Mercury General Corporation (Mercury General) and its subsidiaries are engaged primarily in writing automobile insurance principally in California. The Company also writes homeowners, mechanical breakdown, commercial and dwelling fire, and commercial property insurance. The types of coverage offered by the Company to automobile policyholders include bodily injury liability, underinsured and uninsured motorist, personal injury protection, property damage liability, comprehensive, collision and other hazards. During the year ended December 31, 2008, private passenger automobile insurance and commercial automobile insurance accounted for 83.7% and 3.9%, respectively, of the Company’s total direct premiums written. On January 1, 2009, the Company’s subsidiary Mercury Casualty Company (MCC) acquired AIS Management LLC, a parent company of Auto Insurance Specialists, LLC (AIS) and PoliSeek AIS Insurance Solutions, Inc.