Mercury General Corporation receives positive credit outlook revision from AM Best following California wildfire losses. The ratings agency upgraded Mercury's outlook to stable from negative, affirming its A-rated financial strength across all subsidiaries. Despite recording a $108.3 million net loss in Q1 2025 from the devastating California wildfires, Mercury demonstrated resilience through effective reinsurance recovery strategies. The company recovered $380 million in net catastrophe losses after reinsurance, compared to $2.2 billion gross exposure. Mercury strengthened its catastrophe reinsurance program to $2.14 billion in limits, up from $1.29 billion, and is pursuing $538 million in subrogation claims against Southern California Edison. With policyholder surplus reaching $2.4 billion and a combined ratio of 96.
