Erie Indemnity Hikes Dividend by 7.1% to Share More Profits

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]