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Erie Indemnity Reports Full Year and Fourth Quarter 2020 Results

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Net Income per Diluted Share was $1.20 for the Quarter and $5.61 for the Year

Erie, Pa. - February 25, 2021 - Erie Indemnity Company (NASDAQ: ERIE) today announced financial results for the full year and quarter ending December 31, 2020. Net income was $293.3 million, or $5.61 per diluted share, in 2020, compared to $316.8 million, or $6.06 per diluted share, in 2019. Net income was $62.8 million, or $1.20 per diluted share, in the fourth quarter of 2020, compared to $59.6 million, or $1.14 per diluted share, in the fourth quarter of 2019.

The significant disruption to the economy and financial markets resulting from the COVID-19 pandemic that began in the first quarter of 2020 continues to evolve and the pandemic's ultimate impact and duration remain highly uncertain at this time. Although the Exchange experienced declines in new business premiums in the first half of 2020 due to business disruptions and recessionary conditions, new business premiums grew 10.8% in the second half of 2020 compared to the same period in 2019. The financial markets substantially recovered during the remainder of 2020 from the volatility impacting our portfolio in the first quarter of 2020, resulting in overall realized and unrealized gains.

4Q 2020

(in thousands)

4Q'20

4Q'19

Operating income$65,052$68,700
Investment income14,0716,914
Interest expense and other income, net913(36)
Income before income taxes78,21075,650
Income tax expense15,42516,063
Net income$62,785$59,587

Full Year 2020

(in thousands)

2020

2019

Operating income$338,157$357,339
Investment income32,86739,967
Interest expense and other income, net2,509601
Income before income taxes368,515396,705
Income tax expense75,21179,884
Net income$293,304$316,821

2020 Full Year Highlights

Operating income before taxes decreased $19.2 million, or 5.4 percent, in 2020 compared to 2019.

Income from investments before taxes totaled $32.9 million in 2020 compared to $40.0 million in 2019. Net realized gains on investments were $6.4 million in 2020 compared to $6.1 million in 2019. Net investment income was $29.8 million in 2020 compared to $34.1 million in 2019.

4Q 2020 Highlights

Income from investments before taxes totaled $14.1 million in the fourth quarter of 2020 compared to $6.9 million in the fourth quarter of 2019. Net realized gains on investments were $4.8 million in the fourth quarter of 2020 compared to $0.6 million in the fourth quarter of 2019. Net investment income was $9.4 million in the fourth quarter of 2020 compared to $6.3 million in the fourth quarter of 2019. Included in net investment income is $1.8 million of limited partnership earnings in the fourth quarter of 2020 and $1.9 million in limited partnership losses in the fourth quarter of 2019.

Webcast Information

Indemnity has scheduled a pre-recorded audio broadcast on the Web for 10:00 AM ET on February 26, 2021. Investors may access the pre-recorded audio broadcast by logging on to www.erieinsurance.com.