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Mercury General MCY Deferred policy acquisition costs

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Other financials

Income statement

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Revenue$1.5B+10.5%
Net income$190.4M+276%
EPS (diluted)$3.44+276%

Balance sheet

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Cash & equivalents$1.4B+5.1%
Total debt$12.7M-29.2%
Total assets$9.9B+9.4%

Cash flow

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Operating cash flow$325.6M+574%
CapEx$16.8M+27.8%
Free cash flow$308.8M+477%

Valuation

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Market cap$6.07B+53.0%
Enterprise value$4.73B+65.4%
P/E7.2×-2.9×
P/S+0.3×

Profitability

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Net margin13.7%+8.6pp
FCF margin23.1%+10.1pp

Where this comes from

Reported directly by Mercury General in its filing.

Tagged under the XBRL concept us-gaap:DeferredPolicyAcquisitionCosts.

The source filing: Mercury General’s 10-Q, filed May 5, 2026.

Filed
May 5, 2026, 4:12 PM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0000064996-26-000014
Line itemMarch 31, 2026December 31, 2025
Other86,55786,508
Total receivables978,837905,066
Reinsurance recoverables (net of allowance for credit losses $2; $39)47,771109,672
Deferred policy acquisition costs366,573359,724
Fixed assets (net of accumulated depreciation $360,372; $345,930)150,854146,880
Operating lease right-of-use assets12,15312,125
Deferred income taxes31,82130,637
Goodwill42,79642,796

Item 1. Financial Statements

FAQ

What is Mercury General's deferred policy acquisition costs?
Mercury General (MCY) reported deferred policy acquisition costs of $366.57M in Q1 2026.
How has Mercury General's deferred policy acquisition costs changed year-over-year?
Mercury General's deferred policy acquisition costs increased by 8.9% year-over-year, from $336.47M to $366.57M.
What is the long-term trend for Mercury General's deferred policy acquisition costs?
Over 5 years (2020 to 2025), Mercury General's deferred policy acquisition costs has grown at a 7.8% compound annual growth rate (CAGR), from $246.99M to $359.72M.
What does deferred policy acquisition costs mean?
These are the incremental costs directly related to the successful acquisition of new or renewed insurance contracts, such as commissions and underwriting expenses, which are capitalized and amortized over the life of the policy. This metric is essential for understanding the timing of profitability, as it aligns expenses with the period in which the related premium revenue is earned. High levels of deferred costs relative to premiums can indicate aggressive growth or high acquisition-driven business models.

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