Net Income was $138.4 million, Earnings per Diluted Share was $2.65

ERIE, Pa., April 24, 2025 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending March 31, 2025.  Net income was $138.4 million, or $2.65 per diluted share, in the first quarter of 2025, compared to $124.6 million, or $2.38 per diluted share, in the first quarter of 2024.Erie Insurance. (PRNewsFoto/Erie Insurance) (PRNewsfoto/Erie Insurance)

1Q 2025 (in thousands) 1Q'25  1Q'24 Operating income $      151,376  $      138,812 Investment income 19,536  15,079 Other income 3,834  3,411 Income before income taxes  174,746  157,302 Income tax expense 36,329  32,750 Net income $      138,417  $      124,552

1Q 2025 Highlights

Operating income before taxes increased $12.6 million, or 9.1 percent, in the first quarter of 2025 compared to the first quarter of 2024.

Management fee revenue - policy issuance and renewal services increased $89.4 million, or 13.4 percent, in the first quarter of 2025 compared to the first quarter of 2024. Management fee revenue - administrative services increased $0.7 million, or 4.2 percent, in the first quarter of 2025 compared to the first quarter of 2024. Cost of operations - policy issuance and renewal services

Commissions increased $61.1 million in the first quarter of 2025, compared to the first quarter of 2024, primarily driven by the growth in direct and affiliated assumed written premium and, to a lesser extent, an increase in agent incentive compensation. Non-commission expense increased $16.3 million in the first quarter of 2025 compared to the first quarter of 2024. Underwriting and policy processing expense increased $3.1 million primarily due to increased personnel costs. Information technology costs increased $11.3 million primarily due to an increase in hardware and software costs and personnel costs and a decrease in capitalized professional fees related to technology initiatives. Customer service costs increased $1.6 million primarily due to increased personnel costs and credit card processing fees. Personnel costs in the first quarter of 2025 were impacted by increased compensation including higher estimated costs for incentive plan awards compared to 2024.

Story Continues

Income from investments before taxes totaled $19.5 million in the first quarter of 2025 compared to $15.1 million in the first quarter of 2024.  Net investment income was $19.9 million in the first quarter of 2025 compared to $15.9 million in the first quarter of 2024.  Net realized and unrealized gains on investments were $0.5 million in the first quarter of 2025 compared to $1.9 million in the first quarter of 2024.  Net impairment losses recognized in earnings were $0.9 million in the first quarter of 2025 compared to $2.7 million in the first quarter of 2024.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on April 25, 2025.  Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

Erie Insurance Group

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 12th largest homeowners insurer, 13th largest automobile insurer and 13th largest commercial lines insurer in the United States based on direct premiums written.  Founded in 1925, Erie Insurance is a Fortune 500 company and the 17th largest property/casualty insurer in the United States based on total lines net premium written.  Rated A+ (Superior) by A.M. Best, ERIE has more than 7 million policies in force and operates in 12 states and the District of Columbia.

News releases and more information are available on ERIE's website at www.erieinsurance.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements contained herein that are not historical fact are forward-looking statements and, as such, are subject to risks and uncertainties that could cause actual events and results to differ, perhaps materially, from those discussed herein.  Forward-looking statements relate to future trends, events or results and include, without limitation, statements and assumptions on which such statements are based that are related to our plans, strategies, objectives, expectations, intentions, and adequacy of resources.  Examples of forward-looking statements are discussions relating to premium and investment income, expenses, operating results, and compliance with contractual and regulatory requirements.  Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.  Among the risks and uncertainties, in addition to those set forth in our filings with the Securities and Exchange Commission, that could cause actual results and future events to differ from those set forth or contemplated in the forward-looking statements include the following:

dependence upon our relationship with the Erie Insurance Exchange ("Exchange") and the management fee under the agreement with the subscribers at the Exchange; dependence upon our relationship with the Exchange and the growth of the Exchange, including:

general business and economic conditions; factors impacting the timing of premium rates charged for policies; factors affecting insurance industry competition, including technological innovations; dependence upon the independent agency system; and ability to maintain our brand, including our reputation for customer service; dependence upon our relationship with the Exchange and the financial condition of the Exchange, including:

the Exchange's ability to maintain acceptable financial strength ratings; factors affecting the quality and liquidity of the Exchange's investment portfolio; changes in government regulation of the insurance industry; litigation and regulatory actions; emergence of significant unexpected events, including pandemics, economic or social inflation, and changes in tariff policies; emerging claims and coverage issues in the industry; and severe weather conditions or other catastrophic losses, including terrorism; costs of providing policy issuance and renewal services to the subscribers at the Exchange under the subscriber's agreement; ability to attract and retain talented management and employees; ability to ensure system availability and effectively manage technology initiatives; difficulties with technology, data or network security breaches, including cyber attacks; ability to maintain uninterrupted business operations; compliance with complex and evolving laws and regulations and outcome of pending and potential litigation; factors affecting the quality and liquidity of our investment portfolio; and ability to meet liquidity needs and access capital.

A forward-looking statement speaks only as of the date on which it is made and reflects our analysis only as of that date.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise.

Erie Indemnity Company

Consolidated Statements of Operations

(dollars in thousands, except per share data)  Three months ended March 31, 2025  2024 (Unaudited) Operating revenue  Management fee revenue - policy issuance and renewal services  $           755,049  $           665,686 Management fee revenue - administrative services  17,645  16,934 Administrative services reimbursement revenue  210,273  191,567 Service agreement revenue  6,432  6,514 Total operating revenue  989,399  880,701  Operating expenses  Cost of operations - policy issuance and renewal services  627,750  550,322 Cost of operations - administrative services  210,273  191,567 Total operating expenses  838,023  741,889 Operating income  151,376  138,812  Investment income  Net investment income  19,948  15,903 Net realized and unrealized investment gains  502  1,853 Net impairment losses recognized in earnings  (914)  (2,677) Total investment income  19,536  15,079  Other income  3,834  3,411 Income before income taxes  174,746  157,302 Income tax expense  36,329  32,750 Net income  $           138,417  $           124,552  Net income per share  Class A common stock – basic  $                  2.97  $                  2.67 Class A common stock – diluted  $                  2.65  $                  2.38 Class B common stock – basic and diluted  $                   446  $                   401  Weighted average shares outstanding – Basic  Class A common stock  46,188,903  46,189,014 Class B common stock  2,542  2,542  Weighted average shares outstanding – Diluted  Class A common stock  52,304,384  52,301,803 Class B common stock  2,542  2,542  Dividends declared per share  Class A common stock  $                1.365  $               1.275 Class B common stock  $              204.75  $             191.25

Erie Indemnity Company

Consolidated Statements of Financial Position

(in thousands)  March 31,
2025  December 31,
2024 (Unaudited)  Assets  Current assets:  Cash and cash equivalents (includes restricted cash of $25,164 and $23,559, respectively)  $         260,379  $         298,397 Available-for-sale securities  52,976  44,604 Receivables from Erie Insurance Exchange and affiliates, net  719,898  707,060 Prepaid expenses and other current assets, net  78,387  83,902 Accrued investment income  10,849  11,069 Total current assets  1,122,489  1,145,032  Available-for-sale securities, net  1,047,540  991,726 Equity securities  81,814  85,891 Available-for-sale and equity securities lent  12,289  7,285 Fixed assets, net  513,088  513,494 Agent loans, net  85,723  80,597 Defined benefit pension plan  57,480  21,311 Other assets, net  47,805  43,278 Total assets  $     2,968,228  $     2,888,614  Liabilities and shareholders' equity  Current liabilities:  Commissions payable  $         429,380  $         408,309 Agent incentive compensation  42,190  75,458 Accounts payable and accrued liabilities  210,708  190,028 Dividends payable  63,569  63,569 Contract liability  44,102  42,761 Deferred executive compensation  9,636  14,874 Securities lending payable  12,706  7,513 Total current liabilities  812,291  802,512  Defined benefit pension plan  26,197  28,070 Contract liability  21,703  21,170 Deferred executive compensation  22,944  19,721 Deferred income taxes, net  3,704  6,418 Other long-term liabilities  14,038  23,465 Total liabilities  900,877  901,356  Shareholders' equity  2,067,351  1,987,258 Total liabilities and shareholders' equity  $     2,968,228  $     2,888,614Cision

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