Mercury Insurance 2010 Annual Report Download - page 40

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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Market Information
The following table presents the high and low sales price per share on the New York Stock Exchange
(symbol: MCY) since January, 2009.
2010 High Low
1st Quarter ......................................................... $44.19 $37.38
2nd Quarter ........................................................ $46.66 $41.13
3rd Quarter ........................................................ $44.40 $37.90
4th Quarter ......................................................... $45.08 $40.51
2009 High Low
1st Quarter ......................................................... $46.09 $22.45
2nd Quarter ........................................................ $35.74 $28.90
3rd Quarter ........................................................ $37.82 $31.00
4th Quarter ......................................................... $40.12 $35.43
The closing price of the Company’s common stock on February 4, 2011 was $42.94.
Holders
As of February 4, 2011, there were approximately 149 holders of record of the Company’s common stock.
Dividends
Since the public offering of its common stock in November 1985, the Company has paid regular quarterly
dividends on its common stock. During 2010 and 2009, the Company paid dividends on its common stock of
$2.37 and $2.33 per share, respectively. On February 4, 2011, the Board of Directors declared a $0.60 quarterly
dividend payable on March 31, 2011 to shareholders of record on March 16, 2011.
For financial statement purposes, the Company records dividends on the declaration date. The Company
expects to continue the payment of quarterly dividends; however, the continued payment and amount of cash
dividends will depend upon the Company’s operating results, overall financial condition, capital requirements,
and general business conditions.
Holding Company Act
The California Companies are subject to California DOI regulation pursuant to the provisions of the Holding
Company Act. The Holding Company Act requires disclosure of any material transactions among affiliates
within a Holding Company System. Certain transactions and dividends defined to be of an “extraordinary” type
may not be affected if the California DOI disapproves the transaction within 30 days after notice. An
extraordinary dividend is a dividend which, together with other dividends or distributions made within the
preceding 12 months, exceeds the greater of 10% of the insurance company’s statutory policyholders’ surplus as
of the preceding December 31 or the insurance company’s statutory net income for the preceding calendar year.
Insurance companies are required to notify the California DOI of any dividend after declaration, but prior to
payment. There are similar limitations imposed by other states on the Insurance Companies’ ability to pay
dividends. On December 16, 2010, the California DOI notified the Company that MCC was authorized to pay a
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