned
subsidiaries in 2008, 2007 and 2006, respectively, and are recorded as a reduction to investment in subsidiaries.
Capitalization of Subsidiaries
No capital contributions were made by the Company to its insurance subsidiaries during 2008 compared to $11,250,000
in 2007.
Guarantees
The borrowings by MCC under the $120 million secured credit facility and $18 million secured loan are secured by
MCC’ s assets including approximately $177.3 million of bonds, at fair value, held as collateral. Additionally, the total
borrowings of $138 million are guaranteed by the Company.
Federal Income Taxes
The Company files a consolidated federal tax return with the following entities:
Mercury Casualty Company
Mercury Insurance Company
California General Underwriters Insurance Company, Inc.
California Automobile Insurance Company
Mercury Insurance Company of Illinois
Mercury National Insurance Company
Mercury Insurance Company of Georgia
Mercury Indemnity Company of Georgia
American Mercury Insurance Company
Mercury Select Management Company, Inc.
American Mercury Lloyds Insurance Company
American Mercury MGA, Inc.
Concord Insurance Services, Inc.
Mercury County Mutual Insurance Company
Mercury Insurance Company of Florida
Mercury Indemnity Company of America
Mercury Group, Inc.
The method of allocation between the companies is subject to agreement approved by the Board of Directors. Allocation
is based upon separate return calculations with current credit for net losses incurred by the insurance subsidiaries to the extent it
can be used in the current consolidated return.