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Erie Indemnity Reports Second Quarter 2018 Results

Net Income per Diluted Share up 36.2 percent for the Quarter and 36.8 percent for the First Half of 2018

View Investor Supplement | Statement of Operations

Erie, Pa. - July 26, 2018 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending June 30, 2018.  Net income was $79.7 million, or $1.52 per diluted share, in the second quarter of 2018, compared to $58.5 million, or $1.12 per diluted share, in the second quarter of 2017.  Net income was $145.5 million, or $2.78 per diluted share, in the first six months of 2018, compared to $106.4 million, or $2.03 per diluted share, in the first six months of 2017.

2Q and First Half 2018

(dollars in thousands)

2Q'18

2Q'17

1H'18

1H'17

Operating income

$

95,323

 

$

83,448

 

$

172,890

 

$

150,388

 

Investment income

6,207

 

6,451

 

12,370

 

13,040

 

Interest expense and other, net

544

 

664

 

1,053

 

1,239

 

   Income before income taxes

100,986

 

89,235

 

184,207

 

162,189

 

Income tax expense

21,280

 

30,708

 

38,743

 

55,786

 

   Net income

$

79,706

 

$

58,527

 

$

145,464

 

$

106,403

 

 

 

 

 

 

 

2Q 2018 Highlights

Operating income before taxes increased $11.9 million, or 14.2 percent, in the second quarter of 2018 compared to the second quarter of 2017, as the growth in total operating revenue outpaced the growth in total operating expenses.

Income from investments before taxes totaled $6.2 million in the second quarter of 2018 compared to $6.5 million in the second quarter of 2017.  Net investment income was $7.1 million in the second quarter of 2018 compared to $6.2 million in the second quarter of 2017, while impairments on investments were $0.6 million in the second quarter of 2018 compared to $0.1 million in the second quarter of 2017 and losses on limited partnerships were $0.2 million in the second quarter of 2018 compared to earnings of $0.1 million in the second quarter of 2017.

Income before income taxes increased $11.8 million in the second quarter of 2018, while income tax expense decreased $9.4 million in the second quarter of 2018, due to the lower income tax rate of 21% which became effective January 1, 2018.

 

First Half 2018 Highlights

Operating income before taxes increased $22.5 million, or 15.0 percent, in the first six months of 2018 compared to the first six months of 2017, as the growth in total operating revenue outpaced the growth in total operating expenses.

Income from investments before taxes totaled $12.4 million in the first six months of 2018 compared to $13.0 million in the first six months of 2017.  Net investment income was $13.9 million in the first six months of 2018 compared to $12.2 million in the first six months of 2017, while net realized losses on investments were $0.5 million in the first six months of 2018 compared to net realized gains of $0.6 million in the first six months of 2017 and losses on limited partnerships were $0.4 million in the first six months of 2018 compared to earnings of $0.4 million in the first six months of 2017.

Income before income taxes increased $22.0 million in the first six months of 2018, while income tax expense decreased $17.0 million in the first six months of 2018, due to the lower income tax rate of 21% which became effective January 1, 2018.

Webcast Information

Indemnity has scheduled a conference call and live audio broadcast on the Web for 10:00 AM ET on July 27, 2018.  Investors may access the live audio broadcast by logging on to www.erieinsurance.com.  Indemnity recommends visiting the website at least 15 minutes prior to the Webcast to download and install any necessary software.  A Webcast audio replay will be available on the Investor Relations page of the Erie Insurance website by 12:30 PM ET.

Erie Insurance Group

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 9th largest homeowners insurer and 11th largest automobile insurer in the United States based on direct premiums written and the 16th largest property/casualty insurer in the United States based on total lines net premium written.  The Group, rated A+ (Superior) by A.M. Best Company, has more than 5 million policies in force and operates in 12 states and the District of Columbia. Erie Insurance Group is a FORTUNE 500 company.

News releases and more information about Erie Insurance Group are available at www.erieinsurance.com.

 

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