Mercury General (NYSE: MCY) reported Q2 EPS of $1.86, $1.08 better than the analyst estimate of $0.78.

Update on COVID-19

The Company is continuing to monitor the evolving situation with the COVID-19 pandemic on a daily basis, and extended its "work-from-home" policy for most of its employees to the end of 2020 based on the latest information on the pandemic's developments as well as recommendations and orders issued by federal, state and local governments.

The Company has issued three separate press releases in recent months, announcing that it would return a portion of monthly premiums for March through June of 2020 to its eligible policyholders of private passenger automobile and other qualified lines of insurance business, as reduced driving and business activities during the COVID-19 pandemic have resulted in fewer accidents and claims. The Company's actions also comply with the recent California Insurance Commissioner's orders to insurers to make appropriate refunds to their eligible policyholders. The Company expects the total amount of such refunds to its eligible policyholders for March through June of 2020 to be approximately $106 million. In addition, the Company plans to return approximately $22 million of July premiums to its eligible policyholders in August 2020. Accordingly, the Company expects third quarter premiums earned and written to be reduced by approximately $22 million as a result of the refunds.

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