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.

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.

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 12^th largest homeowners insurer, 13^th largest automobile insurer and 13^th 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 17^th 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	$ 2,888,614

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SOURCE Erie Indemnity Company

Erie Indemnity Reports First Quarter 2025 Results