Business Model and Strategy - The Exchange's business model focuses on localized marketing and claims servicing while leveraging centralized support services[22]. - The Exchange's strategic focus includes disciplined underwriting and leveraging a strong surplus position for higher risk-adjusted investment returns[23]. - The Exchange's insurance products are marketed exclusively through independent agents, which influences competitive dynamics[20]. - The Exchange's principal personal lines products include private passenger automobile and homeowners insurance[16]. Financial Performance and Revenue - The Exchange's direct and affiliated assumed written premiums are composed of 71% personal lines and 29% commercial lines for 2024[16]. - The management fee revenue is calculated by multiplying the management fee rate, which may not exceed 25%, by the direct and affiliated assumed premiums written by the Exchange[42]. - The Exchange's revenue generation is primarily dependent on management fees from the premiums written, making it vulnerable to fluctuations in premium volume[41]. - The Exchange's management fee revenue is largely dependent on the direct and affiliated assumed premiums written by the Exchange, which could be adversely affected by unfavorable macroeconomic conditions[44][45]. Employee and Workforce Management - The workforce size increased to 6,715 full-time employees in 2024, up from 6,481 in 2023[30]. - The turnover rate decreased to 8.2% in 2024 from 9.0% in 2023, indicating improved employee retention[30]. - The Exchange's ability to attract and retain talented executives and employees is critical for executing business strategies and maintaining performance[63][64]. Competition and Market Conditions - The Exchange faces significant competition in the property and casualty insurance industry, which may impact its ability to grow and renew business if it cannot keep pace with competitors' innovations[48]. - Deteriorating market conditions may limit access to additional financing or increase financing costs, affecting profitability[83]. Investment and Financial Risks - The Exchange's investment portfolio is primarily composed of fixed income securities, equity securities, and limited partnerships, exposing it to various investment risks[53]. - The investment portfolio consists of approximately 84% fixed maturity securities and 16% equity securities and other investments as of December 31, 2024[76]. - The performance of the investment portfolio is subject to various risks, including interest rate risk and investment credit risk[78]. - Sufficient liquidity and capital levels are necessary to fund growth opportunities and meet financial obligations[82]. - Primary sources of liquidity include management fee revenue and cash flows from the investment portfolio[83]. Operational and Compliance Risks - The operational costs are significantly impacted by commissions to independent agents, which are its largest expense category[61]. - The company is investing in technological developments to improve employee, agent, and customer experiences, which may negatively impact profitability in the short term[62]. - The company faces significant risks related to cyber threats, which could lead to legal, reputational, or financial losses[70]. - The company maintains cyber liability insurance, but it may not cover all costs associated with cyber incidents, and such insurance could become prohibitively expensive[70]. - Business continuity and disaster recovery plans are in place, but there is no assurance that core business operations can be maintained during catastrophic events[71]. - The company is subject to extensive regulations, and compliance may increase costs or impose operational limitations[74]. - The company may face significant litigation risks, including class action lawsuits and regulatory investigations[75]. Data and Claims Risks - The accuracy and sufficiency of data used for pricing policies and financial analysis are essential; inaccuracies could lead to poor business decisions and financial performance[67]. - The financial position could be adversely affected by claims arising from natural catastrophes, with changing climate conditions increasing uncertainty[59].

(dollars in thousands, except per share data) | | | | Three months ended December | | | | Twelve months ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2024 | 31, | 2023 | | December 31, 2024 | | 2023 | | | | | (Unaudited) | | | | | | | Operating revenue | | | | | | | | | | Management fee revenue - policy issuance and renewal | | | | | | | | | | services | $ | 698,340 | $ | 601,595 | $ | 2,894,074 | $ | 2,442,073 | | Management fee revenue - administrative services | | 17,216 | | 16, ...

Core Viewpoint - Erie Indemnity Company reported significant growth in net income and operating income for both the fourth quarter and the full year of 2024 compared to 2023, indicating strong financial performance and operational efficiency. Financial Performance - Net income for 2024 was $600.3 million, or $11.48 per diluted share, up from $446.1 million, or $8.53 per diluted share in 2023 [1][2] - In the fourth quarter of 2024, net income was $152.0 million, or $2.91 per diluted share, compared to $110.9 million, or $2.12 per diluted share in the fourth quarter of 2023 [1][2] Operating Income - Operating income before taxes increased by $156.2 million, or 30.0 percent, in 2024 compared to 2023 [3] - For the fourth quarter of 2024, operating income before taxes rose by $40.2 million, or 31.7 percent, compared to the same quarter in 2023 [5] Revenue Breakdown - Management fee revenue from policy issuance and renewal services increased by $452.0 million, or 18.5 percent, in 2024 compared to 2023 [6] - In the fourth quarter of 2024, management fee revenue from policy issuance and renewal services rose by $96.7 million, or 16.1 percent, compared to the fourth quarter of 2023 [7] Investment Income - Income from investments before taxes totaled $69.3 million in 2024, up from $29.0 million in 2023 [4] - Net investment income was $70.2 million in 2024 compared to $44.6 million in 2023 [4] Cost of Operations - Total operating expenses for 2024 were $3,118.7 million, an increase from $2,748.7 million in 2023 [15] - Commissions increased by $252.9 million in 2024 compared to 2023, driven by growth in direct and affiliated assumed written premium [6] Assets and Liabilities - Total assets as of December 31, 2024, were $2,888.6 million, compared to $2,471.9 million in 2023 [16] - Total liabilities increased to $901.4 million in 2024 from $809.1 million in 2023 [16]

Company Overview - Erie Indemnity Company is hosting a pre-recorded audio webcast to discuss its financial results for the fourth quarter and year-end on February 28, 2025, at 10 a.m. Eastern Time [1] - The company will issue a press release with its financial results after the market closes on February 27, 2025 [1] - Erie Insurance Group 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 [3] - Founded in 1925, Erie Insurance is a Fortune 500 company and ranks as the 17th largest property/casualty insurer in the U.S. based on total lines net premium written [3] - The company has more than 7 million policies in force and operates in 12 states and the District of Columbia [3] Financial Communication - Participants can access the pre-recorded audio via phone by registering through a provided link and are encouraged to join the conference call fifteen minutes early to avoid delays [2] - To receive automatic updates on Erie Indemnity's financial news, individuals can subscribe to email alerts on the company's website [2]

Core Points - Erie Indemnity Company's board approved a 7.1% increase in its dividend, with the new payout effective from January 22, 2025 [1][2] - The new dividend for Class A shares is $1.365, up from $1.275, and for Class B shares, it is $204.75, up from $191.25 [2] - The company's five-year annualized dividend growth is approximately 7.3%, with a payout ratio of 48, indicating operational strength and commitment to shareholder returns [3] Financial Strength - Erie Indemnity has a solid capital position, exiting the third quarter with a surplus of $9.2 billion, supporting effective capital deployment [4] - The company has a history of paying dividends since 1933 and occasionally pays special dividends and repurchases shares [4] Business Performance - Improvement in premiums for homeowners and commercial multi-peril products, along with strong retention and new revenue sources, is expected to sustain future dividend hikes [5] - Year-to-date, shares of Erie Indemnity have increased by 22.6%, compared to the industry's increase of 28.9% [6]

ERIE, Pa., Dec. 12, 2024 /PRNewswire/ -- At its regular meeting held Dec. 10, 2024, the Board of Directors of Erie Indemnity Company (NASDAQ: ERIE) set the management fee rate charged to Erie Insurance Exchange, approved an increase in shareholder dividends and declared the regular quarterly dividend. Erie Indemnity Company has paid regular shareholder dividends since 1933.The Board agreed to maintain the current management fee rate paid to Erie Indemnity Company by Erie Insurance Exchange at 25 percent, ef ...

Erie Indemnity Company's (ERIE) third-quarter 2024 adjusted earnings of $3.06 per share beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 21.9% year over year.The quarterly results reflected higher management fees and increased net investment income, offset by higher expenses.ERIE’s Q3 DetailsTotal revenues of $1 billion beat the Zacks Consensus Estimate by 1.5%. The top line improved 16.4% year over year. Management fee revenue - policy issuance and renewal services increased 18.5% year ...

Erie Indemnity Company (NASDAQ:ERIE) Q3 2024 Earnings Conference Call November 1, 2024 10:00 AM ET Company Participants Scott Beilharz - VP, IR Tim NeCastro - President and CEO Julie Pelkowski - EVP and CFO Operator Good morning, and welcome to the Erie Indemnity Company Third Quarter 2024 Earnings Conference Call. This call was prerecorded, and there will be no question-and-answer session following the recording. Now I'd like to introduce your host for the call, Vice President of Investor Relations, Scott ...

Erie Indemnity (ERIE) came out with quarterly earnings of $3.06 per share, beating the Zacks Consensus Estimate of $2.99 per share. This compares to earnings of $2.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.34%. A quarter ago, it was expected that this insurance company would post earnings of $2.55 per share when it actually produced earnings of $3.13, delivering a surprise of 22.75%.Over the last four quarters, the ...

Table of Contents Pennsylvania 25-0466020 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___to___ Commission file nu ...