Net Income per Diluted Share was $3.50 for the Quarter and $9.48 for the Nine Months of 2025

ERIE, Pa., Oct. 30, 2025 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter and nine months ending September 30, 2025. Net income was $182.9 million, or $3.50 per diluted share, in the third quarter of 2025, compared to $159.8 million, or $3.06 per diluted share, in the third quarter of 2024. Net income was $496.0 million, or $9.48 per diluted share, in the first nine months of 2025, compared to $448.3 million, or $8.57 per diluted share, in the first nine months of 2024.

3Q and Nine Months 2025
(in thousands)	3Q'25	3Q'24	2025	2024
Operating income	$ 208,921	$ 180,125	$ 559,470	$ 509,145
Investment income	21,554	19,549	60,690	48,455
Other income	2,286	1,168	8,094	7,871
Income before income taxes	232,761	200,842	628,254	565,471
Income tax expense	49,908	41,012	132,299	117,186
Net income	$ 182,853	$ 159,830	$ 495,955	$ 448,285


3Q 2025 Highlights

Operating income before taxes increased $28.8 million, or 16.0 percent, in the third quarter of 2025 compared to the third quarter of 2024.

Management fee revenue - policy issuance and renewal services increased $56.1 million, or 7.3 percent, in the third quarter of 2025 compared to the third quarter of 2024.
Management fee revenue - administrative services increased $1.7 million, or 9.8 percent, in the third quarter of 2025 compared to the third quarter of 2024.
Cost of operations - policy issuance and renewal services
- Commissions increased $41.0 million in the third quarter of 2025, compared to the third 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 decreased $11.9 million in the third quarter of 2025 compared to the third quarter of 2024. Underwriting and policy processing expense increased $1.6 million primarily due to increased postage costs, partially offset by a decrease in underwriting report costs. Sales and advertising expense decreased $4.4 million primarily due to decreased agent-related costs and costs from community development initiatives. Administrative and other costs decreased $11.5 million primarily due to decreases in personnel costs and professional fees. Personnel costs were impacted by decreased incentive compensation compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the third quarter of 2024 and a decrease in company stock price during the third quarter of 2025 compared to an increase during the third quarter of 2024.

Income from investments before taxes totaled $21.6 million in the third quarter of 2025 compared to $19.5 million in the third quarter of 2024. Net investment income was $21.0 million in the third quarter of 2025 compared to $17.3 million in the third quarter of 2024. Net realized and unrealized gains were $1.3 million in the third quarter of 2025 compared to $2.9 million in the third quarter of 2024.

Nine Months 2025 Highlights

Operating income before taxes increased $50.3 million, or 9.9 percent, in the first nine months of 2025 compared to the first nine months of 2024.

Management fee revenue - policy issuance and renewal services increased $208.4 million, or 9.5 percent, in the first nine months of 2025 compared to the first nine months of 2024.
Management fee revenue - administrative services increased $3.6 million, or 7.1 percent, in the first nine months of 2025 compared to the first nine months of 2024.
Cost of operations - policy issuance and renewal services
- Commissions increased $145.6 million in the first nine months of 2025 compared to the first nine 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 $15.0 million in the first nine months of 2025 compared to the first nine months of 2024. Underwriting and policy processing expense increased $5.9 million primarily due to increased postage and personnel costs. Information technology costs increased $19.8 million primarily due to an increase in personnel costs and hardware and software costs. Customer service costs increased $3.5 million primarily due to increased personnel costs and credit card processing fees. Administrative and other costs decreased $12.9 million primarily due to decreased personnel costs. Personnel costs were impacted by decreased incentive compensation and increased healthcare costs compared to 2024. Decreased incentive plan costs were primarily driven by lower performance metrics compared to the first nine months of 2024 and a decrease in company stock price during the first nine months of 2025 compared to an increase during the first nine months of 2024.

Income from investments before taxes totaled $60.7 million in the first nine months of 2025 compared to $48.5 million in the first nine months of 2024. Net investment income was $61.0 million in the first nine months of 2025 compared to $49.2 million in the first nine months of 2024. Net investment income included $1.3 million of limited partnership earnings in the first nine months of 2025 compared to $0.1 million in the first nine months of 2024. Net realized and unrealized gains were $2.3 million in the first nine months of 2025 compared to $3.0 million in the first nine months of 2024. Net impairment losses recognized in earnings were $2.6 million in the first nine months of 2025 compared to $3.8 million in the first nine months of 2024.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 31, 2025. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

Erie Insurance Group

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, according to AM Best Company. 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 (Excellent) by AM 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 September 30,		Nine months ended September 30,
	2025	2024	2025	2024
	(Unaudited)		(Unaudited)
Operating revenue
Management fee revenue - policy issuance and renewal services	$ 825,275	$ 769,162	$ 2,404,177	$ 2,195,734
Management fee revenue - administrative services	18,831	17,154	54,772	51,139
Administrative services reimbursement revenue	215,694	206,754	638,611	604,349
Service agreement revenue	6,939	6,816	18,675	19,803
Total operating revenue	1,066,739	999,886	3,116,235	2,871,025

Operating expenses
Cost of operations - policy issuance and renewal services	642,124	613,007	1,918,154	1,757,531
Cost of operations - administrative services	215,694	206,754	638,611	604,349
Total operating expenses	857,818	819,761	2,556,765	2,361,880
Operating income	208,921	180,125	559,470	509,145

Investment income
Net investment income	21,033	17,322	61,011	49,235
Net realized and unrealized investment gains	1,331	2,925	2,312	2,983
Net impairment losses recognized in earnings	(810)	(698)	(2,633)	(3,763)
Total investment income	21,554	19,549	60,690	48,455

Other income	2,286	1,168	8,094	7,871
Income before income taxes	232,761	200,842	628,254	565,471
Income tax expense	49,908	41,012	132,299	117,186
Net income	$ 182,853	$ 159,830	$ 495,955	$ 448,285

Net income per share
Class A common stock – basic	$ 3.93	$ 3.43	$ 10.65	$ 9.63
Class A common stock – diluted	$ 3.50	$ 3.06	$ 9.48	$ 8.57
Class B common stock – basic and diluted	$ 589	$ 515	$ 1,597	$ 1,444

Weighted average shares outstanding – Basic
Class A common stock	46,189,068	46,189,059	46,189,012	46,189,038
Class B common stock	2,542	2,542	2,542	2,542

Weighted average shares outstanding – Diluted
Class A common stock	52,305,599	52,306,514	52,304,797	52,301,001
Class B common stock	2,542	2,542	2,542	2,542

Dividends declared per share
Class A common stock	$ 1.365	$ 1.275	$ 4.095	$ 3.825
Class B common stock	$ 204.75	$ 191.25	$ 614.25	$ 573.75

Erie Indemnity Company Consolidated Statements of Financial Position (in thousands)
	September 30, 2025	December 31, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $28,000 and $23,559, respectively)	$ 568,551	$ 298,397
Available-for-sale securities	59,833	44,604
Available-for-sale securities lent	4,318	0
Receivables from Erie Insurance Exchange and affiliates, net	780,473	707,060
Prepaid expenses and other current assets, net	73,779	83,902
Accrued investment income	10,937	11,069
Total current assets	1,497,891	1,145,032

Available-for-sale securities, net	970,160	991,726
Equity securities	54,378	85,891
Available-for-sale and equity securities lent	51,836	7,285
Fixed assets, net	557,607	513,494
Agent loans, net	94,740	80,597
Defined benefit pension plan	51,819	21,311
Other assets, net	45,897	43,278
Total assets	$ 3,324,328	$ 2,888,614

Liabilities and shareholders' equity
Current liabilities:
Commissions payable	$ 425,310	$ 408,309
Agent incentive compensation	99,717	75,458
Accounts payable and accrued liabilities	199,995	190,028
Dividends payable	63,569	63,569
Contract liability	47,949	42,761
Deferred executive compensation	6,700	14,874
Securities lending payable	54,325	7,513
Total current liabilities	897,565	802,512

Defined benefit pension plan	31,065	28,070
Contract liability	23,361	21,170
Deferred executive compensation	20,798	19,721
Deferred income taxes, net	19,776	6,418
Other long-term liabilities	22,885	23,465
Total liabilities	1,015,450	901,356

Shareholders' equity	2,308,878	1,987,258
Total liabilities and shareholders' equity	$ 3,324,328	$ 2,888,614

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SOURCE Erie Indemnity Company