NU Online News Service, Aug. 2, 3:30 p.m. EDT
Los Angeles-based Mercury General Corp. said it spent $12.1 million in the second quarter in support of a ballot initiative that was defeated, adding nearly 2 points to the expense ratio.
Mercury General supported Proposition 17, which the company said would have enabled insurers to offer new customer discounts based on continuous coverage from any insurance company. It was defeated in June.
The auto insurer, with more than three-quarters of its direct written premiums in its home state, reported an 84 percent drop in 2010 second-quarter net income to $17.8 million from $114.4 million.
Net income for the first six months was $79 million compared with $211.1 million in 2009.
Net written premiums were down 1 percent to $631.1 million in the second quarter compared with 2009 second-quarter results. Net written premiums were down nearly 2 percent for the first six months.
Mercury General reported a second-quarter combined ratio of 99 compared with 96.1 during the same period last year.
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