Company Overview - Erie Indemnity (ERIE) currently holds a Momentum Style Score of B, indicating potential for strong performance based on recent price trends and earnings estimate revisions [3][10] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4][10] Price Performance - Over the past week, ERIE shares have increased by 2.9%, outperforming the Zacks Insurance - Brokerage industry, which rose by 0.8% [6] - In the last month, ERIE's price change is 9.87%, significantly higher than the industry's 3.45% [6] - Over the past quarter, ERIE shares have surged by 45.12%, and over the last year, they have gained 82.49%, while the S&P 500 has only increased by 3.93% and 27.48%, respectively [7] Trading Volume - The average 20-day trading volume for ERIE is 110,344 shares, which serves as a baseline for assessing price movements [8] Earnings Outlook - In the past two months, one earnings estimate for ERIE has been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $10.05 to $11.41 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10]

Group 1: Core Insights - Stocks with rising earnings estimates have consistently outperformed the S&P 500, while those with falling estimates have underperformed [1] - The Zacks Rank classifies stocks into five groups based on earnings estimates, allowing investors to capitalize on trends in earnings revisions [2] Group 2: Erie Indemnity (ERIE) - Erie Indemnity is classified as a Zacks Rank 1 (Strong Buy) and has a bullish earnings outlook across all timeframes [3] - The company has a 7.4% five-year annualized dividend growth rate with a sustainable payout ratio of 50% [3] - Following its latest quarterly results, Erie Indemnity reported 40% earnings growth on 18% higher sales, beating the Zacks Consensus EPS estimate by an average of 12% [4] Group 3: Duolingo (DUOL) - Duolingo is also a Zacks Rank 1 (Strong Buy) with a forecasted 430% EPS growth and a 40% sales increase for the current fiscal year [6] - The company has shown double-digit year-over-year sales growth in each of the last ten quarters [6] - Since becoming a Zacks Rank 1 on August 9, Duolingo shares have gained 15%, outperforming the S&P 500's 2% gain [7] Group 4: Maplebear Inc. (CART) - Maplebear, known as Instacart, is a leading grocery technology company with a Zacks Rank 1 (Strong Buy) [9] - The company is expected to achieve 110% EPS growth and 11% higher sales for the current fiscal year [9] - Since obtaining the Zacks Rank 1 on August 9, shares of Maplebear have gained over 10% following positive earnings estimate revisions [11] Group 5: Conclusion - The examples of Erie Indemnity, Duolingo, and Maplebear illustrate that following the Zacks Rank can lead to market-beating gains due to positive earnings estimate revisions [13]

Investors are bracing for a volatile market this week as key economic data are set to be released, including job openings, jobless claims and the crucial nonfarm payrolls report. These labor market figures will likely influence the Federal Reserve's decision on its upcoming rate cut, which could vary from a standard adjustment to a more substantial reduction, impacting broader market dynamics. Given this uncertainty, constructing a portfolio of low-beta stocks may be prudent. In this regard, stocks like Eri ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks ...

Note 8. Postretirement Benefits Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $33 million contribution in January 2024. The funded pension plan net benefit asset is presented separately from the unfunded plan as a non-current asset on our Statements of Financial Position. (2) Pension plan income represents total plan income before r ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-----------------------|-------|---------------------|-------|---------------------|-------------|-------------------| | | Three months \n2024 | ended | June 30, \n2023 | | Six months \n2024 | ended | June 30, \n2023 | | | (Unaudited) | | | | | (Unaudited) | | | $ | 760,886 | $ | 633,339 | $ | 1,426,572 | $ | 1,191,429 | | | 17,051 | | 15,636 | | 33,985 | | 30,825 | | | 206,028 | | 184,466 | | 397,595 | | 357,293 | | | 6,473 | | 6,429 | | 12,987 | | ...

Net Income per Diluted Share was $3.13 for the Quarter and $5.52 for the Six Months of 2024 2Q and First Half 2024 (in thousands) 2Q'24 2Q'23 1H'24 1H'23 Operating income $ 190,208$ 134,158$ 329,020$ 244,701 Investment income 13,827 11,627 28,906 6,895 Other income 3,292 3,305 6,703 6,642 Income before income taxes 207,327 149,090 364,629 258,238 Income tax expense 43,424 31,238 76,174 54,145 Net income $ 163,903$ 117,852 $ 288,455$ 204,093 ERIE, Pa., July 25, 2024 /PRNewswire/ -- Erie Indemnity Company (NA ...

ERIE, Pa., July 15, 2024 /PRNewswire/ -- Erie Indemnity Company (NASDAQ: ERIE) will host a pre-recorded audio webcast with the financial community providing financial results for the second quarter on Friday, July 26th, at 10 a.m. Eastern Time. Erie Indemnity will issue a press release reporting its results after the close of the market on Thursday, July 25th. The pre-recorded audio will be available on the company's Investor Relations website at www.erieinsurance.com/about/investors.aspx. To access the pre ...

Erie Indemnity (ERIE) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.15%. A quarter ago, it was expected that this insurance company would post earnings of $2.13 per share when it actually produced earnings of $2.12, delivering a surprise of -0.47%.Over the last four quarters, the ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details Erie Indemnity Company's unaudited financial statements, including operations, position, cash flows, and comprehensive notes on accounting policies and investments [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited financial statements for Erie Indemnity Company, including statements of operations, comprehensive income, financial position, shareholders' equity, and cash flows, along with detailed notes explaining the company's operations, accounting policies, revenue recognition, investments, and other financial disclosures for the three months ended March 31, 2024 and 2023 [Statements of Operations (Unaudited)](index=4&type=section&id=Statements%20of%20Operations%20(Unaudited)) For the three months ended March 31, 2024, Erie Indemnity Company reported a significant increase in net income, reaching $124.55 million, up 44.4% from $86.24 million in the prior year, primarily driven by a 17.0% increase in total operating revenue and a positive shift in total investment income from a loss to a gain | Metric | 3 Months Ended March 31, 2024 (in thousands) | 3 Months Ended March 31, 2023 (in thousands) | YoY Change (%) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------- | | Total operating revenue | $880,701 | $752,465 | 17.0% | | Total operating expenses | $741,889 | $641,922 | 15.6% | | Operating income | $138,812 | $110,543 | 25.6% | | Total investment income (loss) | $15,079 | $(4,732) | NM | | Income before income taxes | $157,302 | $109,148 | 44.1% | | Net income | $124,552 | $86,241 | 44.4% | | Class A common stock – basic EPS | $2.67 | $1.85 | 44.3% | | Class A common stock – diluted EPS | $2.38 | $1.65 | 44.2% | | Class B common stock – basic and diluted EPS | $401 | $278 | 44.2% | | Dividends declared per share (Class A) | $1.275 | $1.19 | 7.1% | | Dividends declared per share (Class B) | $191.25 | $178.50 | 7.1% | [Statements of Comprehensive Income (Unaudited)](index=5&type=section&id=Statements%20of%20Comprehensive%20Income%20(Unaudited)) For the three months ended March 31, 2024, comprehensive income increased to $122.72 million from $93.99 million in the prior year, primarily driven by a substantial increase in net income, partially offset by a shift from other comprehensive income to a loss due to changes in unrealized holding gains/losses on available-for-sale securities | Metric | 3 Months Ended March 31, 2024 (in thousands) | 3 Months Ended March 31, 2023 (in thousands) | YoY Change (approx.) | | :------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------- | | Net income | $124,552 | $86,241 | 44.4% | | Other comprehensive (loss) income, net of tax | $(1,830) | $7,752 | NM | | Change in unrealized holding (losses) gains on AFS securities | $(754) | $10,494 | NM | | Amortization of prior service costs and net actuarial gain on pension and other postretirement plans | $(1,076) | $(2,742) | 60.8% | | Comprehensive income | $122,722 | $93,993 | 30.6% | [Statements of Financial Position](index=6&type=section&id=Statements%20of%20Financial%20Position) As of March 31, 2024, Erie Indemnity Company reported a **3.4% increase in total assets to $2.56 billion** from $2.47 billion at December 31, 2023, mainly driven by increases in fixed assets and the defined benefit pension plan asset, while total liabilities increased by 2.5% and total shareholders' equity rose by 3.8% to $1.73 billion | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | QoQ Change (%) | | :--------------------------------------- | :------------------------------ | :------------------------------- | :------------- | | **Assets:** | | | | | Cash and cash equivalents | $144,872 | $144,055 | 0.6% | | Receivables from Erie Insurance Exchange and affiliates, net | $641,691 | $625,338 | 2.6% | | Total current assets | $941,771 | $930,189 | 1.2% | | Available-for-sale securities, net | $892,952 | $879,224 | 1.6% | | Fixed assets, net | $461,914 | $442,610 | 4.3% | | Defined benefit pension plan | $66,270 | $34,320 | 93.1% | | Total assets | $2,555,794 | $2,471,964 | 3.4% | | **Liabilities:** | | | | | Commissions payable | $384,613 | $353,709 | 8.7% | | Agent incentive compensation | $26,968 | $68,077 | (60.4)% | | Accounts payable and accrued liabilities | $213,062 | $175,622 | 21.3% | | Total current liabilities | $727,516 | $708,977 | 2.6% | | Total liabilities | $829,614 | $809,129 | 2.5% | | **Shareholders' Equity:** | | | | | Retained earnings | $2,868,864 | $2,803,689 | 2.3% | | Total shareholders' equity | $1,726,180 | $1,662,835 | 3.8% | [Statements of Shareholders' Equity (Unaudited)](index=7&type=section&id=Statements%20of%20Shareholders'%20Equity%20(Unaudited)) Total shareholders' equity increased to **$1.73 billion** as of March 31, 2024, from $1.66 billion at December 31, 2023, primarily driven by net income of **$124.55 million**, partially offset by an other comprehensive loss of **$1.83 million** and dividends declared totaling **$59.38 million** | Metric | Balance, December 31, 2023 (in thousands) | Net Income (in thousands) | Other Comprehensive Loss (in thousands) | Dividends Declared (in thousands) | Balance, March 31, 2024 (in thousands) | | :--------------------------------------- | :---------------------------------------- | :------------------------ | :-------------------------------------- | :-------------------------------- | :--------------------------------------- | | Total shareholders' equity | $1,662,835 | $124,552 | $(1,830) | $(59,377) | $1,726,180 | [Statements of Cash Flows (Unaudited)](index=8&type=section&id=Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities significantly increased to **$87.19 million** for the three months ended March 31, 2024, up from $48.03 million in the prior year, driven by higher management fees received and reduced agent incentive compensation paid, while net cash used in investing activities increased to **$27.00 million** and net cash used in financing activities remained stable at **$59.38 million** due to dividends paid | Metric | 3 Months Ended March 31, 2024 (in thousands) | 3 Months Ended March 31, 2023 (in thousands) | YoY Change (in thousands) | | :--------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------ | | Net cash provided by operating activities | $87,193 | $48,031 | $39,162 | | Net cash used in investing activities | $(26,999) | $(12,326) | $(14,673) | | Net cash used in financing activities | $(59,377) | $(55,419) | $(3,958) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $817 | $(19,714) | $20,531 | | Cash, cash equivalents, and restricted cash end of period | $144,872 | $122,376 | $22,496 | [Notes to Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Financial%20Statements%20(Unaudited)) This section provides detailed disclosures and explanations for the financial statements, covering the company's nature of operations, significant accounting policies, revenue recognition, earnings per share, fair value measurements, investment details, credit risk, commitments, contingencies, and subsequent events [Note 1. Nature of Operations](index=9&type=section&id=Note%201.%20Nature%20of%20Operations) Erie Indemnity Company serves as the attorney-in-fact for the Erie Insurance Exchange, a reciprocal insurer, performing policy issuance and renewal services, as well as administrative services like claims handling and investment management, with its financial performance directly dependent on the growth and financial health of the Exchange as management fees are calculated as a percentage of premiums written by the Exchange - Erie Indemnity Company's primary function is to act as attorney-in-fact for the Erie Insurance Exchange, providing policy issuance, renewal, and administrative services[25](index=25&type=chunk) - The company's results of operations are directly tied to the growth and financial condition of the Exchange, with management fees based on premiums written by the Exchange[28](index=28&type=chunk) [Note 2. Significant Accounting Policies](index=10&type=section&id=Note%202.%20Significant%20Accounting%20Policies) The financial statements are prepared under GAAP for interim periods, involving significant management estimates, and the company is currently evaluating the disclosure impact of new FASB ASUs (2023-07 on Segment Reporting, 2023-09 on Income Taxes) and SEC climate-related disclosure rules (SEC Release No. 33-11275), with no expected impact on the financial statements themselves - The company is evaluating the impact of **ASU 2023-07 (Segment Reporting)** and **ASU 2023-09 (Income Taxes)** on its disclosures, with no impact on financial statements[32](index=32&type=chunk)[33](index=33&type=chunk) - The company is evaluating the impact of **SEC Release No. 33-11275 (Climate-Related Disclosures)** on its disclosures, with disclosure requirements phasing in for fiscal years beginning in 2025[34](index=34&type=chunk) [Note 3. Revenue](index=11&type=section&id=Note%203.%20Revenue) The majority of revenue comes from management fees, which are a percentage of direct and affiliated assumed written premiums of the Exchange, allocated between policy issuance/renewal and administrative services, with administrative services reimbursement revenue recognized at cost and revenue from administrative services recognized over a four-year period | (in thousands) | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Management fee revenue - policy issuance and renewal services | $665,686 | $558,090 | | Management fee revenue - administrative services | $16,934 | $15,189 | | Administrative services reimbursement revenue | $191,567 | $172,827 | | Total revenue from administrative services | $208,501 | $188,016 | - Revenue allocated to administrative services is recognized over a four-year period, with **$15.0 million** recognized in Q1 2024 from the prior year's contract liability[39](index=39&type=chunk) [Note 4. Earnings Per Share](index=12&type=section&id=Note%204.%20Earnings%20Per%20Share) Basic earnings per share for Class A and Class B common stock is calculated using the two-class method, while Class A diluted earnings per share is determined by the if-converted method, accounting for the conversion of Class B shares and the dilutive effect of stock-based awards | Metric | 3 Months Ended March 31, 2024 | 3 Months Ended March 31, 2023 | | :--------------------------------------- | :---------------------------- | :---------------------------- | | Class A – Basic EPS | $2.67 | $1.85 | | Class A – Diluted EPS | $2.38 | $1.65 | | Class B – Basic and diluted EPS | $401 | $278 | | Weighted average shares outstanding – Basic (Class A) | 46,189,014 | 46,188,819 | | Weighted average shares outstanding – Diluted (Class A) | 52,301,803 | 52,296,621 | [Note 5. Fair Value](index=13&type=section&id=Note%205.%20Fair%20Value) The company values available-for-sale and equity securities at fair value, categorized into Level 1, 2, or 3 based on input observability, with valuations primarily obtained from a nationally recognized pricing service, supplemented by internal reviews, and total Level 3 securities increased from **$24.37 million** at December 31, 2023, to **$26.45 million** at March 31, 2024 Fair Value Measurements by Level (March 31, 2024) | (in thousands) | Total | Level 1 | Level 2 | Level 3 | | :--------------------------------------- | :------ | :------ | :------ | :------ | | Total available-for-sale securities | $969,645 | $0 | $951,160 | $18,485 | | Total equity securities | $86,578 | $524 | $78,086 | $7,968 | | Total | $1,056,223 | $524 | $1,029,246 | $26,453 | Level 3 Assets – Year-to-Date Change (2024) | (in thousands) | Beginning balance at Dec 31, 2023 | Ending balance at Mar 31, 2024 | | :--------------------------------------- | :-------------------------------- | :----------------------------- | | Total available-for-sale securities | $17,034 | $18,485 | | Equity securities | $7,334 | $7,968 | | Total Level 3 securities | $24,368 | $26,453 | [Note 6. Investments](index=16&type=section&id=Note%206.%20Investments) The company's fixed maturity securities portfolio, comprising available-for-sale and held-to-maturity securities, had an estimated fair value of **$974.48 million** at March 31, 2024, with gross unrealized losses totaling **$37.87 million**, primarily driven by interest rate fluctuations, and are not considered credit-related, with no intent to sell these securities before anticipated recovery of amortized cost Total Fixed Maturity Securities (March 31, 2024) | (in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | | :--------------------------------------- | :------------- | :--------------------- | :---------------------- | :------------------- | | Total available-for-sale securities, net | $1,001,906 | $5,613 | $37,874 | $969,645 | | Held-to-maturity securities | $4,833 | $0 | $0 | $4,833 | | Total fixed maturity securities, net | $1,006,739 | $5,613 | $37,874 | $974,478 | Available-for-Sale Securities by Unrealized Loss Position (March 31, 2024) | (dollars in thousands) | Fair value (Less than 12 months) | Unrealized losses (Less than 12 months) | Fair value (12 months or longer) | Unrealized losses (12 months or longer) | Total Fair value | Total Unrealized losses | | :--------------------------------------- | :------------------------------- | :-------------------------------------- | :------------------------------- | :-------------------------------------- | :--------------- | :---------------------- | | Total available-for-sale securities | $147,521 | $1,763 | $507,072 | $36,111 | $654,593 | $37,874 | [Note 6. Investments - Credit loss allowances & Net investment income](index=19&type=section&id=Note%206.%20Investments%20-%20Credit%20loss%20allowances%20%26%20Net%20investment%20income) Credit loss allowances for available-for-sale securities decreased slightly to **$575 thousand**, while held-to-maturity securities saw a new allowance of **$2.17 million** in Q1 2024, and net investment income significantly increased to **$15.90 million**, up from $2.18 million in Q1 2023, primarily driven by a positive swing in limited partnership earnings and higher bond income Credit Loss Allowances Roll-Forward (March 31, 2024) | (in thousands) | Available-for-sale securities | Held-to-maturity securities | Other loans receivable | Agent loans | | :--------------------------------------- | :---------------------------- | :-------------------------- | :--------------------- | :---------- | | Balance, beginning of period | $597 | $0 | $11,081 | $957 | | Provision and recoveries | $164 | $2,167 | $172 | $0 | | Sales/collections and write-offs | $(186) | $0 | $0 | $0 | | Balance, end of period | $575 | $2,167 | $11,253 | $957 | Net Investment Income (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Available-for-sale securities | $11,613 | $9,833 | | Equity securities | $1,218 | $1,015 | | Limited partnerships | $525 | $(10,752) | | Cash equivalents and other | $2,948 | $2,105 | | Total investment income | $16,304 | $2,201 | | Less: investment expenses | $401 | $18 | | Net investment income | $15,903 | $2,183 | [Note 6. Investments - Net realized and unrealized investment gains (losses) & Net impairment losses recognized in earnings](index=19&type=section&id=Note%206.%20Investments%20-%20Net%20realized%20and%20unrealized%20investment%20gains%20(losses)%20%26%20Net%20impairment%20losses%20recognized%20in%20earnings) The company reported net realized and unrealized investment gains of **$1.85 million** in Q1 2024, a substantial turnaround from a **$5.28 million** loss in Q1 2023, driven by positive market value adjustments in the preferred stock portfolio, while net impairment losses increased to **$2.68 million**, primarily due to **$2.17 million** in expected credit losses on held-to-maturity securities Net Realized and Unrealized Investment Gains (Losses) (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Net realized losses on available-for-sale securities | $(262) | $(1,619) | | Equity securities | $2,115 | $(3,663) | | Net realized and unrealized investment gains (losses) | $1,853 | $(5,282) | Net Impairment Losses Recognized in Earnings (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Available-for-sale securities | $(338) | $(1,633) | | Held-to-maturity securities - expected credit losses | $(2,167) | $— | | Other loans receivable - expected credit losses | $(172) | $0 | | Net impairment losses recognized in earnings | $(2,677) | $(1,633) | [Note 7. Bank Line of Credit](index=22&type=section&id=Note%207.%20Bank%20Line%20of%20Credit) Erie Indemnity Company maintains a **$100 million** bank revolving line of credit, expiring in October 2026, with **$99.2 million** remaining available as of March 31, 2024, no outstanding borrowings, and the company in compliance with all covenants - The company has a **$100 million** bank revolving line of credit, with **$99.2 million** available as of March 31, 2024, and no outstanding borrowings[70](index=70&type=chunk) - Investments with a fair value of **$117.1 million** were pledged as collateral on the line of credit[70](index=70&type=chunk) [Note 8. Postretirement Benefits](index=22&type=section&id=Note%208.%20Postretirement%20Benefits) Erie Indemnity Company sponsors a noncontributory defined benefit pension plan and an unfunded supplemental employee retirement plan (SERP), with cost allocations and reimbursements occurring between the company and the Exchange, and a **$33 million** contribution was made to the defined benefit pension plan in January 2024 Pension Plan Income Components (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Service cost for benefits earned | $8,651 | $7,191 | | Interest cost on benefit obligation | $13,145 | $12,548 | | Expected return on plan assets | $(20,198) | $(17,218) | | Prior service cost amortization | $389 | $362 | | Net actuarial gain amortization | $(1,751) | $(3,833) | | Settlement gain | $(249) | $— | | Pension plan income | $(13) | $(950) | - A **$33 million** contribution was made to the defined benefit pension plan in January 2024[73](index=73&type=chunk) [Note 9. Income Taxes](index=23&type=section&id=Note%209.%20Income%20Taxes) The effective income tax rate for the three months ended March 31, 2024, was **20.8%**, a slight decrease from **21.0%** in the same period of 2023 - Effective income tax rate for Q1 2024 was **20.8%**, compared to **21.0%** for Q1 2023[76](index=76&type=chunk) [Note 10. Capital Stock](index=23&type=section&id=Note%2010.%20Capital%20Stock) Class B common stock is convertible into Class A common stock at a **2,400:1 ratio**, with no conversions occurring in the first quarter of 2024, and the company has approximately **$17.8 million** of repurchase authority remaining under its **$150 million** stock repurchase program, with no shares repurchased under this program during the quarter - Class B shares are convertible into Class A shares at a rate of **2,400 to 1**[77](index=77&type=chunk) - Approximately **$17.8 million** of repurchase authority remained under the stock repurchase program at March 31, 2024[78](index=78&type=chunk) [Note 11. Accumulated Other Comprehensive Income (Loss)](index=23&type=section&id=Note%2011.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive loss increased to **$15.23 million** at March 31, 2024, from **$13.40 million** at December 31, 2023, driven by other comprehensive losses from both investment securities and pension and other postretirement plans during the quarter Changes in Accumulated Other Comprehensive Income (Loss) (3 Months Ended March 31) | (in thousands) | AOCI (loss), beginning of period (Net) | OCI (loss) (Net) | AOCI (loss), end of period (Net) | | :--------------------------------------- | :------------------------------------- | :--------------- | :------------------------------- | | Investment securities | $(24,807) | $(754) | $(25,561) | | Pension and other postretirement plans | $11,407 | $(1,076) | $10,331 | | Total | $(13,400) | $(1,830) | $(15,230) | [Note 12. Concentrations of Credit Risk](index=24&type=section&id=Note%2012.%20Concentrations%20of%20Credit%20Risk) Erie Indemnity Company faces a concentration of credit risk from unsecured receivables due from the Erie Insurance Exchange and its affiliates, which amounted to **$641.7 million** at March 31, 2024, including a **$0.6 million** credit loss allowance - Unsecured receivables from the Exchange and its affiliates totaled **$641.7 million** at March 31, 2024, representing a concentration of credit risk[80](index=80&type=chunk) [Note 13. Commitments and Contingencies](index=24&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) The company has commitments including an agent loan participation program with a maximum potential guarantee of **$7.3 million** and guarantees for real estate development projects totaling **$7.8 million**, and is also involved in litigation, for which reserves are established based on probability and estimability of loss, believing current accruals are appropriate - Maximum potential obligation for guarantees related to the agent loan participation program is **$7.3 million** at March 31, 2024[81](index=81&type=chunk) - Maximum potential obligation related to guarantees for real estate development projects is **$7.8 million** at March 31, 2024[82](index=82&type=chunk) - The company is involved in litigation and establishes reserves when a loss is probable and reasonably estimable, believing current accruals are appropriate[83](index=83&type=chunk) [Note 14. Subsequent Events](index=24&type=section&id=Note%2014.%20Subsequent%20Events) On April 23, 2024, subsequent to the financial statement date, the maximum amount of loans to be funded through the agent loan participation program was increased to **$150 million** - The maximum amount of loans for the agent loan participation program was increased to **$150 million** on April 23, 2024[85](index=85&type=chunk) [PART II. OTHER INFORMATION](index=25&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides management's discussion and analysis of financial condition, results of operations, market risks, controls, legal proceedings, and other disclosures [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key factors influencing performance, including operating overview, detailed results of operations, financial condition, liquidity, capital resources, and critical accounting estimates, and includes a cautionary statement regarding forward-looking information [Cautionary Statement Regarding Forward-Looking Information](index=25&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section serves as a 'Safe Harbor' statement, indicating that forward-looking statements in the report are subject to various risks and uncertainties that could cause actual outcomes to differ materially, with key risks including dependence on the Erie Insurance Exchange, general economic conditions, insurance industry competition, and financial market volatility - Forward-looking statements are subject to risks and uncertainties, including dependence on the Erie Insurance Exchange and its financial condition, general business and economic conditions, and factors affecting insurance industry competition[89](index=89&type=chunk)[90](index=90&type=chunk) - Other risks include the ability to attract and retain talent, manage technology initiatives, maintain business operations, and comply with evolving laws and regulations[90](index=90&type=chunk) [Recent Accounting Standards and Disclosure Rules](index=26&type=section&id=Recent%20Accounting%20Standards%20and%20Disclosure%20Rules) This section refers readers to Note 2, 'Significant Accounting Policies,' within Part I, Item 1 of this report for a detailed discussion of recently issued accounting standards and disclosure rules and their known or potential impact on the company's financial statements [Operating Overview](index=26&type=section&id=Operating%20Overview) Erie Indemnity Company operates as the attorney-in-fact for the Erie Insurance Exchange, generating management fee revenue from policy issuance, renewal, and administrative services, with its financial performance closely tied to the Exchange's premium growth, and in Q1 2024, operating income increased by **25.6%** and net income by **44.4%**, primarily due to a **19.3%** rise in management fee revenue for policy services and a positive swing in investment income - Erie Indemnity Company's earnings are primarily driven by management fee revenue from services provided to the Erie Insurance Exchange, based on direct and affiliated assumed premiums written[95](index=95&type=chunk)[97](index=97&type=chunk) Financial Overview (3 Months Ended March 31) | (dollars in thousands, except per share data) | 2024 | 2023 | % Change | | :-------------------------------------------- | :----- | :----- | :------- | | Operating income | $138,812 | $110,543 | 25.6 % | | Total investment income (loss) | $15,079 | $(4,732) | NM | | Income before income taxes | $157,302 | $109,148 | 44.1 % | | Net income | $124,552 | $86,241 | 44.4 % | | Net income per share – diluted | $2.38 | $1.65 | 44.4 % | - Management fee revenue for policy issuance and renewal services increased **19.3% to $665.7 million** in Q1 2024, driven by a **19.0% increase** in direct and affiliated assumed premiums written by the Exchange[99](index=99&type=chunk) [General Conditions and Trends Affecting Our Business](index=27&type=section&id=General%20Conditions%20and%20Trends%20Affecting%20Our%20Business) The company's business is sensitive to economic conditions, where factors like declining consumer confidence, inflation, and recession threats could negatively impact the Exchange's premium revenue and, consequently, the company's management fees, and financial market volatility poses a risk to the fair value of the investment portfolio and total investment income - Unfavorable economic conditions (e.g., inflation, recession) may lead to reduced premium revenue for the Exchange, adversely affecting the company's management fee revenue[103](index=103&type=chunk) - The investment portfolio is subject to market volatility, which could cause considerable fluctuations in fair value and total investment income, with geopolitical events and inflation posing future risks[104](index=104&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section details the drivers behind the company's financial performance, including management fee revenue, direct and affiliated assumed premiums written by the Exchange, costs associated with policy issuance and administrative services, and a comprehensive analysis of total investment income and its components [Management fee revenue](index=28&type=section&id=Management%20fee%20revenue) Management fee revenue is generated from two performance obligations: policy issuance and renewal services, and administrative services, calculated as a percentage of direct and affiliated assumed premiums written by the Exchange, with the management fee rate at **25%** for both 2024 and 2023, and a minor change in transaction price allocation in 2024 Management Fee Revenue Allocation (3 Months Ended March 31) | (dollars in thousands) | 2024 | 2023 | % Change | | :------------------------------------------ | :----- | :----- | :------- | | Management fee revenue - policy issuance and renewal services | $665,686 | $558,090 | 19.3 % | | Management fee revenue - administrative services | $16,934 | $15,189 | 11.5 % | - Direct and affiliated assumed premiums written by the Exchange increased **19.0% to $2.74 billion** in Q1 2024[107](index=107&type=chunk) - The management fee rate was **25%** for both 2024 and 2023, with a minor change in transaction price allocation in 2024[106](index=106&type=chunk) [Direct and affiliated assumed premiums written by the Exchange](index=29&type=section&id=Direct%20and%20affiliated%20assumed%20premiums%20written%20by%20the%20Exchange) Direct and affiliated assumed premiums written by the Exchange increased **19.0%** in Q1 2024, driven by growth in both new and renewal business, particularly in personal lines and commercial multi-peril, supported by increases in policies in force and average premium per policy - Direct and affiliated assumed premiums written by the Exchange increased **19.0% to $2.74 billion** in Q1 2024[110](index=110&type=chunk) - Year-over-year policies in force for all lines of business increased **7.1%** in Q1 2024, and average premium per policy increased **10.6%**[110](index=110&type=chunk) - Premiums from new business increased **32.4% to $449 million**, while renewal business premiums increased **16.7% to $2.3 billion** in Q1 2024[111](index=111&type=chunk)[112](index=112&type=chunk) [Policy issuance and renewal services](index=31&type=section&id=Policy%20issuance%20and%20renewal%20services) Operating income from policy issuance and renewal services increased by **27.8% to $121.88 million** in Q1 2024, driven by higher management fee revenue (**24.40%** of premiums) due to increased direct and affiliated assumed premiums written by the Exchange Policy Issuance and Renewal Services Operating Income (3 Months Ended March 31) | (dollars in thousands) | 2024 | 2023 | % Change | | :------------------------------------------ | :----- | :----- | :------- | | Management fee revenue - policy issuance and renewal services | $665,686 | $558,090 | 19.3 % | | Service agreement revenue | $6,514 | $6,359 | 2.4 % | | Cost of operations - policy issuance and renewal services | $550,322 | $469,095 | 17.3 % | | Operating income - policy issuance and renewal services | $121,878 | $95,354 | 27.8 % | - The management fee revenue allocated for policy issuance and renewal services was **24.40%** of direct and affiliated assumed premiums written by the Exchange in Q1 2024[119](index=119&type=chunk) [Cost of policy issuance and renewal services](index=31&type=section&id=Cost%20of%20policy%20issuance%20and%20renewal%20services) The total cost of operations for policy issuance and renewal services increased by **17.3% to $550.32 million** in Q1 2024, mainly driven by a **21.7% increase** in commissions due to premium growth and higher agent incentive compensation, and an **8.9% increase** in non-commission expenses, despite a decrease in information technology costs Cost of Operations - Policy Issuance and Renewal Services (3 Months Ended March 31) | (dollars in thousands) | 2024 | 2023 | % Change | | :--------------------------------------- | :----- | :----- | :------- | | Total commissions | $375,760 | $308,808 | 21.7 % | | Total non-commission expense | $174,562 | $160,287 | 8.9 % | | Total cost of operations - policy issuance and renewal services | $550,322 | $469,095 | 17.3 % | - Commissions increased by **$67.0 million**, primarily due to growth in direct and affiliated assumed written premium and higher agent incentive compensation[121](index=121&type=chunk) - Information technology costs decreased by **$3.7 million** due to increased capitalized professional fees and personnel costs related to technology initiatives[122](index=122&type=chunk) [Administrative services](index=32&type=section&id=Administrative%20services) Total revenue allocated to administrative services increased by **10.9% to $208.50 million** in Q1 2024, including management fee revenue (**0.60%** of premiums) and administrative services reimbursement revenue, which is recognized monthly as services are provided and settled at cost Administrative Services Revenue and Expenses (3 Months Ended March 31) | (dollars in thousands) | 2024 | 2023 | % Change | | :------------------------------------------ | :----- | :----- | :------- | | Management fee revenue - administrative services | $16,934 | $15,189 | 11.5 % | | Administrative services reimbursement revenue | $191,567 | $172,827 | 10.8 % | | Total revenue allocated to administrative services | $208,501 | $188,016 | 10.9 % | | Claims handling services | $167,963 | $148,200 | 13.3 % | | Investment management services | $8,593 | $8,745 | (1.7)% | | Life management services | $15,011 | $15,882 | (5.5)% | | Operating income - administrative services | $16,934 | $15,189 | 11.5 % | - The management fee revenue allocated to administrative services was **0.60%** of direct and affiliated assumed premiums written by the Exchange in Q1 2024[124](index=124&type=chunk) [Cost of administrative services](index=32&type=section&id=Cost%20of%20administrative%20services) As the attorney-in-fact for the Exchange and service provider for its subsidiaries, Erie Indemnity Company incurs administrative service expenses, including claims handling, investment management, and life management services, which are fully reimbursed at cost by the Exchange and its subsidiaries, with reimbursements recorded as a receivable - Administrative services expenses incurred by Indemnity on behalf of the Exchange and its subsidiaries are reimbursed at cost[125](index=125&type=chunk) [Total investment income (loss)](index=33&type=section&id=Total%20investment%20income%20(loss)) Total investment income saw a significant positive swing to **$15.08 million** in Q1 2024 from a loss of **$4.73 million** in Q1 2023, driven by increased net investment income and a shift from net realized/unrealized losses to gains Total Investment Income (Loss) (3 Months Ended March 31) | (dollars in thousands) | 2024 | 2023 | % Change | | :--------------------------------------- | :----- | :----- | :------- | | Net investment income | $15,903 | $2,183 | NM % | | Net realized and unrealized investment gains (losses) | $1,853 | $(5,282) | NM | | Net impairment losses recognized in earnings | $(2,677) | $(1,633) | (63.9)% | | Total investment income (loss) | $15,079 | $(4,732) | NM % | [Net investment income](index=33&type=section&id=Net%20investment%20income) Net investment income increased significantly by **$13.7 million** in Q1 2024, primarily due to higher equity in earnings from limited partnerships and increased bond income from higher yields - Net investment income increased by **$13.7 million** in Q1 2024, primarily due to higher equity in earnings of limited partnerships and increased bond income from higher yields[128](index=128&type=chunk) - Limited partnership earnings were **$0.5 million** in Q1 2024, a significant improvement from losses of **$10.8 million** in Q1 2023[128](index=128&type=chunk) [Net realized and unrealized investment gains (losses)](index=33&type=section&id=Net%20realized%20and%20unrealized%20investment%20gains%20(losses)) The company reported net realized and unrealized investment gains of **$1.85 million** in Q1 2024, a positive reversal from a **$5.28 million** loss in Q1 2023, primarily driven by market value adjustments in the preferred stock portfolio Net Realized and Unrealized Investment Gains (Losses) Breakdown (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Available-for-sale securities | $(262) | $(1,619) | | Equity securities | $2,115 | $(3,663) | | Net realized and unrealized investment gains (losses) | $1,853 | $(5,282) | - Net unrealized gains recognized on equity securities held at the reporting date were **$2.05 million** in Q1 2024, compared to losses of **$1.16 million** in Q1 2023[66](index=66&type=chunk) [Net impairment losses recognized in earnings](index=33&type=section&id=Net%20impairment%20losses%20recognized%20in%20earnings) Net impairment losses increased to **$2.68 million** in Q1 2024, primarily due to **$2.17 million** in current expected credit losses on held-to-maturity securities, in addition to impairments on available-for-sale securities Net Impairment Losses (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Available-for-sale securities | $(338) | $(1,633) | | Held-to-maturity securities - expected credit losses | $(2,167) | $— | | Other loans receivable - expected credit losses | $(172) | $0 | | Net impairment losses recognized in earnings | $(2,677) | $(1,633) | [Financial Condition of Erie Insurance Exchange](index=34&type=section&id=Financial%20Condition%20of%20Erie%20Insurance%20Exchange) The Erie Insurance Exchange, the company's sole customer, maintains a strong financial condition with an **A+ 'Superior' rating** from A.M. Best, with its statutory direct written premiums growing **19.0%** in Q1 2024, and policyholders' surplus reaching **$9.5 billion** - The Erie Insurance Exchange is rated **A+ 'Superior'** by A.M. Best, the second highest financial strength rating, with a stable outlook[132](index=132&type=chunk) - Statutory direct written premiums of the Exchange grew **19.0% to $2.7 billion** in Q1 2024[133](index=133&type=chunk) - Policyholders' surplus was **$9.5 billion** at March 31, 2024, and the year-over-year policy retention ratio was **91.2%**[133](index=133&type=chunk) [FINANCIAL CONDITION](index=35&type=section&id=FINANCIAL%20CONDITION) This section provides an overview of the company's investment portfolio, detailing the composition and management of fixed maturity and equity securities, and their impact on the company's financial position [Investments](index=35&type=section&id=Investments) The company's investment portfolio, managed to maximize after-tax returns on a risk-adjusted basis, totaled **$1.15 billion** at March 31, 2024, with available-for-sale securities constituting **84%** of the portfolio and equity securities making up **8%** Investment Portfolio Carrying Value (March 31, 2024) | (dollars in thousands) | March 31, 2024 | % to total | | :--------------------------------------- | :------------- | :--------- | | Available-for-sale securities | $969,645 | 84 % | | Equity securities | $86,578 | 8 % | | Agent loans | $67,448 | 6 % | | Other investments | $28,374 | 2 % | | Total investments | $1,152,045 | 100 % | [Fixed maturities](index=35&type=section&id=Fixed%20maturities) The fixed maturity portfolio is high quality and diversified, managed to achieve reasonable returns while limiting risk, with net unrealized losses on fixed maturities, net of deferred taxes, totaling **$25.5 million** at March 31, 2024 - Net unrealized losses on fixed maturities, net of deferred taxes, totaled **$25.5 million** at March 31, 2024, compared to **$24.7 million** at December 31, 2023[139](index=139&type=chunk) Fair Value of Fixed Maturity Portfolio by Industry Sector and Rating (March 31, 2024) | (in thousands) | AAA | AA | A | BBB | Non investment grade | Fair value | | :--------------------------------------- | :---- | :--- | :-- | :---- | :------------------- | :--------- | | Basic materials | $0 | $0 | $957 | $5,366 | $5,920 | $12,243 | | Communications | $0 | $2,903 | $13,660 | $9,039 | $12,602 | $38,204 | | Consumer | $0 | $1,959 | $22,861 | $65,632 | $41,017 | $131,469 | | Energy | $0 | $0 | $5,638 | $20,734 | $14,447 | $40,819 | | Financial | $0 | $2,041 | $97,008 | $122,412 | $16,146 | $237,607 | | Structured securities | $139,122 | $188,164 | $29,749 | $15,347 | $132 | $372,514 | | Total | $141,020 | $196,106 | $180,437 | $315,617 | $141,298 | $974,478 | [Equity securities](index=36&type=section&id=Equity%20securities) Equity securities, predominantly nonredeemable preferred stocks, are recorded at fair value with all changes in unrealized gains and losses recognized in the Statements of Operations, and the fair value of equity securities increased to **$86.58 million** at March 31, 2024, from **$84.25 million** at December 31, 2023 Fair Value of Equity Securities by Sector (March 31, 2024) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | | Financial services | $70,834 | $69,900 | | Utilities | $5,876 | $5,810 | | Energy | $3,698 | $3,901 | | Consumer | $4,425 | $3,915 | | Technology | $1,500 | $500 | | Industrial | $221 | $180 | | Communications | $24 | $47 | | Total | $86,578 | $84,253 | [LIQUIDITY AND CAPITAL RESOURCES](index=36&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's ability to generate cash flows to meet its short- and long-term obligations, detailing sources and uses of cash, cash flow activities, capital outlook, and off-balance sheet arrangements, while monitoring economic conditions and market volatility [Sources and Uses of Cash](index=36&type=section&id=Sources%20and%20Uses%20of%20Cash) The company's liquidity is primarily generated from management fee revenue and investment income, which are used to fund operating expenses, commissions, salaries, pension plans, share repurchases, dividends, and capital expenditures, and it maintains sufficient liquidity through cash, liquid marketable securities, and a **$100 million** bank revolving line of credit, continuously monitoring economic conditions and market volatility - Liquidity requirements are primarily met by management fee revenue and income from investments[145](index=145&type=chunk) - Cash is used to fund management operations, including commissions, salaries, pension plans, share repurchases, dividends, and capital expenditures[145](index=145&type=chunk) - The company believes it has sufficient access to liquidity through its cash position, diverse liquid marketable securities, and a **$100 million** bank revolving line of credit[144](index=144&type=chunk) [Cash flow activities](index=37&type=section&id=Cash%20flow%20activities) Net cash provided by operating activities rose to **$87.19 million** in Q1 2024, up from $48.03 million in Q1 2023, primarily due to increased management fees and reduced agent incentive compensation, while net cash used in investing activities increased to **$27.00 million**, mainly for fixed asset purchases, and financing activities was **$59.38 million**, consistent with dividends paid Condensed Cash Flow Information (3 Months Ended March 31) | (in thousands) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $87,193 | $48,031 | | Net cash used in investing activities | $(26,999) | $(12,326) | | Net cash used in financing activities | $(59,377) | $(55,419) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $817 | $(19,714) | - Increased cash from operating activities was primarily due to a **$106.4 million** increase in management fees received and a **$26.5 million** decrease in agent incentive compensation paid[148](index=148&type=chunk) - Dividends paid to shareholders increased by **7.1%** for both Class A and Class B common stock in 2024[150](index=150&type=chunk) [Capital Outlook](index=37&type=section&id=Capital%20Outlook) The company regularly forecasts cash requirements for normal and extreme risk events and believes it has sufficient alternatives to meet future funding needs, including unrestricted cash, a **$100 million** bank revolving line of credit, and liquid investment grade bonds - Unrestricted and unpledged cash and cash equivalents totaled approximately **$128.0 million** at March 31, 2024[152](index=152&type=chunk) - The company has access to a **$100 million** bank revolving line of credit and **$801.1 million** in unpledged equity securities and investment grade bonds[152](index=152&type=chunk)[153](index=153&type=chunk) [Off-Balance Sheet Arrangements](index=37&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has contingent obligations related to guarantees, as further detailed in Note 13, 'Commitments and Contingencies,' and management believes these arrangements will not have a material current or future effect on the company's financial condition, results of operations, or cash flows - The company has contingent obligations for guarantees, which are not expected to have a material effect on financial condition, results of operations, or cash flows[154](index=154&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=38&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) The company's financial statements involve significant estimates and assumptions, with the most critical relating to investment valuation and retirement benefit plans for employees, and while management believes these estimates are appropriate, actual amounts may differ - Significant estimates affecting financial statements include investment valuation and retirement benefit plans[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is from fluctuations in interest rates and prices, and despite the current inflationary environment and rising interest rates, there have been no material changes to its portfolio or asset allocations in Q1 2024 - Primary market risk exposure is related to fluctuations in interest rates and prices[157](index=157&type=chunk) - No material changes impacted the investment portfolio or reshaped periodic investment reviews of asset allocations during Q1 2024, despite the inflationary and rising interest rate environment[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, and furthermore, there were no material changes in internal control over financial reporting during the three months ended March 31, 2024 - Disclosure controls and procedures were effective as of March 31, 2024[159](index=159&type=chunk) - No material changes in internal control over financial reporting occurred during Q1 2024[160](index=160&type=chunk) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is vigorously defending against an ongoing class-action lawsuit alleging breaches of fiduciary duty related to management fees, and a district court recently granted a preliminary injunction preventing further state court proceedings, which is now under appeal - The company is a defendant in a class-action lawsuit alleging breaches of fiduciary duty related to the setting of its management fee[162](index=162&type=chunk)[167](index=167&type=chunk) - A district court granted a preliminary injunction on February 28, 2024, to prevent further state court proceedings on claims previously dismissed in federal court[174](index=174&type=chunk) - The district court's preliminary injunction is currently under appeal by the plaintiffs[174](index=174&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[176](index=176&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,238 shares** of Class A common stock in March 2024 to fund a rabbi trust for deferred stock compensation, with approximately **$17.75 million** remaining under its **$150 million** stock repurchase program Class A Common Stock Share Repurchases (Q1 2024) | Period | Total number of shares purchased | Average price paid per share | Dollar value of shares that may yet be purchased under the program | | :----------------- | :----------------------------- | :--------------------------- | :--------------------------------------------------------------- | | January 1-31, 2024 | — | $— | $17,754 | | February 1-29, 2024 | — | $— | $17,754 | | March 1-31, 2024 | 1,238 | $405.57 | $17,754 | | Total | 1,238 | $405.57 | | - The repurchased shares were used to fund the rabbi trust for the outside director deferred stock compensation plan[178](index=178&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the various exhibits filed with the Form 10-Q, including certifications, XBRL documents, and the cover page interactive data file - Exhibits include certifications (31.1, 31.2, 32) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[180](index=180&type=chunk) [SIGNATURES](index=42&type=section&id=SIGNATURES) The report is officially signed on behalf of Erie Indemnity Company by Timothy G. NeCastro, President & CEO, and Julie M. Pelkowski, Executive Vice President & CFO, on April 25, 2024, affirming compliance with Securities Exchange Act requirements - The report was signed by Timothy G. NeCastro, President & CEO, and Julie M. Pelkowski, Executive Vice President & CFO, on April 25, 2024[183](index=183&type=chunk)