The Mercury GeneralCorporation (NYSE: MCY) reportedtoday that its first-quarter net income was $66.46 million down 9.4percent from $73.35 million a year ago during the same time.Mercury General attributes the drop to a $10 million pre-taxrestructuring charge the it incurred as part of its efforts toconsolidate its operations outside of California into regional hubsin Florida, New Jersey and Texas. The company expects annualsavings of $12 million to come from this effort.

Net premiums written are $690.5 million, up 4.9 percent from the$658.29 written this time a year ago. This makes 1Q 2013 thecompany’s ninth consecutive quarter for premium growth. Premiumgrowth is being driven by personal auto business in California andhomeowners business in numerous states.

Overall results were helped by a $3 million improvement in losshistory, mainly in Florida and New Jersey. However, this was morethan offset by a $6 million worsening of losses elsewhere. As such,the company’s combined ratio for 1Q rose slightly to 97.9 percentfrom 97.6 percent this time a year ago.

When asked on the earnings call what the company was doing toget its loss ratio in California down to 95.0 percent, Mercury CEOand President Gabe Tirador said, “To get to 95, we need to get raterelief in California.”

Overall loss costs for 1Q 2013 compared favorably to those from4Q 2012, as those latter costs included costs from SuperstormSandy. Cat losses for 1Q were $1 million.

The Board of Directors declared a quarterly dividend of $0.6125per share. The dividend will be paid on June 27, 2013 toshareholders of record on June 13, 2013.

For a full report on Mercury’s 1Q results, click here.