Mercury Insurance Reaffirms Presence in California Despite Wildfire Pressures

Mercury Insurance has confirmed it will remain in the California market, pushing back against speculation that it might follow other insurers in scaling back operations amid rising wildfire risks and mounting regulatory challenges.

In a statement released June 4, 2025, CEO Gabriel Tirador reassured policyholders that Mercury remains committed to serving California residents. “We are not leaving,” Tirador said, directly addressing rumors that the company might retreat from the state.

This public reassurance comes as California’s insurance sector faces growing strain. Catastrophic wildfire events and the rising costs of reinsurance have led several major insurers—including State Farm and Allstate—to reevaluate or reduce their exposure in the state. Some have paused writing new homeowner policies altogether, citing unsustainable losses.

Tirador emphasized Mercury’s long-standing roots in California and its intent to continue working with state regulators to navigate ongoing challenges. The company is collaborating with lawmakers and the Department of Insurance to modernize the rate approval process and build a more sustainable path forward for the industry.

“Our customers have relied on us for decades,” Tirador noted, “and we’re dedicated to ensuring they can continue to do so—especially during times of crisis.” As climate change intensifies natural disasters and policy debates around insurance reform heat up, Mercury’s decision to stay the course offers some relief to homeowners and real estate professionals worried about diminishing insurance options across the state.

Source:

• “Mercury Insurance Isn’t Leaving California, CEO Says.” The Real Deal, June 4, 2025.