Mercury General Revises Loss Estimates from Hurricane Wilma
Mercury General Corp. has revised its estimate of losses caused by Hurricane Wilma. On Oct. 24, 2005, Hurricane Wilma made landfall as a Category 3 storm on the southern gulf coast of Florida. The storm crossed the Florida Peninsula and had a significant effect on the Gulf and Atlantic sides of the state. Mercury claims adjusters have been working to help the company’s customers recover from the storm.
The company is revising its original loss estimate of $12 million ($8 million after tax benefit) that was based on very preliminary data as reported on Oct. 31, 2005. Based on the total number of claims reported to date and the number of claims still anticipated to be reported, the company now expects fourth quarter losses from Hurricane Wilma to approximate $24 million ($16 million after tax benefit). Those losses will be reflected in the fourth quarter 2005 financial results.
The company believes that the majority of the claims have now been reported and a substantial number of these claims have been settled. However, there is inherent uncertainty in making any estimate of losses and the company said its estimate may change as more information continues to become available.
On Monday, Feb. 13, 2006, the company will release results for its fourth quarter and 12 month period ended Dec. 31, 2005. The CEO George Joseph, and President, Gabriel Tirador, will host an investor conference call and webcast that same day at 10 a.m. Pacific Time (1:00 P.M. Eastern Time) to review the company’s results.
All interested investors will be able to access the conference call at (877) 807-1888 (USA), (706) 679-3827 (International) or the webcast at http://www.mercuryinsurance.com/. A replay of the call will be available beginning at 1:30 p.m.. Pacific Time and running through Feb. 20, 2006. The replay telephone numbers are (800) 642-1687 (USA) or (706) 645-9291 (International). The conference ID# is 4437368. The replay will also be available on the company’s website shortly following the call.