is calling offits foray into the Michigan and Pennsylvania auto markets, announcing May 2 thatit will pull out of the states over profitability concerns.
The insurerhas already filed its exit plans with state regulators and is shifting its resourcesto other areas, President and CEO Gabriel Tirador said during a conference callto discuss earnings. Once those plans are approved, it should take about a yearto shed all of its business in Michigan and Pennsylvania.
"Wehave not been able to profitably penetrate the Michigan and Pennsylvania markets,"Tirador said, emphasizing the small impact the decision would have on Mercury General'sfinancial results. "For these two states in 2015, the written premiums representedless than half of a percent of the company's total written premiums."
Michiganand Pennsylvania together produced $14.4 million of written premium in 2015 butsuffered from a 137% combined ratio, he added. That translated to an underwritingloss for that year of about 7 cents per share.