Mercury Insurance Corporation Increases Dividend 20.8%

LOS ANGELES, Feb. 7 — Mercury Insurance (NYSE: MCY), a major California automobile insurer with operations in several other states, announced that its Board of Directors, on February 7, 1997, declared a first quarter dividend of $.29, an annual rate of $1.16, a 20.8% increase over the rate paid in 1996. The increased dividend will be paid on March 31, 1997 to shareholders of record on March 17, 1997.

Mercury Insurance’s dividend has been increased at least once each year since the Company went public in November 1985, with the compound rate of increase averaging over 25%.