Net Income per Diluted Share was $3.34 for the Quarter and $5.99 for the Six Months of 2025

ERIE, Pa., Aug. 7, 2025 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and six months ending June 30, 2025. Net income was $174.7 million, or $3.34 per diluted share, in the second quarter of 2025, compared to $163.9 million, or $3.13 per diluted share, in the second quarter of 2024. Net income was $313.1 million, or $5.99 per diluted share, in the first six months of 2025, compared to $288.5 million, or $5.52 per diluted share, in the first six months of 2024.

2Q and First Half 2025
(in thousands)	2Q'25	2Q'24	1H'25	1H'24
Operating income	$ 199,173	$ 190,208	$ 350,549	$ 329,020
Investment income	19,600	13,827	39,136	28,906
Other income	1,974	3,292	5,808	6,703
Income before income taxes	220,747	207,327	395,493	364,629
Income tax expense	46,062	43,424	82,391	76,174
Net income	$ 174,685	$ 163,903	$ 313,102	$ 288,455



2Q 2025 Highlights

Operating income before taxes increased $9.0 million, or 4.7 percent, in the second quarter of 2025 compared to the second quarter of 2024.

Management fee revenue - policy issuance and renewal services increased $63.0 million, or 8.3 percent, in the second quarter of 2025 compared to the second quarter of 2024.
Management fee revenue - administrative services increased $1.2 million, or 7.3 percent, in the second quarter of 2025 compared to the second quarter of 2024.
Cost of operations - policy issuance and renewal services
- Commissions increased $43.5 million in the second quarter of 2025, compared to the second 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 $10.6 million in the second quarter of 2025 compared to the second quarter of 2024. Information technology costs increased $7.1 million primarily due to an increase in personnel costs and a decrease in capitalized professional fees related to technology initiatives. Sales and advertising expense increased $2.8 million primarily due to increased agent-related and advertising costs. Personnel costs were impacted by increased healthcare costs compared to 2024.

Income from investments before taxes totaled $19.6 million in the second quarter of 2025 compared to $13.8 million in the second quarter of 2024. Net investment income was $20.0 million in the second quarter of 2025 compared to $16.0 million in the second quarter of 2024. Net realized and unrealized gains on investments were $0.5 million in the second quarter of 2025 compared to losses of $1.8 million in the second quarter of 2024.

First Half 2025 Highlights

Operating income before taxes increased $21.5 million, or 6.5 percent, in the first six months of 2025 compared to the first six months of 2024.

Management fee revenue - policy issuance and renewal services increased $152.3 million, or 10.7 percent, in the first six months of 2025 compared to the first six months of 2024.
Management fee revenue - administrative services increased $2.0 million, or 5.8 percent, in the first six months of 2025 compared to the first six months of 2024.
Cost of operations - policy issuance and renewal services
- Commissions increased $104.6 million in the first six months of 2025 compared to the first six months 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 $26.9 million for the first six months of compared to the first six months of 2024. Underwriting and policy processing expense increased $4.3 million primarily due to increased personnel costs and printing and postage costs. Information technology costs increased $18.4 million primarily due to an increase in personnel costs and hardware and software costs and a decrease in capitalized professional fees related to technology initiatives. Customer service costs increased $2.7 million primarily due to increased personnel costs. Sales and advertising expense increased $3.0 million primarily due to increased advertising and personnel costs. Personnel costs were impacted by increased healthcare costs compared to 2024.

Income from investments before taxes totaled $39.1 million in the first six months of 2025 compared to $28.9 million in the first six months of 2024. Net investment income was $40.0 million in the first six months of 2025 compared to $31.9 million in the first six months of 2024. Net investment income included $1.2 million of limited partnership earnings in the first six months of 2025 compared to $0.3 million in the first six months of 2024. Net realized and unrealized gains were $1.0 million in the first six months of 2025 compared to $0.1 million in the first six months of 2024. Net impairment losses recognized in earnings were $1.8 million in the first six months of 2025 compared to $3.1 million in the first six months of 2024.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on August 8, 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 11^th largest homeowners insurer, 12^th largest automobile insurer and 10^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 16^th largest property/casualty insurer in the United States based on net premiums 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 June 30,		Six months ended June 30,
	2025	2024	2025	2024
	(Unaudited)		(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$ 823,853	$ 760,886	$ 1,578,902	$ 1,426,572
Management fee revenue - administrative services	18,296	17,051	35,941	33,985
Administrative services reimbursement revenue	212,644	206,028	422,917	397,595
Service agreement revenue	5,304	6,473	11,736	12,987
Total operating revenue	1,060,097	990,438	2,049,496	1,871,139

Operating expenses
Cost of operations - policy issuance and renewal services	648,280	594,202	1,276,030	1,144,524
Cost of operations - administrative services	212,644	206,028	422,917	397,595
Total operating expenses	860,924	800,230	1,698,947	1,542,119
Operating income	199,173	190,208	350,549	329,020

Investment income
Net investment income	20,030	16,010	39,978	31,913
Net realized and unrealized investment gains (losses)	479	(1,795)	981	58
Net impairment losses recognized in earnings	(909)	(388)	(1,823)	(3,065)
Total investment income	19,600	13,827	39,136	28,906

Other income	1,974	3,292	5,808	6,703
Income before income taxes	220,747	207,327	395,493	364,629
Income tax expense	46,062	43,424	82,391	76,174
Net income	$ 174,685	$ 163,903	$ 313,102	$ 288,455

Net income per share
Class A common stock – basic	$ 3.75	$ 3.52	$ 6.72	$ 6.19
Class A common stock – diluted	$ 3.34	$ 3.13	$ 5.99	$ 5.52
Class B common stock – basic and diluted	$ 563	$ 528	$ 1,008	$ 929

Weighted average shares outstanding – Basic
Class A common stock	46,189,063	46,189,042	46,188,984	46,189,028
Class B common stock	2,542	2,542	2,542	2,542

Weighted average shares outstanding – Diluted
Class A common stock	52,304,407	52,305,299	52,304,397	52,303,551
Class B common stock	2,542	2,542	2,542	2,542

Dividends declared per share
Class A common stock	$ 1.365	$ 1.275	$ 2.73	$ 2.55
Class B common stock	$ 204.75	$ 191.25	$ 409.50	$ 382.50

Erie Indemnity Company Consolidated Statements of Financial Position (in thousands)

	June 30, 2025	December 31, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $25,923 and $23,559, respectively)	$ 358,027	$ 298,397
Available-for-sale securities	59,162	44,604
Receivables from Erie Insurance Exchange and affiliates, net	769,148	707,060
Prepaid expenses and other current assets, net	71,133	83,902
Accrued investment income	11,998	11,069
Total current assets	1,269,468	1,145,032

Available-for-sale securities, net	1,048,584	991,726
Equity securities	68,095	85,891
Available-for-sale and equity securities lent	35,535	7,285
Fixed assets, net	519,834	513,494
Agent loans, net	85,027	80,597
Defined benefit pension plan	54,650	21,311
Other assets, net	47,021	43,278
Total assets	$ 3,128,214	$ 2,888,614

Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$ 446,424	$ 408,309
Agent incentive compensation	70,101	75,458
Accounts payable and accrued liabilities	193,032	190,028
Dividends payable	63,569	63,569
Contract liability	46,213	42,761
Deferred executive compensation	7,181	14,874
Securities lending payable	35,159	7,513
Total current liabilities	861,679	802,512

Defined benefit pension plan	26,820	28,070
Contract liability	22,594	21,170
Deferred executive compensation	18,471	19,721
Deferred income taxes, net	476	6,418
Other long-term liabilities	13,629	23,465
Total liabilities	943,669	901,356

Shareholders' equity	2,184,545	1,987,258
Total liabilities and shareholders' equity	$ 3,128,214	$ 2,888,614

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SOURCE Erie Indemnity Company

Erie Indemnity Reports Second Quarter 2025 Results