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Exhbit 99.1 Mercury General Corporation Announces First Quarter Results and Declares Quarterly Dividend LOS ANGELES , May 4 , 2021 / PRNewswire / -- Mercury General Corporation ( NYSE : MCY ) reported today for the first quarter of 2021 : Consolidated Highlights Three Months Ended March 31 , 2021 2020 Change $ % ( 000's except per - share amounts and ratios ) Net premiums earned $ 915,922 $ 922,574 $ ( 6,652 ) ( 0.7 ) Net premiums written ( 1 ) $ 950,383 $ 954,216 $ ( 3,833 ) ( 0.4 ) Net realized investment gains ( losses ) , net of tax ( 2 ) $ 32,936 $ ( 198,543 ) $ 231,479 NM Net income ( loss ) $ 106,995 $ ( 139,204 ) $ 246,199 NM Net income ( loss ) per diluted share $ 1.93 $ ( 2.51 ) $ 4.44 NM Operating income ( 1 ) $ 74,059 $ 59,339 $ 14,720 24.8 Operating income per diluted share ( 1 ) $ 1.34 $ 1.07 $ 0.27 25.2 Catastrophe losses net of reinsurance ( 3 ) $ 35,000 $ 2,000 $ 33,000 1,650.0 Combined ratio ( 4 ) 93.5 % 95.9 % ( 2.4 ) pts NM = not meaningful ( 1 ) ( 2 ) ( 3 ) ( 4 ) These measures are not based on U.S. generally accepted accounting principles ( " GAAP " ) , are defined in " Information Regarding GAAP and Non - GAAP Measures " and are reconciled to the most directly comparable GAAP measures in " Supplemental Schedules . " Net realized investment gains ( losses ) before tax were $ 42 million and $ ( 251 ) million for the three months ended March 31 , 2021 and 2020 , respectively . The changes in fair value of the Company's investments are recorded as part of net realized investment gains or losses in its consolidated statements of operations due to the adoption of the fair value option for its investments as permitted under GAAP . Catastrophe losses due to the events that occurred during the three months ended March 31 , 2021 totaled approximately $ 39 million , with no reinsurance benefits used for these losses , resulting primarily from the deep freeze in Texas and Oklahoma and winter storms in California . These losses were partially offset by favorable development of approximately $ 4 million on prior years ' catastrophe losses . Catastrophe losses due to the events that occurred during the three months ended March 31 , 2020 totaled approximately $ 4 million , with no reinsurance benefits used for these losses , resulting primarily from windstorms in California and Oklahoma . These losses were partially offset by favorable development of approximately $ 2 million on prior years ' catastrophe losses . The Company experienced favorable development of approximately $ 1 million and unfavorable development of approximately $ 15 million on prior accident years ' loss and loss adjustment expense reserves for the three months ended March 31 , 2021 and 2020 , respectively . The unfavorable development in 2020 was primarily attributable to higher than estimated losses and loss adjustment expenses in the homeowners and commercial automobile lines of insurance business . Investment Results Three Months Ended March 31 , 2021 2020 ( 000's except average annual yield ) Average invested assets at cost ( 1 ) $ 4,538,185 $ 4,212,398 Net investment income ( 2 ) Before income taxes $ 32,279 $ 34,495 After income taxes $ 28,784 $ 30,533 Average annual yield on investments - after income taxes ( 2 ) 2.5 % 2.9 % ( 1 ) Fixed maturities and short - term bonds at amortized cost ; equities and other short - term investments at cost . Average invested assets at cost are based on the monthly amortized cost of the invested assets for each period . ( 2 ) Lower net investment income before and after income taxes for the three months ended March 31 , 2021 compared to the corresponding period in 2020 resulted largely from a lower average yield on investments , partially offset by higher average invested assets . Average annual yield on investments after income taxes for the three months ended March 31 , 2021 decreased compared to the corresponding period in 2020 , primarily due to the maturity and replacement of higher yielding investments purchased when market interest rates were higher with lower yielding investments , as a result of decreasing market interest rates . The Board of Directors declared a quarterly dividend of $ 0.6325 per share . The dividend will be paid on June 30 , 2021 to shareholders of record on June 16 , 2021 . Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states . For more information , visit the Company's website at www.mercuryinsurance.com . The Private Securities Litigation Reform Act of 1995 provides a " safe harbor " for certain forward - looking statements . Certain statements contained in this report are forward - looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company . There can be no assurance that future developments affecting the Company will be those anticipated by the Company . Actual results may differ from those projected in the forward- looking statements . These forward - looking statements involve significant risks and uncertainties ( some of which are beyond the control of the Company ) and are subject to change based upon various factors , including but not limited to the following risks anc uncertainties : changes in the demand for the Company's insurance products , inflation and general economic conditions , including general market risks associated with the Company's investment portfolio ; the accuracy and adequacy of the Company's pricing methodologies ; catastrophes in the markets served by the Company ; uncertainties related to estimates , assumptions and projections generally ; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company's loss reserves in general ; the Company's ability to obtain and the timing of the approval of premium rate