Mercury General Corp., a major California car...

Mercury General Corp., a major California car insurer, reported that 1994 net operating earnings fell to $72.8 million, or $2.67 a share, compared to 1993 net operating earnings of $94.3 million, or $3.45 per share.

The Los Angeles-based company said it suffered a “substantial increase” in claims late last year as well as a $2-million write-down. In addition, 1993 operating earnings benefited from unusually large contributions from its loss reserve fund, which added more than 80 cents a share.

Mercury General posted 1994 net income of $66.3 million, or $2.43 per share, compared to $96.2 million, or $3.52 per share in 1993. 1994 results included capital losses of 24 cents a share, while 1993 net income included capital gains of 7 cents a share.

Mercury General’s directors increased the stock dividend to 80 cents a year, or 20 cents a quarter, up from the previous rate of 70 cents a year. Dividends at the new rate will be paid on March 30 to shareholders of record on March 15.