Mercury Insurance business insurance

Overview

Mercury Insurance is a Brea, California, insurer best known as the largest independent-agency writer of auto and home insurance in California. Business insurance is a side line: in 2025 commercial auto was 6.5% of Mercury's direct premiums written and commercial multi-peril 2.0%. Its business offering is narrow but real: commercial auto in four states, and in California a businessowners policy plus programs for apartment owners and owners of commercial buildings leased to others, all sold through independent agents.

The Mercury group was ranked No. 98 among U.S. business insurers by 2025 commercial lines direct premiums written, with $628.2 million, based on NAIC market share data. It has no line in the national top 10. Commercial auto was $389.9 million, fire $122.3 million, commercial multiple peril $112.5 million and boiler and machinery $3.4 million. All-lines premium was $5.95 billion, about 82% of it written in California.

The publicly traded parent, Mercury General Corporation (NYSE: MCY), owns 12 insurance companies that AM Best rates as the Mercury Casualty Group. They include Mercury Casualty Company (formed 1961), Mercury Insurance Company, California Automobile Insurance Company, California General Underwriters Insurance Company, Orion Indemnity Company (acquired 2015), American Mercury Insurance Company, Mercury Insurance Company of Texas (formerly American Mercury Lloyds, converted to a stock company in August 2025), Mercury County Mutual, Mercury Indemnity Company of America (Florida and New Jersey) and companies domiciled for Georgia and Illinois business. Mercury also owns two insurance agencies, AIS and PoliSeek. Gabriel Tirador has been CEO since 2007. Founder George Joseph has chaired the board since 1961, and his son Victor Joseph is president and chief operating officer.

History

George Joseph, a World War II navigator who went into insurance after Harvard, started Mercury in 1961 as a low-cost auto insurer for California drivers. He named it after the Roman god of business and merchants because he wanted the company fast and nimble. Joseph ran it as CEO for 45 years, through 2006. Mercury grew mainly in California private passenger auto and later homeowners, then expanded into Texas, Florida, Georgia, Illinois, New Jersey, New York, Oklahoma, Arizona, Nevada and Virginia. In 2009 it bought AIS Management, parent of the Auto Insurance Specialists and PoliSeek agencies, and in 2015 it acquired the company now named Orion Indemnity.

The defining recent event was the January 2025 Palisades and Eaton wildfires in Los Angeles. Mercury fielded more than 2,900 claims, 794 of them residential and commercial property total losses, and recorded about $2.2 billion of gross catastrophe losses, exhausting its 2025 catastrophe reinsurance tower. After reinsurance, subrogation and other recoveries, the net loss was about $380 million, and Mercury still earned $541.1 million for 2025 with a 96.3% combined ratio. The California FAIR Plan's $50 million assessment on Mercury after the fires is a reminder of what California property writers carry beyond their own policies.

Business insurance products

Commercial auto. Mercury's largest commercial line covers vehicles from delivery vans and utility trucks to tractor-trailers for a wide range of businesses, from plumbing contractors to sales professionals. Its published maximum is a $1 million combined single limit per accident, and the commercial umbrella is 100% reinsured. Coverage includes the standard liability, physical damage, uninsured motorist and, where required, personal injury protection options (see commercial auto insurance: what it covers and what it leaves out).

Businessowners policies (California). Mercury writes three BOP programs:

• Small business for offices, restaurants, retail and service businesses: business liability, employee dishonesty ($10,000 included, up to $250,000), ordinance or law coverage, water backup, spoilage, outdoor signs, liquor liability, hired and non-owned auto, and professional liability for barbershops, beauty salons and nail salons. Restaurants get their own broadening endorsement and a franchise discount.
• Habitational for single-family rentals, apartments, multi-family and mixed-use buildings, with bed bug and kissing bug liability and a habitational broadening endorsement.
• Lessors' risk for owners of shopping and strip centers, office and retail buildings, with a discount when leases require tenants to name the owner as additional insured.

All three offer optional employment practices liability and cyber and data breach coverage up to $250,000, plus equipment breakdown with technology coverage. Per-risk property reinsurance covers $7.5 million in excess of $7.5 million, with facultative cover above $15 million for some multi-building risks.

Mercury does not write workers' compensation, surety, E&S or professional liability beyond these endorsements, so a business needing comp will buy it elsewhere.

Who it insures

Commercial auto is available in California, Florida, Oklahoma and Texas. The BOP, habitational and lessors' risk programs are offered in California only. Mercury's site lists target business categories such as artisan and service contractors and sales professionals for auto, and offices, restaurants, retail, service businesses, Landlord insurance and commercial building owners for the BOP.

Mercury is tightening its property appetite. Management called commercial multi-peril results "unacceptable" in its 2025 annual report: a 140.9% combined ratio in 2025, or 127.3% excluding the wildfires, after 164.7% in 2024. It is raising rates, refining segmentation, restricting eligibility and changing coverage offerings, and does not expect CMP to run under 100% in 2026. Expect higher renewals and stricter underwriting on California BOPs, especially for older buildings and wildfire-exposed locations (see california's commercial property and wildfire market). Commercial auto turned around, from a 109.0% combined ratio in 2024 to 96.4% in 2025.

How to buy

Through an independent agent. Mercury works with about 8,510 independent agents, about 2,670 of them in California, along with its own AIS and PoliSeek agencies. Independent agents wrote about 88% of its 2025 direct premium. You can also call 800-956-3728 for a business auto or BOP quote, but policies are assigned to an agent for service. Policyholders can manage accounts and pay online. A business with exposures outside Mercury's four commercial auto states, or a property schedule outside California, will need another carrier.

Claims

File a claim 24/7 online through Mercury's digital claims experience or by phone at 800-503-3724. Mercury handles most claims with its own staff rather than outside adjusters. Auto customers can use authorized repair shops, where Mercury guarantees repairs for as long as the customer owns the vehicle. Its Special Investigations Unit works with local and federal law enforcement on fraud rings. For property losses, the 2025 wildfire response showed Mercury's capacity to run a large-scale catastrophe operation.

Financial strength and ratings

On February 24, 2026, AM Best affirmed the A (Excellent) financial strength rating and "a" issuer credit ratings of the Mercury Casualty Group members and revised the outlooks to stable from negative. The outlooks had been put on negative in February 2025 after the wildfires. AM Best also affirmed the "bbb" (Good) issuer rating of Mercury General Corporation and its $375 million, 4.4% senior notes due 2027. It assesses Mercury's balance sheet as very strong, operating performance as adequate and its business profile as neutral. Mercury's 2025 Form 10-K reports Fitch financial strength of A- (stable) and Moody's A3 (negative outlook).

At year-end 2025, Mercury reported $2.4 billion of statutory surplus, up $362 million, and financial leverage of 19.2%.

Strengths and weaknesses

Mercury is a well-capitalized, highly concentrated California carrier that treats business insurance as an adjunct to its auto and home franchise. Its commercial auto is now profitable; its commercial property book is not.

• Strengths: A (Excellent) from AM Best with outlook restored to stable in February 2026. Strong 2025 earnings despite about $2.2 billion of gross wildfire losses. Detailed California BOP programs for small businesses, apartments and lessors' risk, with useful built-in coverages such as ordinance or law and water backup. A large independent-agent network and a direct quote line.
• Weaknesses: Commercial auto in only four states and BOPs only in California. No workers' comp, surety or E&S. Commercial multi-peril ran a 140.9% combined ratio in 2025, and management is restricting eligibility and raising rates. Heavy concentration in California, with wildfire, regulatory and FAIR Plan assessment exposure.

How to contact Mercury Insurance