Mercury Insurance and Safeco Insurance Announce Plans to Transition California Customers and Agents

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) has announced a strategic partnership with Liberty Mutual Insurance to provide coverage for thousands of California Safeco Insurance customers affected by Liberty Mutual's shift in California personal lines strategy. The transition will focus on Safeco's renters, condo, and select auto policies.

Mercury's CEO Gabriel Tirador emphasized the company's commitment to California, highlighting a similar successful transition with Tokio Marine's personal lines business last year. The company continues to write homeowners policies in many parts of California where other insurers have withdrawn, offering an alternative to the FAIR Plan.

The partnership aims to ensure uninterrupted coverage for customers while supporting independent agents, with Mercury planning to vet and potentially appoint Safeco agents who currently don't have Mercury appointments.

Positive

• Strategic expansion of Mercury's California market presence through acquisition of Safeco's customer portfolio
• Demonstrates Mercury's strong commitment to California market while other insurers are withdrawing
• Opportunity to expand independent agent network through new Safeco agent appointments
• Potential for immediate business growth through seamless customer transition

Negative

• Taking on additional risk in California's challenging insurance market
• Potential integration costs and operational challenges in transitioning customers and agents

Insights

Insurance Industry Strategist

Mercury's acquisition of Safeco customers strengthens its California market position while competitors retreat, potentially boosting revenue and market share.

Mercury Insurance's agreement to absorb Safeco's California renters, condo, and select auto policies represents a strategic market consolidation opportunity amid California's challenging insurance landscape. This transaction follows Mercury's similar acquisition of Tokio Marine's personal lines business last year, establishing a pattern of expansion while competitors reduce their California exposure.

The deal comes at a pivotal moment in California's insurance market, with many carriers restricting coverage or exiting entirely due to catastrophic wildfire losses and regulatory constraints on rate adequacy. Mercury is explicitly positioning itself as committed to California when other insurers are retreating, specifically highlighting its continued willingness to write homeowners policies in areas where competitors have withdrawn.

This transition offers three key advantages for Mercury:

• Immediate customer acquisition without traditional marketing costs
• Expanded agent network through onboarding Safeco agents
• Enhanced market position as a stable provider in a volatile market

The announcement also strategically aligns Mercury with Commissioner Lara's "Sustainable Insurance Strategy" regulatory reforms, suggesting the company anticipates a more favorable regulatory environment. For investors, this represents Mercury's confidence in achieving profitable growth in California despite market challenges that have driven competitors away, potentially yielding significant medium-term revenue and market share gains without the customer acquisition costs typically associated with organic growth.

Mercury to Support Agents and Consumers as Safeco Parent Liberty Mutual Shifts Its California Personal Lines Strategy

LOS ANGELES, Aug. 6, 2025 /PRNewswire/ -- Mercury Insurance (NYSE: MCY) is partnering with Liberty Mutual Insurance on a plan to provide coverage for thousands of California Safeco Insurance customers impacted by a shift in Liberty Mutual's California personal lines product strategy. Liberty Mutual will recommend to its appointed independent agents that they place impacted Safeco renters, condo and select auto policies with Mercury to ensure a smooth and seamless transition for customers.

"Mercury and Safeco have long had a healthy, competitive relationship, sharing a common desire to protect California consumers," said Gabriel Tirador, Chief Executive Officer of Mercury. "When Safeco approached us with the idea of transitioning their impacted customers into our portfolio, we saw an opportunity for Mercury to be there for California consumers and agents when they need us most. The result is a win for everyone — their customers and agents, Safeco and Mercury.

"Mercury demonstrated its commitment to California in a similar way last year when we took on Tokio Marine's personal lines business following their decision to no longer sell those lines in the state. We believe in California, and we're excited to welcome Safeco customers into the Mercury family."

"We are committed to the California insurance market, and independent agents are critical to achieving sustained success. This partnership with Mercury ensures they and our customers have a seamless path available for uninterrupted coverage as we focus on our core auto, home, landlord and liability products throughout the state," said Luke Bills, Liberty Mutual President, Independent Agent Distribution, US Retail Markets.

Mercury is expanding its commitment to California consumers at a time when they need it most. The company continues to write homeowners policies in many parts of the state where others have pulled back, providing an important alternative to the FAIR Plan.

Mercury's interest in this partnership is based on more than just a new business opportunity. "We believe very strongly in California's future," said Tirador. "The steps Commissioner Lara and the California Department of Insurance are taking to modernize the insurance market through the Commissioner's 'Sustainable Insurance Strategy' will help stabilize the market and create a transparent, sustainable model that will benefit California consumers."

Mercury has been selling insurance through independent agents for more than 60 years. This unwavering commitment to California is a core piece of Mercury's strategy to expand the company's footprint in the state and provide high quality insurance options for both agents and consumers.  

"Safeco customers are similar to ours in terms of their coverage needs and their insurance agent relationships," said Nick Colby, Mercury's Vice President and Chief Sales Officer. "Many independent agents already represent both Safeco and Mercury, but for those who don't have a Mercury appointment, we will immediately begin the process of vetting Safeco agents who are interested in a Mercury appointment."  

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4.200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned "A" ratings from A.M. Best and Fitch, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

About Liberty Mutual Insurance

At Liberty Mutual, we believe progress happens when people feel secure. For more than 110 years we have helped people and businesses embrace today and confidently pursue tomorrow by providing protection for the unexpected and delivering it with care. 

A Fortune 100 company with more than 40,000 employees in 28 countries and economies, we are the ninth largest global property and casualty insurer and generate more than $50 billion in annual consolidated revenue. 

We operate through three strategic business units: US Retail Markets, providing auto, home, renters and other personal and small commercial lines property and casualty insurance to individuals and small businesses countrywide; Global Risk Solutions, delivering a full range of comprehensive commercial and specialty insurance, reinsurance and surety solutions to mid-size and large businesses worldwide; and Liberty Mutual Investments, deploying more than $100 billion of long-term capital globally across its integrated platform to drive economic growth, power innovation and secure Liberty Mutual's promises.

For more information, visit www.libertymutualinsurance.com.  

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SOURCE Mercury Insurance

FAQ

What is Mercury Insurance's (MCY) new partnership with Liberty Mutual about?

Mercury Insurance is partnering with Liberty Mutual to provide coverage for thousands of California Safeco Insurance customers, specifically for renters, condo, and select auto policies, as Liberty Mutual shifts its California personal lines strategy.

How will the Safeco-Mercury transition affect California insurance customers?

The transition is designed to be smooth and seamless, ensuring uninterrupted coverage for Safeco customers who will be transferred to Mercury Insurance, with support from their existing independent agents.

What types of Safeco insurance policies will Mercury Insurance take over in California?

Mercury will take over Safeco's renters, condo, and select auto policies in California as part of the transition agreement.

How is Mercury Insurance expanding in California while other insurers are leaving?

Mercury continues to write homeowners policies in many parts of California where others have withdrawn, previously took over Tokio Marine's personal lines business, and is now accepting Safeco's customers, demonstrating their commitment to the California market.

What happens to Safeco insurance agents during the Mercury transition?

Many independent agents already represent both companies, but Mercury will begin vetting Safeco agents who don't have Mercury appointments for potential new appointments to ensure continued service to transitioning customers.