Mercury General Corporation's stock is experiencing a significant decline today, driven by the ongoing wildfires in Southern California. The company announced a preliminary assessment indicating that the losses from these wildfires, which began on January 7, 2025, are expected to exceed its reinsurance retention level of $150 million. This has raised concerns among investors about the financial impact on the company, as the wildfires continue to cause widespread damage. Mercury General's reinsurance program provides $1.29 billion in coverage limits per occurrence, but the potential for substantial claims has led to a sharp drop in the stock price.
The current price of Mercury General Corporation's stock is $50.38, down 16.99% from its previous close of $60.70. The stock opened at $48.77 and has seen a slight recovery, with a 3.31% increase from the opening price.