Mercury Insurance 2011 Annual Report Download - page 133

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SCHEDULE II, Continued
MERCURY GENERAL CORPORATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO CONDENSED FINANCIAL INFORMATION
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.
Dividends
Dividends of $270,000,000, $128,000,000, and $110,000,000 were received by the Company from its
wholly-owned subsidiaries in 2011, 2010, and 2009, respectively, and are recorded as a reduction to investment
in subsidiaries.
Capitalization of Subsidiaries
Mercury General made capital contributions to its insurance subsidiaries of $125,000, $125,000, and $0 in
2011, 2010, and 2009, respectively.
Guarantees
The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are
secured by approximately $182 million of municipal bonds owned by MCC, at fair value, held as collateral. The
total borrowings of $140 million are guaranteed by the Company.
Federal Income Taxes
The Company files a consolidated federal income tax return with the following subsidiaries:
Mercury Casualty Company Mercury Insurance Company of Florida
Mercury Insurance Company Mercury Indemnity Company of America
California Automobile Insurance Company Mercury Select Management Company, Inc.
California General Underwriters Insurance Company, Inc. American Mercury MGA, Inc.
Mercury Insurance Company of Illinois Concord Insurance Services, Inc.
Mercury Insurance Company of Georgia Mercury Insurance Services LLC
Mercury Indemnity Company of Georgia Mercury Group, Inc.
Mercury National Insurance Company AIS Management LLC
American Mercury Insurance Company Auto Insurance Specialists LLC
American Mercury Lloyds Insurance Company PoliSeek AIS Insurance Solutions, Inc.
Mercury County Mutual Insurance Company
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.
See accompanying Report of Independent Registered Public Accounting Firm
S-7