Mercury Insurance 2013 Annual Report Download - page 108

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See accompanying Report of Independent Registered Public Accounting Firm
S-7
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 $120,000,000, $145,000,000 and $270,000,000 were received by Mercury General from its 100% owned
subsidiaries in 2013, 2012, and 2011, 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 in each of 2013, 2012, and 2011.
Notes Payable
The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are secured by
approximately $177 million of municipal bonds owned by MCC, at fair value, held as collateral. The total borrowings of $140
million are guaranteed by the Company.
On July 2, 2013, Mercury General entered into an unsecured $200 million five-year revolving credit facility. Total borrowings
were $50 million as of December 31, 2013.
Federal Income Taxes
The Company files a consolidated federal income tax return with the following entities:
Mercury Casualty Company Mercury County Mutual Insurance Company
Mercury Insurance Company Mercury Insurance Company of Florida
California Automobile Insurance Company Mercury Indemnity Company of America
California General Underwriters Insurance Company, Inc. Mercury Select Management Company, Inc.
Mercury Insurance Company of Illinois Mercury Insurance Services LLC
Mercury Insurance Company of Georgia AIS Management LLC
Mercury Indemnity Company of Georgia Auto Insurance Specialists LLC
Mercury National Insurance Company PoliSeek AIS Insurance Solutions, Inc.
American Mercury Insurance Company Animas Funding LLC
American Mercury Lloyds Insurance Company
The method of allocation between the companies is subject to an 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.