Press Release

Previous Release Next Release

Erie Indemnity Reports Third Quarter 2018 Results

Investor Supplement | Statement of Operations 

Net Income per Diluted Share up 37.4 percent for the Quarter and 37.0 percent Year to Date

Erie, Pa. - October 25, 2018 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the quarter ending September 30, 2018.  Net income was $80.4 million, or $1.54 per diluted share, in the third quarter of 2018, compared to $58.5 million, or $1.12 per diluted share, in the third quarter of 2017.  Net income was $225.9 million, or $4.32 per diluted share, in the first nine months of 2018, compared to $164.9 million, or $3.15 per diluted share, in the first nine months of 2017.

3Q and Nine Months 2018

(dollars in thousands)

3Q'18

3Q'17

 

2018

2017

 

Operating income

$

96,695

 

$

81,239

 

 

$

269,585

 

$

231,627

 

 

Investment income

8,431

 

8,418

 

 

20,801

 

21,458

 

 

Interest expense and other, net

655

 

792

 

 

1,708

 

2,031

 

 

Income before income taxes

104,471

 

88,865

 

 

288,678

 

251,054

 

 

Income tax expense

24,025

 

30,322

 

 

62,768

 

86,108

 

 

Net income

$

80,446

 

$

58,543

 

 

$

225,910

 

$

164,946

 

 

 

 

 

 

 

 

 


3Q 2018 Highlights

Operating income before taxes increased $15.5 million, or 19.0 percent, in the third quarter of 2018 compared to the third quarter of 2017, as the growth in total operating revenue outpaced the growth in total operating expenses.

Income from investments before taxes totaled $8.4 million in both the third quarters of 2018 and 2017.  Net investment income was $7.7 million in the third quarter of 2018 compared to $6.0 million in the third quarter of 2017, while earnings on limited partnerships were $0.8 million in the third quarter of 2018 compared to $1.5 million in the third quarter of 2017.

Income before income taxes increased $15.6 million in the third quarter of 2018, while income tax expense decreased $6.3 million in the third quarter of 2018, due to the lower income tax rate of 21% which became effective January 1, 2018.

Nine Months 2018 Highlights

Operating income before taxes increased $38.0 million, or 16.4 percent, in the first nine months of 2018 compared to the first nine months of 2017, as the growth in total operating revenue outpaced the growth in total operating expenses.

Income from investments before taxes totaled $20.8 million in the first nine months of 2018 compared to $21.5 million in the first nine months of 2017.  Net realized losses on investments were $0.5 million in the first nine months of 2018 compared to net realized gains of $1.5 million in the first nine months of 2017 and earnings on limited partnerships were $0.4 million in the first nine months of 2018 compared to $1.9 million in the first nine months of 2017, while net investment income was $21.6 million in the first nine months of 2018 compared to $18.2 million in the first nine months of 2017.

Income before income taxes increased $37.6 million in the first nine months of 2018, while income tax expense decreased $23.3 million in the first nine months of 2018, due to the lower income tax rate of 21% which became effective January 1, 2018.

 

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on October 26, 2018.  Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.

 

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.

Previous Release Next Release