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    <link:label id="lab_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC_verboseLabel_en-US" xlink:label="lab_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:type="resource" xml:lang="en-US">Fixed maturity securities:</link:label>
    <link:label id="lab_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC_label_en-US" xlink:label="lab_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Marketable Securities, Fixed Maturities [Abstract]</link:label>
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    <link:labelArc order="1" xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="loc_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC" xlink:to="lab_us-gaap_MarketableSecuritiesFixedMaturitiesAbstract_CE7DD9396447308B2DCCB809097725DC" xlink:type="arc" />
    <link:label id="lab_mcy_TradingSecuritiesDebtMaturitiesWithinOneYearFairValue_E7E7F9B5127DECEA581EB8090978A09B_terseLabel_en-US" xlink:label="lab_mcy_TradingSecuritiesDebtMaturitiesWithinOneYearFairValue_E7E7F9B5127DECEA581EB8090978A09B" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Due in one year or less</link:label>
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    <link:label id="lab_mcy_TradingSecuritiesDebtMaturitiesAfterOneThroughFiveYearsFairValue_D26B94911B6703C1B9A7B809097893D1_terseLabel_en-US" xlink:label="lab_mcy_TradingSecuritiesDebtMaturitiesAfterOneThroughFiveYearsFairValue_D26B94911B6703C1B9A7B809097893D1" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Due after one year through five years</link:label>
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    <link:label id="lab_us-gaap_MinimumMember_8B391488847E9BF84EE392D4BD28EB0A_label_en-US" xlink:label="lab_us-gaap_MinimumMember_8B391488847E9BF84EE392D4BD28EB0A" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Minimum [Member]</link:label>
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    <link:label id="lab_us-gaap_CommonStockSharesIssued_EE5773B66EBDA7E58F854E2DDE1ACBC1_label_en-US" xlink:label="lab_us-gaap_CommonStockSharesIssued_EE5773B66EBDA7E58F854E2DDE1ACBC1" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Common Stock, Shares, Issued</link:label>
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    <link:label id="lab_us-gaap_CommonStockSharesOutstanding_6DC6D379896A440B4C1D4E2DDE1AAD78_label_en-US" xlink:label="lab_us-gaap_CommonStockSharesOutstanding_6DC6D379896A440B4C1D4E2DDE1AAD78" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Common Stock, Shares, Outstanding</link:label>
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    <link:label id="lab_us-gaap_AssetsAbstract_C3CA60AFB9927A7A8E4C92D4BD970FFC_terseLabel_en-US" xlink:label="lab_us-gaap_AssetsAbstract_C3CA60AFB9927A7A8E4C92D4BD970FFC" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">ASSETS</link:label>
    <link:label id="lab_us-gaap_AssetsAbstract_C3CA60AFB9927A7A8E4C92D4BD970FFC_label_en-US" xlink:label="lab_us-gaap_AssetsAbstract_C3CA60AFB9927A7A8E4C92D4BD970FFC" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Assets [Abstract]</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_AssetsAbstract" xlink:label="loc_us-gaap_AssetsAbstract_C3CA60AFB9927A7A8E4C92D4BD970FFC" xlink:type="locator" />
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    <link:label id="lab_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2_terseLabel_en-US" xlink:label="lab_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Fixed maturity securities (amortized cost $2,270,903; $2,345,620)</link:label>
    <link:label id="lab_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2_label_en-US" xlink:label="lab_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Trading Securities, Debt</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_TradingSecuritiesDebt" xlink:label="loc_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2" xlink:type="locator" />
    <link:labelArc order="1" xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="loc_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2" xlink:to="lab_us-gaap_TradingSecuritiesDebt_2EF0A4F96911AC286A1492D4BD97D7F2" xlink:type="arc" />
    <link:label id="lab_us-gaap_TradingSecuritiesEquity_CC16A94236DF1437E15192D4BD97A958_terseLabel_en-US" xlink:label="lab_us-gaap_TradingSecuritiesEquity_CC16A94236DF1437E15192D4BD97A958" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Equity securities (cost $475,959; $388,417)</link:label>
    <link:label id="lab_us-gaap_TradingSecuritiesEquity_CC16A94236DF1437E15192D4BD97A958_label_en-US" xlink:label="lab_us-gaap_TradingSecuritiesEquity_CC16A94236DF1437E15192D4BD97A958" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Trading Securities, Equity</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_TradingSecuritiesEquity" xlink:label="loc_us-gaap_TradingSecuritiesEquity_CC16A94236DF1437E15192D4BD97A958" xlink:type="locator" />
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    <link:label id="lab_us-gaap_ShortTermInvestments_B8D44EDA0392B184BFD892D4BD97190A_terseLabel_en-US" xlink:label="lab_us-gaap_ShortTermInvestments_B8D44EDA0392B184BFD892D4BD97190A" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Short-term investments (cost $294,607; $236,433)</link:label>
    <link:label id="lab_us-gaap_ShortTermInvestments_B8D44EDA0392B184BFD892D4BD97190A_label_en-US" xlink:label="lab_us-gaap_ShortTermInvestments_B8D44EDA0392B184BFD892D4BD97190A" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Short-term Investments</link:label>
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    <link:label id="lab_us-gaap_Investments_6193E3D942472A1E21B592D4BD972684_totalLabel_en-US" xlink:label="lab_us-gaap_Investments_6193E3D942472A1E21B592D4BD972684" xlink:role="http://www.xbrl.org/2003/role/totalLabel" xlink:type="resource" xml:lang="en-US">Total investments</link:label>
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    <link:label id="lab_us-gaap_Cash_FB71A816BA48C0E3B48792D4BD9765A5_label_en-US" xlink:label="lab_us-gaap_Cash_FB71A816BA48C0E3B48792D4BD9765A5" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Cash</link:label>
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    <link:label id="lab_us-gaap_PremiumsAndOtherReceivablesNetAbstract_CEB8D27B83146A35A38192D4BD97183C_label_en-US" xlink:label="lab_us-gaap_PremiumsAndOtherReceivablesNetAbstract_CEB8D27B83146A35A38192D4BD97183C" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Premiums and Other Receivables, Net [Abstract]</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_PremiumsAndOtherReceivablesNetAbstract" xlink:label="loc_us-gaap_PremiumsAndOtherReceivablesNetAbstract_CEB8D27B83146A35A38192D4BD97183C" xlink:type="locator" />
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    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_PremiumsReceivableAtCarryingValue" xlink:label="loc_us-gaap_PremiumsReceivableAtCarryingValue_B5B51AC3F06943C59AA792D4BD975831" xlink:type="locator" />
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    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_OtherReceivables" xlink:label="loc_us-gaap_OtherReceivables_44D27872315DB31BDFEE92D4BD97ED9E" xlink:type="locator" />
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    <link:label id="lab_us-gaap_PremiumsAndOtherReceivablesNet_5500D6E275928C9BBD3292D4BD97CC7E_label_en-US" xlink:label="lab_us-gaap_PremiumsAndOtherReceivablesNet_5500D6E275928C9BBD3292D4BD97CC7E" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Premiums and Other Receivables, Net</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_PremiumsAndOtherReceivablesNet" xlink:label="loc_us-gaap_PremiumsAndOtherReceivablesNet_5500D6E275928C9BBD3292D4BD97CC7E" xlink:type="locator" />
    <link:labelArc order="1" xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="loc_us-gaap_PremiumsAndOtherReceivablesNet_5500D6E275928C9BBD3292D4BD97CC7E" xlink:to="lab_us-gaap_PremiumsAndOtherReceivablesNet_5500D6E275928C9BBD3292D4BD97CC7E" xlink:type="arc" />
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    <link:label id="lab_us-gaap_DeferredPolicyAcquisitionCosts_041405A8A801B95A64BC92D4BD989887_label_en-US" xlink:label="lab_us-gaap_DeferredPolicyAcquisitionCosts_041405A8A801B95A64BC92D4BD989887" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Deferred Policy Acquisition Costs</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_DeferredPolicyAcquisitionCosts" xlink:label="loc_us-gaap_DeferredPolicyAcquisitionCosts_041405A8A801B95A64BC92D4BD989887" xlink:type="locator" />
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    <link:label id="lab_us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities_CB2FB8F0BF5C3C354D2392D4BD7E5F55_negatedLabel_en-US" xlink:label="lab_us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities_CB2FB8F0BF5C3C354D2392D4BD7E5F55" xlink:role="http://www.xbrl.org/2009/role/negatedLabel" xlink:type="resource" xml:lang="en-US">Excess tax benefit from exercise of stock options</link:label>
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    <link:label id="lab_us-gaap_IncreaseDecreaseInPremiumsReceivable_6AE97B716FDC20EF625692D4BD7E303B_label_en-US" xlink:label="lab_us-gaap_IncreaseDecreaseInPremiumsReceivable_6AE97B716FDC20EF625692D4BD7E303B" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Increase (Decrease) in Premiums Receivable</link:label>
    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_IncreaseDecreaseInPremiumsReceivable" xlink:label="loc_us-gaap_IncreaseDecreaseInPremiumsReceivable_6AE97B716FDC20EF625692D4BD7E303B" xlink:type="locator" />
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    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_IncreaseDecreaseInDeferredIncomeTaxes" xlink:label="loc_us-gaap_IncreaseDecreaseInDeferredIncomeTaxes_6E23756B56C284F9D2E092D4BD7E14DD" xlink:type="locator" />
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    <link:label id="lab_us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts_64A71005307658EC6E5D92D4BD7F5C39_label_en-US" xlink:label="lab_us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts_64A71005307658EC6E5D92D4BD7F5C39" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Increase (Decrease) in Deferred Policy Acquisition Costs</link:label>
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    <link:loc xlink:href="http://xbrl.fasb.org/us-gaap/2012/elts/us-gaap-2012-01-31.xsd#us-gaap_IncreaseDecreaseInLossAndLossAdjustmentExpenseReserve" xlink:label="loc_us-gaap_IncreaseDecreaseInLossAndLossAdjustmentExpenseReserve_A5FB00522E7506E983FA92D4BD7F7E11" xlink:type="locator" />
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    <link:label id="lab_us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract_52C795EC7B5CE3B3439792D4BC6CDDFE_verboseLabel_en-US" xlink:label="lab_us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract_52C795EC7B5CE3B3439792D4BC6CDDFE" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:type="resource" xml:lang="en-US">Cash flows from operating activities:</link:label>
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    <link:label id="lab_us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract_15161A01851A97A91AC892D4BC6C60FD_verboseLabel_en-US" xlink:label="lab_us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract_15161A01851A97A91AC892D4BC6C60FD" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:type="resource" xml:lang="en-US">Cash flows from investing activities:</link:label>
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    <link:label id="lab_mcy_DividendsReceivedFromSubsidiaries_8F97EF1142DCB50DB59292D4BC6C624F_terseLabel_en-US" xlink:label="lab_mcy_DividendsReceivedFromSubsidiaries_8F97EF1142DCB50DB59292D4BC6C624F" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Dividends from subsidiaries</link:label>
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    <link:label id="lab_us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities_A950D1430277675BFFEE92D4BC6C05DF_verboseLabel_en-US" xlink:label="lab_us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities_A950D1430277675BFFEE92D4BC6C05DF" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:type="resource" xml:lang="en-US">Calls or maturities</link:label>
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    <link:label id="lab_us-gaap_MarketableSecuritiesEquitySecuritiesAbstract_1E8737AFE68A30A4883992D4BC6CAE3A_label_en-US" xlink:label="lab_us-gaap_MarketableSecuritiesEquitySecuritiesAbstract_1E8737AFE68A30A4883992D4BC6CAE3A" xlink:role="http://www.xbrl.org/2003/role/label" xlink:type="resource" xml:lang="en-US">Marketable Securities, Equity Securities [Abstract]</link:label>
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    <link:label id="lab_us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt_47496BB49863C291E4D692D4BC6CE7CD_negatedTerseLabel_en-US" xlink:label="lab_us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt_47496BB49863C291E4D692D4BC6CE7CD" xlink:role="http://www.xbrl.org/2009/role/negatedTerseLabel" xlink:type="resource" xml:lang="en-US">Purchases</link:label>
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    <link:label id="lab_us-gaap_IncomeTaxesPaid_FA02211921A499CD14449318B40D065D_terseLabel_en-US" xlink:label="lab_us-gaap_IncomeTaxesPaid_FA02211921A499CD14449318B40D065D" xlink:role="http://www.xbrl.org/2003/role/terseLabel" xlink:type="resource" xml:lang="en-US">Income taxes paid (received)</link:label>
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