Fitch affirms Mercury General

Fitch Ratings said it affirmed Mercury General Corp.'s issuer default rating at A, along with the A+ insurer financial strength ratings on its subsidiaries.

Fitch also said it affirmed the A issuer default rating on subsidiary Mercury Casualty Co. and the A rating on Mercury Casualty's secured senior bank debt.

The outlook is stable.

The ratings reflect the company's very strong capitalization, low financial leverage and very strong interest coverage, improved underwriting results and strong competitive position in California, Fitch said.

Partially offsetting these positives are the concentration risks arising from the company's product and geographic focuses, as well as the execution risk associated with its efforts to diversify geographically, the agency said.

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