Mercury General vs FS KKR Capital

Mercury General and FS KKR Capital are the subjects of this comparison. This page examines their business models, financial performance, and market context in a neutral, accessible way. Readers can explore how each company approaches risk, growth, and customer focus within their respective sectors. Educational content, not financial advice.

Mercury General and FS KKR Capital are the subjects of this comparison. This page examines their business models, financial performance, and market context in a neutral, accessible way. Readers can ex...

About The Companies

Mercury General (MCY)

Mercury General Corporation (MCY) is a US personal-lines property & casualty insurer best known for auto insurance and related products. With a market capitalisation around $4.4 billion, Mercury writes policies primarily through independent agents across several states, with a notable concentration in California. Investors should know the business combines underwriting results with investment income from its premium float — profitability depends on claims experience, pricing discipline and the yield environment. Regulatory change, weather-related catastrophes and shifts in policyholder behaviour can influence financial results from year to year. Mercury has historically returned capital to shareholders through dividends and repurchases, but past actions aren’t a guarantee of future distributions. For potential investors, key considerations include underwriting trends, combined ratio performance, reserve adequacy and investment portfolio sensitivity to interest rates. This summary is educational only and not personalised advice; values can rise or fall and returns are not guaranteed.

FS KKR Capital (FSK)

FS KKR Capital Corp (FSK) is a US-listed business development company (BDC) that primarily invests in middle‑market credit and private credit strategies, including senior secured loans, mezzanine debt and structured credit. Sponsored by FS Investments in partnership with KKR’s credit platform, FSK aims to generate income through interest payments and credit spreads while seeking capital preservation through secured lending and active portfolio management. The company uses leverage, which can boost returns in favourable markets but increases losses during downturns. FSK is typically of interest to income‑seeking investors comfortable with higher risk, credit exposure and NAV (net asset value) volatility. Key considerations include the credit cycle, interest-rate moves, manager experience and dividend sustainability. Market cap is approximately $4.23 billion. This summary is educational and not personal advice; values can fall as well as rise and past performance is not a guide to the future.

Comparison Snapshot

Key Financial Metrics

MCY

Metric

FSK

$5.05B

Market Cap

$4.31B

9.71%

Potential Profit

14.45%

Strong Buy

Analyst Rating

Hold

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

This carefully selected group of stocks captures the potential upside across the property and casualty insurance sector. Professional analysts have identified these companies following Travelers' impressive earnings report, suggesting similar strength may benefit other disciplined insurers with solid underwriting practices.

Published: July 20, 2025

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Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

This carefully selected group of stocks captures the potential upside across the property and casualty insurance sector. Professional analysts have identified these companies following Travelers' impressive earnings report, suggesting similar strength may benefit other disciplined insurers with solid underwriting practices.

Published: July 20, 2025

Explore Basket

Investment Analysis

Mercury General

MCY

Pros

Mercury General reported a 21.5% year-on-year increase in net income for Q3 2025, reflecting strong underwriting performance and improved profitability.
The company's combined ratio improved to 87.0% in Q3 2025, indicating better risk management and underwriting discipline compared to the prior year.
Mercury General maintains a solid balance sheet with a market capitalisation of around $4.4 billion and a low price-to-earnings ratio, suggesting potential value for investors.

Considerations

The company faced significant catastrophe losses from wildfires and severe storms in 2025, which could pressure future earnings if such events persist.
Net realized investment gains declined by 26.2% in Q3 2025, reducing overall profitability from its investment portfolio.
Mercury General's dividend yield is relatively modest at around 1.6%, which may be less attractive compared to higher-yielding peers in the insurance sector.

FS KKR Capital

FSK

Pros

FS KKR Capital Corp focuses on generating current income through investments in senior secured loans to private middle-market US companies, offering exposure to stable cash flows.
The company operates as a business development company, benefiting from regulatory advantages and a diversified portfolio of secured debt instruments.
FS KKR Capital Corp's structure allows for regular dividend distributions, appealing to income-focused investors seeking yield in a higher interest rate environment.

Considerations

The company is externally managed, which may result in higher fees and reduced alignment of interests between management and shareholders.
FS KKR Capital Corp's portfolio is concentrated in private company loans, increasing credit risk and potential for illiquidity during economic downturns.
The stock has experienced significant volatility, with a 52-week price range indicating susceptibility to market sentiment and broader credit cycle fluctuations.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play